So maybe there's something to the strategy

The catch is that because the fund relies on investments from little guys, it has a mere $11 million in assets.Sad to say, even eight-figure capital may not be enough to catch the eye of big-time IPO players like Facebook.Another option is the First Trust US IPO Index (FPX, news) ETF, which invests rather form ulaically in IPOs by buying on the seventh day of trading and selling out on the 1,000th day. Sounds arbitrary, but the one-year return on this fund is 33% -- significantly better than the broader market. So maybe there's something to the strategy.Buy after market This seems like the no-brainer of the century: Wait until after the IPO and buy in.But the trick here is to buy in responsibly and target a quick but substantial gain without getting greedy.The poor saps who simply put in a market order after the start of trading in Linked In got the stock at the price the market was setting at the time the trade was executed, and they likely paid much more than they intended to.But if you have a few thousand dollars to spare and place a limit order -- that is, a cap on what you'll pay per share -- you could enter on a dip.Consider Linked In's first day of trading. Shares of the company, which operates a professional-networking site, opened at $83 on the New York Stock Exchange, up 84% from its initial public offering price of $45. The stock quickly spiked to $90 and climbed as high Rosetta Stone English as $122.70 before closing at $94.25, up 109% from where it started the session.Since then, however, sentiment on the stock seems to have been influenced by skeptics who stressed that Linked In's valuation -- $8.9 billion after the first-day close -- was too lofty for a company that generated $243 million in revenue last year. The stock closed June 1 at $77.45 a share, still well above the IPO price, but down 18% from the first-day close and 37% from its 52-week high of $122.70.Of course, picking the right entry price for an IPO and knowing when to sell to lock in gains are easier said than done. But for savvy investors, there is big money to be made with a well-executed swing trade on the day of a stock's debut.Invest in the investors Perhaps the most roundabout way to play IPOs is to invest in mutual funds that participate in the IPO market. Take T. Rowe Price Group (TROW, news), which announced in April that it had purchased a Facebook stake worth $200 million. The company has spread that investment across 19 of its funds, including airlines, T. Rowe Price Growth Income (PRGIX), T. Rowe Price Global Stock (PRGSX) and T. Rowe Price New America Growth (PRWAX).And the T. Rowe Price New Horizons (PRNHX) fund, which doesn't have a stake in Facebook, has invested in Twitter.Obviously fund investors also share in other investments, so the profit potential from an IPO isn't as direct. But for many small-time investors, this is still the best option. For those looking for a diversified portfolio with just a pinch of IPO potential for kick, funds like these may be a decent choice.This article was reported by Jeff Reeves for Investor Place.

Posted in: Rosetta Stone,Rosetta Stone Outlet,rosetta stone software,Rosetta Stone V3