India’s exchange-traded fund (ETF) industry has reached a significant milestone, with total assets under management crossing ₹10 lakh crore as of October 2025, according to data from Zerodha Fund House. The sector has expanded rapidly, doubling its AUM over the past three years as investors increasingly favour low-cost, transparent investment options.
Alongside asset growth, trading activity in ETFs has risen sharply. Zerodha Fund House noted that ETF turnover jumped more than seven times, increasing from about ₹51,000 crore in FY 2019–20 to ₹3.83 lakh crore in FY 2024–25. The strong momentum has continued into the current financial year, with trading volumes in the first half of FY 2025–26 alone surpassing ₹3.2 lakh crore, nearly equalling the total for the previous year. Higher liquidity has led to narrower bid-ask spreads, better price discovery and smoother execution for market participants.
Retail investors have played a major role in this expansion. The number of ETF folios grew over eightfold in five years, rising from roughly 41 lakh in November 2020 to more than three crore by November 2025, supported by digital platforms and increased awareness.
While equity ETFs still dominate—adding 25 lakh folios in the past year—investor interest is broadening. Gold and silver ETFs now account for nearly 15% of total ETF AUM. Over the last year, gold ETF assets doubled to over ₹1 lakh crore, while silver ETF assets quadrupled to above ₹49,000 crore. Zerodha Fund House leaders described the milestone as evidence of the ETF segment’s maturity and widespread acceptance in India.
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