The Role of Social Media in Influencing Investment Decisions

Abstract

Now-a-days social media played a major role in shaping financial behaviour and investment decisions. This research shows how social media platforms influence individual investors in India, especially young adults aged 18–25 years. The research explores whether these platforms enhance financial literacy or lead to misinformation and impulsive investment decisions.

This research used both types of data. Data (primary) was collected from 110 respondents through a structured questionnaire, while secondary data was gathered from journals, articles, and reports. The analysis highlights the impact of platforms such as YouTube, Instagram, Telegram, and X (Twitter) on investor awareness, confidence, and decision-making patterns.

As a result the social media improves financial knowledge and encourages investment participation. However, it also exposes investors to unverified information, emotional decision-making, and herd behaviour. To conclude, social media acts as both an opportunity and a risk, emphasizing the need for responsible usage, financial education, and regulatory oversight.