FDI FPI

Management Projects are efficiently managed

Projects are less efficiently managed

Involvement - direct or indirect

Involved in management and ownership control; long-term interest

No active involvement in management. Investment instruments that are more easily traded, less permanent and do not represent a controlling stake in an enterprise.

Sell offIt is more difficult to sell off or pull out.

It is fairly easy to sell securities and pull out because they are liquid.

Comes from

Tends to be undertaken by Multinational organisations

Comes from more diverse sources e.g.a small company's pension fund or through mutual funds held by individuals; investment via equity instruments (stocks) or debt (bonds) of a foreign enterprise.

What is invested

Involves the transfer of non-financial assets e.g.technology and intellectual capital, in addition to financial assets.

Only investment of financial assets.

Stands for Foreign Direct Investment

Foreign Portfolio Investment

Volatility Having smaller in net inflows

Having larger net inflows