Indian Exchange Traded Funds (ETFs) recorded net inflows of more than ₹1.8 lakh crore in FY26, the highest ever for a single financial year and more than double the previous record of ₹83,390 crore in FY22, according to a recent study by Zerodha Fund House.
The report highlighted a major shift in investor preference, with commodity ETFs, gold and silver combined, attracting more net inflows than equity ETFs during the year. More than half of all ETF inflows in FY26 were directed toward these two categories.
The FY26 figure marked a sharp jump from earlier years. Between FY21 and FY25, annual ETF net inflows ranged between ₹46,000 crore and ₹83,000 crore. FY26 exceeded that range by more than two times.
The biggest monthly inflow came in January 2026, when ETFs received more than ₹39,000 crore, driven by strong demand for gold and silver ETFs amid global market uncertainty.
Gold and silver ETFs together received ₹99,280 crore, accounting for 55 per cent of total ETF inflows in FY26. In comparison, equity ETFs attracted more than ₹77,000 crore, representing 43% of total inflows.
The report noted that as recently as FY24, commodity ETFs accounted for less than 17 per cent of total ETF flows, indicating a significant change in how investors are using ETFs.
Vishal Jain, CEO, Zerodha Fund House, said, “What stands out in FY26 is not just the size of the inflows, but where they came from. For years, ETFs in India were largely an equity story. 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, which is heartening to see.”
Gold ETFs alone saw net inflows of more than ₹68,000 crore in FY26, exceeding the combined inflows of around ₹30,200 crore recorded over the previous five financial years from FY21 to FY25.
Assets under management (AUM) of gold ETFs rose from about ₹59,000 crore in March 2025 to more than ₹1.71 lakh crore in March 2026, growth of 191%. The rise was supported by both higher gold prices and fresh investor inflows.
The report added that tax efficiency may have also contributed to growing investor interest. Gold and silver ETFs qualify for long-term capital gains tax at 12.5% after 12 months, compared with 24 months for physical gold holdings.
Silver ETFs, introduced in 2022, received more than ₹30,000 crore in net inflows in FY26, surpassing the category’s entire opening AUM of ₹15,339 crore in March 2025. The study noted a sharp rise in silver prices during the year may have boosted investor participation.
Average daily ETF turnover increased from ₹237 crore in FY21 to more than ₹4,200 crore during April 2025-February 2026, representing an 18-fold rise in around five years.
Commodity ETF daily turnover averaged ₹2,700 crore, significantly higher than equity ETF turnover of ₹745 crore during the same period.
According to the report, the surge in commodity ETF turnover reflects both the sharp rise in gold and silver prices and the growing depth and liquidity of India’s ETF market.