Recently, there has been a significant increase in the number of people investing in SME IPOs. However, compared to these, blue chip stocks provide steady returns in the long term.
Which of the two is better to invest in? What do market experts say? Find out in the following article. Demand for Small and Medium Enterprise (SME) IPOs has increased tremendously, and investors have shown increased interest in them.
As huge listing gains are coming on the first day, these are being favored for short-term gains. However, choosing between SME IPOs and blue chip stocks is very complicated for those wanting to invest long-term.
Analysts say that although SME IPOs offer good profits in the short term, they also face losses when market conditions change. Let’s see what they say about which blue-chip stocks and SME IPOs are better.
What are Blue Chip Stocks? Blue chip stocks are stocks of iconic companies belonging to the large-cap category. They are fundamentally and financially strong.
Blue-chip stocks have a good track record of steady growth. Long-term investors who do not want to risk too much invest mostly in them.
This is because profits and growth are stable. However, those who are willing to take risks and want to earn high returns can invest in SME IPOs.
Market experts say that blue chip stocks have the potential to generate good returns. It is said to provide returns beyond market performance.
However, if SMEs invest in IPOs, there is a chance of making profits only when the markets are bullish. They said that only high-quality SME IPOs can provide huge profits in the short term.
Market experts say that blue-chip stocks are the best choice for investors who want to achieve stable returns in the long run without taking risks.
Investors who want only high profits without considering the same risk are suggested to invest in SME IPOs. Experts said the choice depends entirely on the risk.
Top SME IPOs: The SME IPO market is expected to grow significantly in 2024. This year, Win Sol Engineering’s SME IPO on May 14 provided 411% gains on the first day alone. After that, Coi Sea Energy and Infra Limited gave 343% returns on the IPO listing day (January 5).
The Medicamen Organics Limited IPO returned 325%, the GP IPO 318%, and the Max Poser Limited IPO 317%. These listing gains indicate investors’ interest in SME IPOs.