An institutional investor is an organization that invests large sums of money on behalf of its members or clients. These investors include entities like pension funds, insurance companies, and mutual funds. They typically manage substantial assets and aim to generate returns through various investment strategies. Institutional investors play a significant role in the financial markets due to their size and influence. They often have access to exclusive investment opportunities and can negotiate better terms than individual investors. Their activities can impact market trends and contribute to overall economic stability.