Investor

Who are institutional investors and non
institutional investors?

Institutional investors are the ones that are known for making huge investment. These are generally those institutions like the hedge funds, pension funds and investment banks and many other different large institutions which are responsible for almost half of the total trading volume in the stock exchange. They basically deal with large block of shares which are bought and sold by them thus making a major influence on the movement of the stock market. Now since these institutional investors are known to be more sensible while making an investment, fewer SEC regulations are made on them as compared to the regular investors who invest every day. The money which is invested by them usually belongs to maybe a pension plan or a mutual fund.

On the other hand the non institutional investors are those who are the everyday investors and don’t invest a huge chunk. They are those who don’t come in the category of the institutional investors. These investors are usually everyone else except the institutional investors. They are those typical types of investors who take the help of a broker to for buying and selling of debt and equity. They usually have plans for retirement or to make a large purchase and hence they manage the investments that they make.

The difference between the institutional investors and non institutional investors

Now there is a huge difference between both the institutional investors and non institutional investors.

While the institutional investors make investment for other people the non institutional investors make investment for themselves.  The institutional investors make investment on a large scale while the non institutional investors make investment according to their personal capability and plannings.  The institutional investors are known to make a noticeable impact on the total trading volume in the stock exchange while the non institutional investors do not make much of an impact on the trading volume.

Also it is a fact that the money that the institutional investors make aren’t exactly something that these intuition raise for themselves instead these investors invest for other people. It to understand it as an example all those people who are availing the benefits of the mutual funds, pension plan or some kind of insurance, then chances are that you are actually being benefited by those institutional investors.  Now on one hand where the institutional investors make investments for other, the non institutional investors are the ones who are involved in the buying and selling of the equity, debts or any other kind of investment through the help of some external source.  They may take help from either a broker or an agent who deals with the real estate matters. So in general the non institutional investors are the ones who manage their money by themselves as they have some long terms planning like for retirement or are planning to make a large purchase and thus are saving for it.

Conclusion

Thus there is a huge difference between the two on the basis of the investments that they make which depends on the amount that they are investing and also for the purpose for which they are investing.