Foreign Institutional Investors (FIIs) are investors or funds that invest in a country apart from the one where they are registered or headquartered. FIIs include investment banks, mutual funds, hedge funds, and pension funds.
- Improving capital flow:
- FIIs can increase the liquidity and depth of a country’s capital market by improving the flow of capital in the country.
- Bringing capital to businesses:
- FIIs can bring capital and funds to businesses in developing countries.