Foreign Institutional Investor - FII

Loading the player...

What is a 'Foreign Institutional Investor - FII'

A foreign institutional investor (FII) is an investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.

BREAKING DOWN 'Foreign Institutional Investor - FII'

The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies.

RELATED TERMS
  1. Institutional Fund

    A fund that targets high value investors with low management ...
  2. Investment Company

    A corporation or trust engaged in the business of investing the ...
  3. Hedge Fund

    An aggressively managed portfolio of investments that uses leveraged, ...
  4. Fund Of Funds

    A mutual fund that invests in other mutual funds. This method ...
  5. Legal List

    A selection of eligible companies and investments, determined ...
  6. Fund Supermarkets

    An investment firm or brokerage that offers investors a wide ...
Related Articles
  1. Investing Basics

    What is a Foreign Institutional Investor?

    A foreign institutional investor (FII) is a person or a group of people operating or registered in a country that’s not their domicile.
  2. Fundamental Analysis

    An Introduction To The Indian Stock Market

    Emerging markets like India are fast becoming engines for future growth. Find out how to get in on the ground floor.
  3. Fundamental Analysis

    Introduction To Institutional Investing

    Investopedia explains: Learn about institutional investing and all of the major players in this field.
  4. Investing News

    4 Factors to Know About Money Market Reform in 2016 (FII, BAC)

    Learn more about the impending implementation of the money market fund reform, including how it impacts individual and institutional investors.
  5. Options & Futures

    Hedge Funds Go Retail

    Find out how average investors are breaking into what was once reserved for the ultra rich.
  6. Stock Analysis

    An Introduction To The Indian Stock Market

    Most trading in the Indian stock market occurs through its two exchanges – the Bombay Stock Exchange and the National Stock Exchange.
  7. Investing

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  8. Investing Basics

    Broadening Your Portfolio's Borders

    Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
  9. Mutual Funds & ETFs

    A Mutual Funds Guide for Young Investors

    Learn how mutual funds work, why they are so popular and how younger investors can get started by putting mutual funds in their IRAs or 401(k)s.
  10. Mutual Funds & ETFs

    How Mutual Funds Affect Stock Prices

    Find out how mutual fund trading activity -- and that of other institutional investors -- impacts stock prices, including both short and long-term effects.
RELATED FAQS
  1. How does a Foreign Institutional Investor (FII) manage currency risk when investing ...

    Find out how foreign institutional investors protect themselves against inflation and currency risks when investing in international ... Read Answer >>
  2. Should mutual funds be subject to more regulation?

    Understand whether mutual funds need stricter regulation. Learn what types of current and future regulations have been put ... Read Answer >>
  3. How can an individual investor get involved in FDIs (foreign direct investments) ...

    Understand what the term foreign direct investment (FDI) means, and learn how individual investors can get involved in FDI ... Read Answer >>
  4. Can foreign investors invest in US hedge funds?

    Understand whether foreign investors are permitted to invest in hedge funds that are based in the United States, and find ... Read Answer >>
  5. What does a hedge fund do?

    Read how hedge funds differ from other investment vehicles and how their investment strategies make them unique and potentially ... Read Answer >>
  6. If I am American, can I buy a foreign mutual fund?

    That depends. It is possible for you to buy a mutual fund issued in a country other than the United States; however, the ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center