Investment in IPO should be kept to minimum

It is a common misconception that IPOs are better than investment in on-going stocks because the returns come faster and usually it opens at a positive side. Especially young investors seeking quick gains fall into the trap of IPO applications every week and eventually end up with low, zero or even loss. Everybody remembers the IPO of LIC, don’t they? This does not mean the recommendation here is to skip this type.

The key suggestion here is to do your own research before jumping on to investment just because the brand name looks find and there are celebrity promotions of that brand. Ther are several examples of companies going down even while the celebrity promotions were still going on. IPO is a risk like any other quick gain investment ideas, and you can hardly be sure at what percentage it might open.

Buy one IPO per month if you currently invest once a week and invest more deliberately than before. Ask! It is always good to ask your broker, your friend, watch business news channel about that IPO and of course read about it in authentic sources on the internet.

Experienced investors invest in IPO way lower than one per month. They do it like once in 3-6 months and keep their focus on better stocks that give long term gains. If you are just starting out in your investment journey, take this advice and jump to the decision that more mature and experienced investors make and keep the IPO investment to the minimum.