India's Exchange Traded Fund (ETF) industry has reached a significant milestone, with Assets Under Management (AUM) surpassing ₹10 lakh crore as of October 2025, according to Zerodha Fund House. This achievement underscores the growing popularity of ETFs among Indian investors and marks a pivotal moment for the country's financial markets. The ETF AUM has doubled in just three years, driven by increasing retail participation, enhanced liquidity, and expanding investor interest beyond equities into asset classes like gold and silver.
The Indian ETF ecosystem has experienced a remarkable surge in trading activity. ETF trading volumes have increased more than sevenfold, from ₹51,000 crore in FY 2019-20 to ₹3.83 lakh crore in FY 2024-25. This surge highlights greater market depth and increased participation across exchanges. The momentum has continued into the current financial year, with trading volumes in the first half of FY 2025-26 exceeding ₹3.2 lakh crore, nearly matching the entire volume recorded in the previous year. This increased liquidity benefits investors through tighter spreads, better price discovery, and smoother trade execution.
A key factor driving this growth is the unprecedented rise in retail engagement. The total number of ETF folios has risen from approximately 41 lakh in November 2020 to over 3 crore by November 2025, representing an increase of more than eightfold in five years. This surge is attributed to greater investor awareness and easier access to ETFs through digital investment platforms. According to Vaibhav Jalan, CBO of Zerodha Fund House, ETFs serve as a versatile tool for new investors, providing exposure to various asset classes, themes, and segments in a simple, cost-effective, and transparent manner.
While equity ETFs continue to dominate the market, accounting for 25 lakh new folios in the last year, investor preferences are diversifying. There's a noticeable increase in allocations towards precious metals. Gold and silver ETFs now constitute nearly 15% of the total ETF AUM. Gold ETF AUM has doubled to surpass ₹1 lakh crore, while silver ETF AUM has quadrupled to over ₹49,000 crore in just one year. The number of gold ETF folios has increased by about 1.5 times, and silver ETF folios have risen by approximately 4.5 times.
Vishal Jain, CEO of Zerodha Fund House, stated that crossing the ₹10 lakh crore AUM mark is a landmark moment for the Indian ETF space. He added that it is satisfying to see the product mature and gain widespread adoption, especially since Zerodha Fund House launched India's first ETFs across equity, gold, liquid, and government divestment categories. The growth of the ETF market reflects a broader trend of increasing financialization of household savings and a growing preference for passive investment strategies among Indian investors. This milestone reinforces the potential for further expansion and innovation in the Indian ETF market, paving the way for new products and greater investor participation in the years to come.
