Gold ETF Assets Surge Past Rs.1 Lakh Crore by Zerodha Fund House
According to Zerodha Fund House, digital only passive fund house in the country, in its recent study cited that total Gold ETF AUM in India has crossed Rs.1L crore as of Oct 2025. This surge, matched by a spike in new investor accounts, shows that the ETF route is becoming the preferred choice for Indian gold investors since Gold also plays a key role as a strategic long-term investment and as a foundational allocation in a well-diversified portfolio. The 2025 data tells a decisive story - driven by record inflows and a price rally.
Yearly Gold ETF Net Inflows Hit an All-Time High
By October 2025, total net inflows for this year in Gold ETFs crossed Rs.27,500 Crores. To put that in perspective, this 10 month inflow is higher than the net inflows of the last five years (2020-2024) combined.
This surge indicates that investors have moved beyond physical possession and recognizing Gold ETFs as the more efficient vehicle since this modern solution not only eliminates storage hassles and making charges but also offers a tax advantage - a shorter holding period to qualify for the 12.5% LTCG tax rate compared to physical gold.
Gold ETF Investor Folios Up by More Than 12x in the Last 5 Years
The Gold ETF folios have gone up from 7.83 Lakhs in October 2020 to more than 95 Lakhs in October 2025. This growth is fueled by the removal of capital barriers. With unit prices for Gold ETFs now as low as approx. Rs.20, the commodity has become accessible to all investors. This empowers investors - regardless of capital - to use gold as a core tool for wealth creation, with the assurance that every unit is backed by physical gold of 99.5% purity or higher.
AUM of Indian Gold ETFs Has More Than Doubled In a Year
Alongside the inflow of capital, the Assets Under Management (AUM) in Gold ETFs has reached a milestone of over Rs.1 Lakh Crore, more than doubling within the span of a single year (October 2024 - October 2025). Furthermore, Indian Gold ETFs now hold more than 83 tonnes of physical gold, with nearly a third of this reserve added in 2025 alone. This also serves as a reminder that Gold ETFs are not merely "financial instruments" but are also fully backed by the precious metal vaulted in storage facilities. This tangible backing may address a primary concern of a few buyers, bridging the trust gap between digital convenience and physical storage.
Silver Has Also Seen Similar Growth
As investors become more comfortable with investing in commodities in the ETF format, the acceptance is naturally extending to silver as well. Since its first ETF launch in 2022, Silver ETFs have also witnessed a rising adoption across India. The total investor folios in Silver ETFs have reached more than 25 lakhs as of Oct 2025 with an AUM of more than Rs.40,000 Cr.
Vishal Jain, CEO, Zerodha Fund House, said, “I vividly remember being part of the team that first conceptualized the idea of Gold ETFs back in 2002. It was a long road from concept to reality; when we launched in 2007, it took us nearly two and a half years just to see the AUM reach Rs.1,000 crores. To see that the product category which was once an idea we believed in - has now crossed the Rs.1 Lakh Crore milestone, is incredibly humbling for me. It is a heartening validation that if you offer funds that are straightforward and meaningful, they will eventually find their place in investor’s portfolios.”
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