Effects of COVID- 19 on Risk Tolerance and Coping Strategies Amongst Investors in Dar Es Salaam

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Ashesi University
Covid 19 poses a threat not only to health systems but also to the financial stability of both individuals and nations. The rapid spread of Covid 19 pandemic impacted the financial markets particularly, the investors who put their money into the financial markets with expectations of earning high returns. This study, thus, examines the impact of Covid 19 on the risk tolerance of investors in Dar Es Salaam and the coping mechanisms or strategies employed during the pandemic. This paper explored the strategies that the investors have used to protect their investments during the pandemic. Also, the paper assesses how Covid 19 has impacted the risk tolerance of the investors during the pandemic. The study employed mixed methods. The qualitative part of the study explored the strategies investors used during the pandemic to protect their investments and cope. It was found that investors used at most three common strategies which are diversification of the portfolio, sale of their investment and restraining from doing anything to the investment. A Quantitative method was used to assess the effect of Covid 19 on the risk tolerance of the investors. The study found that there was no significant relationship between covid 19 and the risk tolerance of the individual investor. This indicates that there might be other factors such as income, age, gender that might have caused this outcome. Hence, it is recommended that the study on how the age and gender of an investor can impact one’s risk tolerance should be conducted for future studies.
Undergraduate thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2022
Klemence, E. E. (2022). Effects of COVID- 19 on Risk Tolerance and Coping Strategies Amongst Investors in Dar Es Salaam. Ashesi University.