MF Investors Diversifying Investments With Commodity ETFs

mumbai : Indian Exchange Traded Funds (ETFs) recorded net inflows of more than 1.8 lakh crore rupees in FY26; This is the highest figure recorded in any financial year and more than double the previous best of ₹83,390 crore in FY22. Commodity ETFs (Gold and Silver combined) attracted greater net flows than equity ETFs; More than half of all ETF inflows for the year went into these two categories.

While activity in Gold and Silver ETFs remained high amid global market uncertainty, the largest monthly inflow occurred in January 2026 with a net inflow of more than 39,000 billion rupees.

Gold and Silver ETFs together generated net inflows of Rs 99,280 Million; This means 55 percent of the FY26 total. Equity ETFs received more than Rs 77,000 crore (43 per cent).

“As recently as FY24, commodity ETFs accounted for less than 17 per cent of total ETF flows. FY26 data points to a shift in the way investors are using the ETF structure,” said a report by Zerodha Fund House.

“What stands out in FY26 is not just the magnitude of inflows, but also where they come from. For years, ETFs in India have largely been an equity story. The fact that Gold and Silver ETFs together attract more inflows than equity ETFs shows that investors are starting to use the ETF structure to build more diversified portfolios, and this is encouraging to see.” said Vishal Jain, CEO, Zerodha Fund House.

“Gold ETF AUM has increased from around Rs 59,000 crore in March 2025 to over Rs 1.71 lakh crore in March 2026 – an increase of 191 per cent. This includes the impact of both rising gold prices and new investor inflows. One factor that may have contributed to investors opting for the ETF route over physical gold is tax efficiency: Gold and Silver ETFs qualify for LTCG at 12.5 per cent “After 12 months compared to 24 months for physical metal,” Zerodha Fund House said.

Silver ETFs launched in 2022 have seen net inflows of over Rs 30,000 crore in FY26; this was more than the entire AUM of the category at the beginning of the year (Rs 15,339 Million in March 2025). Silver prices have also increased significantly over the period, which may have drawn investors’ attention to this category.