Open an account
×
Open an account

3 Common IPO mistakes to avoid

17 Sep, 2021

3 Common IPO mistakes to avoid

You must surely remember the famous childhood story, 'The Goose that laid the golden eggs'. What if we turn this famous story into reality for you and this time with a happy ending, unlike the story!

Investing your valuable money can make your financial life happier and successful. A lot of investors have revealed this to be their secret weapon in making more money and living a financially secure life.

But since there are a lot of options to choose from, picking out that one option which will be beneficial to you and your future life, is not as simple as it seems. Don't worry, we have that figured out for you!

Let's come back to the story and find out that one strategy that you can use to make that story turn into reality. Here, the Goose is the ‘IPO’ and the golden eggs would be the 'maximum profits' that you will be able to earn if you invest in IPOs.

IPOs or Initial Public Offerings are the most sorted out investment strategy that will give you the best benefits and once you start investing in IPOs, it will always be by your side to help you fulfil all your desired goals and objectives.

Here is A Complete Guide for Beginners

Often, while investing in IPOs, investors tend to commit a few mistakes that may seem very small but have a very huge impact on their overall investment journey in IPOs. It may also hinder the process of bringing you maximum profits. Let us take a look at those mistakes so that you can keep a check on them while you make the most of your investments in IPOs. The Dos and Donts of investing in IPOs.

1. Following the herd mentality
This is one of the most common mistakes that can be a trap and hinder your financial success. If a lot of investors are crowding over an IPO investment, you should not follow their footsteps directly; no matter how tempting that investment is. It is very important that you consider carefully whether that IPO will match your future goals and give you maximum profits. Without any careful consideration, you should not invest in an IPO just because it has great hype in the market.

2. Relying majorly on subscription data
While making your decision to invest in IPOs, you should not give all your attention to the subscription data and neglect all the other important details. This will bring about a huge impact on your investment strategy. You will have to consider, and keep in mind a lot of other different factors if you are investing in IPOs, such as the fundamentals of the company, prospectus, promoters, etc. Depending solely on subscription data and making your decision based on that is not advisable.

3. Going for big applications
Often going for big applications is considered as an exciting option, but since changes are made by SEBI (Securities and Exchange Board of India) in the way the IPO allotments are done and now all the retail applications which are lesser than Rs 2 lakhs are considered equally, no matter what is their size. So if you make big bid applications while investing your valuable money in IPOs, you will create a barrier and you might block a larger amount even though the allotment still remains constant.

You may also like to read The Do's and Don'ts While Investing in IPOs

Make sure that you consider the above-mentioned mistakes carefully before investing in IPOs if you don't want to end up like the farmer in the story. Once you start investing in IPOs, you will experience loads of benefits that will help in nurturing your financial future. Start investing in with Sharepa - The Best Broker for IPO Investment today- the perfect partner to achieve your future financial dreams!

For any queries, drop us an email at helpdesk@sharepa.net.in or call us on 022-61778660 / 68. To open an account, please click on the button below.

Making online investment easier, faster, smarter

account opening
account opening*
Flat Rs. 20 per order
per order

To view the documents required, click here.

*Account would be opened after all the procedures related to IPV and client due diligence is completed.