But it's likely most of those investors were already close to becoming millionaires before the IPO. For the average investor, IPOs may prove to be only a little bit more profitable than ordinary stock investing. Maybe you'll make a lot of money on a single trade, and maybe you won't.
Should you decide to take a chance on an IPO, here are five points to keep in mind:
The Best Safe Investments For Your Money
Particularly in uncertain times, including assets in your portfolio may help to protect returns. Assets that may be perceived as safe havens include government bonds, known as gilts in the UK, and even highly rated corporate bonds, which tend to be more stable than company shares.
What percentage of IPOs go up? Some IPOs can jump in price by a huge amount — some more than 600 percent.
Hence, I would highly advice against buying IPOs on the first day. If you want to invest in an IPO, I suggest that you do a full due diligence and wait until the lockup expires. The price will fall as insiders start selling. You can then decide whether you want to buy the firm or not.
Benefits of Investing in IPO
A company issues IPO for the public investors. When the public buys the shares, it is listed on the Stock Exchange. ... Usually, investors can make a lot of profit by selling these shares (which are listed at a premium price on the Stock Exchange). Sometimes the profit can be as high as 100%.
Does investing in IPO always lead to big profits: While some investors have gotten lucky and the IPOs they invested in brought them huge dividends and profits through the rising value of the shares, it doesn't mean everyone gets the same returns.
Upcoming IPOs in 2021
| IPO | Tentative Issue Size (in Rs Crores)* | Tentative Date* |
|---|---|---|
| Bajaj Energy | 5,450 | 2021 |
| Studds Accessories | 450 | February 2021 |
| Barbecue Nation | 1,000-1,200 | 2021 |
| Apeejay Surrendra Park Hotels | 1,000 | 2021 |
Here are some options to double your money:
Here are the best investments in 2021:
High-yield savings accounts. Certificates of deposit. Government bond funds. Short-term corporate bond funds.
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