Role of Social Media Information in Influencing Investment Preferences of Retail Investors: An Empirical Study

Abstract

Retail investors' investment landscape in India has been profoundly changed by social media. Influential sources that shape investment choices have emerged, including Twitter, Reddit, and forums devoted to investing. With debates, advice, and insights on stock markets, cryptocurrencies, and other investment options, these channels act as venues for the sharing of real-time information. The instant access to news, professional advice, and peer experiences provided by social media platforms is a major factor in the decision-making process for retail investors. Financial knowledge has become more accessible to the general public thanks to social media platforms, giving them more influence over markets that were previously controlled by institutions.Retail investors may follow suit due to the viral nature of investment trends on social media sites like Twitter, where conversations about particular stocks or industries gather traction.But there are hazards associated with social media's influence. Speculative activity and market volatility can result from false information and trends fueled by hype. Critical thinking and thorough research are essential as retail investors traverse this environment in order to separate important information from noise and, ultimately, to choose their investment preferences and tactics in India's fast-paced market. Study survey was conducted among 243 retail investors to know the factors that shows different role of social media information in influencing investment preferences of retail investors and found that Global Connectivity, Information Dissemination, Trend Identification and Feedback and Reviews are the factors that shows different role of social media information in influencing investment preferences of retail investors.