Hold IPO stocks with good potential for long term to maximise returns: Neeraj Dewan

economictimes.indiatimes.com:

«So, keeping that in mind if one gets an entry into an IPO stock, which has a good potential, it is always better rather than churning every week to hold on to the stock and make that wealth which is generated over period,» says Neeraj Dewan, Market Expert.

Starting off by just maybe getting in your thoughts as well on the kind of commentary that has been made or the kind of reveal due to the SEBI study with respect to the fact that nearly 54% of the allotted IPO shares, this is excluding the anchor investors, are sold in just a week and they are talking about how we need to be a good doctor to companies, do not prescribe steroids, they say when paracetamol will suffice. Just wanted to get in your thoughts on the study reveal.
Neeraj Dewan: Yes, actually there is so much of paper availability and money flow has to be rotated.

So, one issue gets over, other one is already down the pipeline, so that is why this rotation has been happening by retail investors. They will sell one and then invest the money in the other IPO, so that is what is happening.

Now, we reached a stage where valuations are really getting stretched as far as some IPOs are concerned. So, once you are investing in an IPO, of course, one should take an advice of the financial advisor and invest in good companies and investment is always made and wealth is always created when you hold on for a longer time.