Indian Exchange Traded Funds (ETFs) recorded their highest-ever annual net inflows of over ₹1.8 lakh crore in FY26, more than double the previous peak as commodity ETFs led by gold and silver emerged as the primary drivers, according to a study by Zerodha Fund House.
The inflows significantly surpassed the earlier high of ₹83,390 crore recorded in FY22. Over the past five years, from FY21 to FY25, annual ETF inflows had remained in the range of ₹46,000 crore to ₹83,000 crore, making FY26 a sharp departure from previous trends.
The inflows significantly surpassed the earlier high of ₹83,390 crore recorded in FY22. Over the past five years, from FY21 to FY25, annual ETF inflows had remained in the range of ₹46,000 crore to ₹83,000 crore, making FY26 a sharp departure from previous trends.The study highlighted that commodity ETFs accounted for a majority share of the inflows during the year.
Gold and silver ETFs together attracted ₹99,280 crore, contributing around 55 per cent of the total inflows, while equity ETFs received over ₹77,000 crore, or 43 per cent. January 2026 recorded the highest monthly inflows, with over ₹39,000 crore, driven by heightened activity in gold and silver ETFs amid global market uncertainty.
Gold ETFs saw particularly strong growth, with net inflows exceeding ₹68,000 crore in FY26, surpassing the combined inflows of around ₹30,200 crore recorded over the previous five financial years. Assets under management (AUM) for gold ETFs rose from about ₹59,000 crore in March 2025 to over ₹1.71 lakh crore in March 2026.
Silver ETFs, introduced in 2022, also recorded strong traction, attracting more than ₹30,000 crore in net inflows during the year, exceeding their total AUM at the start of FY26.The report noted that the rise in gold and silver prices, along with the tax efficiency of ETFs compared to physical metals, may have contributed to increased investor preference for these instruments.
Average daily ETF turnover also saw a significant increase, rising from ₹237 crore in FY21 to over ₹4,200 crore during April 2025 to February 2026, indicating improved liquidity and growing participation in the ETF market.The findings suggest a shift in investor behaviour towards diversified portfolios through ETFs, with commodity-based instruments gaining prominence.