Record Inflows in Indian ETFs for FY 2026: A Shift Towards Commodities

In FY 2026, Indian exchange-traded funds (ETFs) witnessed an unprecedented net inflow of over ₹1.81 lakh crore, marking a significant shift towards commodities, particularly gold and silver. This inflow is more than double the previous record set in FY 2022. The report highlights a growing trend among investors towards diversified portfolios, with commodity ETFs leading the charge. Gold ETFs alone attracted ₹68,868 crore, while silver ETFs saw inflows exceeding ₹30,000 crore. The increase in trading activity and favorable tax regulations further fueled this growth. Discover the insights behind these remarkable trends in the ETF market.

By Narendra Chaudhary May 2, 2026, 14:05 IST

Unprecedented Growth in ETF Inflows

According to a report from a prominent fund house, Indian exchange-traded funds (ETFs) experienced a remarkable net inflow exceeding ₹1.81 lakh crore in the fiscal year 2026, marking the highest figure recorded for any financial year. Data from the Association of Mutual Funds in India indicates that this inflow is more than double the previous peak of ₹83,390 crore noted in FY 2022. Between FY 2021 and FY 2025, annual ETF inflows fluctuated between ₹46,000 crore and ₹83,000 crore.

Commodity ETFs Lead the Inflow Surge

In FY 2026, gold and silver ETFs accounted for the largest share of inflows. Gold ETFs saw an inflow of ₹68,868 crore, while silver ETFs attracted ₹30,412 crore. Together, these categories contributed a total of ₹99,280 crore, representing nearly 55% of the overall ETF inflow. Equity ETFs recorded an inflow of ₹77,780 crore, making up about 43% of the total, while debt ETFs saw a modest inflow of ₹4,066 crore.

Shift from Equity to Commodities

Recently, in FY 2024, commodity ETFs represented less than 17% of total ETF inflows. Vishal Jain, CEO of a mutual fund, noted that what stands out in FY 2026 is not just the volume of inflows but also their sources. He emphasized that for many years, ETFs in India were primarily equity-focused. The fact that gold and silver ETFs have attracted more inflows than equity ETFs indicates a growing trend among investors towards creating more diversified portfolios using the ETF structure.

Significant Growth in Gold ETFs

The net inflow into gold ETFs in FY 2026 was more than double the total inflow recorded over the past five years. Between FY 2021 and FY 2025, gold ETFs saw approximately ₹30,200 crore in total inflows, while FY 2026 alone accounted for ₹68,868 crore. The assets managed under gold ETFs surged from around ₹59,000 crore in March 2025 to over ₹1.71 lakh crore by March 2026, reflecting both rising gold prices and strong investor participation.

Tax Regulations Boost Demand

The report also mentioned that tax regulations may have contributed to the increased demand, as gold and silver ETFs fall under long-term capital gains tax after 12 months, compared to a 24-month period for physical gold.

Surge in Silver ETF Interest

Silver ETFs, launched in 2022, recorded net inflows exceeding ₹30,000 crore in FY 2026. This is a significant increase from total assets of ₹15,339 crore at the beginning of the year in March 2025. The rising prices of silver throughout the year have fueled this growing interest.

Increase in Trading Activity

January 2026 emerged as the strongest month for ETF inflows, with investments surpassing ₹39,000 crore. Amid global market uncertainties, gold and silver ETFs led this surge. There was also a notable increase in ETF market activity, with average daily turnover rising from ₹237 crore in FY 2021 to over ₹4,200 crore between April 2025 and February 2026. Commodity ETFs accounted for a significant portion of this activity, with an average daily turnover of approximately ₹2,700 crore, while equity ETFs had a turnover of ₹745 crore during the same period.