ETF Inflows Hit Record ₹1.8 Lakh Crore in FY26

India’s investment landscape is witnessing a structural shift as Exchange Traded Funds (ETFs) record unprecedented inflows in FY26.

Gold & Silver Attract Majority of Flows, Signaling Major Shift in Investor Preference

India’s investment landscape is witnessing a structural shift as Exchange Traded Funds (ETFs) record unprecedented inflows in FY26. According to a study by Zerodha Fund House, ETF net inflows surged to a record ₹1.81 lakh crore—more than double the previous peak—highlighting growing investor interest in low-cost, diversified investment vehicles.

Record-Breaking Growth in ETF Inflows

The ₹1.81 lakh crore inflow in FY26 marks the highest ever recorded in a single financial year, surpassing earlier highs of ₹83,390 crore in FY22 and ₹83,079 crore in FY25.

For several years prior, ETF inflows had remained within a relatively stable range of ₹46,000–₹83,000 crore. FY26 has decisively broken this trend, indicating a sharp acceleration in adoption.

This surge reflects increasing awareness, improved accessibility, and a growing preference for passive investment strategies among Indian investors.

Commodities Overtake Equities in ETF Allocation

The most striking trend is not just the size of inflows—but their allocation. For the first time, commodity ETFs—primarily gold and silver—have attracted more capital than equity ETFs.

ETF Inflows Breakdown (FY26):

Gold ETFs: ₹68,868 crore (38%)
Silver ETFs: ₹30,412 crore (16.8%)
Equity ETFs: ₹77,780 crore (42.9%)
Debt ETFs: ₹4,066 crore (2.2%)

Combined, gold and silver ETFs accounted for ₹99,280 crore, or 55% of total ETF inflows, clearly surpassing equity allocations.

This marks a major shift from earlier years, when commodity ETFs contributed less than 17% of total flows.

Why Investors Are Choosing Gold Over Stocks

The surge in commodity ETF inflows reflects changing investor behavior amid evolving market conditions.

1. Global Uncertainty Driving Safe-Haven Demand

Volatility in global markets, geopolitical tensions, and economic uncertainty have increased demand for safe-haven assets like gold and silver. Notably, January 2026 alone saw inflows of around ₹39,000 crore, largely driven by commodity ETFs.

2. Tax Efficiency Advantage

ETFs offer a more favorable tax structure compared to physical gold:

ETFs: 12.5% long-term capital gains (LTCG) after 12 months
Physical gold: Requires 24 months for LTCG eligibility

This makes ETFs a more efficient route for gaining exposure to precious metals.

3. Ease of Investment and Liquidity

Unlike physical assets, ETFs provide seamless buying and selling through stock exchanges, along with transparent pricing and lower storage concerns.

Explosive Growth in Gold ETFs

Gold ETFs have emerged as the biggest winners in FY26. Net inflows of over ₹68,000 crore during the year exceeded the combined inflows of the previous five years (FY21–FY25), which stood at around ₹30,200 crore.

Assets under management (AUM) for gold ETFs surged from approximately ₹59,000 crore in March 2025 to over ₹1.71 lakh crore by March 2026—a remarkable 191% increase.

This growth has been driven by both rising gold prices and strong investor participation.