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Direct Investment
Investors (high net worth individuals, pooled institutional investment schemes or companies) have two basic ways of investing: portfolio investment (buying equity or debt of a company) or through direct investment. Direct investment involves taking a stake in the investee and typically involves deeper engagement, including board representation and influence over strategy and operations, than the portfolio approach. Direct investment will also tend to mean a long-horizon investment. Direct investment into the company outside the direct investor’s base is Foreign Direct Investment (FDI).