Foreign Institutional Investors

A foreign institutional investor, or FII, is a hedge fund manager, pension fund manager, mutual fund, bank, i💝nsurance firm or representative agent of these entities who is registered to invest in a foreign country. The FII takes equity positions in foreign financial markets onꦛ behalf of the entity that is based in another country.

This term is frequently used in reference to investing in 澳洲幸运5开奖号码历史查询:emerging market economies. Direct access to the equities markets in some countries is limited and regulated. For example, foreign institutional investors seeking to invest in Indian companies must register with the 澳洲幸运5开奖号码历史查询:Se🗹curities and Exchange Bo🉐ard of India, or SEBI.

Foreign Institutional Investments

Emerging markets offer significant potential for growth in the near future. This potential is attracting large numbers of investors from the United States and other countries. Many investments are made in the form of foreign institutional investments. These investments are sometimes referred to as "澳洲幸运5开奖号码历史查询:hot money," since they often represent substantial sums that can be🐻 withdrawn from the markets at any time, potenti♋ally increasing volatility in foreign equity markets.

In the past few decades, developing economies began to appreciate the value of, and need ൩for, foreign investments, and made moves to provide easier access to their financial markets.

Foreign institutional investments have favored the banking and construction sectors, as well as information tech😼nology companies. Major multinational companies involved in foreign institutional investment include Citigroup (C), HSBC (ADR -HSBC) and Merrill Lynch (MER).