Indian ETFs record highest ever net inflows of more than Rs 1.8 lakh crore in FY26: Zerodha Fund House
As recently as FY24, commodity ETFs made up less than 17 percent of overall ETF inflows.
ETF market activity also increased significantly. Average daily turnover rose from Rs 237 crore in FY21 to more than Rs 4,200 crore between April 2025 and February 2026.
Indian Exchange Traded Funds (ETFs) saw record net inflows of more than Rs 1.81 lakh crore in FY26, the highest for any financial year so far, according to a note by Zerodha Fund House.
The inflows are more than double the previous peak of Rs 83,390 crore recorded in FY22, based on data from Association of Mutual Funds in India. Between FY21 and FY25, annual ETF inflows had remained in the range of Rs 46,000 crore to Rs 83,000 crore.
Commodity ETFs Lead Inflows
Gold and silver ETFs together accounted for the largest share of inflows in FY26. Gold ETFs attracted Rs 68,868 crore, while silver ETFs saw Rs 30,412 crore. Combined, the two categories brought in Rs 99,280 crore, or about 55 percent of total ETF inflows. Equity ETFs received Rs 77,780 crore, making up around 43 percent of the total, while debt ETFs accounted for Rs 4,066 crore.
As recently as FY24, commodity ETFs made up less than 17 percent of overall ETF inflows. “What stands out in FY26 is not just the size of the inflows, but where they came from,” said Zerodhha MF CEO Vishal Jain in the note. He added that 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,” he said.
Gold ETFs See Sharp Growth
Net inflows into gold ETFs in FY26 were more than double the combined inflows seen over the previous five years. Between FY21 and FY25, gold ETFs saw total inflows of about Rs 30,200 crore, compared with Rs 68,868 crore in FY26 alone.
Assets under management for gold ETFs rose from about Rs 59,000 crore in March 2025 to over Rs 1.71 lakh crore in March 2026. The increase reflects both higher gold prices and strong investor participation.
Tax treatment may have also supported demand, the note added, as gold and silver ETFs qualify for long-term capital gains taxation after 12 months, compared with 24 months for physical gold.
Silver ETFs, which were introduced in 2022, recorded net inflows of more than Rs 30,000 crore in FY26. This is higher than the category’s total assets of Rs 15,339 crore at the start of the year in March 2025. Rising silver prices during the year appear to have contributed to the increased interest.
Trading Activity Rises Sharply
January 2026 was the strongest month for ETF inflows, with more than Rs 39,000 crore coming in. The surge was led by gold and silver ETFs during a period of global market uncertainty.
ETF market activity also increased significantly. Average daily turnover rose from Rs 237 crore in FY21 to more than Rs 4,200 crore between April 2025 and February 2026.
Commodity ETFs accounted for a large share of this activity, with average daily turnover of about Rs 2,700 crore, compared with Rs 745 crore for equity ETFs over the same period.