FULL FORM OF FIIs

             FIIs stand for Foreign Institutional Investors.   FII are institutional investors that invest in assets belonging to a different  country other than that where these organisation are based. FII play a very important role in the economy. FII are the big investment companies like investment banks,mutual fund,hedge fund,insurance companies,pension fund etc. They invest huge amount of money in the market. With the buying of securities by these big institutional investors market tends to move upwards. 
             Some developing economies attracts the foreign institutional investors with the view that investors will get higher potential growth. This may be one reason FII are commonly found in India which has a high growth economy and attractive individual corporations to invest in. All FII in India must register with the Securities and Exchange Board If India before investing in the Indian Market. 
             The process of investment of Foreign institutional Investors can be understand with the following example-- If a mutual fund house of France asses a high growth investment opportunity in an Indian listed company, it can make investment in that Indian company by purchasing of that company's share. In type of investment arrangement also benefit private France investors who may not be able to buy Indian stock directly,instead they can invest via mutual fund and take part in the high growth potential .  
    

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