Followers

Tuesday, June 02, 2015

IPOs are worst way to participate in Equities

Can we learn an important investment lesson in less than 2 Minutes? YES – check this…

We have always maintained that IPOs are the worst way to participate in equity markets. Ex Sebi head Mr Bhave accepted “In a bid to maximize return of promoters, investment bankers are not looking at the interests of investors. “

Why say NO to IPOs? 5 Reasons

  • Owner is not interested whether you are getting his shares at right/reasonable price – he is interested in maximizing his profit.
  • IPOs will arrive in bull market – most of them close to its peak.
  • Most of the IPOs are of companies from hottest sectors of last few years.
  • Most of the investors participate to make quick money – this is recipe to failure.
  • We have proof – check below chart…

BSE IPO Index Vs BSE Sensex & BSE 500

BSE IPO index Vs Sensex
If you still think otherwise – check this detailed report on IPO performance…
I

By Hement KK

No comments: