Common Mistakes To Avoid While Investing In Unlisted Shares

Investment is equivalent to risk. Whether insignificant or huge, with investment there is always a risk. Especially if you are planning on investing in shares, here are the most common mistakes to avoid while investing. Speaking of shares, the discussion won’t be complete without discussing listed shares and unlisted shares. Where listed shares come with a safety net through constant monitoring, unlisted shares require investors to be careful, especially if you are in an unfamiliar asset class. Unlisted shares investment leads to high return opportunities but when the shares go down, you might incur a loss. 

Many financial intermediaries are selling unlisted shares and people are still unaware of the difference between listed and unlisted shares. Therefore, it is important to learn everything about unlisted equity shares. Still, there are chances that something might slip while unlisted share trading.

Even unlisted share brokers and unlisted share dealers can also make mistakes, after all, they are human too. Keeping this in mind, here we will discuss the most common mistakes that you should avoid while unlisted share trading.

Investment based on rumours & gossip

Investing smartly is a very fine line that all the unlisted share brokers and unlisted share dealers walk on. The value of unlisted shares stock is volatile, therefore it is important to do thorough research. Investing is a tricky business, thus it should never be based on gossip and rumours spread around social media, etc. Regardless of your experience as an investor, it is essential that you check for the authenticity and profitability of the company beforehand. Missing in this research can lead to a significant loss. Further, if the company’s market value decreases, it is obvious that the unlisted equity share value will go down leading to difficulties in selling the unlisted shares stock of the said company. 

If you are new to investment, do not jump at the chance, for instance, if you see an unlisted share broker, dealer or investor selling any unlisted equity share at a discounted price, do not let your greed drive you. Think thoroughly, there must be a reason for selling it at a lower price. All these reasons make research a crucial part and trusting gossip and rumour the biggest mistake.

Not having a long-term mindset

The new-age investors just want to get rich quickly – this is the most common mistake every investor makes.  On the track of winning and earning quickly, unlisted share investment is often for the short-term, that is, less than three years. When it comes to the unlisted share price in India, we can say that the value is volatile. The market suffers dips, and so will the unlisted share stocks and if the market value surges, unlisted shares’ returns also increase. Therefore short-term plans will not lead to big wins. If you want to buy the best-unlisted shares in India, you need tons of patience. 

Though buying them might be easy through an unlisted shares broker, expecting returns in a short time is not a wise decision because the maximum growth of your unlisted shares investment can only be experienced with long-term plans. Speaking of unlisted shares, the best unlisted shares in India are currently from Tata Technologies, HDFC Securities, Oyo Rooms and Reliance. If you are a newbie, turn to Stockify for the best unlisted shares in India. 

Shimmering eyes to overvalued stocks

There is a misconception among new investors that overvalued stocks will also bring great returns. Whereas, in reality, this is the biggest mistake you can come across while making unlisted shares investments. An overvalued stock, by definition, refers to an unlisted shares stock that is traded for more than its intrinsic value. Overvalued stocks are related to higher returns but in reality, they lose their value over time. Therefore, Stockify experts always recommend turning a blind eye to overvalued. 

Currently, according to the unlisted share dealer, Stockify, the top unlisted shares investment are HDFC Securities, OYO Rooms, Studds, HDB Financial, NSE, and Reliance. 

Investing without proper research

As aforementioned, improper research is one of the biggest reasons to incur a loss. Therefore as an investor, you should avoid it at all costs. Always do a complete background check of the company, including what are its goals, said company’s long-term plans, its reputation in the market, the market value, current unlisted shares value, etc.  Once you are satisfied with all the research, ask the best broker for unlisted shares – Stockify, for predicting the future stock trends of the company. Only after, proper research should you invest in unlisted shares. If you are unable to find a reliable source for research, Stockify can help with it as well.

We have years of experience in unlisted shares trading. Along with it we also keep a track of ongoing market volatility. This helps our partners to reach an informed decision and helps in predicting the hikes and dips as close to accurate as humanly possible.  

How Industry Experts at Stockify Can Help?

Whether you are a new investor or have experience in the field, making unlisted shares investments without an expert’s advice is not a smart decision. Piyush Jhunjhunwala, the founder and CEO of Stockify, is a qualified chartered accountant from India and a certified public accountant from the USA. With more than two decades of experience, he is an industry steward and has worked with corporate giants like PepsiCo Inc,. Indeed he is an expert and can, therefore, offer retail investors pre-IPO to maximise their returns. At Stockify, we have a dedicated team of experts, who perform advanced research on your behalf and will then recommend you the best unlisted shares in India.

Stockify is the best unlisted shares broker in India, with the main focus on building long-term relationships. With our effective solution, we aim to draw a logical consequence for our partners.

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Investment has always been a risk-associated job. Check out the most common mistakes you should avoid while investing in unlisted shares. Connect with Stockify to know more!


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