Gold ETF: India’s Gold ETF market has hit a major milestone, with total Gold ETF assets crossing ₹1 lakh crore, according to a new study released by Zerodha Fund House, the country’s digital-only passive fund house.
The surge marks a dramatic rise in demand for gold via the ETF route, reflecting investors’ growing preference for transparent, tax-efficient and hassle-free exposure to the precious metal.
The report highlights that Gold ETF AUM more than doubled between October 2024 and October 2025, signalling one of the strongest phases of inflows in the product’s history.
Record-Breaking Inflows in 2025
Zerodha Fund House noted that Gold ETFs recorded net inflows of over ₹27,500 crore in the first ten months of 2025. This single-year figure exceeds the combined net inflows of the previous five years (2020–2024), underlining a significant shift in investor behaviour.
The surge in inflows has been fuelled by a combination of factors including rising gold prices, increased trust in digital investment formats, and superior tax treatment compared to physical gold.
Gold ETFs qualify for a 12.5% long-term capital gains (LTCG) tax after a shorter holding period than physical gold, boosting their attractiveness.
Gold ETF Folios Jump 12x in Five Years
Investor participation has skyrocketed. Gold ETF folios increased from 7.83 lakh in October 2020 to over 95 lakh in October 2025—a 12x jump driven by accessibility and smaller entry barriers.
With unit prices available for as low as ₹20, retail investors across income levels are now able to allocate systematically to gold. Importantly, every unit is backed by physical gold of 99.5% purity or higher, addressing trust concerns that some buyers may have.
Moreover, India’s Gold ETF AUM crossing ₹1 lakh crore is also supported by substantial physical reserves. Indian Gold ETFs now hold over 83 tonnes of gold, with nearly one-third of this added in 2025 alone.
This reinforces Gold ETFs as not just financial instruments but physically backed assets stored in secure vaults.
Silver ETFs See Similar Momentum
Alongside gold, Silver ETFs have also witnessed strong traction. Since their introduction in 2022, Silver ETF folios have exceeded 25 lakh, with assets under management rising to over ₹40,000 crore as of October 2025.
This signals a broader acceptance of commodities in ETF form.
Zerodha Fund House CEO Reflects on Two-Decade Journey
Vishal Jain, CEO of Zerodha Fund House and an early contributor to Gold ETF development in India, expressed excitement at the category’s explosive growth.
He said, “I vividly remember being part of the team that first conceptualized the idea of Gold ETFs back in 2002… To see that the product category which was once an idea we believed in has now crossed the ₹1 lakh crore milestone, is incredibly humbling.”
Jain added that the milestone validates the belief that simple, meaningful investment products inevitably find their place in investor portfolios over time.
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