5. “Investing in IPOs could bring you great returns after it gets listed in the stock market”, do not rely on this statement, it’s a myth. It has been witnessed by both amateur and experienced investors that sometimes high losses are also been incurred. This happens mostly due to unfavourable market situations and sentiments and when the fundamentals of the company are weak.  You would be smart enough by not gambling in the shares of new issues.

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6. Sometimes you may feel like experimenting with new products in the market. But Ramalingam K says that it is not wise to have this attitude with shares and invest in IPOs. According to Ramalingam K, The aim of Investing is to get attractive and safe returns on our hard earned money, so one should focus more on putting money in index stocks that have been in performing well in the market for a long time, instead of new arrivals.

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