Table of Contents
UPSC 2011
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
- FII helps bring better management skills and technology, while FDI only brings in capital
- FII helps in increasing capital availability in general, while FDI only targets specific sectors
- FII is considered to be more stable than FDI
- FDI flows only into the secondary market, while FII targets primary market
WHO IS WARREN BUFFET AND WHY HE MATTERS?
An American business magnate, investor, speaker and philanthropist who serves as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$84 billion as of June 3, 2018, making him the third wealthiest person in the world.
‘ORACLE OF OMAHA,’ WARREN BUFFETT
Oracle in this context – someone who knows a lot about a subject and can give good advice
BIG NEWS FOR INDIA
Warren Buffett’s Berkshire Hathaway is in talks to invest about Rs 2,000-2,500 crore in Paytm parent One97 Communications, in what could be the first direct investment in India by the legendary investor INITIAL REPORTS BY ET
– NOT OFFICIAL WON’T BE A NEW PATTERN 10 BILLION DOLLAR COMPANY
Paytm was valued at around $7 billion last year when it raised $1 billion from Softbank Vision Fund and around
$10 billion earlier this year during a secondary share sale by employees of the company. If the transaction goes through, it will give Paytm more firepower to strengthen its market leadership against Flipkart-owned Phonepe and Google’s Tez besides potential competition from Facebook-owned WhatsApp and Reliance Jio.
WARREN BUFFET BOOST FOR PAYTM
- Paytm may be set to join the club of Warren Buffett’s investments — Apple, Bank of America (BAC), Coca-Cola, American Express, Phillips 66, and a lot more
- The Indian ecommerce industry is currently worth $200 Bn while the digital payments industry is expected to grow five-fold to reach $1 Tn by 2023, as predicted by Credit Suisse. UPSC 2011 Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country.
Which one of the following statements best represents an important difference between the two?
- FII helps bring better management skills and technology, while FDI only brings in capital
- FII helps in increasing capital availability in general, while FDI only targets specific sectors
- FII is considered to be more stable than FDI
- FDI flows only into the secondary market, while FII targets primary market
ANSWER – B FDI AND FII
- FII is when foreign investors invest in the shares of a company that is listed in India, or in bonds offered by an Indian company. So, if a foreign investor buys shares in Infosys then that qualifies as FII Investment.
- It is easy to see why you would prefer FDI to FII investments. FDI investments are more stable
- (FDI (Foreign Direct Investment) and FII (Foreign Institutional Investor) )
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