




































INDIAN JOURNAL OF FINANCE AND BANKING 9(1) (2022), 184-191 

 

184 

 

 

                FINANCE AND BANKING 

                                                                  IJFB VOL 9 NO 1 (2022) P-ISSN 2574-6081  E-ISSN 2574-609X 
                                                  

    Available online at https://www.cribfb.com 

                                                                                                                                      Journal homepage: https://www.cribfb.com/journal/index.php/ijfb 
                                                                                                                                                                                              Published by CRIBFB, USA 

A COMPARATIVE STUDY ON THE IMPACT OF COVID PANDEMIC 

PARANOID ON INVESTMENT BEHAVIOUR OF BANKING AND NON 

BANKING PROFESSIONALS IN INDIA                        

 Kannadas Sendilvelu (a)1  Srikanth Parthasarathy  (b) 
 

(a) Assistant Professor, SDM Institute for Management Development, Mysore-570011, India; E-mail: Kannadas100@gmail.com 
(b) Associate Professor, Rajalakshmi School of Business, Chennai – 600124, India; E-mail: psrikanth2011@gmail.com 

 

 
A R T I C L E I N F O 

 
 

Article History: 
 

Received: 21 January 2022 

Accepted: 21 March 2022 

      Online Publication: 26 March 2022 

 
Keywords: 

Covid Pandemic, Investment 

Behaviour, Professionals 

 
      JEL Classification Codes:  

 

      G4, G11, G40, G41 

   

   

 
A B S T R A C T 

 
The study focuses on comparing the investment behaviour of banking and non-banking professionals in 

India and also, how the Covid pandemic has impacted their behaviour towards investments as such. The 

aim of the project is to understand if there are any differences in the investment choices of both sets of 

people. For the purpose of the study, data has been collected from banking and non-banking employees 

through the issue of google forms, and the same data has been used to analyse the behaviours among 

the targeted groups. A sample of 122 data points is considered for the study, with banking and non-

banking professional samples. The questions try to bring out the actual behaviour of the respondents 

with regards to their investments, before and after the Covid pandemic. With that, comparison of banking 
and non-banking, in particular, will be well understood by the reader of the study. Apart from that, 

statistical models like Chi-square test, Regression analysis and Correlation analysis have been done for 

the collected set of data points. By the end of the study, the gain is all about the idea and understanding 

about the investment behaviour of the banking and non-banking employees that the Covid pandemic has 

made any impact on the investment behaviour of people. 

 
 

© 2022 by the authors. Licensee CRIBFB, USA. This article is an open access article  distributed 
under the terms and conditions of the Creative Commons Attribution (CC BY) license 
(http://creativecommons.org/licenses/by/4.0/).  

                                                     

  
INTRODUCTION 

COVID-19 is a highly transmissible and deadly virus that has transformed the globe drastically, and a tragically enormous 

number of human lives lost. People were more concerned about their lives and livelihood than money and leisure in the case 

of a terrible outbreak. Investors' psychological reactions to the stock market, whether positive or negative, have the potential 

to change the economy's trajectory. Patients and health workers have developed psychological resistance and have been 

subjected to severe psychological strain as a result of the pandemic. The current pandemic has had a major psychological 

impact, resulting in a recognisable mental state of "anxiety." The term "worry" refers to the public's reaction to the pandemic 

in all forms of media, regardless of whether or not the information is accurate. 

There is widespread anxiety about the long-term viability of global stock markets and financial markets, which has 

far-reaching repercussions. Non-banking and traditional banking businesses will face pre-crisis challenges such as revenue 

pressure and low profitability (low interest rates and higher capital), increased competition from shadow banks and new 

digital entrants (to name a few), and tighter regulation (following the previous financial crisis). As new entrants combat 

banks, digitalization will gain a lot more traction." This dynamic has many benefits, but it also creates new risks that will 

necessitate regulatory solutions and, most critically, a level playing field for incumbents and newcomers. Accessibility 

concerns, as well as the scaling down of SME/corporate clients and an increase in retail consumer defaults, are likely as a 

result of a short-term banking outage. A longer-term crisis is expected to boost consumer demand for digital channels and 

goods like insurance, in addition to SMEs/corporate defaults. Health and life insurance are getting increasingly popular. 

Excess money is accumulating due to limited deployment alternatives. As a result of decreasing income and profitability, 

loan defaults have grown. 

                                                      
1Corresponding author: ORCID ID: 0000-0002-9806-1711 

© 2022 by the authors. Hosting by CRIBFB. Peer review under responsibility of CRIBFB, USA.  

https://doi.org/10.46281/ijfb.v9i1.1666 

 
 

To cite this article: Sendilvelu, K., & Parthasarathy, S. (2022). A COMPARATIVE STUDY ON THE IMPACT OF COVID PANDEMIC PARANOID 

ON INVESTMENT BEHAVIOUR OF BANKING AND NON BANKING PROFESSIONALS IN INDIA. Indian Journal of Finance and Banking, 9(1), 
184-191. https://doi.org/10.46281/ijfb.v9i1.1666 

http://creativecommons.org/licenses/by/4.0/)
http://creativecommons.org/licenses/by/4.0/)
https://doi.org/10.46281/ijfb.v9i1.1666
https://orcid.org/0000-0002-9806-1711
https://orcid.org/0000-0002-8617-812X


Sendilvelu & Parthasarathy, Indian Journal of Finance and Banking 9(1) (2022), 184-191

  

185 
 

The behaviour of individual investors is heavily impacted by a variety of biases that have been emphasized in the 

burgeoning science of behaviour finance. As a result, this research is part of a larger attempt to analyse the influence of 

behavioural biases on paranoia associated with the Covid pandemic among banking and non-banking professionals. A 

questionnaire is created, and answers from 100 professionals are gathered through the survey (Deloitte, 2020).  

LITERATURE REVIEW 

Daniel et al. (1998) found that Investors' most prevalent tendency while making investing decisions was discovered. 

Investors aren't always interested in all types of securities and assets. Individual investors are fearful of losing money. 

Investors consider past performance as a sign of future performance when making stock buying decisions. Investors are 

trading far too aggressively. Investors do not always build efficient portfolios, they do not always perform in a similar 

manner, and they are influenced by history. 

Mane and Bhandari (2014) discovered that the majority of respondents prefer traditional investment methods such 

as banking for their savings.  Patil and Nandanwar (2015) revealed that investors' investment preferences and priorities are 

reflected in Bank deposits, which are ranked first, indicating that investors value safety and security in their investments. 

According to Hong and Stein (1999), slow spread of news produces momentum, while feedback traders who purchase based 

on prior returns induce overreaction because they link past momentum traders’ behaviour to news and so end up buying too 

much stock, which causes momentum when positions are reverse.  

Sasirekha and Jerinabi (2015) conducted a study on the degree of investment knowledge among professionals in 

the information technology field, finding that 38 percent of investors have just an average level of investment awareness. It 

has been shown that there is a link between the degree of awareness and age, level of education, family structure, social 

standing, yearly income, organisational structure, residential area, and savings capacity; however, gender and the number 

of earning members are not important. As a result, it can be stated that all parameters, with the exception of gender and the 

number of earning members, have supported the association between level of awareness and income. Ramanathan  and 

Meenakshi (2015) in his research paper titled 'A Study on Investment Behaviour and Level of Satisfaction of Bank 

Employees,' Ramanathan  and Meenakshi (2015) believes that understanding the investors' opinions, desires, and worries 

about the market is critical for policymakers and regulatory bodies. Research might be undertaken just for different types of 

workers with the goal of assisting and promoting investors.  

Bhushan (2014) did research in India to look at the link between financial literacy and investing behaviour among 

salaried people. The study's findings revealed that an individual's financial literacy degree influences their knowledge of 

financial products as well as their investing preferences. In addition, respondents in the high financial literacy category have 

a greater degree of knowledge for all financial products except post office savings, according to the study's findings. Bank 

fixed deposits, savings accounts, public provident funds, mutual funds, stock market investments, and bonds all had 

statistically significant differences in knowledge levels.  

Baldwin (2020) discusses the influence of COVID-19 on the economy's income flows. First, because they are not 

reimbursed, households reduce their consumption and save. Savings fall, which leads to less investment and, as a result, a 

decreased capital stock. Second, households' appetite for imports declines, leading in lower revenue for the rest of the world 

and lower exports for the country. Third, demand/supply shocks interrupt supply chains both domestically and 

internationally. Fourth, all of the previous shocks and interruptions create a decrease in output, resulting in poorer factor 

utilisation. 

Khanooja (2020) Covid-19 has affected millions of individuals over the world, claiming lakhs of lives, destroying 

families, and causing global harm. Aside from the physical effects on people's health, it has also had an economic impact, 

which is where it hurts the most. It has impacted people from all walks of life, leaving thousands of people jobless and 

without a steady source of income. As India adopted dramatic measures to halt the spread of Covid 19, the country's economy 

came to a halt, bringing it to its knees. Businesses across many industries have had to cut back operations, lay off personnel, 

or lower compensation due to restricted mobility and disturbed supply chain management. The slowing economy and the 

closure of a number of enterprises have prompted us all to reconsider the importance of saving and investing in our daily 

lives. Many families and individuals have had to dip into their little reserves to get through the Covid 19 storm, highlighting 

the need for prudent saving and investing once again. 

Individual investment patterns in the post-COVID scenario are expected to indicate a shift in investment outlets. 

People will be hesitant to accept any short-term risks and will prefer to invest in less volatile and harmful assets. The change 

in the portfolio is mostly due to income variations during the epidemic. Job losses, wage cuts, and low/no business are just 

a few of the factors that have had an influence on investors' portfolios. During the epidemic, many people may invest in 

mutual funds, NSCs, and equities markets, regardless of their income level. This demonstrates that these investors took 

advantage of market volatility, as investing is typically more profitable when the market is down. Due to the considerable 

market volatility, investors may choose to invest only in avenues that provide a guaranteed return (Kumthakar & Nerlekar, 

2020). 

Behavioural finance is also a reflection of the mindset that is ingrained in the investing system. Various theories 

argue that investors can act irrationally, leading to the creation of inefficient markets and mispriced securities, while ignoring 

the potential for profit (Asamoah, 2021). The importance of investment behaviour in influencing the success of financial 

markets cannot be overstated. Three factors were studied when determining investing behaviour: risk perception, 

satisfaction, and profitability rate (Ainia & Lutfi, 2019). 

 



Sendilvelu & Parthasarathy, Indian Journal of Finance and Banking 9(1) (2022), 184-191

  

186 
 

Ramelli and Wagner (2020) believes that investors should avoid circumstances that are intrinsically risky, even if they 

present opportunity. Fear is the reaction of investors to a drop in the value of their assets. Then there's the worry about not 

having enough money to fund COVID-19 therapy. COVID-19 has elevated people's stress levels, according to Taylor et al. 

(2020). The findings also explain the current anxiety levels (Taylor et al., 2020). 

In the article "COVID-19 Created the Perfect Case Study in Behavioural Finance: Here's What We Mean," EnRich 

Financial Partners, a Registered Investment Advisor, outlines how COVID-19 created the perfect case study in behavioural 

finance. The COVID-19 epidemic has had an impact on people's lifestyles and financial decisions. The advisor has linked 

behavioural finance to the investor's irrationality as a result of unemployment and losses. The article has offered an overview 

of behavioural finance as well as a method for an investor to make reasonable judgments during COVID paranoia, such as 

recognising risk tolerance, restricting investment discussion, and analysing market patterns, among other things (Partners, 

2021).  

The study, titled "The Investor Psychology and Stock Market Behavior during the Initial Era of COVID-19: A 

Study of China, Japan, and the United States," looked at investor psychology and stock market behaviour in China, Japan, 

and the United States. Sobia Naseem, Muhammad Mohsin, Wang Hui, Geng Liyan, and Kun Penglai of the University of 

Castilla La Mancha in Spain discuss how investment decisions in China, Japan, and the United States have changed in the 

aftermath of the COVID outbreak. The purpose of COVID-19 was to look into investor psychology and stock market 

behaviour. Investors' psychological reactions to the stock market, whether positive or negative, have the potential to 

influence the economy's outlook. Using principal component analysis, this study examines the Shanghai, Nikkei 225, and 

Dow Jones stock markets from January 20, 2020, through April 27, 2020. Investor psychology was discovered to be 

inversely associated with three stock markets under psychological resilience and pandemic strain, according to the data. As 

a result of negative emotions and pessimism, investors stop making financial investments in the stock market, resulting in 

lower stock market returns. In the event of a deadly pandemic, people were more concerned about their lives and livelihood 

(Naseem et al., 2021).  

Fanyi Wang of the School of Finance and Jilin, China, Ruobing Zhang of the B School of Finance, Changchun 

Guanghua University, Changchun, Jilin, China, and Syed Mir Muhammed of the d School of Business, Sukkur IBA 

University, Sukkur, Sindh, Pakistan have explained the changes in UK investor behaviour due to the COVID outbreak in 

their study "Impact of investment behaviour on financial markets during COVID-19. The goal of this research is to see how 

investment behaviour affects financial markets in the United Kingdom during COVID-19. Data is acquired from primary 

sources, such as a survey questionnaire, in this form of quantitative analysis. The researcher used a non-probability 

convenience sampling method to get 337 replies. The research will look into the relationship between investing behaviour 

and the stock market. According to the findings, qualities including general risk tolerance and financial risk tolerance, as 

well as satisfaction, risk perception, and rate of profitability, influence the study's variables. COVID-19 acts as a moderator 

in the interaction between them. Financial risk tolerance is regarded an attitudinal component while making financial 

decisions, according to the data (Wang et al., 2021).  

 

OBJECTIVES OF THE STUDY 

The purpose of this research is to see how the banking and non-banking professionals are reacting in this unprecedented 

situation of covid. We took a look into their sources of income, where they spend their money, how they save or what 

savings they have? Where they take investment suggestions and what are their future investment plans groups. This study 

also aims to identify and prioritize the elements that impact investor behaviour throughout the investment decision-making 

process, as well as to understand how physiological considerations and other sorts of biases influence a person's buying and 

spending choices.  

 

METHODOLOGY 

This research is exploratory research and the information regarding the impact of Covid pandemic paranoid on investment 

behaviour of banking and non-banking professionals was collected through online questionnaire survey. Exploratory 

research is done to look into a subject that isn't well-defined, hasn't been well studied, or is otherwise misunderstood. The 

technique, also known as grounded theory research or interpretative research, is not intended to provide definitive 

conclusions, but rather to gain ideas that may be used to build the framework for future, more specialized study. You may 

build research hypotheses and questions for further examination using the information gleaned through exploratory research, 

and you can narrow down the data you need. Exploratory research is conducted to get a deeper knowledge of a problem or 

issue, to clarify or define the topic's boundaries, or to refine a broad concept into a more particular research challenge. The 

basic data is gathered through sending questionnaires to experts in the banking and non-banking sectors in India's numerous 

cities. Secondary data is gathered from a variety of sources, including articles, journals, research papers, magazines, and 

newspapers. We employed 'Judgement' or 'Purposive' sampling with a targeted sample size of 100 respondents to determine 

the influence of Covid pandemic paranoia on investment behaviour of banking and non-banking professionals. The sample 

size reached 122 people from different cities in India. The poll received responses from 60 banking and 62 non-banking 

professionals. 

ANALYSIS AND INNTERPRETATION 

Test Objective 1: To find the impact of age group and invested or interest to invest beyond savings. 

H0: There is no impact of age group on the investment or interest to invest beyond savings. 

H1: There is a significant impact of age group on the investment or interest to invest beyond savings. 



Sendilvelu & Parthasarathy, Indian Journal of Finance and Banking 9(1) (2022), 184-191

  

187 
 

Table 1.  Invested or interested to invest beyond savings 

 
Invested or interested to invest beyond savings Column Labels     

Row Labels No Yes Grand Total 

25-35 33 43 76 

35-45 1 6 7 

45-60 1 2 3 

Above 60   4 4 

Below 25 14 18 32 

Grand Total 49 73 122 

 

Test Statistic 
   

Row Labels No Yes 
  

Below 25 0.10245902 0.06877386 
  

25-35 0.20074484 0.13474653 
  

35- above 60 2.33432108 1.56687306 
  

   
4.40791838 

 

      
  df 2    
         
Left P-value 0.88963467    
Right P-value 0.11036533    
    0.22073067 >alpha 

 

Result Interpretation: From the analysis conducted through Chi-square test, since the p-value is more than alpha, the 

alternative hypothesis (H1) is thereby rejected. Therefore, we can conclude that there is no impact of the investors’ age group 

on the investment or interest to invest beyond savings. 

 

Test Objective 2: To find the impact of the profession (Banking or Non-banking) on the portion of income that is set aside 

for savings. 

H0: There is no impact of profession (Banking or Non-banking) on the portion of income that is set aside for savings. 

H1: There is a significant impact profession (Banking or Non-banking) on the portion of income that is set aside for savings. 

 

Table 2. Proportion of income goes for savings 

 
Proportion of income goes for savings Column Labels     

Row Labels Banking Non-Banking Grand Total 

0% - 10% 20 21 41 

10% - 20% 14 22 36 

20% - 30% 10 17 27 

30% and above 11 7 18 

Grand Total 55 67 122 

 
Test Statistic       

Row Labels Banking Non-Banking Grand Total 

0% - 10% 0.12440478 0.10212333   

10% - 20% 0.30627587 0.25142049   

20% - 30% 0.38761936 0.318195   

30% and above 1.02586521 0.84212816   

      3.35803221 

        

    df 3 

        

  Left P-value 0.66035303 

  Right P-value 0.33964697 

      0.67929394 >alpha 

 

Result Interpretation: From the analysis conducted through Chi-square test, since the p-value is more than alpha, the 

alternative hypothesis (H1) is thereby rejected. Therefore, we can conclude that there is no impact of profession (Banking 

or Non-banking) on the portion of income that is set aside for savings. 

 

Test Objective 3: To find whether investors’ gender and impact of the pandemic on their regular income are significantly 

associated. 

H0: Investor’s gender and impact of the pandemic on their regular income are not significantly associated. 

H1: Investor’s gender and impact of the pandemic on their regular income are significantly associated. 

 

 

 



Sendilvelu & Parthasarathy, Indian Journal of Finance and Banking 9(1) (2022), 184-191

  

188 
 

Table 3. Pandemic impacted the regular income 

 
Pandemic impacted the regular income Column Labels       

Row Labels Decreased Increased No change Grand Total 

Female 6 6 25 37 

Male 25 10 49 84 

Prefer not to say   1   1 

Grand Total 31 17 74 122 

 

Test Statistic         

Row Labels Decreased Increased No change   

Female 1.230758786 0.13824963 0.29141769   

Male and prefer not to say 0.53574206 0.06017925 0.12685241   

        2.383199823 

          

    df 2   

          

  Left P-value 0.69626507   

  Right P-value 0.30373493   

      0.60746985 >alpha 

 

Result Interpretation: From the analysis conducted through Chi-square test, since the p-value is more than alpha, the 

alternative hypothesis (H1) is thereby rejected. Therefore, we can conclude that investors gender and impact of the pandemic 

on their regular income are not significantly associated. 

 

Test Objective 4: To find whether investor’s gender and their reaction when the financial markets start to perform badly 

after making an investment are significantly associated. 

H0: Investor’s gender and their reaction when the financial markets start to perform badly after making an investment are 

not significantly associated. 

H1: Investor’s gender and their reaction when the financial markets start to perform badly after making an investment are 

significantly associated. 

 

Table 4. Reaction on the poor performance of market 

 
Reaction on the poor performance of market Column Labels       

Row Labels Invest more 
funds to take 

advantage of the 
lower price, 

expecting future 

growth. 

Monitor the 
investment 

and wait to 
see if it 

improves. 

Transfer money to a 
more secure 

investment product to 
reduce the risk of 

further losses. 

Grand Total 

Female 5 22 10 37 

Male 18 45 21 84 

Prefer not to say     1 1 

Grand Total 23 67 32 122 

 
Test Statistic         

Row Labels Invest more funds to take 
advantage of the lower price, 

expecting future growth. 

Monitor the investment 
and wait to see if it 

improves. 

Transfer money to a more 
secure investment product to 

reduce the risk of further 

losses. 

  

Female 0.559428637 0.1389541     

Male 0.243515995 0.060485902     

      1.002384635   

          

    df 1   

          

  Left P-value 0.683265817   

  Right P-value 0.316734183   

      0.633468367 >alpha 

 

Result Interpretation: From the analysis conducted through Chi-square test, since alpha is way lesser than the p-value, the 

alternative hypothesis (H1) is thereby rejected. Therefore, we can conclude that investors’ gender and their reaction when 

the financial markets start to perform badly after making an investment are not significantly associated. 

 

Test Objective 5: To find whether investor’s age and the person whose advice they take before investing are significantly 

associated. 

H0: Investor’s age and the person whose advice they take before investing are not significantly associated. 



Sendilvelu & Parthasarathy, Indian Journal of Finance and Banking 9(1) (2022), 184-191

  

189 
 

H1: Investor’s age and the person whose advice they take before investing are significantly associated. 

 

Table 5. Source of advice before investing 

 
Source of advice before investing Column Labels         

Row Labels Family members Friends or 

colleagues 

Investment 

advisors 

Myself Grand Total 

25-35 13 25 15 23 76 

35-45 2 1 2 2 7 

45-60 1 
  

2 3 

Above 60 3 
  

1 4 

Below 25 9 7 11 5 32 

Grand Total 28 33 28 33 122 

  
Test Statistic           

Row Labels Healthcare Retirement life Tax savings Wealth creation Grand Total 

Below 25 to above 60 0.37328015 0.316722553 1.819708724 1.544   

Grand Total 0.13272183 0.112612463 0.647007546 0.54898   

          5.495024651 

            

    df 3     

            

  Left P-value 0.861063499     

  Right P-value 0.138936501     

      0.277873003 >alpha   

 

Result Interpretation: From the analysis conducted through Chi-square test, since alpha is lesser than that of the p-value, 

the alternative hypothesis (H1) is thereby rejected. Therefore, we can conclude that investor’s age and the person whose 

advice they take before investing are not significantly associated. 

 

Test Objective 6: To estimate the relationship between investor’s professions, having a household budget, and preference 

towards having higher returns on investment even if the risk is high. 

H0: The variable investor’s profession, having a household budget, and preference towards having higher returns on 

investment even if the risk is high, does not have a significant relationship. 

H1: The variable investor’s profession, having a household budget, and preference towards having higher returns on 

investment even if the risk is high, have a significant relationship. 

 

Table 6. Relationship between investor’s profession, having a household budget, and preference towards having higher 

returns on investment even if the risk is high 

 
Regression Analysis               

OVERALL FIT               

Multiple R 0.064657   AIC 173.4307       

R Square 0.004181   AICc 173.7726       

Adjusted R Square -0.01256   SBC 181.8428       

Standard Error 2.011017             

Observations 122             

                

ANOVA       Alpha 0.05     

  df SS MS F p-value sig   

Regression 2 2.020362 1.01018 0.249786 0.779375 no 
 

Residual 119 481.2583 4.044188         

Total 121 483.2787           

                

  coeff std err t stat p-value lower upper vif 

Intercept 3.037368 0.431394 7.040814 1.32E-10 2.183164 3.891573   

Does your household 

have a budget? 

0.070377 0.099582 0.706721 0.481122 -0.12681 0.267559 1.010572 

I would prefer a 

higher return on 

investment even 

though it is riskier 

-0.01016 0.122282 -0.08307 0.933932 -0.255229 0.231973 1.010572 

 

Result Interpretation: From the regression analysis conducted we can conclude that: 

The variables- investor’s profession, having a household budget, and preference towards having higher returns on 

investment even if the risk is high, do not have a significant relationship, as a result of p-value being much greater than what 

alpha is (5%). 

 

Test Objective 7: To test whether investors’ profession and the avenue of investment they feel is safer after the covid 

pandemic are correlated. 



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190 
 

H0: The investor’s profession and the avenue of investment they feel are safer after the covid pandemic is not correlated. 

H1: Profession and the avenue of investment they feel are safer after the covid pandemic is correlated. 

 

Table 7. Correlation between investor’s profession and the avenue of investment they feel are safer after the Covid 

pandemic 

Correlation Coefficients       

Pearson 0.132652     

Spearman 0.110255     

Kendall 0.10127     

        

Pearson's coeff (t test)   Pearson's coeff (Fisher)   

        

Alpha 0.05 Rho 0 

Tails 2 Alpha 0.05 

    Tails 2 

corr 0.132652     

std err 0.09048 corr 0.132652 

t 1.466085 std err 0.090909 

p-value 0.145241 z 1.45564 

Lower -0.04649 p-value 0.145492 

Upper 0.311797 Lower -0.0462 

    upper 0.0303262 

 

Result Interpretation: From the correlation analysis, investors’ profession and the avenue of investment they feel are safer 

after the Covid pandemic; we can conclude that the two variables are positively correlated (corr is 0.13). 

SUGGESTIONS 

Unforeseen circumstances can happen similar to how the situation arose during the pandemic, and it does not matter whether 

the investors are from the banking or non-banking sectors. At times like this, the way investors look at their money has 

changed as more importance is given to health and wealth. So, we suggest that investors both banking and non-banking 

create an emergency fund in the ongoing environment across all genders and make it their apex financial goal. Since we had 

seen both men’s and women’s behaviour in savings and investing has changed during the pandemic, the investors must 

prioritise their financial health and wellbeing. 

CONCLUSION 

The Covid-19 outbreak has had a significant financial impact. Lockdown and social isolation have become unpleasant due 

to the vast population and the economy's challenges, notably in the financial sector. Government tactics to limit the spread 

of Covid-19, such as lockdown and the stock market crash, have greatly harmed individual investors' willingness to invest 

in mutual funds and the stock market. 

The major goal of COVID-19 is to look into the impact of investing behaviour on the financial market. The 

relationship between investment behaviour and a financial market will be investigated in this study. Financial risk tolerance 

is regarded an attitude component while making financial decisions, according to the study. The result is that financial risk 

assessment and how variations in the rate of profitability affect financial risk tolerance drive the rate of profitability. When 

making investment decisions in stocks or any other financial commodity, the ability to risk-taking tolerance is defined by 

the growth of high return over financial investment. COVID-19's effects on risk perception and general risk tolerance can 

be examined, according to the findings. Business sectors have been badly impacted as a result of global implications, 

resulting in investor uneasiness. As a result, financial planning and forecasting may be done quickly and effectively, 

benefiting both financial planning and the market. The efforts taken to avoid Covid 19 had a direct impact on the investor's 

savings and investment behaviour, according to the research. While both genders experienced a drop in investment, the 

difference in percentage decline was not substantial. It is also found that Furthermore investment behaviour didn't vary with 

investor age. This study has faced a couple of limitations in that the views of respondents are subjected to their bias and 

prejudice. The number of employees in the banking and non-banking sector is very huge and therefore the views cannot be 

generalized on the basis of only 122 respondents. The years of experience also play a very vital role in understanding 

behavioural finance which is not considered in this scenario. 

 

 
Author Contributions: Conceptualization, K.S.; Data Curation, S.P. and K. S.; Methodology, K.S.; Validation, S.P. and K. S.; Visualization, K.S.; Formal 

Analysis, K.S.; Investigation, S.P. and K. S.; Resources, K.S.; Writing – Original Draft, K.S.; Writing – Review & Editing, S.P. and K. S.; Supervision, 

K.S.; Software, K.S.; Project Administration, S.P. and K. S.; Funding Acquisition, S.P. and K. S. Authors have read and agreed to the published version 
of the manuscript. 

Institutional Review Board Statement: Ethical review and approval were waived for this study, due to that the research does not deal with vulnerable 

groups or sensitive issues. 
Funding: The authors received no direct funding for this research. 

Informed Consent Statement: Informed consent was obtained from all subjects involved in the study. 

Data Availability Statement: The data presented in this study are available on request from the corresponding author. The data are not publicly available 
due to restrictions. 

Conflicts of Interest: The authors declare no conflict of interest.                                                                                                                                                                                                                                    

 



Sendilvelu & Parthasarathy, Indian Journal of Finance and Banking 9(1) (2022), 184-191

  

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