Comparison between FDI and FPI

	FDI	FPI
What is invested:	Involves the transfer of non-financial assets e.g.technology and intellectual capital, in addition to financial assets.	Only investment of financial assets.
Stands for:	Foreign Direct Investment	Foreign Portfolio Investment
Volatility:	Having smaller in net inflows	Having larger net inflows
Management:	Projects are efficiently managed	Projects are less efficiently managed
Involvement - direct or indirect:	Involved in management and ownership control; long-term interest	No active involvement in management. Investment instruments that are more easily traded, less permanent and do not represent a controlling stake in an enterprise.
Sell off:	It is more difficult to sell off or pull out.	It is fairly easy to sell securities and pull out because they are liquid.
Comes from:	Tends to be undertaken by Multinational organisations	Comes from more diverse sources e.g.a small company's pension fund or through mutual funds held by individuals; investment via equity instruments (stocks) or debt (bonds) of a foreign enterprise.