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Analyzing the Impact of the Covid-19 Pandemic on Stock Market Investments

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  • S, Ramya

Abstract

The Covid-19 pandemic has had a notable impact on financial markets, prompting individuals to reevaluate their risk and return objectives and modify their investment portfolios. This study aims to examine the pandemic's influence on the portfolio allocation decisions of individual investors. It investigates investors' perceptions and preferences concerning different investment strategies both before and during the period of heightened anxiety caused by the Covid-19 pandemic. The data for the study was collected from individual investors residing in Delhi and Mumbai. The Analytical Hierarchy Process (AHP) was utilized to rank the investment choices of the participants. The findings indicate that, owing to the current economic uncertainty associated with the pandemic, investors have started realigning their portfolios. As the predictability of returns on risky assets has decreased, investors are shifting towards more conservative portfolios. Nevertheless, the extent of the transition from high-risk to low-risk assets varies among individual investors.

Suggested Citation

  • S, Ramya, 2023. "Analyzing the Impact of the Covid-19 Pandemic on Stock Market Investments," OSF Preprints wm4z3, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:wm4z3
    DOI: 10.31219/osf.io/wm4z3
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    References listed on IDEAS

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