India's investment landscape has witnessed a historic moment as the market for Gold Exchange Traded Funds (ETFs) has smashed through a monumental barrier. According to a recent study by Zerodha Fund House, the country's digital-only passive fund house, the total assets under management for Gold ETFs have now crossed the ₹1 lakh crore mark. This achievement underscores a dramatic shift in how Indian investors are choosing to own gold, moving towards transparent and efficient digital formats.
Unprecedented Growth and Record Inflows
The report reveals an explosive phase of growth for the product. Between October 2024 and October 2025, the Assets Under Management for Gold ETFs more than doubled. The year 2025 itself has been record-breaking, with net inflows into Gold ETFs exceeding ₹27,500 crore in just the first ten months. This staggering single-year figure is higher than the total net inflows recorded over the previous five years combined, from 2020 to 2024.
This surge is powered by a confluence of factors. Rising gold prices have attracted investors, but the structural advantages of ETFs have been pivotal. Investors are increasingly trusting digital platforms and are drawn to the superior tax treatment of Gold ETFs compared to physical gold. These instruments qualify for a long-term capital gains tax of 12.5% after a shorter holding period, enhancing their post-tax returns.
Retail Participation Skyrockets
The most telling sign of this revolution is the massive jump in investor participation. The number of Gold ETF folios, which represent individual investor accounts, has seen a meteoric rise. From 7.83 lakh folios in October 2020, the count has ballooned to over 95 lakh by October 2025—a phenomenal 12-fold increase in just five years.
This democratization of gold investment is fueled by low entry barriers, with units available for as little as ₹20, allowing systematic investment across income levels. Importantly, the report reassures investors that every unit is backed by physical gold of 99.5% purity or higher, stored securely in vaults. In fact, Indian Gold ETFs now collectively hold over 83 tonnes of physical gold, with nearly a third of this reserve added in 2025 alone.
Silver ETFs Ride the Wave
The trend is not limited to gold. Silver ETFs, introduced in 2022, have also gained remarkable traction. As of October 2025, Silver ETF folios have crossed 25 lakh, with their total assets swelling to over ₹40,000 crore. This parallel growth signals a broader acceptance of commodity-based ETFs among Indian investors.
A Vision Realized
Reflecting on this journey, Vishal Jain, CEO of Zerodha Fund House and an early contributor to Gold ETFs in India, expressed profound humility. He recalled being part of the team that first conceptualized 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 stated. He added that this milestone validates the enduring power of simple, meaningful investment products.
Disclaimer: The views and recommendations mentioned are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
