Indian ETFs Draw Record Net Inflows of Over Rs 1.8 Lakh Crore in FY26, Zerodha Fund House Reports

Indian ETFs See Record Inflows of Rs 1.81 Lakh Crore in FY26

Indian Exchange Traded Funds (ETFs) have witnessed a significant surge in net inflows, reaching a record high of over Rs 1.81 lakh crore in FY26, according to a recent note by Zerodha Fund House. This marks the highest inflows for any financial year so far, surpassing the previous peak of Rs 83,390 crore recorded in FY22.

Comparative Analysis of ETF Inflows

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

As per the data from Association of Mutual Funds in India, the annual ETF inflows had remained in the range of Rs 46,000 crore to Rs 83,000 crore between FY21 and FY25. However, FY26 saw a significant jump in inflows, more than double the previous peak.

Commodity ETFs, specifically gold and silver ETFs, 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.

Shift in Investor Preferences

The note by Zerodha MF CEO Vishal Jain highlights that commodity ETFs made up less than 17 percent of overall ETF inflows as recently as FY24. However, in FY26, gold and silver ETFs together attracted more inflows than equity ETFs, suggesting that investors are beginning to use the ETF structure to build more diversified portfolios.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Gold ETFs See Sharp Growth

Gold ETFs saw a significant surge in net inflows in FY26, 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. The 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, reflecting both higher gold prices and strong investor participation.

Tax Treatment and Rising Interest

The note suggests that tax treatment may have also supported demand for gold and silver ETFs, as they qualify for long-term capital gains taxation after 12 months, compared with 24 months for physical gold. Additionally, silver ETFs, which were introduced in 2022, recorded net inflows of more than Rs 30,000 crore in FY26, higher than the category's total assets of Rs 15,339 crore at the start of the year in March 2025.

Increased Trading Activity

ETF market activity also increased significantly, with average daily turnover rising 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. January 2026 was the strongest month for ETF inflows, with more than Rs 39,000 crore coming in, led by gold and silver ETFs during a period of global market uncertainty.