In addition to the growth in the asset base, there has been a significant expansion in the structural efficiency of the market. Trading volume for ETFs in India in FY19-20 was Rs. 51,000 crore in FY24-25 to Rs. 3.83 lakh crore, which is a significant increase of more than seven times.
In the first half of FY 25-26 alone, Rs. A volume of over 3.2 lakh crores has been recorded, almost matching the entire previous record-breaking year in just six months. This deeper liquidity benefits investors by ensuring tighter spreads, better price discovery and easier execution of trades.
The key driver of this milestone is the unprecedented increase in retail connectivity. From November 2020 to November 2025 the total number of ETF folios increased from ~ 41 lakhs to Rs. 3 crore has been exceeded.
This increase in investor base is likely due to education and awareness about ETFs and easy access to digital platforms.
Vaibhav Jalan, CBO, Zerodha Fund House, said, “For new investors, ETFs serve as a versatile tool to gain exposure to various asset classes, themes and segments as they are simple, cost-effective and transparent in their structure.
While equity ETFs continue to dominate the market, accounting for 2.5 million new portfolios in the past 12 months, investors are increasingly taking an “integrated” approach to portfolio construction. This shift is characterized by a surge in gold and silver ETFs, which represent around 15% of total ETF AUM by November 2025.
This transition may underscore a mature market where investors are actively balancing equities with diversification into precious metals.
In the last 1 year, gold ETFs saw a 1.5 times increase in new accounts and silver ETFs saw a sharp increase of 4.5 times. This participation has also translated into asset accumulation – gold ETF AUM doubled to Rs. 1 lakh crore milestone (from ~ 44,000 crore), while silver ETF AUM quadrupled to Rs. 49,000 crore (from ~12,000 crore in just one year).
Also Read: Silver ETFs Offer 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. After launching India’s first ETF across equity, gold, liquid and government disinvestment categories, it is gratifying to see the product maturing and gaining such widespread adoption,” said Fund House CEO Vishal Jain.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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