According to a note from Zerodha fund house, Indian exchange traded funds (ETFs) saw a record net inflow of over Rs 1.81 lakh crore in FY26, the highest for any financial year so far. Based on data from the Association of Mutual Funds in India, this inflow is more than double the previous high of Rs 83,390 crore recorded in FY 2022. Between FY2021 and FY2025, annual ETF inflows were in the range of Rs 46,000 crore to Rs 83,000 crore.
Commodity ETFs lead in inflows
Gold and silver ETFs had the highest share in inflows in the financial year 2026. Gold ETFs saw an inflow of Rs 68,868 crore, while silver ETFs saw an inflow of Rs 30,412 crore. The total inflow of both the categories together was Rs 99,280 crore, which is about 55 percent of the total ETF inflow. There was an inflow of Rs 77,780 crore in equity ETFs, which is about 43 percent of the total inflow, while there was an inflow of Rs 4,066 crore in debt ETFs.
Invest more in commodities than equity
As recently as FY2024, the share of commodity ETFs was less than 17 percent of total ETF inflows. Zerodha Mutual Fund CEO Vishal Jain said in the note that what attracts the most attention in FY 2026 is not just the volume of inflow, but also where this inflow has come from. He further said that for many years, ETFs in India were predominantly equity based. He said the fact that gold and silver ETFs have seen higher inflows than equity ETFs shows that investors are now starting to use the ETF structure to create more diversified portfolios.
Tremendous increase in gold ETFs
The net inflow into gold ETFs in FY 2026 was more than double the total inflow in the last five years. Between FY 2021 and FY 2025, there was a total inflow of about Rs 30,200 crore into gold ETFs, while in FY 2026 alone there was an inflow of Rs 68,868 crore. Assets managed under gold ETFs increased from about Rs 59,000 crore in March 2025 to more than Rs 1.71 lakh crore in March 2026. This increase reflects both higher gold prices and strong investor participation.
The note also said that tax related rules may also have helped in increasing demand, as gold and silver ETFs come under the purview of long-term capital gains tax after 12 months, whereas for physical gold this time limit is 24 months.
Silver ETFs, which were launched in 2022, recorded net inflows of over Rs 30,000 crore in FY2026. The total assets of this category at the beginning of the year i.e. March 2025 are more than Rs 15,339 crore. Rising silver prices over the year have contributed to this growing interest.
increase in trading
January 2026 was the strongest month in terms of ETF inflows, with investments of more than Rs 39,000 crore. During the period of uncertainty in global markets, gold and silver ETFs led this rise. There was also a significant increase in ETF market activity. Average daily turnover increased from Rs 237 crore in FY 2021 to more than Rs 4,200 crore between April 2025 and February 2026. Commodity ETFs accounted for a major share of this activity, with an average daily turnover of around Rs 2,700 crore, while equity ETFs had a turnover of Rs 745 crore in the same period.
