What are FIIs and FDIs?

Foreign Institutional Investors (FIIs) can be individual investors, hedge funds, banks, mutual fund houses, infrastructure companies, etc. that invest in assets belonging to a country other than their own.

They invest in the markets of a foreign company. It is also known as ‘hot money since it increases the capital inflow of a country for the time being. FIIs tend to influence the market. When they buy, the market tends to go up, and when they sell, it tends to go down.

FDI is an investment that a parent company makes in another country with a view to taking controlling ownership in a foreign company and participating in the day to day business.

They invest in these countries because they see a strong potential for growth in them. When an FDI happens, the investor brings knowledge, skills and technical expertise along with the capital investment. Therefore they have a good hold in decision making.

Top FIIs in India

1 – Government of Singapore: The Government of Singapore has been one of the top investors in India for a couple of years. Currently, it holds 43 stocks with a net worth of over Rs. 118,304.2 Cr. in India.

The government of Singapore has invested in
ICICI Prudential Life Insurance Company Ltd.
Macrotech Developers Ltd.
Kalyan Jewellers Ltd.
SBI Life Insurance company Ltd.
HDFC Life Insurance Company Ltd.
Hathway Cable & Datacom Ltd.
Housing Development Finance Corporation Ltd.
Indigo Paints Ltd. and more.

2 – Europacific Growth Fund: The Europacific Growth Fund is another notable investor. It holds 9 stocks with a net worth of over Rs. 89,968.7 Cr. in India.

Europacific Growth Fund has invested in

HDFC Life Insurance Company Ltd.
HDFC Bank Ltd.
Axis Bank Ltd.
Bajaj Finserv Ltd.
Bharti Airtel Ltd.
Godrej Consumer Products Ltd.
ICICI Bank Ltd.
Kotak Mahindra Bank Ltd.
Reliance Industries Ltd. and more.

3 – Government Pension Global Fund: The Government Pension Global Fund from Norway has invested in 68 stocks with a net worth of over Rs. 51,232.2 Cr. in India.

Government Pension Global Fund major holdings include

Atul Ltd.
Deepak Fertilisers & Petrochemicals Corporation Ltd.
CreditAccess Grameen Ltd.,
Hathway Cable & Datacom Ltd.
Krishna Institute of Medical Sciences Ltd.
Granules India Ltd.
Balkrishna Industries Ltd.
Cadila Healthcare Ltd.
Divi’s Laboratories Ltd. and more.

Some of the other Foreign Institutional Investors(FII) that have holdings in India are

Oppenheimer Developing Markets Fund
Vanguard Fund, Nalanda India Fund Limited
Elara India Opportunities Fund Limited
Amansa Holdings Private Limited
Smallcap World Fund Inc
East Bridge Capital Master Fund Limited.

Top FDIs In India

Government of Singapore: The Government of Singapore has invested not only as FII in India, but also in FDI. It was the top source of FDI in India in the year 2021, with a 40% increase YoY. It mainly invests in IT, manufacturing, real estate, construction, pharmaceuticals and renewable energy and has invested over 17 billion USD in India.

USA: Recently, the USA has replaced Mauritius as the second-largest foreign investor in India. It invested almost 14 billion USD in India. Companies like Google, Apple, Microsoft, Ford, ExxonMobil, PepsiCo, JP Morgan, General Electric, Johnson & Johnson and more are investing in India.

Mauritius: It was the second-largest foreign Investor in India until the US took over. In October 2021, it exited the FATF’s (Financial Action Task Force) Greylist, since it has improved its anti-money laundering /counter financing of terrorism regime. This means that we can expect an increase in FDI in India from the island.

The other major FDIs in India are the Cayman Islands, the Netherlands, Japan and the UK, as per a report published in October 2021.

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