Investing in unlisted shares can be rewarding, but beginners should understand both advantages and risks before entering the private market.

Advantages:

1. Less Volatile:
   Unlisted shares are not traded publicly, so prices don’t fluctuate daily. This reduces short-term volatility for investors.

2. High Return Potential:
   Many unlisted companies are early-stage or pre-IPO businesses. If the company grows or lists successfully, returns can be significantly higher.

3. Strong Growth Opportunities:
   Unlisted stocks often belong to fast-growing sectors like fintech, EV, or tech, giving early investors big long-term potential.

Disadvantages:

1. Low Liquidity:
   Finding a buyer or seller for unlisted shares is difficult, as they aren’t traded on NSE/BSE.

2. Limited Transparency:
   Unlisted companies don’t publish financials frequently, making research harder for beginners.

3. Higher Risk:
   New companies may face business uncertainty, valuation issues, or IPO delays. High risk–high reward applies strongly here.

Conclusion:

If you are a long-term investor with a higher risk appetite, unlisted shares can be a strong opportunity. Beginners should always buy through trusted intermediaries. Platforms like Planify provide verified sellers, transparent pricing, and secure Demat transfers, making the investment process safer and more reliable.