Influence of Social Media and Finfluencers on Investor Behaviour

Antara Sen

doi:10.36948/ijfmr.2026.v08i01.66685

Influence of Social Media and Finfluencers on Investor Behaviour

Author(s)	Ms. Antara Sen
Country	India
Abstract	In the last decade, the proliferation of social media has transformed almost every aspect of human life—including financial decision-making. A new subset of online personalities known as financial influencers (“finfluencers”) has emerged across platforms like YouTube, Instagram, TikTok, Twitter, Reddit, and LinkedIn. These individuals post content related to investing, personal finance, market outlooks, stock tips, crypto strategies, and portfolio management, often reaching millions of users. Unlike traditional financial advisors, however, finfluencers usually operate outside formal regulatory frameworks, frequently without formal credentials, and monetize through sponsorships or affiliate marketing. This dynamic has profound implications for retail investors—especially novice and young investors—who increasingly rely on user-generated content as a primary source of financial information. This paper examines the nature and mechanisms through which social media and finfluencers influence investor behaviour. Drawing on both empirical studies and market data, the research explores motivators of investor reliance on social media, behavioural biases activated by digital content, impacts on investment choices and risk perception, and regulatory challenges that arise. It analyzes how social media content amplifies herd behaviour, confirmation bias, overconfidence, fear of missing out (FOMO), and risk misperception among investors. While finfluencers may democratize financial literacy and lower informational barriers, the quality of advice and credibility issues poses significant risks, ranging from misinformation to outright fraudulent schemes. Case studies and regional evidence, including research from India and Canada, reveal nuanced patterns across demographic groups. The paper concludes with recommendations for investors, educators, and regulators to mitigate harmful effects while preserving the potential educational benefits of digital finance content.
Keywords	Investment Behaviour, Behavioural Finance, Investor, Social Media
Field	Business Administration
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-01-18
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.66685

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Influence of Social Media and Finfluencers on Investor Behaviour

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