Talking about finance on public platforms like YouTube and Instagram has become a trend. But as we all know, everything that glitters is not gold. So, here are the things you must know before you put your trust in a fellow influencer.
Whenever we get some free time, we tend to quickly open YouTube or Instagram, right? And if you are an active user, you must have seen financial influencers flaunting how an intelligent stock market strategy made them rich in no time and how you can do it too!
Yes, these things might seem overwhelming initially, and you might feel the urge to click the enrol button. But wait! Don’t blindly follow a financial influencer before reading this!
What’s Happening?
Asking a celebrity to endorse a product is not new to the market. We have seen such advertisements forever. But why do companies hire celebrities? Simply because they have a huge fan following, the company would get quick attention if a celebrity promotes a product.
Similarly, financial influencers have also entered the game. They have a huge fan following. Young people look up to them, and some might even want to be like them. So, they seem to be taking advantage of their massive popularity to make money.
How Do Influencers Make Money?
- Many companies approach various influencers to promote their products and platforms in a reel or an upcoming video and are paid for it. Higher the fan following, the higher the cost. So, a few influencers promote various products without even using them in the first place.
- A few financial influencers claim to be experts or gurus. They make videos saying that your 9-5 job isn’t helping you mint money. So, you must have passive income sources like stock market trading. They claim that they have tried and tested F&O strategies through which they have succeeded, and you can do it too.
- Some influencers make a strong pitch and convince you to join their webinars like ‘How to conduct fundamental analysis like a pro!’ for just Rs 499.
These are all business tactics that financial influencers use to rip you off! It would be best if you didn’t fall into such traps.
What Should You Do?
- Don’t follow such influencers blindly by getting intimidated by the number of fan following and comments. Always think twice before you trust an influencer!
- Always do a credibility check on the influencer you follow. Every influencer giving financial advice must be a SEBI registered investment advisor. Sadly, most of them aren’t!
- Strictly, conduct your research. No matter what influencers say, it would be best if you did not trust them blindly. Do your research and invest diligently.
End Note
Tell me, when you fall sick, do you even think of risking your life by taking any random free medicine? Not at all. You would instantly rush to consult a professional doctor and get his/her advice.
Similar is the situation with the stock markets. Please don’t rely on financial influencers thinking that they are giving some free advice. By following them, you are risking your hard-earned money. Always consult experts and professionals from the industry.
Wondering who these professionals are? Well, they are none other than SEBI Registered Investment Advisors like Teji Mandi, who will hold your hand through your stock market investment journey.
So, next time, watch videos and reels for educational purposes only. But when it comes to investing, remember to invest with SEBI registered investment advisor, Teji Mandi.
That’s it for today. Don’t forget to share this awareness with your friends!
