Only a tiny fraction—about 2%—of financial influencers, or finfluencers, in India are registered with SEBI, the country’s capital market watchdog. Yet, roughly 33% of them are actively giving out stock tips online, often bypassing the regulatory rulebook. That’s according to a new report released by the CFA Institute on March 20, titled Clicks and Credibility – Understanding Finfluencers’ Role in Investment Decisions.
SEBI defines finfluencers as individuals who post content on topics like stock investments, personal finance, insurance, banking, and real estate via social media.
The study, based on a survey of 1,615 investors, reveals a clear mismatch between what investors say they care about and what they actually do. While 67% of participants said it’s very or extremely important that finfluencers are SEBI-registered, more than half of those didn’t actually check the registration status of the influencers they follow.
In fact, 35% of respondents admitted they never verify whether their go-to financial content creators are registered. And even among those who say registration is crucial, 53% are clueless about whether the influencer they follow is registered at all.
This gap suggests that many investors might still be lacking the awareness or maturity needed to make sound investment choices based on their individual circumstances.
The typical financial influencer is young—averaging 31 years of age—with 60% under 29. Most are men, and Instagram seems to be their platform of choice.
Interestingly, followers tend to be influenced more by emotional factors than by credentials. For many investors, qualities like honesty, personal experience, and believability outweigh the importance of formal registration.
Of those surveyed who follow finfluencers, a whopping 82% said they’ve made investment decisions based on influencer advice. Out of these, 72% claimed they earned profits. But there’s a catch. The report points out that these profits could simply be the result of favourable market conditions in recent years—especially with small- and mid-cap stocks outperforming large caps.
It’s not all sunshine, though. Around 14% of investors aged 40 and above reported being misled or falling victim to fraud after acting on influencer advice.
Transparency seems to be another weak point. About 63% of influencers reportedly do not clearly reveal their financial affiliations or sponsorships. Even when they do, disclosures are usually hidden in captions or hashtags, rather than stated openly in videos—making them easy to miss.
When picking investment options, most investors are looking for higher returns (51%). Risk level comes next at 39%, followed by past performance at 37%.
In short, the report paints a complex picture. Finfluencers are clearly shaping how people invest. But the low levels of regulatory compliance and awareness raise questions.
