ETFs record highest ever net inflows of more than Rs 1.8 lakh crore in FY26: Zerodha Fund House

Synopsis

Indian Exchange Traded Funds experienced unprecedented net inflows of over Rs 1.8 lakh crore in FY26. Commodity ETFs, specifically Gold and Silver, drew more investor interest than equity ETFs. This marks a significant shift, with over half of all ETF inflows directed towards these precious metals. This trend indicates investors are diversifying their portfolios using the ETF structure.

The Indian Exchange Traded Funds (ETFs) recorded net inflows of more than Rs 1.8 lakh crore in FY26 - the highest figure for any single financial year on record, and more than double the previous best of Rs 83,390 crore in FY22, according to a recent study by Zerodha Fund House.

The study further highlighted that commodity ETFs (Gold and Silver combined) attracted more net flows than equity ETFs, with over half of all ETF inflows during the year going into these two categories.

Also Read | Low-cost index funds & ETFs should form backbone of your portfolio: Vishal Jain, CEO, Zerodha Mutual Fund

Best MF to invest

Looking for the best mutual funds to invest? Here are our recommendations.

View Details »

FY26 net inflows saw a steep change from any previous year to Rs 1.8 lakh crore. For five consecutive years i.e. FY21 through FY25, total ETF net inflows ranged between Rs 46,000 and Rs 83,000 crore. FY26 surpassed the upper bound of that range by more than 2 times.

Live Events

January 2026 was the single largest month, with more than Rs 39,000 crore in net inflows, as activity in Gold and Silver ETFs ran high against the backdrop of global market uncertainty.

Gold and Silver ETFs together drew Rs 99,280 crore in net inflows - 55% of the FY26 total. Equity ETFs received more than Rs 77,000 crore, or 43%. As recently as FY24, commodity ETFs accounted for less than 17% of total ETF flows. The FY26 data points to a shift in how investors are using the ETF structure.

"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." said Vishal Jain, CEO, Zerodha Fund House.

Also Read | Targeting 14% CAGR with mutual funds? Here’s how to fix your portfolio & boost outcomes

Gold and silver ETFs

Gold ETF net inflows of more than Rs 68,000 crore in FY26 exceeded the combined inflows across FY21–FY25, which totaled around Rs 30,200 crore. Gold ETF AUM grew from about Rs 59,000 crore (March 2025) to more than Rs 1.71 lakh crore (March 2026) - a 191% increase. This includes both the impact of rising gold prices and new investor inflows.

One of the factors that may have contributed to investor preference for the ETF route over physical gold is tax efficiency: Gold and Silver ETFs qualify for LTCG at 12.5% after 12 months, compared to 24 months for the physical metal.

Silver ETFs, launched in 2022, received more than Rs 30,000 crore in net inflows in FY26, more than the category's entire AUM at the start of the year (Rs 15,339 crore in March 2025). Silver prices also rose significantly over the period, which may have attracted investor attention to the category.

Average daily ETF turnover rose from Rs 237 crore in FY21 to more than Rs 4,200 crore in April 2025-Feb 2026 - a 18-fold increase in about five years and the commodity ETF daily turnover (Rs 2,700 crore average) exceeded equity ETF daily turnover (Rs 745 crore) in the same period.

The surge in commodity ETF turnover is largely a reflection of the sharp rise in gold and silver prices over the period; it also reflects the deepening of the ETF market.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and twitter handle.

(Catch all the Mutual Fund News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)

Subscribe to The Economic Times Prime and read the ET ePaper online.

...moreless

(Catch all the Mutual Fund News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)

Subscribe to The Economic Times Prime and read the ET ePaper online.

...moreless

Locker to exchange: How India can become a global gold hub

Amid FII flight and BoP strain, India bets on ‘patient capital’

First-time buyers, entry cars: The missing links in India’s auto boom

INR35k-cr windfall: What Hormuz crisis, rising crude mean for ONGC, OIL

Is private sector corruption free? Here's the reality...

These mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 25%, according to analysts

1

2

3