With retail investors holding individual stocks for less than a year on average, recent history suggests they could lose money, a Reuters analysis shows.
Even institutional investors invited to buy into those 10 IPOs before trading would be down an average of 18%.
"For almost all retail investors, buying and holding a low-cost index fund is the best strategy."
Arm's debut and an upcoming listing from grocery delivery service Instacart are expected to rejuvenate a lackluster IPO market which has slowed over the past two years due to volatility and economic uncertainty.
Instacart will be offering some retail investors a chance to buy into its IPO via underwriter fintech company SoFi, its prospectus said.
Persons:
Dado Ruvic, Japan's SoftBank Group's, Jay Ritter, Marco Iachini, it's, Ritter, Lance Tupper, Anirban Sen, Echo Wang, Michelle Price, Richard Chang
Organizations:
REUTERS, Retail, Holdings, Reuters, U.S, Investors, University of Florida, Nvidia, GameStop, Vanda Research, Instacart, IPOs, Thomson
Locations:
British, New York