Difference between FII and DII

Define FII & DII. 

 Foreign institutional investors( FII) are those investors which invest in another country's assets except where the organisation are based. 

           Domestic institutional investors(DII) are those investors which invest in their country market where they are located. 

 Explanation :

FII puts their money into a country's asset and headquarters located outside of it. It is outsider entities that participate in the country's financial market by investing. 

Unlike, FII, DII is a group of investors that allot shares and bonds in their country market and currently residing in. 

FII and DII invest in large proportions along it can impact the economy's net investment flows. Additionally, investment conclusions are impacted by political and economic trends. 

FII and DII are large investors which buy large quantities of securities as a result stock price moves up and vice versa. These investors use an algo trading setup that buys a share or bonds a fraction of time. 

Additionally, the buyer's price increase because a large proportion of share allots that specifics investors and when targets reach out all share sell within a second. 

Types of FII and DII 

In India, there are four sets of domestic institutional investors I.e., Indian mutual funds, local pensions schemes, Indian insurance companies, and banks or financial institutions. On the other hand, FII includes hedge funds, pensions funds, international insurance companies, and mutual funds. 

Contribution of FII and DII in Indian stock market