• Foreign portfolio investment (FPI) involves holding financial assets from a country outside the investor’s country.

  • FDI investments may include shares, ADRs, GDRs, bonds, mutual funds and exchange-traded funds.
  • Along with foreign direct investment (FDI), FDI is one of the most common ways for investors to participate in foreign economies, especially retail investors.
  • Unlike FDI, FDI consists of passive ownership; investors do not have control over the enterprises or direct ownership of property or shares in the company.