Indian ETF Inflows Hit Record Rs 1.81 Lakh Crore in FY26, Gold and Silver Dominate
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Equity ETFs saw inflows of Rs 77,780 crore in FY26, contributing about 43 per cent, while debt ETFs remained a marginal segment with Rs 4,066 crore.
This inflow in FY26 is more than double the previous peak of Rs 83,390 crore seen in FY22, according to data from Association of Mutual Funds in India.
Indian exchange-traded funds (ETFs) witnessed an unprecedented surge in investor interest in FY26, with net inflows crossing Rs 1.81 lakh crore, the highest ever recorded in a single financial year. The sharp jump, highlighted in a note by Zerodha Fund House, marks a decisive shift in how investors are using ETFs beyond traditional equity exposure.
This inflow is more than double the previous peak of Rs 83,390 crore seen in FY22, according to data from the Association of Mutual Funds in India. Between FY21 and FY25, annual inflows had remained largely range-bound between Rs 46,000 crore and Rs 83,000 crore, making FY26 a clear outlier.
Commodities Take the Lead
A defining feature of FY26 was the dominance of commodity-linked ETFs. Gold and silver ETFs together accounted for over half of total inflows, drawing a combined Rs 99,280 crore, roughly 55 per cent of the overall pie. Gold ETFs alone attracted Rs 68,868 crore, while silver ETFs added Rs 30,412 crore.
In comparison, equity ETFs saw inflows of Rs 77,780 crore, contributing about 43 percent, while debt ETFs remained a marginal segment with Rs 4,066 crore.
“What stands out in FY26 is not just the size of the inflows, but where they came from,” said Vishal Jain, CEO of Zerodha Fund House. “The fact that gold and silver ETFs together attracted more inflows than equity ETFs suggests that investors are beginning to use the ETF structure to build more diversified portfolios.”
Gold ETFs See Unprecedented Demand
Investor appetite for gold ETFs accelerated sharply during the year. Net inflows in FY26 alone were more than double the cumulative inflows of the previous five years. Between FY21 and FY25, gold ETFs had attracted around Rs 30,200 crore in total, compared to Rs 68,868 crore in FY26.
Assets under management (AUM) for gold ETFs also surged significantly, rising from about Rs 59,000 crore in March 2025 to over Rs 1.71 lakh crore by March 2026. The expansion reflects a combination of rising gold prices and increased participation from investors seeking safer assets amid global uncertainty.
Tax Efficiency Adds to Appeal
Favourable tax treatment appears to have played a supporting role in driving flows into commodity ETFs. Gold and silver ETFs qualify for long-term capital gains taxation after 12 months, compared with 24 months for physical gold, making them more efficient for investors from a taxation standpoint.
Silver ETFs Gain Traction
Silver ETFs, a relatively new category introduced in 2022, also saw strong traction. Net inflows exceeded Rs 30,000 crore in FY26, surpassing the category’s total assets of Rs 15,339 crore at the start of the financial year. Rising silver prices and increased awareness among investors contributed to the momentum.
Record Monthly Inflows and Trading Activity
January 2026 emerged as the strongest month for ETF inflows, with more than Rs 39,000 crore pouring in, largely driven by gold and silver ETFs during a phase of heightened global market volatility.
Market activity in ETFs also picked up sharply. Average daily turnover jumped from Rs 237 crore in FY21 to over Rs 4,200 crore between April 2025 and February 2026. Commodity ETFs accounted for a significant share of this activity, clocking average daily turnover of around Rs 2,700 crore, compared to Rs 745 crore for equity ETFs.
The data underscores a structural shift in India’s ETF landscape, with commodities emerging as a key pillar alongside equities, signalling a broader move towards diversified, low-cost investment strategies.
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