F.I.Is. It means Foreign Institution Investor. Who is a Foreign Institution Investor? Today we are going to tell you something about it.
Institution Investor has a very impForeignortant role in the Indian stock market. Because in a developing country like India, everyone wants to invest their money and that includes Foreign Institution Investor. But who is this Foreign Institution Investor, then let us tell you. Whatever money that comes from outside India or from other countries into the stock market of India or any asset class. He is also called a Foreign Institution Investor.
Why Foreign Institution Investor is so important for Indian stock market
In the history of the Indian stock market, the Foreign Institution Investor has shown a lot of confidence in the Indian market. Because Indian economy and 130cr population of India out of which more than 50% are youth. Which is a strong link for the rapid progress of the Indian economy, only then the Indian economy is the fastest growing economy compared to all the countries of the world for many years.
The Foreign Institutional Investor has a long history with the Indian economy. The Indian stock market was started in India in the 19s. The people of India did not invest in the Indian stock market even because Indians did not have much knowledge of the stock market. That’s when this Foreign Institutional Investor started investing in the Indian market seeing a huge opportunity in the Indian market. This is how Foreign Institutional Investor started investing in the Indian market.
What is the effect of buying FIIs in the Indian market?
In this way Foreign Institutional Investor investing money in Indian market in any form is beneficial for both Indian market and Indian economy. And this trend can continue in Indian market for five to ten years now.
Whenever foreign investors invest money in the Indian stock market. That money mostly comes in the form of dollar or euro currency in India market. Due to which there are many positive effects, due to which there is an increase in the Indian currency reserves. Due to this the Indian rupee strengthens. And it affects the import-export of business. With the strengthening of Indian currency, import duty comes down.
All of us can also invest money in the Indian market for a long period of time like a foreign institutional investor without fearing the ups and downs of the market. And you can earn money from stock market. So invest in the Indian stock market without fear and build a good portfolio and invest your money in a good company.
In yesterday’s session, there was a strong rally in the Indian market, the biggest reason for this was the foreign institutional investors. Who bought 4126cr in one day yesterday in Indian market. Due to which all the sectors of the Indian market performed strongly.
The ups and downs in the stock market may continue. So do not panic and make the idea of investing in good company for long term.
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