Sanjeev, FDI stands of Foreign Direct Investment while FII is Foreign Institutional Investor. So just by the name we can conclude that FDI is a type of investment and FII is a foreign firm which is intersted in investing. Now as for your second point, FDI is a type of investment which is tangible such as putting up a power plan, or investing in similar infrastrucre projects which are physical in nature. Hope this helps! Vanmeet