Portfolio investment

In contrast to direct investments , investors in (foreign) portfolio investments do not focus on the controlling aspect. Rather, investors are interested in participating in the profits of foreign companies in the form of returns . This indirect investment opportunity is captured in the long-term capital balance sheet of a national balance of payments. The most common portfolio investments include investments in securities such as stocks , fixed income securities, and mutual funds .

The economically rational motto also applies to portfolio investments: “Capital has a rational logic, it will go where it can earn money, it will make logical decisions about where and how to invest. If he doesn't like a particular region or industry, he goes elsewhere. Governments and societies that evade this market logic are punished. "(Source" Leitspruch ": Paul Kennedy 1996)

In the financial account , in addition to equity investments , lending and derivatives are also considered as indirect foreign investments.