13. Another point to consider is the objective for raising funds, as it has a strong bearing to its profitability and time for return. Besides its objective also look at its various factors like the businesses past performance, future growth prospects, potential rate of return and profitability. If you find them complex and experience difficulty in understanding them, it is best to avoid investing in its IPO.

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14. Investors must do a periodic review; it gives an idea about how their investment in IPOs is fairing. However, investors most not take hasty decisions to sell their holding, when they see the valve of their stock falling down gradually. They must understand that some IPOs underperformed initially but gives consistent returns in the long run. Only in case of IPOs that lose very badly or are fundamentally wrongly invested, taking quick action to sell them off is recommended.

15. Last, but most important: investment in IPOs must be kept to the minimum as they involve a high level of research and instability. However if they are effectively and carefully chosen, it would help avoid investments with bad performance.

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