SEBI Survey: Finfluencers Dominate Indian Investors' Decisions
A recent survey by SEBI reveals the growing influence of financial influencers, or 'finfluencers', on investment decisions in India. These social media personalities have become the primary source of information for investors, surpassing traditional channels like financial news media and professionals.
Finfluencers, active on platforms such as YouTube, Reddit, and Telegram, reach a wider audience than ever before. A staggering 56% of investors use them as their main information source, compared to 28% for financial news media and 25% for financial professionals. Remarkably, 93% of investors find finfluencers credible, with 62% basing their decisions on their recommendations.
However, despite the awareness of securities market products among 63% of households, only 9.5% participate in the stock market today. Negative experiences shared by friends and family (32%) act as a greater barrier to investing than lower returns (28%). Trusted inner circles guide 59% of investors' decisions. SEBI's investor awareness programs, however, influence only 15% of investors.
The rise of finfluencers as the dominant information source for investors signals a shift in how Indians approach financial decisions. Despite the potential of finfluencers to drive market participation, challenges remain, including negative experiences and lack of trust in formal channels like SEBI's awareness programs. Meanwhile, 62% of individuals, both investors and non-investors, prefer the police for grievance redressal, indicating a need for robust regulation and protection in the investment landscape.
