33% finfluencers give stock tips, 2% SEBI-registered, 63% hide sponsorships: Report
While 69% of influencers highlight financial risks, this concern is primarily driven by macro-influencers (20 out of 25), with mega-influencers (13 out of 23) also providing similar warnings.
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82% of followers of financial influencers reported making investments based on their advice, with 72% of these achieving profits.While 8% reported having been duped by finfluencer advice overall, those over the age of 40 seem to be more at risk, with 14% reporting being misled or experiencing fraud. It is possible that this low number is due to several reasons, including investors being unwilling to admit they have been cheated and the individual experiences of participants in the study, as per the India Finfluencer Report by CFA Institute.
While influencers span age groups from as young as 24 years, going up to 55 years, most influencers are young (average age : 31 years), with 60% under 29 and predominantly male.
Certifications and Background
Most of the finfluencers on a self-reported basis have some form of financial background or have a certification in the field.
Only 2% are SEBI-registered, yet 33% provide explicit stock recommendations. This is one of the most striking results from our study and confirms the regulator’s concern that many finfluencers are dispensing financial and investment advice without authority, accountability, and in an indiscriminate manner.
59% have had one or more brand sponsorship / partnerships. 29% mention investment norms such as fees, tax implications, and lock in periods in their content.
SEBI-Registration Matters, but Verification is Limited
Among respondents who follow financial influencers, 67% believe it is extremely or very important for finfluencers to be SEBI-registered. Despite this, 35% of those who follow financial influencers do not verify whether their preferred influencers are registered. This indicates a serious dichotomy and a critical flaw on the part of investors. It implies that we must go a long way to achieve the required level of investor maturity and their ability to take correct investment decisions as required according to their circumstances. Among investors who mentioned an influencer’s registration status as being extremely important, more than half (53%) were unaware of their registration status.
Many Investors Who Follow Influencers Act on Their Advice
Among respondents who follow financial influencers, 82% reported making investments based on their recommendations. Of these investors, 72% stated they made profits, but 14% of those aged 40+ experienced fraud or misleading advice. Of these investors, 72% stated they made profits, but 14% of those aged 40+ experienced fraud or misleading advice.
Content Preferences Differ by Investor Profile
Among experienced investors, 69% prefer long-form content like blogs or detailed videos for in-depth knowledge. Live Q&A sessions and market analysis is a popular influencer content format, especially with older investors. Short videos have also emerged as a popular content type that has found appeal across demographics and investor types.
Caution and Background Checks Lead to Better Outcomes
Investors who claimed they made a profit by following influencer’s advice (72%), verified an influencer's background (71%) and expertise (66%), before taking an investment decision. Among those who profited from financial influencer advice, 71% highlighted the importance of credentials, while 69% actively checked the influencer’s background before making decisions.
Young influencers dominate the financial content space
The average age of finfluencers is 31 years, with 60% under 29. Instagram is the most popular platform, followed by YouTube. 100% of the influencers are on Instagram followed by 84% on YouTube and 80% on LinkedIn. This also suggests that many influencers are present on more than one platform.
Risk warnings are inconsistent, leaving audiences underinformed
While 69% of influencers highlight financial risks, this concern is primarily driven by macro-influencers (20 out of 25), with mega-influencers (13 out of 23) also providing similar warnings. Among those who discuss risks, 80% include disclaimers, advising audiences to conduct their own research.
Formal financial training is common, but SEBI registration is rare
Most influencers have formal financial backgrounds or certifications on a self-reported basis, yet only 2% are SEBI-registered. Despite this, 33% openly recommend stocks to buy, sell, or hold. This is a very important result in our view and suggests a major gap between the number of finfluencers offering financial advice and the ones who are SEBI-registered. Only 29% mention key investment norms like fees, tax implications, or lock-in periods in their content.
Sponsored content often lacks transparency
59% of influencers engage in brand sponsorships or partnerships. Promotional content frequently includes affiliate links, but 63% of influencers fail to disclose these financial ties adequately. This puts a question mark on the authenticity and genuineness of the content and financial/investment advice being offered.
Content type varies, but recommendations often lack depth
Most content falls under guidance, offering general information without actionable recommendations. 33% of influencers provide explicit recommendations, and 59% create promotional content, often without clarifying financial risks or costs.
