DII

DII Full Form: Domestic Institutional Investor

What is DII?

Domestic Institutional Investor (DII) are investors, who typically invest in the country or region where they reside. DIIs typically invest in stocks, bonds, derivatives, and other securities.

Types of DIIs

Types of Domestic Institutional Investors (DIIs) in India range from traditional players such as banking and insurance institutions, to modern players like mutual funds, venture capital and private equity firms. Banks are one of the most important sources of institutional investment in India.

Indian banks and other Indian financial entities

Banks are one of the most important sources of institutional investment in India. They offer a variety of long-term investments such as term deposits, bonds and loans to companies, and also participate in large public offerings.

Indian Insurance Companies

Indian Insurance Companies are regulated by the Insurance Regulatory Development Authority (IRDA), which is responsible for regulating the insurance sector in India. Life Insurance Corporation (LIC) is the largest Indian life insurer, with a significant presence in both rural and urban areas.

Indian Mutual Funds

Mutual Funds are managed by professional fund managers who invest in financial assets such as stocks and bonds according to the stated objectives of the fund. These funds provide diversification benefits and simplify exposure to different asset classes for individual investors.

FII vs DII

FII stands for Foreign Institutional Investors while DII stands for Domestic Institutional Investors. Both FII and DII can buy or sell their shares in companies listed on India's National Stock Exchange or Bombay Stock Exchange, making them significant players influencing market trends. FIIs invest money from abroad, with the primary purpose of generating a return on their investment, while DIIs invest money within India, often representing mutual funds invested by people from all parts of the country. It is crucial to follow the activities of both FII and DII closely to help inform better decisions around investing in the Indian stock market.