Younger investors go to Instagram for tips
21 per cent of investors aged 18-34 go to social media platform Instagram for stock tips and market forecasts, new research has revealed.
Fund supermarket Hargreaves Lansdown commissioned a survey of 2,000 people in May, which found that younger investors also go to other social media platforms for ideas. 16 per cent would look at Facebook for investment tips, 14 per cent go to Reddit and eight per cent opt for TikTok.
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For investors aged 55 and older, those numbers fall to 0 per cent, with that demographic choosing to look at financial companies websites instead.
“Financial websites were popular across all investor age ranges, geographical regions of the UK and employment status, in fact rising to 46 per cent of people amongst the self-employed,” said Emma Wall, head of investment analysis and research at Hargreaves Lansdown.
“Other sources of ideas are different amongst different cohorts, with women more likely to ask friends and family for idea and guidance, while men and older investors prefer to trust their own judgement. After that, newspapers and specialised financial publications are a source of ideas across men and women of all ages – though less so with younger investors who prefer to turn to social media for ideas.”
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Wall added that investors need to consider their risk appetite, investment horizon and what they may already be invested in before acting on any investment ideas.
“Ensure a good mix of sectors, regions and styles in your investment portfolio, to help build ballast to weather choppy markets,” she said. “While engagement with investing should be applauded at any age, taking tips from unregulated or unverified sources, such as social media, should be done with caution. Always take time to do additional due diligence on any ideas. If you are at a pivotal life event – retirement, marriage, becoming a parent, and you are really short of investment ideas, consider getting professional advice before taking the plunge.”
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