India's investment landscape has reached a significant milestone, with the Assets Under Management (AUM) for Exchange Traded Funds (ETFs) surging past the ₹10 lakh crore mark. This achievement, reported by Zerodha Fund House based on data from October 2025, underscores a dramatic transformation in how Indians are choosing to grow their wealth.
Explosive Growth and Surging Trading Volumes
The scale of expansion in the ETF sector is staggering. The industry's total AUM has doubled over the past three years, highlighting a decisive move by investors towards products that are low-cost, transparent, and easy to access. This growth is not just in assets but also in market activity. Trading volumes have skyrocketed, increasing more than seven-fold from ₹51,000 crore in the 2019-20 financial year to an impressive ₹3.83 lakh crore in FY 2024-25.
This momentum has carried strongly into the current fiscal year. In a remarkable show of sustained interest, ETF trading volumes for just the first half of 2025-26 crossed ₹3.2 lakh crore, nearly equaling the entire volume of the previous year. Zerodha Fund House attributes this heightened activity to improved market depth, which has led to tighter spreads, better price discovery, and smoother execution for all market participants.
The Retail Investor Revolution
A cornerstone of this ETF boom is the massive influx of individual investors. The number of ETF investor accounts, or folios, has exploded, growing more than eight-fold in five years. From approximately 41 lakh folios in November 2020, the count has swelled to over three crore by November 2025. This surge is powered by increasing financial literacy and the seamless onboarding experience provided by digital investment 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," explained Vaibhav Jalan, Chief Business Officer at Zerodha Fund House. While equity ETFs remain dominant, adding 25 lakh new folios in the last year alone, investor portfolios are becoming more varied.
Diversification into Precious Metals
A notable trend within the ETF space is the rising appetite for diversification, particularly into precious metals. As of November 2025, gold and silver ETFs together constitute nearly 15% of the total ETF AUM. The growth here has been phenomenal. Over the past year, gold ETF AUM doubled to cross ₹1 lakh crore, while silver ETF AUM quadrupled to exceed ₹49,000 crore. This shift indicates a maturing investor base looking to hedge and diversify their holdings beyond traditional equities.
Commenting on the industry's landmark achievement, Vishal Jain, CEO of Zerodha Fund House, stated, "Crossing the ₹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." Zerodha Fund House is a joint venture between Zerodha Broking Ltd. and CASE Platforms Private Limited.
The journey of Indian ETFs to the ₹10 lakh crore pinnacle reflects a broader democratization of investing, where retail participation, digital access, and a preference for transparent instruments are reshaping the financial markets.
