Wednesday, January 19, 2011

FIIs include hedge funds, pension funds and MF

A foreign institutional investor (FII) is an investor or investment fund that is registered in a country outside of the one in which it is currently investing. FIIs include large hedge funds, insurance companies, pension funds and mutual funds. They are required to register with the Securities and Exchange Board of India (SEBI) to participate in the markets here.

The buoyant markets in 2010 owe much to FII influx. FIIs bought equities in the markets to the tune of around 28.6 billion dollars (Rs 1.30 lakh crores). The first week of 2011 began on a grim note as the Sensex and Nifty dropped contrary to expectations of breaking barriers. The banking stocks pulled the indices down, followed by metals sector that faced selling pressure too. The markets are choppy and are bound to remain so for a few more weeks. Since significant market turnover can be attributed to FIIs, it is essential for investors to chalk their strategy after observing FII movements and investment patterns.

2 comments:

  1. Foreign institutional investor are investors who invests in outside country. In market there are different types of investors present and they trade according to the goals which they wants to accomplish from market. Investors often prefer to use best intraday tips for earning good returns on invested capital.

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  2. Amazing information shared. In market you should be aware with all the market updates.

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