Investment: why do young people trust influencers so much ?

© Pexels/Ivan Samkov

One in four French people trust an influencer more than their wealth advisor to invest. Likewise, 36.8% of them say that influencers have helped them with their investments. This survey carried out by the company Sortist in 2022 says a lot about the importance these content creators have taken in terms of investment advice.

Finfluencers seduce

In a recent report, the CFA Institute, a non-profit organization that provides professional education and training to professionals. investment training in finance, was interested in those we call finfluencers and the reasons for their success with young people.

We invite you to read this very informative text. What we can remember is that there are several reasons which explain this popularity among members of Generation Z. Thus, these Internet users tend to believe people who work in financial institutions less than their elders. They therefore turn to these influencers who speak a language much closer to their daily lives.

On TikTok, finfluencers now produce very professional ten-minute videos. They explain in detail the different financial concepts to an audience who is not always aware of the issues.

Overall, these content creators are much more oriented towards investing in cryptocurrencies. However, these virtual currencies have less good press among traditional wealth advisors as well as within official regulatory institutions. However, Bitcoin figures particularly well among the investments popular with young people.

Finally, and this is far from being negligible, the advice of finfluencers is accessible free of charge in a few clicks on the Internet, while it is much more tedious to contact a traditional financial institution, and this has a cost.

Beware of overconfidence

However, you should be extremely careful when obtaining information about financial products on the Internet. In a study released at the end of 2023, the Financial Markets Authority (AMF) noted excess confidence among new investors. Thus, the latter tend to overestimate their knowledge of financial matters.

The Stock Exchange policeman specified: «&nbsp ;Questioned on simple notions such as the effects of inflation, diversification or the risk/return ratio, more than half of the youngest answered correctly only two questions out of six”. You can always find this fascinating study in more detail in our dedicated article here.

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