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How can I invest in IPO | IPO Week | IPO | Finance Talks with Sky

This week has been very anticipating for all investors as awaiting companies have issued the offers for Initial Public Offerings (IPO) which includes one of the giants in the Indian Market and it has launched its IPO after 20 years! Do read the blog and tell us in the comments if have you subscribed to any of these IPOs? If you missed this time or you don't know anything about IPO, don't worry we have got your back.  Contents What is an IPO? Initial Public Offering is abbreviated as IPO. IPO is the process of raising funds by organizations to expand their business operations such as acquiring other firms, purchase of assets, etc. The funds are raised by the public as well as institutions by listing the company's shares on the stock exchange such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).  IPO is allotted by the registrars of the stock exchange to the investors, it is random and we can say it is like a lucky draw. The company
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I DON'T SUGGEST YOU TO INVEST ALL YOUR MONEY INTO STOCK MARKET!

 


Yes, you have read that right. I have often suggested investing in the stock market repeatedly, but does that mean you invest all your money in that particular instrument only? Does it even make sense? Now, why today am I telling you this let us see and understand the consequences of investing all the savings in the stock market.


Q1. Why not invest all your money in Stock Market?

Stock  Market is not everyone's cup of tea. Bitter but honest!  Stock Market is a volatile instrument to invest funds. Everyone has heard the stories of making money through the stock market but there that more stories of losing wealth and everything due to the stock market. I know now many people will say that the stock market has given the growth of at least 15% every year, but it can only be achieved after doing proper research.

Adding to that, the stock market always has ups and downs, so you have to track it every time and must have to be clear with your entry and exit points. If you put all your money into the stock market then there are more chances to lose all your money at once.


Q2. How can you invest and put the money apart from Stock Market?

As for now, the stock market has not given good returns because we all are aware of Silicon Valley Bank, and then the crises of Credit Suisse and Signature Bank. And it is also important to know whether other opportunities are coming along the way along with the problems or not.

Here are the other alternative opportunities where you can invest your money. I have divided these investments into two sections i.e. 1 - Safe Investments 2. Bit Risky Investments. But you must have to remember the formula of investing the more you take the risk, the more you will get the returns.

So let us talk about these investments.


1. Safe Investments - These investments are mostly backed by the government, or they will pay you a lower amount of return as compared to Riskier.

  • Fixed Deposits - Fixed Deposits are known to be one of the safest investments in our country as you can grow your money up to a return of 6% per annum. You can get done your fixed deposits from your respective banks.
  • Recurring Deposits - Have you heard about this one? It is just like SIP, every month the fixed amount will be kept aside from your bank account and you will be paid up to 6-7% of that amount.
  • Personal Provident Fund - Everyone has heard of an Employee Provident Fund, but what is Personal Provident Fund? It is just the same as EPF, here only you will invest your money in your PPF account instead of your employer. The yearly interest is 7.1%.
  • National Pension Scheme - NPS provides you security for your retirement, it gives up to 12% of returns. For detailed information, you can check the blog.
  • Money Market - While Stock Market is riskier, the money market is for safe players. It is safer and for the short term.
  • GOLD - Everyone is aware of this investment and I will call it the safest investment as this is a saver of many people's life. 
There are a lot more options available if you go deeper. Please do comment if you want any detailed blog on investment options or topics.

2. Bit Riskier Investments - So, we have already discussed about some safe investments, now lets talk about some investments that can give you better returns.

  • 12% CLUB - Have you ever heard about P2P lending? This is the platform where you can year 12% every year by starting at ₹1000/-. For detailed information, you can read the blog.
  • BONDS - You will say, isn't that a safe investment? Yes, it is but there are chances of default risk sometimes. So therefore it is a bit risky. Bonds can give returns between 7% to 11%. For detailed information, you can read the blog.
  • Cryptocurrencies - Crypto, Bitcoins, etc are the are other investment options that you can trade and make some money but it requires proper analysis and risk management to make and save money.
  • Bill Discounting - Have you ever heard this? Want a blog next week? Let me know in the comments. You will pay a company as a loan for a tenure of 30 to 90 Days and get up to 11% returns.
There are a lot more investment options available in the market and they have their own terms and conditions to trade or investment. So here are some alternative options to diversify your investments.

If this is you are first time reading this site, allow me to introduce myself. My name is Akash, and I'm the founder of Financial Talks with Sky. I discuss a variety of topics, including personal finance, the stock market, and much more. Follow Financial Talks with Sky to learn more about finances and stock markets.

I hope this blog was informative to you. You can follow and connect with us on LinkedIn and Instagram. 



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