Diferrence between diect and portfolio investments?

Difference between direct and portfolio investments:
Basis Foreign direct investment Portfolio investment
1.Meaning Foreign direct investment, commonly known as FDI, refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor. Portfolio Investment refers to the investment in the assets of a foreign country without any control over that asset.
2.Control FDI lead to a complete control over the management of company. People who have portfolio investment cannot participate in the decision making of the other company.
3.Example For example, purchase of a foreign company by an Indian business group in America. For example, purchase of shares of a company in abroad.
 

 

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