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Branded Content Feature of Association of Mutual Funds in India

Finfluencers and Your Money: Who Can You Trust?

Finfluencers aren’t held to professional or regulatory standards, and many lack formal finance expertise yet they still share stock tips and tax advice online.

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Today’s era of quick access to information has seen a rapid rise in financial influencers (or “finfluencers”) on social media. Whether it be from a quick scroll on “Insta Reels,” watching a video on YouTube, or going through a Twitter thread, these individuals offer to break down everything from mutual funds to digital asset investing in minutes. 

But while their content may be engaging and accessible, not all that glitters is gold when it comes to trusting them with your financial future.

The Rise of the Finfluencer

Finfluencers have seen rapid growth, especially among younger investors. According to a recent report, nearly half (48%) of Gen Z learn about investing and financial topics on social media, while less than a third (30%) turn to financial professionals.* Social/Online platforms have democratized access to financial education- but with minimal checks and balances.

Finfluencers are not bound by any professional or regulatory standard like registered advisors. A lot of finfluencers lack formal experience or expertise in finance and economics yet share posts and videos about their stock picks and tax mitigation strategies, among other things. 

The Risks of Misinformation

One of the biggest dangers of following finfluencers blindly is the potential for misinformation. Their advice often oversimplifies complex financial products or promotes high-risk strategies with little to no disclosure of risks involved. In many cases, influencers are paid to promote specific products or platforms – without clearly stating that their content is sponsored.

Numerous investors have lost money acting on finfluencers endorsing dubious financial products and schemes. Flashy videos and high follower counts can create an illusion of credibility that disguises a lack of credentials or disclosure of paid promotions. 

Lack of Accountability

Unlike SEBI-registered investment advisors or mutual fund distributors who are bound by fiduciary responsibilities and transparency norms, finfluencers operate in a grey area. Many disclaim responsibility in the fine print or captions – “This is not financial advice”, even while directly telling audiences what to buy or sell.

This lack of accountability leaves followers vulnerable. If a strategy fails, there is little legal recourse for the everyday investor.

What Can You Do?

Being financially informed is crucial, but so is being discerning about where that information comes from. Here are a few tips to protect yourself:

  • Check Credentials: Look for verifiable qualifications in finance, investing, or economics. Formal certifications such as CFP (Certified Financial Planner) or CFA (Chartered Financial Analyst) are good indicators of credibility.
  • Be Wary of Promotions: If an influencer is pushing a particular product or platform, check if it’s a paid partnership. Transparency is key.
  • Cross-Verify Information: Don’t act on a single reel or tweet. Compare the advice with information from trusted sources like official financial portals or registered advisors.
  • Consult a Professional: Before making investment decisions, especially involving large sums or riskier products, seek guidance from a SEBI-registered advisor.

Stay Informed, Not Influenced

Finfluencers can play a role in building awareness, but your financial future deserves more than trending hashtags and viral videos. Before acting on any advice, stop, think, and verify – because a mix of healthy scepticism, informed research, and professional guidance is your best defence against bad advice dressed up as entertainment.

Source:
* India Today | Is social media ruining investing for Gen Z? | Aug 6, 2025

Disclaimer: This article contains sponsored content that may not reflect the independent opinion or views of FinancialExpress.com. Further, FinancialExpress.com cannot be held responsible for the accuracy of any information presented here. Please consult a certified financial advisor before making any decisions based on this article.
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