India’s exchange-traded fund (ETF) market has recently crossed a new milestone. Assets under management (AUM) have now moved past ₹10 lakh crore, underscoring how ETFs have moved from being niche products to a mainstream investment avenue, according to Zerodha Fund House.
Data shared by Zerodha Fund House shows just how quickly this transformation has taken place. The size of India’s ETF market has doubled over the last three years, reflecting a steady shift in investor preference towards transparent, low-cost and easily accessible investment segments. Today, ETFs offer exposure across equity, debt, commodities and thematic strategies, allowing investors to diversify without relying entirely on traditional funds.
Gold and Silver ETFs in a Growing Ecosystem
Within this expanding universe, commodity ETFs—particularly those linked to gold and silver—form an important part of the broader product mix. While Zerodha Fund House did not provide a separate numerical split for precious metal ETFs, it highlighted that ETFs today offer investors exposure across multiple asset classes, helping them diversify beyond equities.
Gold ETFs were among the earliest non-equity ETF categories introduced in India, playing a key role in familiarising investors with the ETF structure. Silver ETFs, which were introduced later, have further widened the range of commodity-based investment options available through the ETF route.
Vaibhav Jalan, Chief Business Officer at Zerodha Fund House, said ETFs offer a simple entry point across asset classes. “For new investors, ETFs act as a versatile tool to take exposure to different asset classes, themes, and segments since they are simple, cost-effective and transparent in their structure,” he said.
Participation and Liquidity Drive ETF Expansion
A key driver behind the surge in ETF AUM has been the sharp increase in investor participation. According to Zerodha Fund House data, the number of ETF investor accounts rose from around 41 lakh in November 2020 to over 3 crore by November 2025, representing more than an eightfold increase in five years. This surge indicates that ETFs are increasingly being used by retail investors alongside institutions.
Liquidity has also improved exponentially. ETF trading volumes climbed from ₹51,000 crore in FY20 to ₹3.83 lakh crore in FY25, a jump of over seven times. Momentum has carried into the current year as well. In just the first half of FY26, ETF trading volumes crossed ₹3.2 lakh crore, nearly matching the previous full-year total. This improvement has contributed to better price discovery and smoother execution for investors.
Vishal Jain, CEO of Zerodha Fund House, described the milestone as a reflection of the ecosystem’s evolution. “Crossing the ₹10 lakh crore AUM mark is a landmark moment for the Indian ETF space. Having launched India’s first ETFs across equity, gold, liquid, and government divestment categories, it is satisfying to see the product mature and gain such widespread adoption,” he said.
Zerodha Fund House added that ETFs are now being used not only for long-term investing but also for tactical asset allocation, supported by rising liquidity and tighter tracking of underlying indices.
A Market That Has Come of Age
Zerodha Fund House emphasised that the rapid rise in ETF AUM reflects a deeper shift towards passive investing, disciplined asset allocation and long-term planning. Participation from both retail and institutional investors, along with policy-driven initiatives such as government divestments through ETFs, has supported this expansion.
While equities remain the largest component, the growing presence of debt and commodity ETFs—including gold and silver—adds balance to the ecosystem. With ETF AUM now exceeding ₹10 lakh crore, Zerodha Fund House believes the segment has reached a level of maturity where it can play a central role in portfolio diversification, market access and long-term wealth creation for Indian investors.
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