How social media influencers plan their investments

livemint.com:

Indian gaming influencers seek the stars, but it’s a tricky upward trek India’s ₹2,344 crore influencer market is expected to reach ₹3,375 crore by 2026, growing at a compound annual growth rate of 18%, according to the ‘State of Influencer Marketing in India’ report by consulting firm EY. The career is unpredictable, with longevity being a significant worry like most other entertainment and sports-related careers. “Volatility in their inflows makes them concerned about their shelf life, and while they are making money, they want to save meaningfully," said Jethwani.

Most creators invest in financial assets and startups. They also buy other assets like land and property. Shivani Kapila Tyagi (a.k.a.

Littleglove), who has 17.6 million followers across social media platforms YouTube and Instagram, said risk appetite and investment trends are subjective to each influencer. “But the younger lot is likely to invest in tangible assets, while the older ones like us look more at long-term investments, including investing in other businesses and financial instruments." With an average monthly income of ₹4-5 lakh, depending on the advertisement cycle, Tyagi reinvests 40% of her income into further content creation. She invests about 15% in financial instruments including stocks and mutual funds.

One of the key requirements for influencers is navigating tax rules. Under section 194R of the Income Tax Act, which took effect in July 2022, social media influencers have to pay a 10% tax deducted at source (TDS) on freebies or any other form of payment made in kind if the value of the product is above ₹20,000. As content creation is legally viewed as a sole proprietorship, influencers with an annual turnover exceeding ₹20 lakh must also