Finfluencers Are Changing How India Invests: Opportunities, Risks, and the Future of Financial Education

In early 2025, a 23-year-old influencer from Delhi posted an Instagram Reel explaining how he grew his stock portfolio from INR 50,000 to INR 5 lakh in just one year. The video went viral, reaching over a million views and sparking thousands of comments asking for tips.

This example shows how finfluencers, financial influencers on social media, are becoming the go-to source of investment advice for young Indians. They simplify complex topics like stocks, mutual funds, and personal finance through YouTube, Instagram, Twitter, and even Telegram. But can we really take their word for it, especially when they boast about making big profits?

Today, millennials and Gen Z prefer quick and relatable money advice online rather than approaching traditional financial planners. While this trend increases financial awareness, it also raises questions about accuracy, accountability, and long-term risks.

Also Read: Finance Creators Gearing You Up for India’s IPO Rush

The Shift in Financial Advice

Earlier, money tips mostly came from certified advisors, investment banks, or business newspapers. Investing was seen as complex and limited to the wealthy or financially educated.

The last decade changed everything. Creators like CA Rachana Phadke Ranade and Pranjal Kamra started breaking down finance in simple videos. Their success opened the doors for thousands of new finance creators, including regional language influencers teaching stocks and mutual funds in Hindi, Tamil, Telugu, Kannada, and Marathi, making investments accessible to everyone.

This democratisation of knowledge is powerful but also risky. Without understanding basics like risk management and portfolio diversification, many young investors follow viral tips blindly.

The Finfluencer Economy

Finfluencers include both self-taught investors sharing personal experiences and creators with basic finance knowledge who mix education with entertainment. They earn through affiliate marketing, sponsored posts, online courses, and brand collaborations.

Globally, names like Andrei Jikh, Graham Stephan, and Mark Tilbury dominate the space, while in India, influencers such as Anushka Rathod, Sharan Hegde (Finance With Sharan), and Neha Nagar are highly popular.

A 2024 UK FCA report revealed that 85 percent of investors aged 18-40 rely on social media for investment ideas, with nearly half treating it as their primary information source.

But here’s the concern: most creators don’t have professional training. Without certifications, they may spread half-baked tips that lack risk warnings.

Impact on Young Investors

For first-time retail investors, finance feels less intimidating now. Influencers speak in relatable language, using personal stories and regional content, which has led to a rise in young stock market and mutual fund investors across India.

However, this new trend has risks:

• Overconfidence: Viewers may think they know enough after watching a few clips.
• Herd Mentality: People follow viral tips blindly without research.
• Short-Term Focus: Chasing quick profits often leads to losses.

A Morningstar 2024 report found that most retail investors in India act on social media advice without checking credibility. This behaviour has fueled speculative trading in stocks and cryptocurrencies.

How Brands Are Using Finfluencers

Financial companies have noticed the impact. Mutual fund houses, stockbrokers, and fintech apps like Zerodha and Upstox regularly collaborate with influencers to target first-time investors.

While this helps reach a younger audience, unregulated endorsements can mislead consumers. In 2023, SEBI took action against creators promoting trading apps without proper disclosures.

Brands are now urged to partner with trained professionals, preferably those with investment banking or financial analytics qualifications, to ensure responsible campaigns.

The Regulatory Dilemma

Globally, regulators are struggling to keep up. The US SEC has fined influencers for promoting crypto and stocks without disclosure. In India, SEBI issues advisories warning investors against unverified social media advice.

Platforms like YouTube now require disclaimers for finance content, while Instagram has started labelling financial promotions, though enforcement is still weak.

Experts believe that in future, certifications may become mandatory for finfluencers, ensuring credibility and consumer protection.

The Role of Data and Analytics

Social media platforms use algorithms to push emotional, viral finance content promising big returns. Tools like Smallcase, Zerodha Console, and Groww dashboards are popular, but most investors lack the skills to interpret data effectively.

Structured courses in financial analytics and investment banking can help future professionals analyse data, predict trends, and make informed decisions.

The Future of Financial Education

As finance becomes more social, education must adapt. A hybrid model—combining relatable influencer content with structured courses—could be the way forward.

We might soon see certified finfluencers, professionals who are both trained and social media-savvy. Institutions offering financial analytics or investment banking courses should include modules on digital content ethics, influencer marketing, and communication.

A Balance Between Entertainment and Ethics

Finfluencers have made finance cool, accessible, and conversational. They’ve inspired millions to start investing earlier than previous generations. But their power also carries responsibility.

For investors, the best approach is to use social media for awareness while relying on structured education for decision-making. Courses in investment banking or financial analytics bridge the gap between viral tips and sound financial action.

Regulators, brands, influencers, and educators must work together to create a safe and ethical financial ecosystem where education is not sacrificed for entertainment.