It started with a message from a cousin.
He sent me a short video clip of someone explaining why a particular stock was about to double. The person in the video sounded sure, used words like “breakout” and “technical setup,” and ended with, “This is not a tip, just sharing what I am doing.”
My cousin asked, “Should I buy this?”
I did not have a quick answer, so I started looking into it. The more I watched, the more similar videos I found. Different faces, same confidence. One said “next multibagger,” another promised “100% returns in three months.” Most were not registered with SEBI. Many were promoting their own courses, broker links, or Telegram groups.]
That was when it hit me that this was not just one video. It was a pattern. A whole world of financial advice running on likes, clicks, and blind trust.
And most people following it had no idea what they were stepping into.
The Algorithm is Rigged Against Your Wallet
The problem is not that people want to learn about money. That part is good. The problem is where they are learning it from and how quickly they start acting on it.
When someone on social media gives financial advice, there is no process. No questions about your income, your goals, your risk tolerance. No understanding of your life at all. Just a one-size-fits-all idea served in a catchy clip or caption.
And it works because it feels personal. The way they talk. The way they smile. The way they say, “This is what I’m doing” sounds harmless. But what they are actually doing is making you believe that their strategy will work for you too.
That is where the damage begins.
Many of these people are not registered advisors. They are not answerable if things go wrong. And many of them make money not by investing, but by getting others to watch, click, or sign up. Some even promote risky products or unknown platforms in exchange for commissions, without saying so clearly.
So while you think you are getting “free” advice, someone else is getting paid and it is usually not you.
Worse, it creates a false sense of control. You feel like you are learning, like you are in charge. But what you are really doing is taking shortcuts with your money, based on someone else’s script.
And in money, shortcuts usually cost more than they save.
Why Free Advice Feels Better Than Real Advice
Ask someone why they follow a finfluencer, and they will say something like, “They make it simple.” And that is true. The videos are short. The language is friendly. The message is clear. Buy this. Avoid that. You feel like you are learning without being judged.
Now ask the same person if they have spoken to a financial advisor. Most will say no. Not because they cannot afford it but because it feels intimidating.
Advisors ask questions. They talk about things like asset allocation, risk appetite, long-term planning. It feels slow. Sometimes uncomfortable. And definitely not as exciting as a 30-second clip saying, “This stock is ready to fly.”
Free advice feels easy. It feels quick. And in the beginning, it feels good.
There is also a trust gap. Many people believe advisors will just sell them insurance or mutual funds for commission. Some do. But a registered, professional advisor has rules to follow, a license to protect, and responsibilities you can hold them to.
A random person online has none of that.
Still, the internet wins. Because it feels familiar. Because everyone else is doing it. Because nobody wants to feel left behind.
And because the cost of free advice never shows up on Day 1. It only shows up when things go wrong and by then, it is usually too late.
So What Should You Actually Do?
Start by slowing down.
Not every video needs to be followed. Not every stock tip is meant for you. If someone sounds too confident, too certain, or too perfect, take a pause. Real money decisions deserve more than a reel’s worth of thought.
Second, ask yourself a simple question: Do I really know who this person is? Are they registered with SEBI? Are they trained to give financial advice? Do they benefit if I act on what they say?
If the answer is no or unclear, that is your sign to be careful.
It is okay to watch content to learn the basics, like how SIPs work, why insurance matters, what a mutual fund is. But when it comes to actual decisions with your money and where to invest, how much, for how long and get help from someone who is trained to guide you. Someone who is accountable.
That could be a SEBI-registered investment advisor. Or a certified financial planner. Or even your bank’s relationship manager, if they are transparent and clear.
Yes, good advice might cost something. But bad advice often costs more.
The goal is not to avoid the internet. It is to stop mistaking content for counsel. Entertainment for expertise. Popularity for credibility.
Because in the long run, your financial health depends not on how many tips you follow —but on how many you choose to ignore.
What You Can Do Starting Today
If you are serious about your money, here are a few things that actually help:
● Stop chasing tips. If you see a stock name online, do not act on it unless you fully understand the company and the risk.
● Check credentials. Before following anyone’s advice, see if they are SEBI-registered. It takes two minutes. You can search on SEBI’s official website.
● Ask better questions. Instead of “What should I buy?”, ask “What am I trying to achieve with this money?” Goals come first. Products come later.
● Build the basics. Start with a budget. Set up an emergency fund. Invest regularly in simple products like index funds or SIPs. These are boring, but they work.
● Talk to someone who is accountable. That could be a SEBI-registered advisor or a planner who is willing to understand your situation and not just sell you something.
● Treat social media as learning, not instruction. It is fine to listen. Just make sure the final decision is yours, not someone else’s script.
The truth is, most people lose money not because they invested but because they rushed. They acted without understanding. They trusted someone they never even met.
You do not have to do the same.
In a world full of noise, slow decisions are your edge. Ask, check, plan and give your money the respect it deserves.
Author Note
Note: This article relies on data from fund reports, index history, and public disclosures. We have used our own assumptions for analysis and illustrations.
The purpose of this article is to share insights, data points, and thought-provoking perspectives on investing. It is not investment advice. If you wish to act on any investment idea, you are strongly advised to consult a qualified advisor. This article is strictly for educational purposes. The views expressed are personal and do not reflect those of my
current or past employers.
Parth Parikh has over a decade of experience in finance, research, and portfolio strategy. He currently leads Organic Growth and Content at Vested Finance, where he drives investor education, community building, and multi-channel content initiatives across global investing products such as US Stocks and ETFs, Global Funds, Private Markets,
