7. Investors keep a favorable feeling that investment in IPOs would certainly bring enormous gains in the long run. However, to be on a safe side, invest only in good listed shares that have a proven record and have survived the volatile economic market for long, though they sell at a high price. No matter how much ever information you analysis before investing in a IPOs, but you cannot not always be sure that the listing will not bring down the issue price.

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8. More and more investors are getting influenced by the trend in the investment market of borrowing money from the financial institutions of brokerage firm and then buying larger quantity of shares. Beware of such trends, if you are an amateur investor and all this could end up in huge losses coupled with the repayment of the loan with interest.

9. Do know before calling for IPOs, each company is required to file their draft red herring prospectus (DRHP) with SEBI. This document has all the financial and other vital information about the company which an investor needs to know before investing in its shares. When the documents highlight that the highest percentage of shares are held by institutional investors, banks and financial institutions, it could be a positive indicator for you to invest in its IPOs.

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