TomorrowMakers

The Indian stock market is seeing a listing boom, and every woman investor should take notice of upcoming IPOs.

A woman’s guide to investing in IPOs

Investment for Indian women is no longer limited to safe instruments like recurring deposits and endowment policies. Digitisation means that investment in shares and mutual funds can be done at the click of a button. Information on stocks and company performances are just as easily available on the internet. When it comes to stock investments, Initial Public Offerings (IPOs) can give you great returns immediately as well as in the long run. Let’s find out what a woman needs to do to invest in IPOs,

Be prepared

To begin with, you will need a demat account and a trading account. These can be opened by providing your PAN, Aadhaar, and KYC documents. A trading account will be required to apply for an upcoming IPO. Through the Application Supported by Blocked Amount (ASBA) facility, your bank will be able to block money in your account. This is a facility that can be easily activated after or during the demat and trading account opening process.

Keep track of trends

You have to keep track of companies that are planning to go public in the future. Any woman looking to invest in IPOs might keep an eye on SEBI’s latest IPO approvals in the business news section. This way, you will get more time to analyse the company and its business as it prepares for its IPO. You can get expert previews of the IPOs on the internet and from business news channels and podcasts. 

Related: 25 Stock market terms for beginners

Study the company 

Once you invest in a company, you can control your investment through regular monitoring and trading. However, stick to your strengths while selecting a company's stock. As a woman, you will have a better understanding of sectors like beauty products but may need more time to understand the more complicated sectors. So, something like Nykaa’s upcoming IPO may be of more interest to you. Start with simple steps like following the news around the company and their profitability. As you continue to invest you will gain more financial knowledge as well as industry understanding.

Decide how to invest 

It wouldn’t be wise to invest your entire savings in stocks in the hope of a higher return. Invest a part of your disposable income or savings, so that your savings and retirement plans are not affected by the share market.

Related: How to invest in stocks like a pro

Plan your investment style 

Women are known to be level-headed investors, so you’re likely to look at the long-term prospects of stocks. If you intend to invest in IPOs, don’t be tempted to sell them immediately. However, if you intend on regular trading, your approach towards IPO allocations would be different. Regular share trading is comparatively more speculative. 

Last words

IPOs are coming out regularly these days, and much-awaited IPOs are often getting over-subscribed. If you get shares from an IPO application, you will be sent a confirmatory allotment note specifying the number of shares allotted. The allotted shares will reflect in your demat account and they will be listed in the stock exchange within seven days of issue finalisation. Your IPO investment journey continues with this allotment and subsequent listing. Why it's the right time for women to invest in the stock market?

Investment for Indian women is no longer limited to safe instruments like recurring deposits and endowment policies. Digitisation means that investment in shares and mutual funds can be done at the click of a button. Information on stocks and company performances are just as easily available on the internet. When it comes to stock investments, Initial Public Offerings (IPOs) can give you great returns immediately as well as in the long run. Let’s find out what a woman needs to do to invest in IPOs,

Be prepared

To begin with, you will need a demat account and a trading account. These can be opened by providing your PAN, Aadhaar, and KYC documents. A trading account will be required to apply for an upcoming IPO. Through the Application Supported by Blocked Amount (ASBA) facility, your bank will be able to block money in your account. This is a facility that can be easily activated after or during the demat and trading account opening process.

Keep track of trends

You have to keep track of companies that are planning to go public in the future. Any woman looking to invest in IPOs might keep an eye on SEBI’s latest IPO approvals in the business news section. This way, you will get more time to analyse the company and its business as it prepares for its IPO. You can get expert previews of the IPOs on the internet and from business news channels and podcasts. 

Related: 25 Stock market terms for beginners

Study the company 

Once you invest in a company, you can control your investment through regular monitoring and trading. However, stick to your strengths while selecting a company's stock. As a woman, you will have a better understanding of sectors like beauty products but may need more time to understand the more complicated sectors. So, something like Nykaa’s upcoming IPO may be of more interest to you. Start with simple steps like following the news around the company and their profitability. As you continue to invest you will gain more financial knowledge as well as industry understanding.

Decide how to invest 

It wouldn’t be wise to invest your entire savings in stocks in the hope of a higher return. Invest a part of your disposable income or savings, so that your savings and retirement plans are not affected by the share market.

Related: How to invest in stocks like a pro

Plan your investment style 

Women are known to be level-headed investors, so you’re likely to look at the long-term prospects of stocks. If you intend to invest in IPOs, don’t be tempted to sell them immediately. However, if you intend on regular trading, your approach towards IPO allocations would be different. Regular share trading is comparatively more speculative. 

Last words

IPOs are coming out regularly these days, and much-awaited IPOs are often getting over-subscribed. If you get shares from an IPO application, you will be sent a confirmatory allotment note specifying the number of shares allotted. The allotted shares will reflect in your demat account and they will be listed in the stock exchange within seven days of issue finalisation. Your IPO investment journey continues with this allotment and subsequent listing. Why it's the right time for women to invest in the stock market?