More than half of the investors look to 'finfluencers' for advice, shows Sebi survey

YouTube continues to be the most popular platform for financial influencers, followed by Instagram (64%), Facebook (61%), X/Twitter (11%), and LinkedIn (4%).

At a time of continued concerns over unregistered financial advisors on social media, a Sebi survey has found that 'finfluencers' are the most popular source of financial advice for investors, just after friends and family.

Nearly 56 percent of the respondents suggested that they turn to finfluencers for investing advice, with nearly 93 percent finding them to be moderate or highly credible, of which, nearly two-thirds (62%) said saying these voices directly shape their investment decisions.

YouTube emerged as the most popular platform for financial influencers, followed by Instagram (64%), Facebook (61%), X/Twitter (11%), and LinkedIn (4%), showed the survey. Investors place substantial trust in these voices, with 66% rating them “somewhat credible,” 18% “mostly credible,” and 9% “very credible,” while only 7% view them as “not credible at all”.

These findings come at a when Sebi, over the years, has taken significant steps to regulate unregistered finfluencers. In June 2024, the regulator barred registered entities from associating with unregistered investment advisors, permitting collaboration only for purely educational content. Sebi also barred educators from displaying live stock prices, names, or codes in ways that could be construed as investment advice, a move aimed at stopping real-time trading tips disguised as education. High-profile enforcement actions too have followed, include raids on finfluencers promoting penny stocks, and bans on individuals involved in “pump-and-dump” schemes.

Despite the popularity of finfluencers, people's personal network remains the most influential sphere of advice. About 59% of investors consult friends, family, and colleagues before making decisions, while online communities such as Telegram, WhatsApp, Reddit, and Facebook groups also play a role, cited by 34% of respondents. Traditional sources like financial news and blogs (28%), investment advisors (25%), and company analysis reports (25%) are increasingly secondary, supplemented by educational resources (21%), regulatory websites (21%), and institutional investor programs (15–16%).

The survey also showed that reliance on finfluencers and peer networks is consistent across the experience levels of investors. Across India, 51% reported that finfluencers significantly shape their investment decisions, while 57% of non-investor intenders said the same. Reliance on friends, family, and colleagues is at 50 and 51 percent, respectively, and 23 and 27 percent for online communities.

The nationwide survey, conducted by research firm Kantar in partnership with Sebi, AMFI and major market infrastructure institutions, covered more than 90,000 households across 400 cities and 1,000 villages.

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