CFA Institute, the global association of investment professionals, has released a new report titled “Clicks and Credibility: Understanding Finfluencers’ Role in Investment Decisions”, an India focused study which is a continuation of our work The Finfluencer Appeal: Investing in the Age of Social Media[1], which examined how young investors use content from financial influencers on social media platforms, such as YouTube, TikTok, and Instagram, to gather information and make investment decisions.
The study carried out by CFA Institute, India provides timely insights into the fast-growing role of financial content creators—commonly referred to as “finfluencers”—in shaping retail investor behavior, highlighting both the promise and the risks of this emerging digital trend. Based on a detailed survey of over 1,600 investors and an in-depth review of 51 prominent financial influencers, the report reveals that a significant proportion of retail investors now rely on social media and digital influencers for financial guidance. Alarmingly, despite the widespread influence of these finfluencers, only a small fraction is certified or regulated, raising important concerns about the quality and credibility of the financial advice being shared.
A key finding reveals that 82% of followers have acted on advice given by financial influencers, with 72% of them reporting financial gains. However, the report also highlights the risks: 14% of older investors admitted to being misled or even falling victim to fraudulent advice, underlining the urgent need for regulatory clarity and enhanced investor awareness.
Commenting on the report, Arati Porwal, Senior Country Head – India at CFA Institute, stated:
“The rise of financial influencers has made investment knowledge more accessible, especially for young, first-time investors. However, this new ecosystem also brings challenges in ensuring advice is responsible, transparent, and rooted in sound financial principles. Through this report, CFA Institute advocates for stronger collaboration between regulators, platforms, and influencers to foster a safer investment environment for all.”
Rashmi Peiris Paranavitane, CFA, President of CFA Society Sri Lanka noted that “While Sri Lanka has not yet seen the same scale of growth in ‘finfluencers’ as markets like India, we are beginning to see increased reliance on social media for investment-related content. This underscores the need to ensure that financial content shared online is accurate, ethically sound, and aligned with the principles of investor protection. By sharing insights from this timely report, CFA Society Sri Lanka is continuing our efforts to raise standards and promote responsible financial education, recognizing the vital role digital platforms will play in shaping the next generation of investors”.
The report further explores investment behavior across age groups, with younger investors (aged 21–25) showing irregular investment habits, often based on available savings, while older investors exhibit more consistent monthly investment patterns. It also points to platform preferences—while younger investors favor low-cost, digital-first platforms, older investors tend to rely on traditional brokerages and personalized financial advice.
One of the more concerning findings is that 63% of finfluencers reviewed in the study did not clearly disclose paid promotions or affiliations, suggesting a lack of transparency that could mislead unsuspecting investors.
To address these issues, CFA Institute recommends:
- Mandatory registration or certification for those offering financial advice online
- Clear guidelines for disclosure of sponsored content
- Enhanced transparency mechanisms by social media platforms
- Focused investor education efforts to improve financial literacy and awareness
Sidath Kalyanaratne, CFA, Chair of the Advocacy Committee at CFA Society Sri Lanka, shared that “In the aftermath of the COVID-19 pandemic, social media platforms such as WhatsApp and Facebook have gained significant popularity among retail investors in Sri Lanka, alongside the increased utilization of online trading platforms and tools. This study offers valuable lessons for Sri Lanka, highlighting the growing role of influencers in shaping investment behavior. It is essential to encourage influencers and market participants to use these platforms responsibly, adhering to high standards to maintain the integrity of the information shared. Collaboration between regulators, platforms, and influencers will be key to ensuring the effective and transparent functioning of Sri Lanka’s capital market.
The full report can be accessed at https://rpc.cfainstitute.org/research/surveys/2025/clicks-and-credibility
[1] https://rpc.cfainstitute.org/research/reports/2024/finfluencer-appeal
