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

If you ever see a trading platform or broker offering unlisted shares at a discounted rate or for less money than the market standard, don’t buy it, they might be a fraud. Unlisted shares’ value is determined by a variety of financial metrics like revenue, EBITDA, PAT, EPS and other financial metrics. So never buy unlisted shares from a person who is offering unlisted shares at a discounted rate without any research

Not having a long-term mindset

Unlisted share gives the best ROI when held for a long time. Most of the unlisted shares’ prices soar when they come up with an IPO. So the best way to make the most out of your investment in unlisted shares, it’s important that you hold the shares for at least till the period of IPO launch.

Shimmering eyes to overvalued stocks

Currently, some of the best unlisted shares on the market are the National Stock Exchange, boAt, HDB Financials, Chennai Super Kings, Capgemini Technologies, and Cochin International Airport Limited. These are the stocks that have shown consistently good financial performance in recent years.

Investing without proper research

While researching for an unlisted share, a company’s thorough research is sometimes not enough. Along with the financial metrics of the company like revenue, EBITDA, PAT and EPS, You should also consider the state of the industry the company is concerned with. For example, if Tata Technologies had a good performance but the IT industry of India was lacking, Tata Technologies’ share price might not have gone as high as it did.

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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Piyush Jhunjhunwala
Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
Dubai, UAE.
Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Bangalore, India.