The rise of social media has transformed the informational environment of retail investors, particularly in emerging markets such as India. This study investigates how social media exposure influences investment perceptions, behaviors, and confidence among Indian retail investors. A cross-sectional survey was conducted for 117 participants based in Mumbai using a structured questionnaire covering demographics, social media use, investment patterns, and perceptions of influence. Descriptive, correlational, and regression analyses were employed to examine differences across groups and predictors of investment confidence. Results show that younger, higher-income, and self-employed investors are significantly more influenced by social media, while gender, education, and financial training have little effect. Social media reliance is negatively associated with investment confidence and experience, whereas income, experience, and investment intensity positively predict confidence. YouTube and Instagram emerged as the most influential platforms, though investors emphasized the need to verify online information. The findings highlight a paradox in terms of how social media enhances accessibility and democratizes financial knowledge, yet it also heightens susceptibility to behavioral biases, herding, and reactive trading. The study contributes to behavioral finance literature by situating social media influence within the Indian retail investment context and provides implications for regulators, educators, and digital platforms.
Vijita Singh Aggarwal (Wed,) studied this question.