New Delhi, Sept. 16 -- Rohit* started equity investing with a long-term approach, but soon moved to the IPO market, tempted by quicker returns. For any IPO, right from the day of subscription closure, it takes only three working days for listing. Rohit realised that this was a golden chance to rotate capital for short-term returns. His belief was strengthened when he saw multiple IPOs generating steep returns on the listing day itself. Lured by short-term return opportunities, he began subscribing to nearly all IPOs.

However, within a few months, he noticed a problem- he was not receiving allotments in the IPOs which fetched big returns on listing day, but was instead getting allotments in those that generated nominal returns or even los...