Should you put your money in the hands of an Instagram or YouTube finfluencer?

The term “finfluencers” is popular among investors today because these people provide advice on personal investments, including investments, on social media platforms. However, the fact is that these advisers are not officially registered or SEBI registered advisers, which has led to various illegal practices being seen. As a result, the Securities and Exchange Board of India (SEBI), the government agency, announced in December that it plans to set up a system to identify these financial advisers. If you trust social media influencers with your money, let the industry experts know.

Mr. Ayush Shukla, Creator and Founder of Finnet Media said that “money is very important so it is important to share it wisely and more importantly. With the growth of Instagram, a lot of people have been involved in creating content – some are famous creators who just copy without knowledge. It is important to check the creator’s credibility, education, background and the type of content they create. However, the final decision should be guided by personal research and you must be in line with your own requirements because content creators drive campaigns and not specific financial solutions. Finance is personal, so not everyone can tell you what to do and what not to do, you can approach and follow the creators of new investment methods but the final decision should be your own research and always leading. “

Mr. Kunwar Raj, Founder, Unfinance said “The question of whether you should trust a financial advisor with your money is a sensitive one. On the other hand, these influencers can be a great source of information and inspiration. On the other hand, well… most of us have heard stories of people blindly trusting financial advisors who claim to have a secret get-rich-quick formula? Let’s just say these stories usually don’t have happy endings. While there are certainly some benefits to following financial influencers, such as gaining valuable financial information and inspiration, there are also potential risks. One of the biggest risks is the possibility of fraud and misinformation. There have been many examples of people losing money after trusting someone on the internet who claimed to have a secret way to get rich quick. “

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“For example, eight personal finance activists in the United States were charged with fraud in December after authorities said they made $100 million promoting stocks they intended to dump, exploiting their followers. . social media, it does not mean that they are experts in the field of finance. Even if they are passionate about the subject, they may not have the same level of knowledge, skills, or ethical standards as a licensed financial advisor. On the other hand, there are trusted financial advisors who provide valuable information and inspiration to help people manage their money. They have also helped increase financial literacy and provided access to a wide range of financial resources that may not have been easily accessible before the advent of social media. In conclusion, it’s important to approach financial planners with a healthy dose of skepticism. Always do your own research, verify influencer credentials, and consult a licensed financial advisor if you have any doubts or concerns. Also, remember that you are solely responsible for your financial decisions. You can also go through product reviews from different sources and check the credibility of the influencer before following their advice. So make sure you have all the facts before you use your hard earned money. And always be aware of the potential risks before taking a decision,” said Mr. Kunwar Raj, Founder.

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Ujjwal, Content Creator – Finance, CS said “copying content is as easy as liking an instagram photo. Today, anyone with a mobile phone can become an influencer and start talking about money. So, in such cases, you can protect yourself and your money by considering a few things before making a financial decision based on the advice or recommendation of an influencer: Research the influencer profile and profile. Do they have a degree or experience in the financial sector? Are they qualified (CA/CS/Avocat) to talk about the content they are talking about? Check their content. Does it add value? is it? Are they providing valuable and informative content or are they just trying to sell you something? Consider their motivations. Are they being paid or compensated in some way to promote a product or service? In 99% of cases, yes answer. Blood If this is the case, it is important to ask the influencer about their experience with the product or how long they have been using it. Some of the influencers check the features of the products before telling them to the audience. “

“In other words when you see advice. Try to get behind why this advice was given? Finally, it is important to be careful when making financial decisions based on the advice of influencers. In my experience, 80% of influencers will not tell you to invest in stocks or mutual funds. They know their responsibilities. It is always best to do your own research or consult with a licensed financial professional before making any big financial decisions,” says Ujjwal, Content Creator.

Shreyaa Kapoor, Content Creator – Finance, Ex – Bain said that “The role of an influencer is simply to tell you the different paths that are available. Although it is important to do their due diligence beforehand When working with a brand, customers should take it as guidance rather than gospel. It’s important to do your own due diligence around the brand and match it to your risk appetite and time frame. .Audiences should ask related questions and if they have problems, use influencers as a tool to reach the brand. For example: I asked many questions and problems that the audience faced with a brand and they were solved within 2 day. Most of the influencers, try to work with the brands that they use personally and they trust, taking into account the changing nature of the space so that they can prove that they help them as much as they can. remind the audience of the path that exists but in the end, personal finance is so well defined that it doesn’t exist. brands/products can be one size fits all – so DYOR should be the norm.”

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Anushka Rathod, Digital Content Creator – Business & Finance says “No! You should not trust any lender with your money. It’s hard earned money and you need to be careful. Many people on the Internet will give you stock tips, offering special policies. These things should come from SEBI registered advisors. However, many developers are real and do the research to give you the right information, teaching you the basics and features of certain investments. This information is non-standard and you can use it to start your research and make the investment that suits your personal situation. “

Disclaimer: The opinions and recommendations expressed above are those of the individual analyst or brokerage firm, and not of Mint.

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