Question

Investment is the current commitment of money, based on research, to real & or financial assets for a period of time in order to increase the investors wealth over the long term. Investment institutions have clients ranging from individuals, companies & pension and provident funds to estates and trusts, insurance companies.

1.1. What is the impact of COVID-19 on pension funds, insurance and investments

Answer 1

Covid-19 has impacted the global economy in in Worst possible scenario, because the investments have completely dried up and equity market were completely frozen off liquidity because they were expecting an impending recession.

Due to the unfolding of coronavirus, it has impacted the return on pension Fund insurance and investment because the investment in this funds were started to grow just because people were not left with enough fund to invest as their highly sceptical of a global recession and they wanted to save their money and keep it for emergency, rather than investing into the market because the market were not liquid at all, as there were less participation of investors due to fear on the street of a bear market, which was visible.

Investment from pension Fund and insurance accounts for majority of the investments in many markets but many of the global pension funds have suspended their investment plan because of the damage which have been caused by covid-19 as they were expecting their portfolio to stabilize and volatility and uncertainty in the market to calm down to resume their investment.

So it can be overall summed up, that investment from these funds where declining because they were highly uncertain of the present economic scenario.