Institutional Investor - Definition

An institutional investor is a large entity with access to a substantial pool of funds used for investments. They can also include operating companies which decide to invest their profits to some degree in these types of assets. Types of typical investors include banks, insurance companies, retirement or pension funds, hedge funds, Investment advisors and mutual funds. Their role in the economy is to act as highly specialized investors on behalf of others. For instance, an ordinary person will have a pension from his employer. Watching what the big money is buying can sometimes be a good indicator, as they (supposedly) know what they are doing, have access to privileged information and connections beyond the individual investors reach. A closely related concept is a foreign institutional investor (FII), an entity which makes investments in a foreign financial market, as in the case of a British institutional investor investing in India.

Terms near "Institutional Investor"

Interbank Rates
Interbank/Interdealer Market
Interest (Rate)
Interest Rate Swap
International Monetary Fund (IMF)
International Monetary Market (IMM)
International Organization for Standardization (ISO)
International Securities Dealers Association (ISDA)
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