Repercussions Ensuing COVID 19 Pandemic in Portfolio Management of Individual Investors

Abstract

Novel coronavirus created repercussions in the economy, which affected the investors, public, and policymakers. It affected the financial market drastically. Individuals in different parts of the world struggled, and its effect on the stock market is inevitable. Investors should first determine their risk tolerance level and invest to generate maximum profit. This paper aims to understand the influence of COVID 19 on individual investors' investment and financial decisions. Data were collected from 60 individual respondents using purposive sampling. Individuals with salaried and business occupational status were included in the study. It is identified that the government's lockdown restrictions severely impacted individuals' income and directly affected savings and investment behaviour. Investors were identified to prefer savings options compared to investment instruments, and they are identified to prefer Bank deposit, insurance, post office savings scheme and gold. Individuals prefer mutual funds more due to their liquidity, professional expertise, and reliability among investment instruments. It is concluded that the COVID 19 pandemic changed the risk preference of individual investors as their preference shifted from risky assets to risk-free assets. In contrast, some individuals observed it as a golden opportunity to invest.

Keywords

Financial decision, investment behaviour, COVID 19, investment avenues, portfolio management

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