Mumbai: The CFA Institute, the global association of investment professionals, has published its latest India Finfluencer Report, titled ‘Clicks and Credibility: Understanding Finfluencers’ Role in Investment Decisions’. The report provides an in-depth analysis of the growing influence of financial influencers (finfluencers) on retail investors and the associated risks and regulatory challenges.
Based on a survey of 1,600 investors and a review of 51 financial influencers, the report reveals that only 2% of finfluencers are registered with SEBI, yet 33% still offer explicit buy or sell recommendations, raising concerns about transparency and accountability.
With India’s retail investment market expanding rapidly, the report highlights how 82% of investors admitted to acting on influencer advice, with 72% seeing financial gains. However, it also underscores risks, as 14% of investors aged 40 and above reported being misled or falling victim to fraudulent recommendations.
Arati Porwal, Country Head, CFA Institute – India, commented, “India’s financial influencer ecosystem holds tremendous promise for financial awareness, but responsible practices and informed decision-making are crucial. Investors should seek guidance from SEBI-registered advisors and evaluate influencer credentials. At CFA Institute, we advocate for transparency and collaboration between regulators, platforms, and influencers to build a trustworthy financial ecosystem.”
The report also highlights key insights into investor behavior, finding that:
Younger investors (21-25 years) invest irregularly, while older investors prefer structured, monthly investments.
Trust and low brokerage fees drive platform selection among younger investors, whereas older investors favor full-service brokerages and personalized guidance.
63% of finfluencers fail to disclose sponsorships or financial affiliations, raising concerns about ethical practices.
To address these gaps, CFA Institute calls for regulatory reforms, including:
- Mandatory SEBI registration for financial influencers providing investment advice.
- Stronger disclosure norms for sponsored content on social media.
- Improved verification mechanisms for credible finfluencers.
- Investor education initiatives to promote responsible financial decision-making.
With the rapid evolution of India’s investment landscape, this report offers a critical roadmap for ensuring education, transparency, and ethical financial guidance, safeguarding retail investors while fostering a responsible finfluencer ecosystem.
