Beyond the growth in asset base, the market’s structural efficiency has seen a significant expansion. Trading volumes for ETFs in India have surged from Rs 51,000 crore in FY 19-20 to Rs 3.83 lakh crore in FY 24-25, a substantial increase of more than seven times.
The first half of FY 25-26 alone has recorded volumes exceeding Rs 3.2 lakh crore, nearly matching the entire previous record-breaking year in just six months. This deepened liquidity benefits investors by ensuring tighter spreads, better price discovery, and smoother execution of trades.
A key driver of this milestone is the unprecedented rise in retail engagement. The total number of ETF folios has risen from ~Rs 41 lakhs to more than Rs 3 cr, from November 2020 to November 2025.
This increase in investor base might have been likely fueled by the increase in education and awareness about ETFs and easier access to digital platforms.
“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,” said Vaibhav Jalan, CBO, Zerodha Fund House.
While Equity ETFs continue to dominate the market, accounting for 25 lakh new folios in the last 12 months, investors are increasingly adopting a “holistic” approach to portfolio construction. This shift is characterised by a surge in Gold and Silver ETFs, which have grown to represent nearly 15% of the total ETF AUM as of November 2025.This transition may underscore a maturing market where investors are actively balancing equities with the diversification of precious metals.
In the last 1 year, Gold ETFs saw a 1.5 times uptick in new accounts, and Silver ETFs recorded a sharp 4.5 times rise. This participation has also translated into asset accumulation – Gold ETF AUM doubled to cross the Rs 1 Lakh Cr milestone (from ~Rs 44,000 Cr), while Silver ETF AUM quadrupled to over Rs 49,000 Cr (from ~Rs 12,000 Cr) in just one year.
Also read: Silver ETFs deliver triple-digit gains in 2025. Should investors book profits?
“Crossing the Rs 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,” said Vishal Jain, CEO at Zerodha Fund House.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
