Gen Z Investment Habits:
In recent years, social media has significantly impacted how young Indians approach investing. The rise of financial influencers, or “finfluencers,” has shifted the focus from traditional financial advisors to Instagram Reels, YouTube videos, and TikTok posts. This change is transforming how Gen Z learns about finance, often bypassing professional financial advice in favor of informal, easily digestible content.
For many in Generation Z, social media has become the primary source of financial advice. Influencers like Finance With Sharan and others simplify complex financial concepts, making them more accessible to young audiences. Tanmay Khichi, a 25-year-old marketing strategist, says he prefers following influencers over traditional financial advisors because their content is relatable and easy to understand.
“I follow Finance With Sharan because he breaks down complicated topics in a way that feels real,” Khichi explains. This trend is not limited to just stocks or mutual funds; young investors are also diving into more volatile investments like cryptocurrencies, often following recommendations from social media influencers.
According to a report by The Chartered Financial Analyst (CFA) Institute, nearly half of Gen Z learns about finance through social media, while only 30% turn to professional financial advisors. This shift is largely driven by the affordability of social media content compared to the cost of hiring a financial advisor. Many young people find it easier to engage with financial advice that doesn’t require an expensive consultation.
Despite the appeal, the financial advice shared by finfluencers is often not regulated or based on professional principles. A CFA Institute analysis found that only 20% of finfluencers disclose whether they are paid to recommend specific financial products. This lack of transparency poses a significant risk to followers who might be swayed by hype rather than conducting their own research.
The Securities and Exchange Board of India (SEBI) has raised concerns about this growing trend. The regulatory body warns that unregistered influencers can often provide biased advice, promoting products that might not be suitable for their audience. SEBI has issued guidelines to curb the influence of unregulated finfluencers, emphasizing the need for financial education that is credible and well-informed.
While social media offers an accessible way to learn about finance, experts stress the need for structured financial literacy. Platforms like Zerodha Varsity and the NSE Knowledge Hub provide free learning material, but their reach is limited compared to the viral nature of influencer content. As Gen Z continues to embrace digital-first investment behavior, balancing convenience with caution will be essential for making informed investment decisions.
Social media is undoubtedly reshaping how young people invest, offering both opportunities and risks. While it can make financial concepts more accessible, it is crucial for Gen Z to seek verified and regulated sources of information to ensure they are making informed decisions.
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