Indian ETFs log record ₹1.81 lakh cr inflows in FY26

What changed in FY26 for Indian ETFs

Indian Exchange Traded Funds (ETFs) recorded their highest-ever annual net inflows in FY26, with net additions of more than ₹181,000 crore (₹1.81 lakh crore), according to a study by Zerodha Fund House. The FY26 figure is more than double the previous record annual net inflow of ₹83,390 crore posted in FY22. The study also points to a clear tilt in investor preference toward commodity ETFs, especially gold and silver, over the year. Gold and silver ETFs together accounted for a majority share of the year’s net inflows. The data highlights how ETF usage expanded beyond traditional equity exposure during a period described as global market uncertainty.

Zerodha Fund House study: the headline numbers

The report frames FY26 as a break from the pattern seen in the previous five financial years. Between FY21 and FY25, annual ETF net inflows ranged between ₹46,000 crore and ₹83,000 crore. FY26’s net inflow of more than ₹181,000 crore exceeded that band by more than two times. This jump matters because it suggests ETFs are being used more actively for asset allocation, not only for passive equity exposure. It also underlines the role of commodities as a preferred hedge during uncertain global conditions, based on where incremental money went.

Commodity ETFs take the lead over equity ETFs

A key takeaway from the Zerodha Fund House study is that commodity ETFs outpaced equity ETFs in net inflows during FY26. Gold and silver ETFs together received ₹99,280 crore, which the report puts at 55% of total ETF inflows for the year. In comparison, equity ETFs attracted more than ₹77,000 crore, representing 43% of total inflows. The split indicates that a larger portion of new ETF money went into commodity exposure than into equity baskets.

Gold ETFs: FY26 inflows beat the previous five years combined

Within commodities, gold ETFs drove a large part of FY26 inflows. Gold ETFs alone saw net inflows of more than ₹68,000 crore in FY26. The study notes this exceeded the combined inflows of around ₹30,200 crore recorded over the previous five financial years (FY21 to FY25). This comparison highlights a step-change in investor participation in gold ETFs, especially relative to the category’s recent history.

Silver ETFs build scale after a relatively new start

Silver ETFs, introduced in 2022, also recorded strong traction in FY26. They received more than ₹30,000 crore in net inflows during the year, per the study. The report adds that these inflows surpassed the category’s entire opening AUM of ₹15,339 crore in March 2025. This is a notable data point because it shows how quickly the category expanded from its earlier base.

January 2026: the biggest monthly inflow of FY26

The study identified January 2026 as the biggest month for ETF net inflows. In that month, ETFs received more than ₹39,000 crore. The surge was driven by strong demand for gold and silver ETFs amid global market uncertainty, according to the report. This concentration in a single month shows that ETF flows can accelerate sharply when investors actively reposition toward perceived safe-haven assets.

Gold ETF AUM jump over FY26

Alongside strong net inflows, the study also noted a sharp rise in assets under management (AUM) for gold ETFs. Gold ETF AUM rose from about ₹59,000 crore in March 2025 to over ₹171,000 crore in March 2026. This change captures both the impact of net flows and the broader build-up of investor exposure through ETFs during the financial year.

Key FY26 ETF flow and AUM datapoints

What the flow mix suggests about investor behaviour

The FY26 flow mix suggests investors used ETFs not only for equity market participation but also for commodity exposure, led by gold and silver. With gold and silver accounting for 55% of total net inflows, the year appears to have favoured hedging and diversification through listed products, at least in terms of incremental allocations. Equity ETFs still drew a large absolute amount, with more than ₹77,000 crore of net inflows, but they were outpaced by commodities. The Zerodha Fund House study also noted that ETF trading activity surged, led by commodity ETFs, reinforcing that these funds were not just bought and held but also actively traded during the year.

Snapshot: Zerodha Nifty Smallcap 100 ETF (scheme data shown)

Separately, the provided scheme details for the Zerodha Nifty Smallcap 100 ETF show it was launched on 2025-09-09 and had assets under management (AUM) of ₹56.12 crore as of May 01, 2026. Its reported NAV was around ₹10.20 to ₹10.2436, with an expense ratio of 0.21%. Since launch, the scheme data cited average annual returns in the range of about 1.96% to 2.44% (as presented in the dataset). These figures are scheme-specific and do not represent the broader ETF market totals discussed in the Zerodha Fund House flow study.

Conclusion

FY26 marked a record year for Indian ETFs, with net inflows of more than ₹181,000 crore, according to Zerodha Fund House. The standout feature was the dominance of gold and silver ETFs, which together drew ₹99,280 crore and accounted for 55% of total inflows, while equity ETFs received more than ₹77,000 crore. January 2026 was the peak month, with more than ₹39,000 crore of inflows, driven by demand for gold and silver ETFs amid global market uncertainty. The key data points underline how ETF usage broadened in FY26, particularly toward commodity exposure.