DIFFERENCE BETWEEN FII & DII

What is FII vs DII?
‘FII’ stands for ‘foreign institution investor,’ and refers to an investment fund or investor who invests his or her assets in a country’s assets while having a large head outside of it. In India, this is a term often used to refer to foreign companies that contribute to the country’s financial markets by investing. On the other hand, ‘DII’ represents ‘domestic institution investors’. ‘Unlike FIIs, DIIs are investors who invest in the assets and protections of the country in which they currently live.

These investment decisions for both FIIs and DIIs are influenced by political and economic trends. In addition, both types of investors – foreign institutional investors (FIIs) and local institutional investors (DIIs) – could affect the overall cash flow of the economy.

Types of FII vs DIIs
When it comes to the differences between FII and DII in terms of their types, there is not much difference other than where the business is based. In India, there is a total of four sets of local institutional investors. These are Indian cooperative funds, local pension schemes, Indian insurance companies, and banks or financial institutions. On the other hand, FIIs in India include hedge funds, pension funds, international insurance companies, and joint ventures, all of which are not based in India.

Influence of FII vs DIIs

For India, FIIs are differentThe difference between FII and DII in terms of impact is the issue of the current economic situation. Domestic institutional investors currently have a significant role to play in the performance of the Indian stock market, especially where foreign institutional investors are the net selte of a key financial driver. However, India has limited the total number of assets foreign investors can buy and the number of shares that they can buy from a single company. This works to reduce the limit FII may have on individual companies and the national financial markets. In addition, this limit also protects the potential damage by reducing the influence of FIIs on Indian markets, such as the national economy would not be affected if FII fled in large numbers.

brave. As of March 2020, DIIs have invested a total of 95 55,595 crores in the Indian equity market. This was a record investment in the country within a month.

Competitive analysis of FII vs DII 2020

  1. Asset Management (AUM)

After the March quarter, as of April 2020, foreign institutional investors had approximately ₹ 24.4 lakh in their assets under management and local institutional investors valued at ₹ 20.4 lakh. As of January 2020, DIIs have seen about 10% fall in their AUMs while FIIs have seen more than double that fall by about 21.3%.

  1. Equity Holdings

In the BSE 500 index, the shareholding of domestic institutional investors has reached almost one-third of the float free market capitalization. In the March 2020 quarter, local institutional investors increased their numbers to 106 Indian companies by 1% while cutting off 42 existing Indian companies in the BSE-500 index. The most prominent companies in which domestic institutional investors have raised their stake are Eicher Motors, Power Grid Corporations, Coal India, ONGC, and NTPC by investing more than ₹ 15,000 crores in them.

Prior to the stock exchanges, those of India’s foreign institution’s shareholders in the BSE 500 index fell 0.70% to 21.5% of the total market capitalization of that index. What was observed in the Match 2020 quarter was that foreign institutional investors also cut their share in 27 Indian companies in the Nifty 50 of India.

  1. IDI vs FII Ownership Size

The amount of FII vs DII ‘ownership’ is equal to the total FII equity management divided by the total DII value for each given time period. As of its peak in April 2015, the rate did not drop to 1.2 in April 2020.

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