8 Things Seniors Should Know When Investing In IPOs

Amit Sethi

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IPOs are a popular investment tool for wealth creation; the company deducts the money from the investor's bank account upon allotment of shares.

Significantly Known Options

Application Process

A retail investor can participate in an IPO with or without a demat account; however, they will need it for trade later through stockbrokers.

Convenient

Company Strength

Ensure the company is financially robust and has growth prospects.

Researching Company Background

Read The Fine Print

Researching the company's Red Herring Prospectus (RHP) can assist in selecting the appropriate IPO.

Beware of Terms& Conditions

Budgeting

Separate the funds for IPOs and regular expenses to ensure you have enough money to meet your everyday needs.

Assigned fund to IPO

Listing Benefit

People who invest for a listing benefit exit the stock after booking profit on the listing day.

Listing Benefit

Long-Term Benefit

Long-term investors remain invested even at higher premiums.

Long- term Investment

Oversubscription

Grey market premium (GMP) provides the expected IPO listing price. When oversubscribed, seniors can use spare funds to invest in IPOs.

Compiled By Himani Verma

Surplus Fund
Annuity