Pronunciation: [ˌɛfpˌiːˈa͡ɪ] (IPA) 
The abbreviation "FPI" is spelled using the International Phonetic Alphabet (IPA) as /ɛf pi ˈaɪ/. This means that the first letter is "ef" /ɛf/ followed by "pee" /pi/ and finally "eye" /ˈaɪ/. The pronunciation of "FPI" is thus "eff-pee-eye" in English. FPI is often used to refer to Financial Performance Index, a measure of a company's financial performance, or Front Pembela Islam, an Islamic group in Indonesia.
FPI stands for Foreign Portfolio Investment. It refers to the investment made by individuals, institutions, or funds from one country into the financial markets of another country. FPI involves the purchase of securities such as stocks, bonds, or other financial instruments issued by a foreign entity. These investments do not involve a direct controlling stake in the company or the acquisition of physical assets, but instead focus on gaining financial returns.
Foreign portfolio investments can be both short-term or long-term in nature and are typically driven by the investor's expectation of profitable returns based on the performance of the foreign market. Investors often take into account various factors including economic stability, political environment, interest rates, exchange rates, and market trends before making FPI decisions.
FPI plays a crucial role in global capital flows and economic development. It not only provides an opportunity for investors to diversify their portfolios but also helps in channeling capital to economies that require additional funds. FPI inflows can contribute to the growth of capital markets, increase liquidity, and stimulate economic activities in the receiving countries.
However, FPI can be subject to certain risks such as market volatility, currency fluctuations, geopolitical events, and changes in regulatory or policy frameworks. These risks can impact the attractiveness and profitability of foreign investments. Therefore, it is important for investors to carefully assess the risks and rewards associated with FPI before making investment decisions.
