Recently it has been observed that social media messages of famous people or influencers have created great impact directly or indirectly on the price of the shares of many companies.
Internet surfing has increased more than ever during pandemic as people were stuck at home. While they were thinking about other options to increase income as well as investment, stock market seemed to be quite lucrative for them. According to reports by the Securities and Exchange Board of India (SEBI), around 10 million new investing or DEMAT were opened in India last year. And first thing that these new investors appeared for help was internet. Many free trading and low commission platforms came into play.
These new investors tried YouTube videos for financial helps and there lies the importance of finfluencer. Influencers are creating meaningful impact on fashion, cooking, travel and many other sectors. It has been observed that people are massively influenced by them. It is true about financial sector also. People are even altering their financial decisions after watching a tweet or other social media post of famous persons.
This is high time that we give a little bit more thought about using social media references to determine our financial decisions.
Some finfluencers are seen to be really helpful. Specially, during a crisis market they contributed positively to inflate panic among investors and traders. But is it true about all of them?
There are cases where people have lost lots of money in stock market by investing as per YouTube vlogger’s suggestions. They didn’t judge their decision in real market parameters. They only trusted finfluencer’s tips. And the consequence was worst than anything.
Influencers are generally dashing, smart and manipulative. Their personal approach and style often creates permanent impact on our mind. But should we consider these factors while taking a financial decision? After all, it’s about your hard-earned money and your children’s future. You are nothing more than a ‘view’ or ‘like’ for them.
You can take suggestions from finfluencers but that cannot be the substitute of proper learning. When making any investment decision, do it yourself according to your financial goal and knowledge irrespective of what others are saying.