ETF inflows hit record ₹1.81 lakh crore in FY26; commodity funds outpace equities: Zerodha Fund House

India ETFs saw record FY26 inflows of ₹1.81 lakh crore, driven by gold and silver ETFs which for the first time surpassed equity ETFs amid market uncertainty.

By Anshul

India’s exchange traded funds (ETFs) recorded their highest-ever annual inflows in FY26, with net investments crossing ₹1.8 lakh crore, more than doubling the previous peak, according to a study by Zerodha Fund House.

Data sourced from Association of Mutual Funds in India (AMFI) showed total ETF inflows at ₹1.81 lakh crore in FY26, compared with the earlier high of ₹83,390 crore in FY22.

For five consecutive years from FY21 to FY25, annual inflows remained in the ₹46,000–₹83,000 crore range, highlighting the sharp jump in FY26.

A key trend during the year was the strong shift toward commodity-based ETFs. Gold and silver ETFs together accounted for more than half of total inflows, surpassing equity ETFs for the first time.

Gold ETFs attracted ₹68,868 crore, contributing 38% of total inflows, while silver ETFs saw ₹30,412 crore, or 16.8%. In comparison, equity ETFs received ₹77,780 crore (42.9%), and debt ETFs accounted for a marginal ₹4,066 crore.

Combined, commodity ETFs drew ₹99,280 crore—around 55% of the total—indicating a notable change in investor allocation strategies. As recently as FY24, commodity ETFs made up less than 17% of overall ETF flows.

January 2026 emerged as the strongest month, with inflows exceeding ₹39,000 crore, amid heightened global market uncertainty and rising interest in precious metals.

Vishal Jain, CEO of Zerodha Fund House, said the shift reflects evolving investor behaviour.

“For years, ETFs in India were largely an equity story. The fact that gold and silver ETFs attracted more inflows than equity ETFs suggests investors are increasingly using ETFs to build diversified portfolios,” he said.

Gold ETFs saw particularly strong momentum. FY26 inflows of ₹68,868 crore exceeded the combined inflows of over ₹30,200 crore recorded between FY21 and FY25.

Assets under management (AUM) for gold ETFs rose sharply from about ₹59,000 crore in March 2025 to over ₹1.71 lakh crore in March 2026, marking a 191% increase. The growth reflects both rising gold prices and fresh investor inflows.

Tax efficiency may also have supported the preference for ETFs over physical holdings, as gold and silver ETFs qualify for long-term capital gains tax after 12 months, compared to 24 months for physical assets.

Silver ETFs, introduced in 2022, also saw significant traction. Net inflows of over ₹30,000 crore in FY26 exceeded the category’s entire AUM at the start of the year. Rising silver prices during the period likely contributed to increased investor interest.

Liquidity in the ETF segment has improved sharply as well. Average daily turnover rose nearly 18 times—from ₹237 crore in FY21 to over ₹4,200 crore between April 2025 and February 2026. Commodity ETFs led this surge, with average daily turnover of about ₹2,700 crore, significantly higher than equity ETFs at ₹745 crore.

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