Raghuram Rajan warns of fake videos offering his investment advice — ‘you will be a lot poorer' if…

Raghuram Rajan, former governor of the Reserve Bank of India (RBI), on Monday warned of fake videos circulating on several social media platforms falsely claiming to feature investment advice given by him. He also urged investors to disregard these fake videos where he has touted specific stocks and investments.

Rajan, also a renowned economist, clarified that he does not give investment advice to the public and has never touted individual stocks.

In a post on LinkedIn, Raghuram Rajan said: “I understand there are videos of me on various social media purporting to give advice on investing, especially in individual stocks. These are fake and the perpetrators should be reported to the relevant authorities. I do not give investment advice to the public, and have never touted individual stocks.”

Raghuram Rajan cautioned investors against the risks associated with investing in specific stocks without proper analysis, saying that investors are typically better off holding diversified portfolios.

Further, he said: “Each individual has their own financial needs and risk appetite.”

“Furthermore, investors are typically better off holding diversified portfolios of bank deposits, bonds, and stocks (through mutual funds and ETFs) rather than buying individual stocks or stock options. You may be extremely lucky and strike it rich, but more likely, you will be a lot poorer following the latter strategy. Please disregard all videos where I tout specific investments,” he added.

Rajan had served as the 23rd governor of the Reserve Bank of India. Currently, he is a distinguished professor at the University of Chicago Booth School of Business.

Since being shared on June 24 on LinkedIn, Raghuram Rajan’s post has been ‘liked’ by more than 1,700 users and got numerous comments.

In an interview earlier this week, Raghuram Rajan said that the Indian economy needs to grow by around 9-10 per cent annually for the next couple of decades to create good jobs for millions of educated youths.