Edelweiss Mutual Fund Marks Financial Freedom Day with Report on Social Media’s Impact on Mutual Funds

Edelweiss Mutual Fund (EMF) marked the occasion of Financial Freedom Day on March 31 by releasing a comprehensive report titled ‘Social Media Sahi Hai.‘ The report delves into how social media has catalyzed the growth of mutual funds (MF) and highlights the evolving role of social media in disseminating information related to mutual funds.

Financial Freedom Day, conceptualized by Edelweiss Mutual Fund six years ago, celebrates the pivotal role of Mutual Fund Distributors in guiding investors on their financial journey. It aims to encourage investors to pursue financial freedom by seeking expert guidance. EMF has utilized social media extensively over the years to commemorate this day.

Radhika Gupta, MD & CEO of Edelweiss MF, emphasized the impact of social media on investor decision-making, particularly among the younger generation. She stated, “The industry has witnessed a surge in investments from millennials and Gen Z, who rely heavily on social media for information. It is imperative for certified practitioners to leverage social media to dispel misinformation and create valuable content. Our report sheds light on these insights.”

The report sheds light on the significant role social media plays in spreading awareness about mutual funds, especially among India’s millennials and Gen Zers. Data from the Association of Mutual Funds in India indicates that nearly 50% of individual investors in March 2023 were in the 25-35-year bracket, compared to just ~35% a decade ago. This demographic, known for their social media affinity, considers influencers as the fifth most popular source of information for investment decisions.

Furthermore, the report highlights the correlation between the growth of India’s social media footprint and the increase in MF investors. India’s social media subscribers surged from just over 40 crores in late 2017 to over 83 crores in 2022. This growth coincided with a 500 bps increase in SIPs contributing to nearly 20% of the total MF AUM, up from ~15% in March 2022.

The ‘Social Media Sahi Hai’ report serves as a valuable resource, illustrating how digital transformation is revolutionizing India’s MF industry. It underscores the importance of embracing social media to engage with investors effectively and foster a culture of informed decision-making.

As social media continues to influence investment decisions, Edelweiss Mutual Fund remains committed to leveraging this platform to educate and empower investors, ensuring they stay on the path to financial freedom.