Current Affairs · Economy
With reference to Foreign Portfolio Investment (FPI), which of the following statements is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The investor actively manages the operations of the underlying business through FPI.
- 2Foreign portfolio investment is a major component of a country's current account.
- 3It provides the investor with ownership of financial assets like stocks or bonds without direct control.✓
- 4It is less volatile and less risky than Foreign Direct Investment (FDI).
Correct answer
It provides the investor with ownership of financial assets like stocks or bonds without direct control.
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