ETF Inflows Hit Record ₹1.8 Lakh Crore in FY26, Driven by Surge in Gold, Silver Investments: Report

Why It Matters

The shift underscores a growing preference for commodity‑linked, tax‑efficient products, signaling a structural change in Indian retail portfolios and boosting liquidity in the ETF market.

Key Takeaways

• ETF inflows hit $21.7 B in FY26, double previous peak.
• Gold and silver ETFs drove 55% of total inflows.
• Gold ETF AUM surged to $20.6 B, up from $7.1 B a year earlier.
• Daily ETF turnover rose tenfold, reaching $506 M.
• Commodity ETFs outpaced equity ETFs, reshaping Indian investment landscape.

Pulse Analysis

India’s ETF market has entered a new growth phase, with FY26 inflows soaring to roughly $21.7 billion—far outpacing the $10 billion levels that defined the previous peak. This surge places the country among the world’s fastest‑expanding ETF ecosystems, reflecting broader trends of retail investors gravitating toward low‑cost, diversified vehicles. Compared with global peers, India’s commodity‑focused ETFs are now a dominant force, reshaping the asset allocation mix and prompting fund houses to expand product suites.

The primary catalyst behind the record inflows is the meteoric rise in gold and silver prices, coupled with the tax advantages ETFs enjoy over physical holdings. Gold ETFs alone pulled in $8.2 billion, while silver ETFs added $3.6 billion, together representing more than half of all new capital. Investors are leveraging these instruments to hedge against inflation and geopolitical risk without incurring storage costs, and the transparent, exchange‑traded structure offers superior liquidity compared with traditional metal purchases.

Looking ahead, the heightened liquidity—daily turnover now around $506 million—signals a maturing market that could attract foreign capital and spur innovation in thematic ETFs. Asset managers are likely to deepen commodity offerings and explore hybrid products that blend equity exposure with precious‑metal backing. Regulators may also tighten oversight to ensure market stability as the ETF segment becomes a pivotal conduit for capital flows in India’s evolving financial landscape.