




































INDIAN JOURNAL OF FINANCE AND BANKING 10(1) (2022), 31-40 

31 

 

                   FINANCE AND BANKING 

                                                                  IJFB VOL 10 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 

IMPACT OF THE COVID-19 ON THE SPENDING PATTERN AND 

INVESTMENT BEHAVIOUR OF RETAIL INVESTORS  

 
 Farheen Siddiqui (a)  Anvita Raghuvanshi (b)   Srijan Anant (c) 1   Surendra Kumar (d)   

 

(a) Research Scholar, Department of Commerce and Business Administration, University of Allahabad, Prayagraj (Allahabad), India; E-mail: 

farheensiddiqui711@gmail.com 
(b) Assistant Professor, Department of Commerce and Business Administration, University of Allahabad, Prayagraj (Allahabad), India; E-mail: 
anvi.bhu@gmail.com 
(c) Senior Research Fellow (SRF), Department of Commerce and Business Administration, University of Allahabad, Prayagraj (Allahabad), India; E-mail: 

srijan.monirba@allduniv.ac.in 
(d) Assistant Professor, Department of Business Management, Hemvati Nandan Bahuguna Garhwal University, Srinagar, Uttarakhand, India; E-mail: 

ksurendra02@gmail.com 

 

 
A R T I C L E I N F O 

 
 

Article History: 
 

Received: 19th March 2022  

Accepted: 20th May 2022 

Online Publication: 29th May 2022 

 
Keywords: 

 

Investment Behavior, Covid-19  
Spending and Investment Pattern   

 
JEL Classification Codes: 

 

      D90, G30, G40, G51, M10 
 

  

 
A B S T R A C T 
 
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. 

 
 

© 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 

The breakout of the highly infectious disease Corona Virus has affected across the globe and crucially disrupted human life. 

The government has taken steps to prevent the spread of Covid -19 in the country, such as social distancing, self-isolation, 

and lockdown, which has huge economic implications. Among all the measures taken by the government, the lockdown has 

affected the income, spending, and investment pattern of people. Factories were shut, manufacturing was stopped, offices 

were working virtually, and many people had lost their jobs. The countries are still suffering financial crises apart from 

heavy loss of life due to the Covid -19 pandemic. 

Covid-19 impacted investment patterns and portfolios and people's overall outlook on life. The focus has shifted, 

and health investment has taken precedence. Following Covid-19, investors have begun to seek out safer, more stable, and 

low-risk investment opportunities. The first and most important characteristic of investing in safety and liquidity. Individual 

investors' investment patterns have shifted dramatically due to their fear of losing money. The majority of investors have 

altered their preferences due to the lockout. People's income has also been impacted by Covid-19. Additionally, people's 

spending habits have shifted. 

Sands et al. (2016) have studied the economic impact of infectious diseases on an economy. Khan et al. (2020) 

have studied the effects of Covid-19 on the investment pattern of investors regarding traditional investment and market 

based financial products in the financial capital of India, Mumbai, and Gurbaxani and Gupte (2021) have studied the impact 

                                                      
1Corresponding author: ORCID ID: 0000-0003-2910-8157 
© 2022 by the authors. Hosting by CRIBFB. Peer review under responsibility of CRIBFB, USA.  

https://doi.org/10.46281/ijfb.v10i1.1738 

 
 

To cite this article: Siddiqui, F., Raghuvanshi, A., Anant, S., & Kumar, S. (2022). IMPACT OF THE COVID-19 ON THE SPENDING PATTERN AND 

INVESTMENT BEHAVIOUR OF RETAIL INVESTORS. Indian Journal of Finance and Banking, 10(1), 31-40. https://doi.org/10.46281/ijfb.v10i1.1738 

https://orcid.org/0000-0003-2910-8157
mailto:srijan.monirba@allduniv.ac.in
http://creativecommons.org/licenses/by/4.0/)
http://creativecommons.org/licenses/by/4.0/)
https://doi.org/10.46281/ijfb.v10i1.1738
https://orcid.org/0000-0001-6272-0183
https://orcid.org/0000-0003-1838-8720
https://orcid.org/0000-0003-1594-9895


Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

32 

of Covid-19 on Investors behavior of individuals in a small town in the state of Madhya Pradesh, India. Since very few 

studies have been conducted during this period, the study aims to find out whether there is a similar impact in the capital 

city of Uttar Pradesh, Lucknow. 

The present paper attempts to analyze the impact of the Covid-19 pandemic on investment patterns, investment 

portfolio changes due to income change, and investment preferences due to Covid-19. This paper also studies the change in 

the spending pattern of people due to the outbreak of the Covid -19 pandemic. The motivation behind the study is that some 

researchers have studied the impact of investment behavior and spending patterns on the Covid-19 pandemic. However, no 

major studies have investigated the changes in investment behavior due to changes in the spending pattern of the people. 

This research paper has tried to fill the gap. 

 

REVIEW OF LITERATURE 

The spread of Covid-19 has revolutionized how people interact, greet, work, and buy goods and services. Everything has 

changed. Although social isolation and home quarantine have reduced Covid-19 cases, they are causing psychological pain 

among those affected. Epidemics and pandemics have dearly cost economies around the world—pandemic danger and 

development: a study. According to the author, a serious pandemic can cost USD 3 trillion. As with absolute poverty in a 

developing country, the author writes that a pandemic can have disastrous effects. The OECD, among others, sees a severe 

pandemic as a top global catastrophic risk (Jonas, 2013), highlighting public concern. The author concluded that a global 

pandemic would only bring misery, economic collapse, and societal disturbances, affecting the poor and those in unstable 

states. 

Fan et al. (2016) approximated the cost of a pandemic needed to battle the pandemic. A pandemic's cost is equal 

to climate change. It means that battling a pandemic costs as much as tackling climate change. The authors also cautioned 

that the world would face a pandemic similar to 1918 because the world has not learned from its mistakes and has shown 

little interest in preparing for one. According to Bloom and Canning (2006), the USA has not learned from former pandemics 

and is poised for another calamity. The estimated global mortality cost ranges from 0.3 percent to 1.6 percent of GNI for 

high-income to lower-middle-income countries (Fan et al., 2016).  

Sands et al. (2016) examined the economic impact of infectious disease crises and why a global pandemic may 

reoccur. A lack of investment in infectious disease outbreak preparedness and response is attributed to underestimating the 

threat to human lives and livelihoods. Infectious illness emergencies have significant economic repercussions. A research 

conducted by Khan et al. (2020), A study on the impact of Covid-19 on the investment pattern of investors regarding 

traditional investment and market based financial products in Mumbai - The impact of Covid-19 on investors' investment 

patterns were investigated, as well as the degree of investor preference for specific asset classes such as gold, stock, and real 

estate. Before and after the Covid-19 outbreak, Covid-19 has a considerable impact on investors' preference for real estate 

but has had no meaningful impact on investors' preference for gold or stock, according to the study's findings. Analytical 

analysis of Investment pattern and Investment Preferences of Retail Investors Post Covid-19 according to a paper by 

Kumthakar and Nerlekar (2020), this study aims to examine the influence of Covid-19 on retail investors' investing patterns 

and changes in their investment preferences following the epidemic. The study also wants to see if investors are willing to 

put money into a pandemic. According to the study's findings, most people adjusted their portfolios after the outbreak of 

Covid-19. Changes in incomes are mostly to blame for this shift in the portfolio. However, following the pandemic of Covid-

19, respondents have become more risk conservative and are transferring their investments to Fixed Income Securities. 

Effect of Covid-19 Pandemic on Savings and Investment Habits by Khanooja (2020) the goal of this study is to see 

how Covid-19 affects people's saving habits in Kota, Rajasthan. The goal is to determine how much savings helped ordinary 

citizens weather the Covid-19 storm and investigate changes in the savings and investment patterns in general. The 

methodology used was to go to different parts of Kota and ask people about their lives before and after Covid-19, income 

sources, and savings patterns. Kumar and Abdin (2021) conducted a study titled "Impact of diseases and pandemics on 

consumption patterns" 2021. This study aims to see if epidemics and pandemics affect consumer behavior in India's rural 

and urban areas. Using the pandemic Covid-19 as a case study, it was investigated how the pandemic affected Indian 

consumers' consumption patterns. What differences or similarities were discovered between rural and urban consumers' 

consumption habits in the aftermath of the Covid-19 epidemic. A questionnaire was used to acquire the necessary primary 

data. After analyzing the replies, it was discovered that pandemics significantly impact rural and urban consumers' purchase 

patterns. According to the report, consumer purchase habits have shifted dramatically, with people spending primarily on 

necessities. The consumption habits of urban consumers have changed more than those of rural customers. 

A study on the impact of Covid-19 on Investors' Behaviour of Individuals in a small town in the state of Madhya 

Pradesh, India, by Gurbaxani and Gupte (2021) the study shows how the Covid-19 epidemic has influenced people's 

investment and financial decisions in tiny towns in underdeveloped countries like India. In Madhya Pradesh, a sample survey 

was done to examine the impact of Covid-19 on individual financial transactions. The study concludes that there is a 

significant link between Covid-19 prevention measures and individual income. These preventative measures had a direct 

impact on savings and investment behavior. During the Covid-19 epidemic, respondents reported a 43 percent decline in 

SIP investment. McKinsey and Company (2020) found Covid-19's long-term impact on customers. The poll found that 

Covid-19 had a significant impact on consumers' personal lives and daily activities. Due to lower wages, consumers are 

spending primarily on necessities and non-discretionary items. 

Covid-19 has eight direct repercussions for consumer behavior; according to Sheth (2020), hoarding, 

improvisation, pent-up demand, embracing digital technology, blurring of work-life boundaries, shop to home, reunions 

with family and friends, and talent discovery. According to the report, while consumer behaviors will shift, they will not 

die, and marketers will have new opportunities. Covid- 19 has also increased its use of social media platforms like Facebook, 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

33 

Instagram, WhatsApp, Twitter, and Zoom, resulting in increased word-of-mouth. According to the author, more technology 

is required to assess consumer mentality. As a result of changing demography, governmental policy, and technology, new 

habits emerge. 

Covid-19 has a huge influence. It has influenced economic, social, environmental, and cultural elements and 

consumers and consumption patterns. Studies have been done to assess the impacts. Chakraborty and Maity (2020) examine 

Covid-19's impact on migration, society, and the environment. Covid-19 will reduce yearly GDP growth by about 2% every 

month, according to the authors. Tourism has been hurt the most, with a 50% to 70% drop in output. COVID-19 has proven 

to be good for the environment as the closure of companies, factories, etc., has reduced trash emissions, which has had a 

favorable impact on the global ecology. Various researches have revealed similar conclusions to Chakraborty and Maity 

(2020) about Covid-19's environmental impact. Saadat et al. (2020) observed that economic activity closures during 

lockdown improved air quality in numerous places globally; Zambrano-Monserrate et al. (2020). Covid-19 has a good 

impact on the environment in India, according to Sharma et al. (2020). The study found a 17% rise in O3 (ozone layer) and 

no change in SO2. There was a 44% fall in the Air Quality Index (AQI) during the Lockdown in India, which confirms that 

the air quality improved throughout the lockdown. 

Ali and Alharbi's study Covid-19 (2020) reveals that global economic closures have severely harmed countries, 

particularly the travel and tourist industry. Authors express concern over academic institution closures preventing students 

from receiving a quality education. The lack of quality education will also cause long-term losses to the world, say the 

authors. The paper stresses the necessity for dedicated research centers and upgraded science and technology to help battle 

future disasters. 

Individuals' investment patterns may vary Post-Covid, according to experts. Most people will avoid short-term 

dangers and move their money into less unpredictable and hazardous investments. This shift in the portfolio is largely due 

to income fluctuations throughout the pandemic. In addition to job losses and compensation reductions, low/no business has 

affected investor portfolios. Regardless of Income, many may invest in mutual funds, NSC, and equities markets during the 

pandemic. This shows that these investors took advantage of market volatility, which is usually a good investment time. 

Due to market instability, investors may opt to invest exclusively in avenues that guarantee a return (Kumthakar & Nerlekar, 

2020). 

 

RESEARCH OBJECTIVES 

 To study the impact of Covid-19 on Investors' behavior. 

 To study the change in spending patterns after the outbreak of the Covid-19 pandemic. 

 To study pre and post changes in the preference of Investment of Investors.  

 

RESEARCH METHODOLOGY 
Research Design: Exploratory research design has been used for the study. 

Research Approach: Survey approach has been adopted for the study. 

Research Instrument: Open-end and close-end questionnaires have been used as study instruments. 

Sampling: About 200 respondents have contacted the survey questionnaire. However, despite their best efforts, only 150 

complete survey questionnaires were returned to the researchers by respondents. The city of Lucknow has been selected as 

a test site located in the Indian state of Uttar Pradesh. 

Data Collection: The primary data for the present study were collected through a questionnaire. 

Nature of the Data: The following tables show the nature of the data: 

 

Table 1. Data Profile 

 
PROFILE PARAMETER NO. OF RESPONDENTS 

Gender Male 

Female 

67 

83 

Age 18 - 25 

35 

36 – 45 

92 

36 

22 

Monthly Income Less than 15,000 
15,001 - 25,000 

25,001 - 50,000 

More than 50,000 

73 
35 

23 

19 

Educational 

Qualification 

Diploma/UG 

Higher Secondary 

Post Graduation 
Ph.D. or equivalent 

64 

19 

56 
11 

Marital Status Unmarried 

Married 

Divorced 

104 

42 

04 

Occupation Private Employee 

Government Employee 

Business/ Profession 
Retired/housewife 

Others 

27 

11 

27 
04 

81 

Domicile_Status Rural 
Semi-Urban 

21 
38 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

34 

Urban 91 

Experience in 

Investment 

Less than 2 years 

2 - 5 years 
5 - 10 years 

More than 10 years 

86 

36 
20 

08 

Type of Investor Conservative (risk avert) 
Moderate (risk-neutral) 

Aggressive (risk taker) 

61 
72 

17 

Monthly Investment in 

Market 

Less than 10,000 

10,001 - 20,000 
20,001 - 50,000 

More than 50,000 

96 

31 
19 

04 

Covid affect income It has Reduced 
Remain Same 

It has Increased 

92 
48 

10 

                                      
Source: Author’s own compilation 

 

Out of 150 respondents majority are male respondents i.e. 83 (55.3%) and female respondents are 67 (44.7%). 92 

(61.3%) respondents are of age group 18- 25 years while 36 (24%) respondents are in 26-35 years age group rest 22 (14.7%) 

are under 36-58 years age group. There are 73(48.7%) respondents earning is less than Rupees 15,000, 35 (23.3%) 

respondents earning is in between Rupees 15001 to 25,000, 23 (15.3%)  respondents earning is in between Rupees 25,001 

to Rupees 50,000, only 19 (12.7%) respondents earning is above Rupees 50,000. 

Out of 150 respondents, 92 (61.2%) respondents' income has been reduced due to Covid-19, while 48 (32%) 

respondents' income unaffected by Covid-19, unexpectedly 10(6.7%) respondents' income has been increased. 64(42.7%) 

respondents have a Diploma/UG qualification, 19(12.7%) respondents are Higher Secondary, 56(37.3%) respondents have 

Post Graduation degree, and 11(7.3%) respondents have a Ph.D. or equivalent qualification. 104(69.3%) respondents are 

unmarried, 42(28%) respondents are married, and 4(2.7%) respondents are Divorced. 27(18%) respondents are private 

employees, 11(7.3%) respondents are Government Employees, 27(18%) respondents are in Business/Profession, 4(18%) 

respondents are Retired/Housewife, 81(54%) respondents are in other categories of occupation. There are 21(14%) 

respondents from rural areas, 38 (25.3%) respondents are from the Semi-Urban area, and 91(60.7%) respondents are from 

urban areas. 

Out of 150 respondents, 86(57.3%) respondents have less than 2 years experience in investment, 36 (24%) 

respondents have 2 – 5 years of experience in investment, 20 respondents have 5 – 10 years of experience in investment, 

and only 8 (5.3%) respondents have more than 10 years of experience. 61(40.7%) respondents are Conservation types of 

investors, 72(48%) respondents are moderate types of investors, and 17(11.3%) respondents are aggressive types of 

investors. There are 96(64%) respondents who are investing less than Rupees 10,000 in the market, 31 (20.7%) respondents 

are investing in between rupees 10,001 to 20,000, 19 (12.7%) respondents are investing in between rupees 20,001 to rupees 

50,000, only 4(2.7%) investor investing more than rupees 50,000. 

 

Table 2. Categorical Data Analysis of Experience in Investment and Change in investment 

 
Experience in Investment Change in the investment due to COVID-19. 

Yes No 

Less than 2 Years 71 15 

2 - 5 Years  26 10 

5 - 10 Years  9 11 

More than 10 Years 6 2 

                             

 Source: Author’s own compilation 

 

Out of 150 respondents, 86 have less than 2 years of investment experience, out of which 71 respondents have 

made changes in their investment, and 15 respondents have not made any changes in their investment. Thirty-six respondents 

have 2-5 years of experience, out of which 26 respondents have made changes in their investment, and 10 respondents have 

not made any changes in their investment. Twenty respondents have 5 – 10 years of experience in investment, out of which 

9 have made changes in their investment, and 11 respondents have not made any changes in their investment. Eight 

respondents have more than 10 years of experience, out of which 6 have made changes in their investment, and 2 respondents 

have not made any changes. 

 

Table 3. Impact of Income vs. Change in Portfolio due to income 

 
Covid 19 affected your 

income. 

Any changes in the investment portfolio during COVID-19 

Yes No 

It has Increased  5 5 

It had Reduced 66 26 

Remain Same 0 18 

                                                   

Source: Author’s own compilation 
 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

35 

Out of 150 respondents, 10 respondents' income has increased; out of 10, 5 have made the changes in the investment 

portfolio, while the rest 5 has not made any changes in their portfolio. Eighty-two respondents' income has been reduced; 

still, 66 respondents have changed their investment portfolio, while 26 respondents have not made any changes. Eighteen 

respondents' income remained the same during Covid-19, so they did not change their portfolios during Covid-19. 

 

Statistical Tools: The data in the study were analyzed using correlation, paired sample t-test, and chi-square test. The SPSS 

Statistics version 22 program was used to analyze the collected data.  

 

ANALYSIS AND INTERPRETATION 

Impact of Covid -19 Pandemic on Investors' Behavior  

Covid-19 has affected the investment pattern of investors. Due to this, the investors have also made changes in their 

preferences. They have shifted their investment into less risky avenues. The study covers the differences in investment 

preferences pre and posts Covid-19. This part analyses and evaluates the data gathered for research purposes. 

 

Statements of Hypotheses (Objective 1): 

Ha1: There is a significant difference in preference of investors Investment pattern of Investors towards mutual funds in pre 

and post Covid-19 scenarios. 

 

Ha2: There is a significant difference in preference of the Investment pattern of Investors towards Fixed Deposits in pre and 

post Covid-19 scenarios. 

 

Ha3: There is a significant difference in preference of Investment pattern of Investors towards Fixed Income Securities in 

pre and post Covid-19 scenarios. 

 

Ha4: There is a significant difference in preference of the Investment pattern of Investors towards Gold in pre and post 

Covid-19 scenarios. 

 

Ha5: There is a significant difference in preference of the Investment pattern of Investors towards Real estate in pre and 

post Covid-19 scenarios. 

 

Table 4. Paired Samples Statistics 

 

 

 

 

 

 

 

 

 

 

 
Source: Author’s own compilation 

Table 5. Paired Samples Correlations 

 
Source: Author’s own compilation 

 

From the above tables, we can conclude that: 

 The accompanying table shows a high degree of correlation between investor preferences for mutual funds before 

Covid – 19 and after Covid – 19. The p-value is less than 0.05 at a 5% significance level, indicating that the 

correlation is significant. 

 The accompanying table shows a moderate degree of correlation between investor preferences for Fixed Deposit 

before Covid – 19 and after Covid – 19. The p-value is less than 0.05 at a 5% significance level, indicating that the 

correlation is significant. 

Paired Samples Statistics Mean N Std. Deviation Std. Error Mean 

Pair 1 Rate of preference Avenue Pre-Covid 19  in Mutual Fund 4.09 150 1.300 .106 

Rate preference Avenue Post-Lockdown in Mutual Fund 3.98 150 1.245 .102 

Pair 2 Rate of preference Avenue Pre-Covid 19 in Fixed Deposit 3.99 150 1.156 .094 

Rate preference Avenue Post-Lockdown in Fixed Deposit 3.82 150 1.093 .089 

Pair 3 Rate preference Avenue Pre-Covid 19 in Fixed Income Securities 3.71 150 1.167 .095 

Rate preference Avenue Post-Lockdown in Fixed Income Securities 3.61 150 1.110 .091 

Pair 4 Rate preference Avenue Pre-Covid 19 in Gold 3.73 150 1.231 .101 

Rate preference Avenue Post-Lockdown in Gold 3.41 150 1.227 .100 

Pair 5 Rate preference Avenue  Pre-Covid 19 in Real estate 3.55 150 1.329 .108 

Rate preference Avenue Post-Lockdown in Real estate 3.25 150 1.312 .107 

Paired Samples Correlations N Correlation Sig. 

Pair 1 Rate of preference Avenue Pre-Covid in Mutual Fund & Rate preference Avenue Post-Lockdown in 
Mutual Fund 

150 .706 .000 

Pair 2 Rate of preference Avenue Pre-Covid in Fixed Deposit & Rate preference Avenue Post-Lockdown in 

Fixed Deposit 

150 .674 .000 

Pair 3 Rate preference Avenue Pre-Covid in Fixed Income Securities & Rate preference Avenue Post-
Lockdown in Fixed Incomes Securities 

150 .564 .000 

Pair 4 Rate preference Avenue Pre-Covid in Gold & Rate preference Avenue Post-Lockdown in Gold 150 .511 .000 

Pair 5 Rate preference Avenue Post-Lockdown in Real estate & Rate preference Avenue Post-Lockdown in 

Real-estate 

150 .566 .000 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

36 

 The accompanying table shows a moderate correlation between investor preferences for Fixed Income Securities 

Deposit before Covid – 19 and after Covid – 19. The p-value is less than 0.05 at a 5% significance level, indicating 

that the correlation is significant. 

 The accompanying table shows a moderate correlation between investor preferences for gold before Covid – 19 

and after Covid – 19. The p-value is less than 0.05 at a 5% significance level, indicating that the correlation is 

significant. 

 The accompanying table shows a moderate degree of correlation between investor preferences for Real Estate 

before Covid – 19 and after Covid – 19. The p-value is less than 0.05 at a 5% significance level, indicating that the 

correlation is significant. 

 

Table 6. Paired Samples Test 

 

 
Source: Author’s own compilation 

 

The above result shows that: 

 Given that the p-value is 0.183, we may conclude that investors' preferences for Mutual Fund did not change 

significantly before or after Covid – 19. As a result, Covid – 19 appears to have had no impact on mutual fund 

investor choice. 

 Fixed Deposit: We accept the alternative hypothesis because the p-value is 0.021, less than 0.05 at a 5% threshold 

of significance. We can deduce a substantial difference in investors' preferences for Fixed Deposit before and after 

Covid – 19. As a result, Covid – 19 may be said to have had a major impact on investor preference for Fixed 

Deposits. 

 Fixed Income Securities: Because the p-value is 0.284, which is greater than 0.05 at a 5% threshold of significance, 

we may deduce that there is no significant variation in investors' preferences for Fixed Income Securities before 

and after Covid – 19. As a result, Covid – 19 does not appear to have had a major impact on investor preference 

for fixed-income securities. 

 Gold: We accept the alternative hypothesis since the p-value is 0.002, which is less than 0.05 at a 5% significance 

level. We may deduce a considerable difference in investor preference for Gold before Covid – 19 and after Covid 

– 19. As a result, it is reasonable to conclude that Covid – 19 has had a major impact on gold investor preference. 

 Real Estate: We accept the alternative hypothesis since the p-value is 0.003, which is less than 0.05 at a 5% 

significance level. We may deduce a considerable difference in investor preference for Real Estate before Covid – 

19 and after Covid – 19. As a result, it is reasonable to conclude that Covid – 19 has a considerable impact on real 

estate investor preference. 

 

Spending pattern Post Lockdown 

Covid-19 has also affected the spending pattern of people. The majority of the people have drastically changed their 

spending habits. They have started spending on essential and healthy products. During the lockdown, people have reduced 

their spending on non-essential items like clothes, traveling, entertainment, etc. 

Paired Samples Test Paired Differences T df Sig. (2-tailed) 

Mean Std. 

Deviation 

Std. Error 

Mean 

95% Confidence 

Interval of the 

Difference 

Lower Upper 

P 

A 

I 

R 

1 

Rate of preference Avenue Pre 

Covid in Mutual Fund Rate 

preference Avenue Post 
Lockdown in Mutual Fund 

.1070 .9770 .0800 -.0510 .2640 1.3370 149 .1830 

P 

A 

I 

R 

2 

Rate of preference Avenue Pre 

Covid in Fixed Deposit Rate 
preference Avenue Post 

Lockdown in Fixed Deposit 

.1730 .9100 .0740 .0260 .3200 2.3320 149 .0210 

P 

A 

I 

R 

3 

Preference Avenue Pre Covid in 

Fixed Income Securities Rate 

preference Avenue Post 

Lockdown in Fixed income 

securities 

.0930 1.0640 .0870 -.0780 .2650 1.0740 149 .2840 

P 

A 

I 

R 

4 

Rate preference Avenue Pre 
Covid in Gold  Rate preference 

Avenue Post Lockdown in Gold 

.3130 1.2160 .0990 .1170 .5100 3.1560 149 .0020 

P 

A 

I 

R 

5 

Rate preference Avenue Post 

Lockdown in Real State Rate 

preference Avenue Post 
Lockdown in Real estate 

.3000 1.2300 .1000 .1020 .4980 2.9870 149 .0030 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

37 

Statements of Hypotheses (Objective 2) 
Ha1: There is a substantial difference in spending pattern during Covid 19. 

Ha2 There is a substantial difference in spending pattern changes on food during Covid 19. 

Ha3: There is a significant difference in spending pattern changes on Medicine during Covid 19. 

Ha4: There is a significant difference in spending pattern changes on sanitization and hygiene during Covid 19. 

Ha5: There is a significant difference in spending pattern changes on Ayurvedic products. 

Ha6: There is a significant difference in spending pattern changes on entertainment and personal accomplishment. 

Ha7: There is a significant difference in spending pattern changes on health insurance policies. 

Ha8: There is a significant difference in spending pattern changes on non-essential items like clothes, traveling, etc. 

 

Table 7. Chi-Square Statistic- Spending pattern Post Lockdown 

 

 
Source: Author’s own compilation 

 

From the above table, we can conclude that: 

 Changes in Spending Patterns in Covid 19: As shown in the table above, the p-value is 0.000, which is less than 

0.05 at a 5% level of significance, meaning that we accept the alternative hypothesis that there is a significant 

difference in spending patterns in Covid 19. 

 Changes in food spending patterns: The p-value is 0.000, which is less than 0.05 at a 5% threshold of significance, 

indicating that we accept the alternative hypothesis that there is a significant difference in food expenditure patterns 

during Covid 19. 

 Changing medical expenditure patterns: As shown in the table above, the p-value is 0.000, which is less than 0.05 

at a 5% significance level, indicating that we accept the alternative hypothesis that there is a significant difference 

in medical spending patterns during Covid 19. 

 Changes in sanitization and hygiene spending patterns: The p-value in the preceding table is 0.000, which is less 

than 0.05 at a 5% level of significance, indicating that we accept the alternative hypothesis of a substantial 

difference in sanitization and hygiene spending patterns. 

 Changing Ayurveda product spending patterns: The p-value in the preceding table is 0.000, which is less than 0.05 

at a 5% level of significance, showing that there is a significant difference in ayurvedic product spending patterns. 

 Entertainment and personal accomplishment spending patterns: The p-value for leisure and personal 

accomplishment is 0.000, which is less than 0.05 at a 5% level of significance, indicating a significant difference 

in leisure and personal accomplishment spending patterns. 

 Health insurance policy spending patterns: As shown in the table above, the p-value is 0.000, which is less than 

0.05 at a 5% threshold of significance, indicating that we accept the alternative hypothesis that there is a significant 

difference in health insurance policy spending patterns. 

 P-value in the preceding table is 0.000, which is less than 0.05 at a 5% level of significance, indicating that we 

accept the alternative hypothesis that there is a substantial difference in spending pattern changes on non-essential 

things such as clothes and travel so on. 

 

Investment Preferences: Pre and Post Covid-19 

After the highly infectious disease Covid-19, investors changed their investments during the lockdown. Some investors 

redeem their investment in fear of loss, whereas some investors have increased their investment to earn more interest in the 

future. Some have shifted their investment into less risky avenues to be in safe heaven 

 

Statements of Hypotheses (Objective 3) 

Ha1: There is a significant difference in the investment during the lockdown. 

Ha2: There is a significant difference in the redemption of investment during the lockdown. 

Ha3: There is a significant difference in the investment increase during the lockdown. 

Ha4: There is a significant difference in the decrease of investment during the lockdown.  

Ha5: There is a significant difference in investment avenues from risky to less risky. 

Ha6: There is a significant difference in changing my investment pattern. 

Ha7: There is a significant difference in changes in an investment portfolio. 

 

 

 Spending 

Pattern 

Change 

During 

Covid 19 

Spending 

More  on 

Food 

Spending More 

on Medicines 

During Covid 19 

Spending More 

on Ayurvedic 

Products 

Stop Spending on 

Entertainment 

Personal 

Accomplishment 

Stop Spending on 

Entertainment 

Personal  

Accomplishment 

Started  

Spending 

on Health 

Insurance 

Reduce 

Spending 

on 

Essential 

like Cloth 

Travelling 

Chi-

Square 

69.360a 44.333b 82.800b 110.333b 75.867b 59.133b 132.933b 79.467b 

Df 1 4 4 4 4 4 4 4 

Asym. Sig. .000 .000 .000 .000 .000 .000 .000 .000 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

38 

Table 8. Chi-Square Statistic- Investment Preferences: Pre & Post Covid-19 

 
Source: Author’s own compilation 

 

From the above table, we can conclude that:  

 Investments Continued During the Lockdown: Because the p-value is 0.000, which is less than 0.05 at a 5% level 

of significance, we accept the alternative hypothesis, implying a substantial difference in investment during the 

lockdown. As a result, it is possible to assert a difference in investment levels during the lockdown. 

 Investment Redemption during Lockdown: Because the p-value is less than 0.05 at a 5% level of significance, we 

accept the alternative hypothesis, implying a substantial difference in investment during the lockdown. The report 

shows that numerous individuals redeemed their investments throughout the lockdown period. 

 Rise in investment during Lockdown: Because the p-value is less than 0.05 at a 5% threshold of significance, we 

can deduce a significant difference in the increase in investment during the lockdown. As a result, several 

respondents boosted their investment during the lockout. 

 Stop investment during Lockdown: Because the p-value is less than 0.05 at a 5% threshold of significance, we can 

deduce a significant difference in stop investment. This suggests that other investors also halted their investments 

during the lockout. 

 Investment route from hazardous to less risky: Because the p-value is greater than 0.05 at the 5% level of 

significance, we can deduce that there is no significant difference in Investment Avenue from risky to less risky. 

As a result, it may be asserted that people did not switch from risky to less dangerous investing channels during 

the lockdown. 

 Change investment pattern: Because the p-value is less than 0.05 at a 5% threshold of significance, we can deduce 

that there is a meaningful difference in changing my investment pattern. The study demonstrates a shift in 

investment patterns during the lockdown. 

 Portfolio change: Because the p-value is less than 0.05 at the 5% significance level, we accept the alternative 

hypothesis, meaning a significant difference in the investment portfolio during the lockdown. 

 Because the p-value is 0.000, or less than 0.05 at the 5% level of significance, we accept the alternative hypothesis, 

meaning a substantial difference in investment shifted on health care and personal safety regulations. As a result, 

people's investments in health care and personal safety precautions have moved in response to the advent of Covid-

19. 

 

DISCUSSION 

As per the study, major changes in the investment pattern and investment portfolio are due to changes in income and high 

market volatility as the market prices continually go down during lockdown. The majority of the respondents whose reduced 

income has changed their investment portfolio. Respondents whose income has also been increased made changes in the 

investment, while the respondents with the same income have not changed their investment. It can also see in the study that 

the respondents, who are investing for a long duration having more experience in investment, have made changes in the 

investment pattern during Covid-19. 

Many people have also increased their investment during the lockdown as the market goes down continually after 

the outbreak of Covid-19. Literature shows that the stock market was highly volatile from March 2020 to May 2020 because 

of Covid-19 fear. Due to reduced income and returns, some people have redeemed and stopped their investments during the 

lockdown. Most investment avenues have started giving poor returns due to the Covid-19 pandemic. 

Investors' preference for investment has also been changed post lockdown. People are unwilling to take any risk and want 

to shift their investment into less volatile & less risky avenues. As seen in the data, the investors prefer a mutual fund as a 

popular investment avenue both pre and post Covid-19. Post Covid-19, respondents have preferred to invest in fixed deposits 

as they carry less risk and decent returns than the risk taken. No major change has been seen in the investment of gold and 

real estate, while fixed-income securities have been affected due to the outbreak of the Covid-19 pandemic. 

The pandemic Covid-19 has also affected the lifestyle and impacted the spending pattern of the people. As per the 

data collected, most respondents have drastically changed their spending habits. During Covid-19, people have started 

spending on medicine, sanitization, ayurvedic products, health insurance policies, etc. During the lockdown, people have 

reduced their spending on non-essential items like clothes, traveling, entertainment, etc. 

Consumers have shifted their spending towards healthy products during Covid-19 to boost their immunity. 

Spending on data packs has also increased during Covid-19 as it was the only source of entertainment for people during the 

lockdown. It has also increased as many jobs are going online during the lockdown. 

 During Lock-

down, 

Continue 

Investments 

During Lock-

down, 

Redeem 

Investments 

During Lock-

down, 

Increase 

Investments 

During Lock-

down, Stop 

Investments 

During Lock-

down Shift 

Risky to Less 

Risky  

Investments 

During Lock-

down 

Change 

Investment 

Pattern 

During Lock-

down 

Change 

Portfolio 

During Lock-

down Shift 

Health Care 

Personal 

Safety 

Policies 

Chi-Square 77.333a 44.667a 46.467a 42.867a 85.133a 52.800a 43.133a 74.133a 

Df 4 4 4 4 4 4 4 4 

Asymp. Sig. .000 .000 .000 .000 .000 .000 .000 .000 

a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 30.0. 



Siddiqui et al., Indian Journal of Finance and Banking 10(1) (2022), 31-40 

 

39 

FINDINGS 

 Covid-19 has impacted investors' preferences toward Gold, Fixed deposit, and Real Estate. People prefer to invest in 

fixed deposits as they are unwilling to take any risk and want to shift their investment to less risky avenues. However, 

there is no significant impact on investors' preference toward Mutual Funds and Fixed income securities. 

 Income is a significantly influential factor in changes in investment patterns and investment portfolios, as many people 

have lost their jobs and faced a reduction in income due to Covid-19. 

 Experience in investment has been significantly influential as the majority of the respondent investing for many years 

has made changes in their portfolios after the outbreak of the Covid-19 Pandemic. 

 There is a significant correlation among the investment avenues, namely real estate, gold, mutual funds, fixed deposit, 

and fixed income securities. 

 

During the lockdown, some people have continued investing. It can be seen in the study that many people have 

increased their investments, whereas some have redeemed their investments. There is a change in investment patterns and 

portfolios as many people have shifted their investment to less risky avenues, health care, and personal safety policies. The 

pandemic Covid-19 has also impacted the spending pattern of the people. The spending habits of the respondents have gone 

a sea change. The majority of the respondents have shifted their spending towards healthy products, essentials, sanitization, 

and hygiene. People have reduced their spending on non-essentials like clothes, traveling, entertainment etc. 

 

CONCLUSION 

Investors' preferences are vigorous and influenced by some external factors. The pandemic Covid-19 was an unpredictable 

calamity that has changed the paradigm of the entire world and has established a "new normal". The government has taken 

many measures to prevent the spread of Covid-19. Among all the measures, the lockdown has badly affected the economy. 

Many people have lost their job and affected people's income, investment, and spending patterns. From the present study, it 

can be concluded that investors' investment patterns and preferences have changed after the outbreak of the Covid-19 

pandemic. Investor seems to become more risk-averse and shift to investment in less risky avenues. Investors have also 

changed their investment portfolios due to poor returns provided during the lockdown. Covid-19 has also drastically affected 

the spending pattern of people during the lockdown. People have shifted their spending to more essential items and reduced 

spending on non-essentials. 

 

 

 

Author Contributions: Conceptualization, F.S., A.R., S.A. and S.K.; Data Curation, F.S., A.R., S.A. and S.K.; Methodology, F.S., A.R., S.A. and  S.K.; 

Validation, F.S., A.R., S.A. and S.K.; Visualization, F.S., A.R., S.A. and S.K.; Formal Analysis, F.S., A.R., S.A. and S.K.; Investigation, F.S., A.R., S.A. 
and S.K.; Resources, F.S., A.R., S.A. and S.K.; Writing – Original Draft, S.A.; Writing – Review & Editing, S.A.; Supervision, F.S., A.R., S.A. and S.K.; 

Project Administration, F.S., A.R., S.A. and S.K.; Funding Acquisition, F.S., A.R., S.A. and S.K. 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.  

                                                                                                                                        

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ABBREVIATIONS 

OECD- Organisation for Economic Co-operation and Development, SIP- Systematic Investment Plan, NSC- National 

Savings Certificate, df- Degree of Freedom, Std. Deviation- Standard Deviation, N- Total Number of Responses, Sig.-

Significance Level, Std. Error Mean- Standard Error of the Mean, Asym. Sig.- Asymptotic Significance, Sig. (2-tailed)- 

Two-tailed p-value, USA- United States of America 

 

 
 

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