Know These Things To Buy Unlisted Shares

 

From a startup of resolving hunger problems to being the first unicorn in the public market, Zomato recently launched its IPO (Initial Public Offering). With 72rs. to 76rs. Per equity share, it is booming in the stock market and the minimum order quantity was decided to be 195 shares per investor.

It was the first launch of their IPO shares. The potential investors have bought the IPO shares. The share market has a circle that regulates the news of the upcoming IPO shares. In this scenario, if the investors had the knowledge of its launch, they might have bought its shares before the launch. It is referred to as pre-IPO shares. Now, that they are open to the general public, the shares have the potential to prosper with more profits.

Buy unlisted stocks through a secured platform that specializes in unlisted shares trading like Unlisted Assets. Being traded in the over-the-counter (OTC) market, they effectively provide fund management services and safe escrow management services to the investors.

Techniques of Investment

To make huge profits, the investors should smartly invest in the shares that surely turn your investment into profitable assets. Here are some of the techniques and methods to invest in unlisted shares.

 

1.    Stratified Investment

Layered investment is also known by the name of fund-of-fund investment. When it comes to investing in unlisted companies, investors use layered investment strategies most often. The investors assign funds to its managers (general partners) who then further allocate these funds to the multiple equity funds. It implies indirect investment through general partners. It involves another investment layer on their behalf. This strategy allows increased diversification. Instead, of focusing on a particular segment, investors can dispense their funds into multiple investments. This way, the risks are reduced significantly. This model allows accredited investors to quickly scale up their investment portfolio.

2.    Private Equity Funds Investment

Skipping onto the stratified investment, the beginner investor can directly invest in private equity funds. In this strategy, the limited partners collaborate with the general partners. The general partners directly invest in the companies or businesses. For investing in unlisted companies, this is the most preferred method. Under this, the investment is done based on the track records of the fund managers.

3.    Direct Funding

When investors don’t need to look for intermediaries and fund managers, they prefer direct funding. They directly make the investment into unlisted companies without the intervention of the brokerage. Still, the limited partners are responsible for managing the deals. This is one of the riskiest ways of unlisted shares buying and selling because there are no practical regulations for the operation of unlisted shares trading. However, many limited partners have been particularly successful with the use of this model. They have successfully set up their own teams of talented individuals who perform the tasks that general partners do for a much smaller remuneration. This is the most preferred investment method as it provides more control over the investments to the investors.