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Investments glossary

Foreign Portfolio Investment (FPI)


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Quotes of the day:

All that glitters is not gold, and things that look warm are often cold!

— Yassine Aumerally

Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company’s assets and is relatively liquid depending on the volatility of the market. Along with foreign direct investment (FDI), FPI is one of the common ways to invest in an overseas economy. FDI and FPI are both important sources of funding for most economies.

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