Social Media Advice: Boom Or Bust? Can Influencers Shape Financial Decisions?

Social media has become a powerful financial classroom. Influencers simplify jargon, decode markets, and speak the language many investors relate to. The impact is visible, says PGIM India Mutual Fund Retirement Research Report 2025. As per the report, around 67 per cent of people say influencer content helps clarify financial concepts, 55 per cent feel motivated to act, and 54 per cent gain confidence in their decisions. But confidence, when unchecked, can quietly slip into risk.

What’s concerning is that about 32 per cent act on influencer advice without any verification. This is where vulnerability creeps in. It is alarming! “Acting on generic, untailored guidance exposes investors to mistakes, losses, and behavioural traps such as overconfidence, herd behaviour, and optimism bias,” says the PGIM India Mutual Fund Report.

The ease of access and the persuasive tone of online content often blur the line between education and action.

Recent evidence from the market regulator, Securities Exchange Board of India (Sebi) reports underline how costly unvetted action can be. Between FY22 and FY24, 93 per cent of retail derivatives traders lost money. In FY25, 91 per cent faced losses, with an average loss of Rs 1.1 lakh per person. These outcomes highlight how easily investors can be nudged into decisions that are neither personalised nor stress-tested, often with damaging consequences, says the Report.

Why Financial Advisors Matter More Than Ever

“Professional help is the better approach," says the Report. Even for those who prefer a DIY approach, the report adds, expert advice as a second opinion can make a meaningful difference. It isn’t mandatory, but it brings reassurance. “That reassurance works as a gentle nudge to challenge assumptions, uncover blind spots, and bridge the gap between confidence and true preparedness, while still respecting individual autonomy,” it adds.

So why advisors matter more than ever is becoming clearer. Until recently, the report notes that financial advisors were often viewed as product pushers, someone you met when buying insurance or opening a mutual fund. That perception is changing. Today, advisors are increasingly seen as co-managers of personal wealth, helping individuals navigate complex decisions and plan across life stages.

As per the Report, one in five Indians consulted a financial advisor for personal finance in the past year, with an average investment of Rs 97,000 after consultation. Age plays a significant role. Only 15 per cent of those aged 20 to 30 seek advice, but this rises sharply to 60 per cent among individuals aged 51 to 60, reflecting a growing preference for professional guidance as retirement approaches, says the Report. Yet, retirement planning remains under-advised.

• As per the report, the impact of advice is tangible.

• 92 per cent of those who sought advice say they feel more confident making financial decisions.

• 87 per cent report greater consistency in setting long-term goals.

• 86 per cent say their financial anxiety has reduced significantly.

To sum up, in an environment where influencers shape trust and trigger action, advisors play a crucial role, not by replacing autonomy, but by grounding decisions in suitability, context, and long-term thinking.