Retail Investors’ Experiences with Finfluencers and Social Media–Based Investment Advice

Abstract

Social media platforms gained significant acceptance in Pakistan which created different effects on young retail investors who were active in the investment market. Financial influencers, who people call finfluencers, function as important opinion leaders because they provide investment guidance together with market analysis and their own trading experiences through YouTube and TikTok and Instagram. Finfluencers have improved financial knowledge and access to financial resources but people still doubt their trustworthiness while investors make judgments about risks because of their behavioral patterns. The research study examines Gen Z and Millennial investor behavior when they utilize finfluencers together with social media platforms to gather investment information. The research team employed a qualitative interpretivist approach to conduct semi-structured interviews with ten active young retail investors who follow finfluencers online. Thematic analysis identified patterns related to trust and learning and behavioral influence and risk-taking and ethical concerns. The research results show that finfluencers significantly impact investment knowledge and investor confidence while becoming essential to decision-making. However, People who depend on influencer advice become more prone to follow others and develop excessive confidence and face greater financial risks. The study shows that while finfluencers make investing easier for people who want to start investing, people need to develop better financial knowledge to evaluate content correctly and decrease their risk of falling for false information and developing biased behavior. The practical insights from the study help regulators and educators and investors to promote responsible social media-based investment practices in Pakistan.