Top 5 Features of IPO App in 2022
Over the past couple of years, IPOs caught the attention of many investors in the stock markets. Newly launched IPOs were turning out as very profitable investments for retail investors. Looking at an IPO’s lucrative prospects, many investors now want to invest in IPOs. Are you wondering what an IPO is? An IPO or initial public offering is the first time a company distributes its shares to the public. You can invest in an IPO using an IPO app on your mobile phone. The IPO mobile app is nothing but a regular stock trading app that lets you invest in an IPO.
You can download these stock trading apps from the Google PlayStore. If you are an iOS user, you can download the app from the AppStore. In either case, to use a Demat & trading app, you must have a Demat account. Note that you must have a Demat account with the stockbroker providing the specific app to use the app. Having a Demat account is mandatory, as your Demat account holds your shares in the electronic form. It will hold shares allotted to you via an IPO and the shares you buy from the secondary market or the exchanges.
Now let us look at the top five features an IPO/trading app should have if investing in IPOs interests you. Research and ensure that the app has the following five before you open a Demat account with the broker providing the app.
The 5 Top Features of an IPO App
1. IPO Notifications
If you wish to apply for an IPO or initial public offering, you must subscribe to the IPO during the IPO subscription window. If you fail to subscribe to the IPO while the subscription window is open, you will miss out on that IPO. So, your app should notify you about the upcoming and active IPOs available for subscription. This way, the chances of you missing an IPO subscription window are vastly reduced, and you stay updated on the upcoming IPOs.
2. IPO Information
It is natural for an investor to want to know the details of the IPO before applying for it. You would like to know the overall issue size, the lot size, and the number of shares allotted in one lot. Along with that, you will also be curious to know the minimum bidding price and the cut-off price (maximum bidding price). Lastly, you would want the app to provide details regarding the subscription window dates to apply for the IPO.
3. UPI Payment
Traditionally, when placing your bid and subscribing to an IPO, you had to pay via net banking. However, the UPI payment method is growing in popularity and is becoming one of the most widely adopted payment methods. Hence, you would also want your app to provide you with the UPI payment methods. Look out for apps that offer you both UPI and net banking as payment options for subscribing to an IPO.
4. Expert Analysis
As a responsible investor, you should not blindly invest in the upcoming IPO of any company. You would want to research well on the company and its IPO before you decide to apply for the IPO. Research reports on upcoming IPO can help you determine whether you should subscribe to the IPO. Reading research reports on upcoming IPOs will give you an overview of the company and the industry. It also highlights the company’s competitive strength and its future growth strategies. The broker’s team of investment analysts and experts draft IPO reports. So, the broker also gives their recommendation in the report. So consider opting for a broker that provides you with such research reports along with the app.
5. All-Rounder App
Lastly, you would want your IPO app to function as a solid all-rounder investing app. Every investor would desire a good experience while investing, whether placing a direct buy order or bidding for an IPO. For that, the app must be easy to navigate. An app will only be easy to navigate if it has a user-friendly interface. A separate IPO tab or section will help you to view and apply for IPOs easily.
Besides the IPO-specific stuff, the app provides you with the core features and facilities to invest in the stock market. The app should have in-built price charts and should give you live price updates on all the trading securities. Your Demat & trading app should exchange your investing experience and should help you monitor the market.