Is Google a good financial advisor?

Google is neither a financial advisor nor a government spokesperson, hence the information available on it might not necessarily be the latest or updated.

Be it academics or sports, the teacher or the coach deserves all the accolades for every success of their pupil, as without their help it would not have been possible for the apprentice to achieve anything. Humans are the most intelligent species on this planet, yet intelligence alone is not enough to achieve success. Therefore, each one of us craves for that mental support or encouragement in order to go beyond and achieve success. Even after the inception of the internet, the importance of coach, mentor or teacher has been unmoved in the field of academics or sports, but the same cannot be said about the investment or personal finance fields.

Investing for your future is nothing less than preparing for the toughest test in sports or education, because one wrong step and you are practically endangering your future financial life.

Possibly being unaware about the fact of jeopardising your future or simply procrastinating could be some of the reasons why an advisor is not treated with any deserving importance while taking financial decisions. But here’s why Google may not be the safest bet for any of your financial decisions.

Results yes, but are they relevant?

That’s the big question. To simplify, Google feeders are prone to using Google search engine optimisation in order to bring their website or info in the first two or three links. In order to queue up their information, they take the help of keywords and as result, when any Google user enters such key words in Google search, the feeder’s website will be flashed first even though the information might be irrelevant.

The lesson learnt here is that the information provided by Google is not verified or necessarily relevant, so acting on such information is more like driving your car with one eye closed.

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Difference between search and research

Google is simply a platform for all the information that is fed to it by the feeder. Therefore, Google is not the owner of the information you see on it, rather the owner is the feeder or website owner who may or may not be an investment advisor.

Likewise, there is an immeasurable number of feeders to Google who are there to present their information but not to help you make the right decision. Searching means finding information but research means finding the right solution to your needs. Therefore, even though Google provides you with a plethora of information, the onus is on you to determine whether the information is helpful or noteworthy of taking the decision.

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Lack of legal responsibility

Investment advisors are people with knowledge, expertise, experience and, most importantly, registered with relevant governmental authorities, entrusting them with a responsibility of managing investors’ funds. As we told you before, Google provides all sorts of information, without knowing its legitimacy or truth.

As a result, if things go wrong, Google does not take any responsibility, nor will the capital market regulator, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), the government or the court. That is why our regulators and even stock exchanges have, of late, started warning against opting for any investment schemes spreading on the internet or mobiles.

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Not the latest updates, necessarily

Google is neither a financial advisor nor a government spokesperson, hence the information available on it might not necessarily be the latest or updated. Therefore, investing on the basis of outdated information could be fatal and destructive. Imagine if you bought a car without knowing the best one available in the market or without knowing that the manufacturing company is winding up. This is what lack of updated knowledge could do. Hence, it is always wise to know all the options and latest developments available in all such options.

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Options many, but zero evaluation

In the earlier days investment options were very limited with fixed deposits being the primary choice of most investors. However, today, with so many options in mutual funds alone, it is not just difficult to choose but even more difficult to evaluate. Each investor has his or her own unique risk appetite, aspirations and income threshold, and opting for any investment options without analysing such factors is merely shooting in the dark.

An investment option may be good for some but may not be ideal at all for some. So following anything blindly is nothing but gambling with your future. Google will provide you with a host of options but never the right one for you unless you make the research your own.