Foreign Institutional Investors or FII are important for the countries that they invest in. They provide capital and, as a result, help to reduce the cost of borrowing and increase the availability of finance for borrowers.Foreign institutional investors (FII) can be more sensitive to different risks than domestic investors and might react differently to changes in economic conditions.Foreign institutional investors (FII) take advantage of opportunities in economies that are not their own by investing in them. Foreign institutional investors some of the factors that foreign institutional investors consider when investing in a country.