Effects of Fii
Research Proposal
Submitted by : Bharti Arora
Roll no-PHC 69
Title: Impact of FIIs on Investment Portfolio of individuals and economic growth of India.
Introduction
This paper aims to shed light on the behaviour of individual investors when foreign investments inject in the economy. The focus is to study the role of foreign institutional investors in changing the investment decisions of the individual investors and their contribution to economic growth through Capital accumulation in the economy , scope of the study is limited to India.
Individual investor we mean by the small investor who invests in capital market, money market, real estate ,gold, bonds, Banks, post office instruments .Individual investment decisions are affected by many factors such as risk tolerance ,type of investor , knowledge of the product ,geographical, demographic factors, economic conditions and most importantly returns of the investment. Individual investors are highly motivated by the higher returns with optimum level of risk .FIIs play active and major role in the volatility of the stock market . Trading by FIIs happens on a continuous basis and therefore has a lasting impact on the local stock market.
A significant improvement has also taken place in India relating to the flow of foreign capital during the period of post economic reforms. The major change in the capital flows particularly in Foreign Institutional Investors (FIIs) investments has taken place following the changes in trade and industrial policy. Over the past 15 years or so India has gradually emerged an important destination of global investors’ investments in emerging equity markets.
Foreign portfolio investment is a non–debt creating instrument ,stock market is the important channel to attract foreign capital which increases foreign exchange reserves and fulfil the gap of balance of payments. It has direct impact on economy of developing nations as most of the inflows comes out of the developed nation.
Submitted by : Bharti Arora
Roll no-PHC 69
Title: Impact of FIIs on Investment Portfolio of individuals and economic growth of India.
Introduction
This paper aims to shed light on the behaviour of individual investors when foreign investments inject in the economy. The focus is to study the role of foreign institutional investors in changing the investment decisions of the individual investors and their contribution to economic growth through Capital accumulation in the economy , scope of the study is limited to India.
Individual investor we mean by the small investor who invests in capital market, money market, real estate ,gold, bonds, Banks, post office instruments .Individual investment decisions are affected by many factors such as risk tolerance ,type of investor , knowledge of the product ,geographical, demographic factors, economic conditions and most importantly returns of the investment. Individual investors are highly motivated by the higher returns with optimum level of risk .FIIs play active and major role in the volatility of the stock market . Trading by FIIs happens on a continuous basis and therefore has a lasting impact on the local stock market.
A significant improvement has also taken place in India relating to the flow of foreign capital during the period of post economic reforms. The major change in the capital flows particularly in Foreign Institutional Investors (FIIs) investments has taken place following the changes in trade and industrial policy. Over the past 15 years or so India has gradually emerged an important destination of global investors’ investments in emerging equity markets.
Foreign portfolio investment is a non–debt creating instrument ,stock market is the important channel to attract foreign capital which increases foreign exchange reserves and fulfil the gap of balance of payments. It has direct impact on economy of developing nations as most of the inflows comes out of the developed nation.