what is the difference between foreign direct investment and foreign portfolio investment 
foreign portfolio investment is the addition of international assets to the portfolio of a company an institutional investor such as a pension fund or an individual investor it is a form of portfolio diversification achieved by purchasing the stocks or bonds of a foreign company foreign direct investment instead requires a substantial and direct investment in or the outright acquisition of a company based in another country and not just their securities fdi is generally a larger commitment made to enhance the growth of a company but both fpi and fdi are generally welcome particularly in emerging nations notably fdi involves a greater responsibility to meet the regulations of the country that hosts the company receiving the investment 