Share Investing Mantra' s Consider investing in IPOs
* Initial
public offerings (IPOs) have been a good entry point.
* Decide
whether you are investing in an IPO as an IPO or / in the IPO of a company.
* During bull
runs, almost all IPOs provide positive returns on the listing day. If investing
in an IPO just because it is an IPO during a bull phase, it may be advisable to
exit on the listing date, as you have invested without due diligence.
* However, most
such investors put IPOs on a pedestal and expect them to perform forever. That
will not happen as an IPO becomes a listed stock on the listing date, and will
then behave like that; and only some will be outstanding.
* If an
investor does not book profit on the listing date, he/she is either greedy or /
takes a wrong call on the company / industry / market. He /she should then not
fault the IPO price or blame regular / issuer / merchant banker. In any case, he invested in the IPO by choice; it was not
forced upon him.
* However, if you invest in the IPO of a firmcompany, with
due diligence, then do not get bothered by immediate post-listing performance
or / volatility. Remain invested as you would in a listed stock/share.
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