From WhatsApp tips to deepfakes: Nilesh Shah warns Gen Z on investment pitfalls

India’s Gen Z is rapidly reshaping the investment landscape—armed with technology, confidence, and ambition.

But while their strengths are undeniable, Nilesh Shah, Managing Director of Kotak Mahindra AMC in an interview for ‘The Golden Thumb Rule’, offers a nuanced message: stay smart, avoid shortcuts, and always focus on the fundamentals.

“I’ve met some very, very smart Gen Z investors who honestly make me feel ashamed of my own knowledge,” Shah admits candidly. “They are using technology brilliantly to analyze data, track companies, and process information far faster than we ever could. These young investors will become legends someday.”


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But there’s a flip side to this enthusiasm. According to Shah, many Gen Z individuals are also prone to overconfidence, often relying on social media hype, unverified WhatsApp tips, or even falling for AI-generated deepfake videos that falsely portray investment advice from known personalities. “This kind of gullibility is dangerous,” he warns.

Shah’s advice is clear and practical:

• • Focus on investing, not trading: Trading may look glamorous on social media, but long-term wealth is created through disciplined investing.

• Do your research: Don’t blindly follow influencers. Understand the business before putting money into it.
• Seek guidance if needed: “If you don’t have the time or expertise, reach out to a mutual fund distributor or a registered investment advisor. There’s no shame in taking help,” Shah adds.

He also touches on changing attitudes toward money. “This generation is far more confident about the future,” Shah observes. “For me, taking a housing loan was a big decision. But my daughters would probably take it in a snap if needed.” While that confidence is admirable, it also results in some financial carelessness.

“Living off credit cards, indulging in instant gratification, copying investing styles seen online—these are habits that can cause long-term harm.”

In closing, Shah offers a heartfelt reminder: “Apart from your parents, no one truly cares about your financial well-being. Learn from others’ mistakes. Why go through pain when wisdom is available for free?”

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)