‘Finfluencers’: The risky move 1 in 10 Aussie investors are making

Aussies investors are trusting the advice of financial influencers, despite recent crack downs on the industry. (Source: Getty)

Would you trust the advice of a finance influencer? Eleven per cent of Aussie investors say they do, new research reveals.

Financial influencers (known as ‘finfluencers’) have gained popularity in recent years on platforms like TikTok and Instagram. Many of these influencers are not licensed to give financial advice, but some investors still believe they are trustworthy.

According to a survey of 1,300 investors by share trading and superannuation platform Superhero, young people are more likely to trust finfluencers.

• Also read: ACCC launches influencer probe

• Also read: Can you use social media to find your next job and how do you do it?

• Also read: ‘ILLEGAL’: Aussies face $1 MILLION fine for social media trend

One in five Superhero investors (20 per cent) aged between 18 and 24 said they trusted finance content creators. This was in stark contrast to investors over 55, with just 5 per cent of that group saying they found finfluencers trustworthy.

Female investors were also more likely to trust finfluencers (15 per cent), compared to male investors (9 per cent).

“The role of finfluencers and social media content creators sharing advice with Australians has been an incredibly hot topic over the last six months,” Superhero CEO and co-founder, John Winters, said.

“What’s clear from our research is that Superhero investors recognise the level of risk that comes with following financial advice shared by unqualified people.”

Trusting finfluencers can be risky

Many finfluencers are not licensed to give financial advice. That means investors don’t have protections if they follow their advice and things go belly up.

ASIC has recently cracked down on the industry. The corporate watchdog warned unlicensed influencers they could face up to five years’ jail time or fines of over $1 million if they talk about stocks, investment funds or financial products.

It comes as more Aussies learn about finances through social media. A recent ASIC survey found 41 per cent of Aussie investors source information from social media, including YouTube (20 per cent), Facebook (11 per cent), podcasts (10 per cent) and financial influencers (10 per cent).

Half of those surveyed admitted they have invested in things because “they didn’t want to miss out”.

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.