Investing in pre-IPO stock can be a strategic way to build wealth in the long term. If you manage to invest in the right company at the right time, you can get tremendous returns on your investment. There are risks in pre-IPO investing – as is the case with any other investment – but the upsides can be tremendous.

Generally, retail investors apply to a company’s IPO to buy its shares. However, through pre-IPO, an investor can buy the shares even before the company is listed on the stock exchanges and sell them in the open market after the completion of the IPO.

Planning for retirement is important. But there are crucial details to consider along the way, including investments, health care costs, savings and Social Security benefits. Getting answers to these common questions can help prepare you for a smooth transition when you leave the workforce.

The REIT collects rental income, pays its expenses and then distributes almost all its remaining income—usually 85% to 95%—to unit holders. They do this to avoid paying tax inside the trust. Instead, unit holders are taxed upon receiving the distribution.

Change is transition, urging us to reconsider our current state and compelling personal evolution. Though these shifts benefit us, they often pose emotional challenges. Whether anticipated like a move or marriage, or unforeseen like loss, all transitions demand adjustments to our lives.

Mutual Funds can meet the investment objectives of almost all types of investors. Younger investors who are willing to take some risk while aiming for substantial growth of capital in the long-term will find equity schemes (i.e. funds which invest in stocks) an ideal option.

Older investors who are risk-averse and prefer a steady income in the medium-term can invest in debt income schemes (i.e. funds which invest in debt instruments). Middle-age investors can allocate their savings between income funds and equity funds and achieve both income and capital growth. Investors who want to benefit from regular savings can put aside a small sum every month in a Systematic Investment Plan.

The main reason that a company lists its stock is to raise funds. The money that the company raises is used for several purposes. It is like the salary you earn every month. You might portion it out for rent, household expenses, groceries etc, and save some for investments. The same way, a company portions out proceeds from an IPO for various purposes.

When those needs of the company are met, it will ensure that its growth and profit is also achievable and on track. This offers the investor several benefits. Let’s look at a few reasons why investing in an IPO is a good idea.