IPO-focused mutual funds remain a niche category, with active schemes like Edelweiss Recently Listed IPO Fund and passive ones like Mirae Asset BSE Select IPO ETF FoF. Fund managers study offer documents and valuations before listing, may buy as anchor investors, during subscription or post-listing, and sell when valuations or fundamentals weaken. Experts say such funds suit only a small portfolio allocation.
How IPO mutual funds buy and sell newly listed shares
Source: Mint