Equity Market
Key Differences between FII and DII
DIFFERENCE CHART
| Feature | FII (Foreign Institutional Investors) | DII (Domestic Institutional Investors) |
|---|---|---|
| Definition | Investors/institutions from outside India investing in Indian markets | Indian institutions investing in Indian markets |
| Examples | JP Morgan, Morgan Stanley, BlackRock, Vanguard | LIC, SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund |
| Source of Funds | Foreign countries or global funds | Indian banks, insurance companies, mutual funds |
| Currency Used | Invest in Indian markets by converting foreign currency | Invest in Indian Rupees |
| Regulation by | SEBI + RBI (with some foreign investment rules) | SEBI (Domestic norms) |
| Impact on Market | Can cause high volatility due to large inflows/outflows | More stable and long-term focused |
| Investment Horizon | Usually short to medium-term (opportunistic) | Usually long-term (retirement, insurance, mutual funds) |
| Market Reaction | Sudden FII exit can cause a market crash or correction | DII often act as stabilizers in such events |
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