Indian ETFs Record Highest Ever Net Inflows of More Than Rs.1.8 Lakh Crore in FY26: Zerodha Fund House
According to a recent study by Zerodha Fund House, Indian Exchange Traded Funds (ETFs) recorded net inflows of more than Rs.1.8L Cr 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. In fact, 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.
Fast Facts: ETF Net Inflows FY26
|
Category |
Net Inflows FY26 (Rs. cr) |
Share of Total |
|
Gold ETFs |
68,868 |
38% |
|
Silver ETFs |
30,412 |
16.8% |
|
Equity ETFs |
77,780 |
42.9% |
|
Debt ETFs |
4,066 |
2.2% |
|
Total |
1,81,125 |
100% |
ETF Net Inflows More Than Double Any Prior Year
FY26 net inflows saw a steep change from any previous year to Rs.1.8L Cr. For five consecutive years - 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.
|
Financial Year |
Total ETF Net Inflows (Rs. cr) |
|
FY21 |
46,739 |
|
FY22 |
83,390 |
|
FY23 |
60,179 |
|
FY24 |
48,142 |
|
FY25 |
83,079 |
|
FY26 |
1,81,125 |
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.
Commodity ETFs Attracted More Flows Than Equity ETFs
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.
Gold ETFs: FY26 Inflows More Than Double the Previous 5-Year Combined
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.
|
Period |
Gold ETF Net Inflows (Rs. cr) |
|
FY21–FY25 Combined |
>30,200 |
|
FY26 |
68,868 |
Gold ETF AUM grew from about Rs.59,000 crore (March 2025) to more than Rs.1.71L Cr (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: More than Rs.30,000 Cr in Net Inflows
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.
Avg. Daily ETF Turnover - Up By 18x Signal Growing Liquidity
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.
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