Greetings, First of all ! Welcome to our post on meriSIP.com Today we will learn about Who are FIIs and DIIs? 

1. FIIs vs DIIs

In India, people can be divided into two categories: –

(a) Indian Citizens

(b) Non-Indians

Likewise, our stock-market has two categories of large Investors: – 

(a) DIIs (Domestic Institutional Investors)

(b) FIIs (Foreign Intitutional Investors)

Other than these, there are more people participating in our stock market: – Individual Investors (Indian), Individual Investors (Foreign), etc.

(a) FIIs – Foreign Institutional Investors

Their meaning is clearly understandable from its full-form.

 Foreign – Outsiders

Institutional – Registered as an Institution (groups)

Investors – Who want to invest money

There are many FIIs in our Indian Markets, most of them invest money through passive way. The examples of FIIs are: –

1. Soveriegn Wealth Funds – These funds are managed by foreign govt. They invest money into Indian Equities specially into blue-chip stocks. Ex – ADIA (Abu Dhabi Investment Authority), Govt Pension Fund of Norway & many more.
2. Pension Funds – These funds invests money of their citizens outside their country into foreign equities for stable retirement and less risk. They took exposure into defensive sectors like FMCG, etc. Ex – CPPIB – Canada Pension Plan Investment Board, CalPERS (California Public Employee’s Retirement System) & many more.
3. Mutual Funds & AMCs – Foreign mutual funds and AMCs those want exposure into foreign equitites. Ex – Vanguard, BlackRock, & many more.
4. Hedge Funds – These do active trading in foreign stocks and derivatives. These funds react fast onto news and operate under high volatility and high risk. Ex – Jane Street, Citadel, Renaissance Tech, & many more.
5. Private Equity & Venture Capitals – These invest money into unlisted startups/companies to earn big profits from the ideas of founders and their business plans. Ex – Seqoia Capital, Carlyle Group, & many more.

(b) DIIs – Domestic Institutional Investors

Domestic – Withing India

Institution – Working as groups

Investors – Investing money

There are different kind of DIIs as well into our markets. They are: – 

1. Indian Mutual Funds – Investing money into stocks and bonds. Ex- SBI AMC, DSP Mutual Funds, & many more.
2. Insurance Companies – Insurance companies themselves invest their money into stock market. They simply take premiums from the policy buyers and invest that money to earn money. Ex – LIC, ICICI Pru, & many more.
3. Indian Pension Funds – To provide stable income from the money inevsted for reitrement. Ex- EPF (Employees Provident Funds), National Pension Fund, & many more.
4. Banks & Financial institutions – Banks themselves invest their deposited money to earn extra returns. Ex – SBI Treasury fund, HDFC bank investment division, & many more.
5. Indian Hedge Funds
6. india Private Equity & VCs

I hope you understood the differences. You can write suggestion to us, if you have any. you feedback is valuable to us. 

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