IPO News: When planning to invest money in an initial public offering, the most important thing to consider is when and for how long to invest the money. There are many investors who leave the IPO as soon as it is listed. Such people are not able to get any benefit in future. There are also many investors who are unable to wait for long if the company is not able to give profits after a certain time.
Today the scope of IPO is continuously increasing. The company that is known about is now going IPO. Most of these IPOs are ‘oversubscribed’. This means that if shares will be allotted to only 100 people by the company, then 500 people have already applied for it. Thus, most of the people are left without any share being allotted. The money can be returned later, but the capital is stuck for a few days.
Remedy that will make you money
Now a new option has appeared. It is called Edelweiss IPO Fund. According to reports, there has been a 50 percent increase in IPOs after the year 2018. IPOs, which have seen a jump of 15 to 50 per cent, have received an average of 13 times more subscriptions.
where is the investment made
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 issued and upcoming IPOs. Recently, the fund has invested in companies like Amber Enterprises, Gold BLW Precision Forging, 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 get any benefit in future. Post-listing, the new company’s earnings margin widens because it maintains momentum for several years and has more potential to grow slowly in profits.
IPO and mutual funds – difference in earnings
After the company is listed, investors need to hold their stock for a longer period to earn profit. If a fund is managed well in a professional manner, the profits increase manifold. In a situation where shares are not available in the 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.
,