A fifth of young investors get their stock tips and market forecasts from Instagram, Hargreaves Lansdown has found.
Figures from an Opinium Survey of 2,000 people carried out for Hargreaves Lansdown in May found other social media sites were also popular with young investors - defined as aged from 18 to 34 - with 16 per cent turning to Facebook, 14 per cent sourcing ideas from Reddit and 8 per cent looking on TikTok.
But for investors aged over 55 these numbers fell to 0 per cent as they looked elsewhere for investment ideas.
Elsewhere, financial websites were the number one source of investment ideas across all age groups.
Emma Wall, head of investment analysis and research at Hargreaves Lansdown, said: “If you are older, chances are financial companies websites are top of the list of sources, if you’re like 38 per cent of men, and 28 per cent of women.
“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.”
After this, people turn to friends and family for stock tips, though men and older investors are less likely to do so.
Older investors aged 55 plus are the most likely group to depend on themselves for investment ideas.
Wall added there were few differences among the regions, although people in the East Midlands at 39 per cent and London at 33 per cent trusted friends and family for investment ideas far more than those in Wales and the West Midlands at just 17 per cent and 11 per cent respectively.
“Of course, the most important factor when looking for investment ideas – regardless of your source – is that they are right for you, and your personal financial plan,” Wall said.
“Those readying themselves for retirement probably shouldn’t be invested in the same portfolio as a Gen Z investor who is in their first job.”
She added: “Consider your risk appetite, investment horizon and what you 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.
"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.”
amy.austin@ft.com
