
Covid-19 and its financial impact have shaken the world for more than a year now. It has affected the Indian markets also. This has consequently created uncertainty among many investors about their capital and the future of their business. In this article, we discuss the factors which have affected the Indian markets and the way forward. Let’s begin!

The financial impact of Covid-19 on Indian markets
The financial impact on the Indian markets has been huge. It had created a panic among the investors. Franklin Templeton is an example of what this crisis has done, where panicked investors redeemed their money causing the company to shut down many of its schemes. The citizens have been facing the impact of this crisis. The following impact has been visible,
1. Unemployment has increased- The sharpest financial impact of Covid-19 has been an increase in the unemployment rate. Moreover, CMIE data for May 2020 had shown it to be 27.11%. It was also due to the strict lock-down. Many professionals lost their jobs. The informal sector took the hardest hit. Migrant workers left urban centers for their homes. The daily wage workers who worked in construction, real estate, trade, manufacture, etc. were in bad condition.
2. GDP crashing- India's GDP was thus already slowing down for many years. Covid-19 further worsened it. The Q1 of FY21 contracted by -23.9% as per the NSO. The overall GDP contraction was 7.7%. Moreover, these figures suggest that the economy was in a crisis.
3. Poor Health infrastructure- The public health infrastructure in the country was in dire straits last year. There is not enough healthcare facility in comparison to the big population, which has led to poor healthcare practices. Furthermore, there is a shortage of hospital staff which puts a lot of pressure on the available doctors. Thus, even healthcare professionals have been facing a financial and physical impact.

The financial impact of Covid-19 on your goals
Covid-19 has affected the personal financial goals of people. People are re-evaluating their goals. Moreover, the cost of living has also sharply increased in the past months.
1. Savings and investments have been affected: Financial outlook of the country has been affected. Normally stock markets, real estate, mutual funds, equity, etc. have been favorite options for people to invest. However, people have lost their jobs which has led to a reduction in investments. Subsequently, people have suffered a harsh financial impact of Covid-19.
2. Insurance premiums will go up: If the recent trends are anything to go by, insurance premiums will increase in the coming times. There has been a sharp increase in the claims. This can prompt companies to increase the premiums by at least 20%.
3. Sudden change to professional goals: The most drastic financial impact of Covid-19 has been on the professionals. Their career goals have changed. Graduates and part-time workers are struggling to get a job. Also, those looking to move out of the country have been made to wait as the travel situation remains bad. Businesses have to re-purpose their activities. Middle-aged people are facing a cash shortage. Retired people run the risk of losing their savings.
Scripbox financial freedom survey 2020
As per the recent Scripbox survey, almost 50% of people are looking for financial advice to grow their wealth. The survey shows that 50% of the people wish to get help for their financial planning. Moreover, out of these, 37% of the people want to grow their wealth through a digital wealth management option.
23% of those surveyed, want to build an emergency corpus while 18% want to save for retirement. Only 10% of the people gave priority to their children's education and buying a house. Furthermore, one in two Indian knows about financial freedom but 70% of them do not know how to achieve it. 75% of the women are not confident enough to achieve it in comparison to 67% of men.
The pandemic has shown the limitation of their current investment choices. 39% invest without a long-term goal, 18% have poor savings, 15% have investments with poor liquidity and 10% have invested in exotic products with bad returns.
What do we suggest?
Covid-19 pandemic has shown that there are various risks such as the financial impact on one's personal finance goals. The Scripbox survey has highlighted the need for professional wealth advisors to meet the growing needs of people. It is thus important to have a well-thought-out strategy to achieve this. You should contact your wealth manager for a detailed analysis of your investments. The sooner you do it, the better.
Investify Wealth Advisors Pvt Ltd. offers a host of exciting financial services to our clients and helps them accomplish their targets, round the clock. Our extremely devoted team will help you sort out your financial goals as per your individual needs. Personal finance has never been this easy and we make you an offer. Call us at 9315530832 or mail us at info@investify.in and we'll have you covered.
Plan for your financial well-being and your future has just thanked you. Happy investing!