FPI
Abbreviation with 2 meanings
| Stands for | Foreign portfolio investment |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance |
FPI has two meanings. It stands for Foreign portfolio investment (economics) or Force-placed insurance (insurance).
Meanings of FPI at a glance
| # | FPI stands for | Context |
|---|---|---|
| 1 | Foreign portfolio investment | Business & Finance › Economics |
| 2 | Force-placed insurance | Business & Finance › Insurance |
1. Foreign portfolio investment
Business & Finance · Economics Abbreviations
Purchases of stocks, bonds and other financial assets in a foreign country without seeking control of the companies, typically below the 10 percent ownership threshold that defines FDI. Portfolio flows can move in and out quickly, making them more volatile.
Example: FPI outflows from Indian equities topped $3 billion in the week as global bond yields rose.
In India, foreign portfolio investors register with SEBI under the FPI regime introduced in 2014. Sudden reversals of portfolio flows, sometimes called "hot money," have contributed to emerging-market currency crises. In insurance, FPI means force-placed insurance.
2. Force-placed insurance
Business & Finance · Insurance Abbreviations
Property insurance a mortgage servicer buys and charges to a borrower whose own homeowners coverage lapsed, protecting the lender's collateral, usually at a much higher cost and with less coverage.
Example: The servicer added $3,200 of FPI to my escrow after my policy was canceled.
Federal mortgage servicing rules require servicers to send two notices before charging for force-placed coverage and to refund overlapping charges once the borrower proves coverage.
Related abbreviations
More economics abbreviations
- ERM – Exchange Rate Mechanism
- FDI – Foreign direct investment
- FFR – Federal funds rate
- FOMC – Federal Open Market Committee
- FTA – Free trade agreement
- FX – Foreign exchange
- GDI – Gross domestic income
- GDP – Gross domestic product
See all 81 economics abbreviations →