New Delhi, Oct. 5 -- Mutual funds allow you to invest in a basket of stocks, but IPO-focused mutual funds offer a way to participate in the IPO segment. As this category is still at a nascent stage, how exactly do these funds work?

Examples include Edelweiss Recently Listed IPO Fund and Mirae Asset BSE Select IPO ETF FoF. While one is an active fund that gives the fund manager flexibility to select stocks, the other is a passive fund that tracks an index.

But how do fund managers actually buy and sell IPO stocks, and what should investors look at when evaluating these funds?

Uttam Agarwal, Chief Business Officer at Bajaj Capital, mentioned that "for a fund manager, the real work starts much before the listing. Fund managers study the o...