Foreign portfolio investment (FPI)

portfolio-investment-fpi/" data-gt-translate-attributes='[{"attribute":"data-cmtooltip", "format":"html"}]' tabindex='0' role='link'>Foreign portfolio investment (FPI) – Foreign portfolio investment typically involves short-term positions in financial assets of international markets, and is similar to investing in domestic securities. FPI allows investors to take part in the profitability of firms operating abroad without having to directly manage their operations. This type of investment is relatively liquid, depending on the volatility of the market invested in. Foreign portfolio investment differs from foreign direct investment (FDI), in which a company fully controls a foreign firm.