IPO Allotment Status: Didn't Get Shares After Repeated Applications? Try These Measures
IPO News: This method can be useful if you have not got any IPO allotment even after repeatedly investing money in the primary market. By investing money in this fund you can earn huge profits.
IPO News: While planning to invest money in an Initial Public Offering, the most important thing to consider is when to invest the money and for how long. There are many investors who leave as soon as the IPO is listed. Such people are not able to reap any future benefits. There are also many investors who are unable to wait for a long time if the company is not able to deliver profit after a specific point of time.
Today, the scope of IPO is steadily increasing. Every company that is known of is now bringing IPO. Most of these IPOs are 'oversubscribed'. This means that if only 100 people will be allotted shares by the company, then 500 people have already applied for it. Thus, most people are left without being allotted any share. The money may be returned later, but the capital remains stuck for a few days.
Measures that will earn you money
Now a new option has come to the fore. It is called the Edelweiss IPO Fund. According to reports, there has been a 50 per cent rise in IPOs after the year 2018. IPOs that have seen a 15 to 50 per cent jump have received an average of 13 times more subscriptions.
Where are investments done
The Edelweiss IPO Fund is the first of its kind thematic fund launched in 2018. Through this fund, investments are made in companies taking the IPO route. This fund invests money in recently relaeased and upcoming IPOs. Recently, the fund has invested in companies like Amber Enterprises, Gold BLW Precision Forgings, Gland Pharma, Zomato and HDFC Life Insurance.
Edelweiss AMC says that it is very important at what time the money is being invested in the IPO. Many investors leave as soon as the IPO is listed. Such people are not able to reap any future benefits. After listing, the scope of earnings of the new company increases as it maintains momentum for many years and has more chances of increasing its profits gradually.
IPO and Mutual Funds - Difference in earnings
After the company is listed, the investors need to hold their stock for a longer period of time in order to earn the benefis. If a fund is managed well in a professional manner, the profits increase manifold. In a situation where shares are not available in IPO, better earnings can be made through Mutual Funds. There is no hassle in investing in Mutual Funds. If we look at the percentage of return, it is no less profitable than investing in shares.
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