80% of millennials, Gen Z rely on 'finfluencer', social networks for investment info: Study

A recent study by Navi Mutual Fund has revealed that 80 percent of millennials and Gen Z rely on their social networks and finfluencers for investment information. The Navi MF's study also highlighted that "returns" are the top priority for 1 out of 2 investors in selecting the fund (both active and index fund).

According to Navi Mutual Fund, one in three index fund investors did not fully understand the concept of index funds.

Further, the study highlighted some misconceptions about investment and mutual funds. Such as, over 60% of respondents believed that mutual fund investment requires extensive financial knowledge. Another misconception, the study pointed out was that a large lump sum is required to start investing. And, nearly 50% of non-users fear their investments are not secure if the investment apps shut down.

Notably, market regulator Sebi has tightened the screws on finfluencers by barring partnerships with regulated entities. Sebi barred regulated entities from partnering with anyone, "who, directly or indirectly, provides advice or recommendation or makes any implicit or explicit claim of return or performance, in respect of or related to security or securities unless permitted by the Board".