Who are institutional investors?

A firm or organization that invests money on behalf of customers or members is known as an institutional investor. Institutional investors include hedge funds, mutual funds, and endowments. Institutional investors are thought to be more knowledgeable than typical investors, and they are frequently subject to less governmental supervision.

An institutional investor is a company or organization that invests money on behalf of other people. Mutual funds, pensions, insurance companies are institutional investors. Institutional investors often buy and sell substantial blocks of stocks, bonds, or other securities and, for that reason, are considered to be the whales on Wall Street.

The group is also viewed as more sophisticated than the average retail investor and, in some instances, are subject to less restrictive regulations.