Indian Investors Shift Beyond Stocks ETFS : Gone are the days of the Indian Share Market, when the stock market was limited to direct stock purchases or mutual funds. Data from the financial year 2025-26 (FY26) has proven that Indian investors are no longer confined to traditional avenues of investment but are moving away from these options and are rapidly embracing new options. According to a recent report by ‘Zerodha Fund House’, Indian ‘Exchange Traded Funds’ (ETFs) saw a net inflow of over ₹1.81 lakh crore in FY26. This growth in investment in ETFs has been driven by growing investor enthusiasm for commodity ETFs. In FY26, a large share of the total investment received in ETFs has been diverted to Gold and Silver ETFs. But why exactly is this happening”text-align: justify;”> America’s economy shakes the Hormuz waterway! Now because of the name ‘Strait of Trump’, oil prices will be under control?
This growth in investment in ETFs has been driven by growing investor enthusiasm for commodity ETFs. The magnitude of this growth is evident from the fact that the previous record was ₹83,390 crore set in FY 2021-22. This means that, compared to the previous record, investors have more than doubled the amount invested in ETFs this year. Over the past five years, investment levels have generally ranged between ₹46,000 crore and ₹83,000 crore; However, this time the market has broken all previous records.
According to reports, Indian investors are no longer chasing just equities or stocks; Commodity ETFs have also emerged as a preferred option for them now. In the last financial year, ₹68,868 crore was invested in ‘Gold ETF’, while ₹30,412 crore was invested in ‘Silver ETF’. As a result, the aggregate investment in both these categories reached ₹99,280 crore, which is about 55% of the total investment in ETFs. ‘Gold ETFs’ alone saw huge inflows of ₹68,868 crore, while ‘Silver ETFs’ saw inflows of ₹30,412 crores. The share of ‘Equity ETF’ remained around 43%. This is the first time that Indian investors have shown more faith in the allure of gold and silver than equity-based ETFs.
Vishal Jain of Zerodha Fund House explained that this indicates that Indian investors are no longer limiting their portfolios to equities; Rather, they are diversifying their portfolio. In this single year alone, fund inflows into Gold ETFs have more than doubled the total inflows in the previous five years (FY 2021–2025). Rising gold prices and the search for ‘safe investments’ have taken this trend to new heights.
This year has also been historic for investors investing in silver. Launched in 2022, Silver ETFs have crossed the Rs 30,000 crore mark in just three to four years. A major factor behind this growing interest from investors is ‘Taxation’. A waiting period of 24 months is required to qualify for ‘Long Term Capital Gains Tax’ while holding gold in physical form; However, in case of ‘Gold and Silver ETF’, the same benefit is available in just 12 months.
In FY2021, the average daily turnover of ETFs was only ₹237 crore; Which has now grown tremendously to over ₹4,200 crore per day. Commodity ETFs accounted for the largest share of this growth, with their daily volume recorded at approximately ₹2,700 crore. The record monthly net buying of ₹39,000 crore recorded in January 2026 clearly shows that Indian investors are now fully equipped to deal with market fluctuations.
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