A Study on Impact of Pandemic on Changes in Investment Pattern with Special Reference to Chennai City

Abstract

Investment is an integral part of an individual and his family as well. The objective of investment varies from individual to individual. One may invest for various reasons like to meet uncertainties without any financial hardships, educational purposes or maybe for any events which require huge amounts instantly. Also, one invests to grow his wealth and multiply his current wealth to manage well with the inflation rates in the economy and to become financially strong and independent. The COVID-19 pandemic has had a profound impact on investment patterns and preferences. But during this pandemic many people’s earnings and its pattern were disturbed due to the deadly virus both positively and negatively. Some people started to try out new investment alternatives like crypto currencies, mutual funds, REITs, NFTs, ETFs etc., whereas some liquidated their investments to meet the uncertainties financially. This study concentrates about the major causes for the change in investment pattern of retail investors during the pandemic and explores the factors driving the shift in investment behavior during the pandemic. The objectives of this study were to discover the causes for the change, the reasons for trying out new investment alternatives by retail investor, their perceptions regarding investments and to study the liquidity and necessity needs of the investors during the pandemic. A descriptive survey design was used in this study. Primary data was used to proceed with the study and these data collected using a self-designed questionnaire using Likert 5-point scale, few close ended questions and a few checkboxes for questions on their preferences. To collect the data from the retail investors, the convenient sampling and snow ball sampling techniques were used. The study’s target population was 156 retail investors across all age groups. The statistical tools like One-way ANOVA tests, independent sample ttest and correlation tests were used to analyze the collected data. From this study we conclude that the major factors influencing the changes in investment preferences and pattern were interest to take risks, influence of pandemic by means of time and need for passive income and objective to earn higher returns.