Should we be getting our financial advice from Instagram?
What you need to know before signing up for an investment plan
More than 80% of women in India struggle with financial literacy. “The literacy gaps when it comes to finances among millennial women are just too many,” says Dipika Jaikishan, COO and co-founder of Basis, a financial services company that caters exclusively to women. Jaikishan recalls interactions where bright, well-earning women found themselves stumped by more straightforward concepts of personal finance, from investing to loans to how they should approach health insurance. So where are the gaps and where or whom should women look to, for financial advice?
Jaikishan attributes this gap to the fact that finance remains a male domain within households. “All the big decisions around investments and insurance are taken by the fathers, brothers and husbands,” she says. “And women are consistently excluded”.
This makes women particularly vulnerable to scams and the risk of poor savings as they get older. Couple this with the rapid rise in the availability of financial information — whether through websites or influencers — the need for women investors to have a solid filter to process their decisions is more significant than ever.
According to Kuvera, an online wealth management platform, women investors on the platform rose to 26% this year, from 19% the previous year. This rise in women investors can be attributed to several factors including, increased awareness and the greater availability of information online — specifically on YouTube and Instagram. Which means, slowly but surely, women are getting more proactive when it comes to seeking out financial advice, and information — a need of the hour.
If you have been nodding vigorously to all of the above, you’ve likely begun to take your investments, and financial acumen seriously. Scroll through for where to look for advice to bolster that portfolio, without turning to bade bhaiya blindly. This way you’ll go to him armed with ample information, or just manage to DIY-it, like the super (informed) woman that you are.
Where are women getting financial advice from
A cursory glance at the social media landscape will show the hold ‘finfluencers’ have over young Indians. Neha Nagar, whose bio reads “educating you to master your money” has a following of over 1.5 million on Instagram, and CA Rachana Ranade’s YouTube channel has 4.64 million subscribers, with her video on the basics of stock markets amassing an incredible 26.5 million (and counting) views. Just two examples of a growing tribe of content creators who are on a mission to educate audiences about money.
Says Saanya Chowkulkar, a lawyer from Mumbai, “Influencers help me understand the basics of navigating my finances”. Chowkulkar, notes that she’s learned a lot about tax benefits, investing in SIPs, gold sovereign bonds, credit card usage and more. Niveditaa Ramaswami, an interior designer from Coimbatore, says that following influencers helps her stay on top of the latest in finance. “It helps me stay updated, understand what’s trending, the latest amendments..and it’s been really helpful,” she says.
Influencers’ ability to present finance — a usually ‘boring’ topic — in entertaining ways ensures they reach more people than traditional media outlets. In fact, media outlets are now taking to Instagram reels and creator-led formats to share news.
To keep information filtered, a few months ago the Securities Exchange Board of India (SEBI), AKA the regulator or ‘big brother’ of the Indian stock market, started cracking down on misinformation, but women investors should also question and analyse this online financial information with a discerning eye.
You need to watch out
There’s no doubt that influencers have had a positive impact when it comes to women and financial advice, but there are cons to social media being your primary source of knowledge. Everyone comes from different circumstances, backgrounds and beliefs regarding money. At a time when even a diet is customised to suit our peculiar tastes, allergies and illnesses. Naturally, our finances deserve that much more precision.
Jaikishan points out the pitfalls of online financial information. “The content out there is not addressing concepts, but about making profits or sensational schemes. It’s like, an IPO is coming; here’s why you should or should not invest in it. No one is talking about what an IPO is or when you should invest in it. No one’s talking about the hard stuff either, like what happens when your investments go south,” says Jaikishan.
For example, the crypto bust of 2022 saw many startups and coins that were heavily promoted by influencers, go belly-up. Thousands of small investors found themselves stripped of their savings.
Reliable platforms to help you with financial information (and investments)
There are several internet startups to help you figure out your money. Dezerv helps you invest based on your goals, as does LXME. LXME also provides insurance advice and access to experts. Ditto can help you buy the most appropriate insurance plans for your present needs. All of these startups come for a small fee or charge a commission to provide you with tailor-made solutions. Despite being a finance professional, I have used two of these platforms to eliminate the cognitive load of figuring out what to invest in.
You can also go old school and find yourself a local chartered accountant, certified financial planner (CFPs) or a registered investment advisor (RIA), who can help plan your finances for a fee. It always helps to speak to your inner circle to discuss how they’re handling finances.
Social media for good
Despite its pitfalls, social media isn’t entirely off the table. Use the medium proactively for financial awareness, not advice. Research, compare, and approach branded content with a healthy dose of scepticism.
In a world devoid of early financial education, every bit of knowledge counts. Social media, if navigated wisely, can be a stepping stone towards financial savvy, just like discussing mental health on social media can be used for good.
“There are a lot of new schemes that keep coming up and finding out through creators is the quickest way to acquaint myself with that information,” says Chowkulkar, who uses this information to ask her financial advisor questions, proactively. Ramaswami agrees. She has a CA to guide her, but “he’s obviously going to be busy and I can’t ping him all the time. So I follow content creators, do my own reading and go to him with my questions so I can get better clarity on what’s good for me”.
Think of investing as a three-step plan. Scroll, to increase awareness, and reach out to experts to verify information, and invest your hard-earned money knowing full well what you’re getting into.
You’re more than worth it — and so is your investment portfolio.
