Abstract: This study examines the nature of non-residents` portfolio investment here in Bangladesh. The term portfolio investment implies investment of the non-residents in Bangladeshi stock market. Previously there was no scope for the non-residents` to purchase the shares or debentures from domestic market. Later, following the permission of the authority investors from home and abroad living in other countries began to invest. In our study the term non-resident means the people living in countries other than Bangladesh but he can be a citizen of Bangladesh or cannot be. In the earlier period there was very good trend in such investment but once there was a drastic fall in portfolio investment. This study is carried to investigate the causes of the drop of such investment.