Foreign Portfolio Investor

Subject: Economy

Context:

Foreign portfolio investors (FPIs) bought shares worth ₹20,814 crore in just five trading sessions in the current month. This is the highest in any month of 2020.

Concept:

• Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country.
• It does not provide the investor with direct ownership of a company’s assets and is relatively liquid depending on the volatility of the market.
• FPI holdings can include stocks, depository receipts, bonds, mutual funds, and exchange traded funds