IMPACT OF THE COVID-19 ON THE SPENDING PATTERN AND INVESTMENT BEHAVIOUR OF RETAIL INVESTORS
Abstract
The year 2020 has witnessed the highly infectious disease Corona Virus outbreak impacted across the globe. This unpredictable and unprecedented calamity has pushed economies to struggle and strive. Most of the sectors in the economy were severely hit, which led to financial suffering. There is a paradigm shift in the circular flow of income, which has affected the lifestyle and changed people's spending and investment habits. This study aims to understand how the Covid-19 pandemic has influenced the financial decision-making and investment preferences of retail investors. This research paper also studies the changes in the spending pattern of people during the lockdown due to Covid-19. A sample survey was conducted through a structured questionnaire to determine the impact of the pandemic on individual investment decisions in the city of Lucknow. A random sampling technique has been used to collect the data for the study. The study's findings show that people's lifestyles and spending habits have changed significantly due to the pandemic fear and lockdown. The study also indicates that there has been a shift in the spending preference of people towards healthy products and essentials.
JEL Classification Codes: D90, G30, G40, G51, M10.
References
Bloom, D.E., & Canning, D. (2006). Epidemics and economics. Retrieved from https://cdn1.sph.harvard.edu/wpcontent/uploads/sites/1288/2013/10/BLOOM_CANNINGWP9.2006.pdf
Chakraborty, I., & Maity, P. (2020). COVID-19 outbreak: Migration, effects on society, global environment and prevention. Science of the Total Environment, 728, 138882. https://doi.org/10.1016/j.scitotenv.2020.138882
Fan, V. Y., Jamison, D. T., & Summers, L. H. (2016). The inclusive cost of pandemic influenza risk (No. w22137).
Gurbaxani, A., & Gupte, R. (2021). A study on the impact of COVID-19 on investor behaviour of individuals in a small town in the state of Madhya Pradesh, India. Australasian Accounting, Business and Finance Journal, 15(1), 70-92. https//doi.org/10.14453/aabfj.v15i1.6
Jonas, O. B. (2013). Pandemic risk, World Development Report. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/16343/WDR14_bp_Pandemic_Risk_Jonas.pdf?sequence=1
Khan, S., Upadhyaya, C., Gautam, S., & Natu, P. (2020). A study on the impact of covid-19 on the investment pattern of investors with specific reference to traditional investment (real estate and gold) and market based financial products (equities) in mumbai. European Journal of Molecular & Clinical Medicine, 7(11), 5644-5660.
Khanooja, D. R. (2020). Effect of covid-19 pandemic on saving and investment habits. International Journal of Current Research, 12, 14660-14661.
Kumar, R., & Abdin, M. S. (2021). Impact of epidemics and pandemics on consumption pattern: evidence from Covid-19 pandemic in rural-urban India. Asian Journal of Economics and Banking, 5(1), 2-14. https//doi.org/10.1108/AJEB-12-2020-0109.
Kumthakar, S., & Nerlekar, V. (2020). Analytical Study of Investment Patterns and Investment Preferences of Retail Investors Post Covid 19. Journal of Seybold Report, 15(8).
McKinsey and Company (2020). Consumer sentiment is evolving as countries around the world begin to reopen. Retrieved from www.mckinsey.com/business-functions/marketing-and-sales/ourinsights/a-global-view-of-how-consumer-behavior-is-changing-amid-covi%E2%80%A6
Saadat, S., Rawtani, D., & Hussain, C. M. (2020). Environmental perspective of COVID-19. Science of the Total environment, 728, 138870. https//doi.org/10.1016/j.scitotenv.2020.138870.
Sands, P., El Turabi, A., Saynisch, P. A., & Dzau, V. J. (2016). Assessment of economic vulnerability to infectious disease crises. The Lancet, 388(10058), 2443-2448. https//doi.org/10.1016/S0140-6736 (16)30594-3.
Sharma, S., Zhang, M., Gao, J., Zhang, H., & Kota, S. H. (2020). Effect of restricted emissions during COVID-19 on air quality in India. Science of the Total Environment, 728, 138878. https//doi.org/10.1016/j.scitotenv.2020.138878.
Sheth, J. (2020). Impact of Covid-19 on consumer behaviour: will the old habits return or die?. Journal of Business Research, 117, 2020, 280-283. https//doi.org/10.1016/j.jbusres.2020.05.059.
Zambrano-Monserrate, M. A., Ruano, M. A., & Sanchez-Alcalde, L. (2020). Indirect effects of COVID-19 on the environment. Science of the total environment, 728, 138813. https//doi.org/10.1016/j.scitotenv.2020.138813.
Copyright (c) 2022 Farheen Siddiqui, Anvita Raghuvanshi, Srijan Anant, Surendra Kumar
This work is licensed under a Creative Commons Attribution 4.0 International License.
