Foreign Portfolio Investment (FPI) or Foreign Indirect Investment means holding securities, such as stocks and bonds, of companies from other countries but without a controlling interest. It is thus distinguished from Foreign Direct Investment by a notion of direct control. For statistical purposes, the United Nations defines FPI as an equity stake of less than 10 percent in a foreign-based company. Without a a sufficient large equity stake it is difficult to exercise management control.
- Foreign Direct Investment
- Greenfield Investment