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Common IPO Mistakes to Avoid A Beginner’s Guide

SohaniSharma

 


IPOs can be profitable, but many beginners make small mistakes that cost them money or reduce their chances of allotment. Here are the top IPO mistakes you should avoid for smart investing.



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✅ 5 Common IPO Mistakes & How to Avoid Them



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1️⃣ Not Doing Any Research


🚫 Mistake: Investing just because friends or social media said so.

✅ Fix: Always check the company’s financials, background, promoter history and industry outlook.



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2️⃣ Ignoring the Price Band


🚫 Mistake: Applying without checking if the IPO is fairly valued.

✅ Fix: Compare with other listed companies in the same sector — don’t overpay!



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3️⃣ Not Applying at Cut-Off Price


🚫 Mistake: Bidding at a lower price to save a few rupees.

✅ Fix: Always apply at the cut-off price — this increases allotment chance.



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4️⃣ Investing All Money in One IPO


🚫 Mistake: Putting entire savings into one IPO hoping for big profit.

✅ Fix: Diversify — apply in multiple good IPOs or balance with other investments.



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5️⃣ Not Using the Right UPI/ASBA Method


🚫 Mistake: Payment issues due to wrong UPI ID or not approving mandate on time.

✅ Fix: Double-check your UPI ID & bank account, approve the mandate immediately.


✅ Bonus Tip


👉 Always track allotment status & refund. If you don’t get shares, ensure your blocked funds are released back to your account.

✅ Conclusion


Learn from these mistakes and invest smartly to get the best out of IPOs! For more IPO tips, upcoming IPO lists, and reviews, follow RideIntel.


👉 Do you have any IPO questions? Drop them in comments & we’ll help you out!

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