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India's Exchange Traded Fund (ETF) industry has crossed a major milestone, with Assets Under Management (AUM) exceeding Rs 10 lakh crore as of October 2025, according to Zerodha Fund House.
The industry has doubled its total AUM over the past three years, reflecting a steady shift in investor preference toward low-cost, transparent investment products. The Indian ETF ecosystem has also witnessed a sharp rise in trading activity, Zerodha Fund House said in a statement recently. ETF trading volumes increased more than seven-fold, climbing from Rs 51,000 crore in 2019-20 to Rs 3.83 lakh crore in FY 2024-25. This surge highlights improving market depth and participation across exchanges, the fund house said. Momentum has continued into the current financial year. In the first half of 2025-26 alone, ETF trading volumes crossed Rs 3.2 lakh crore, nearly matching the entire volume recorded in the previous year. Zerodha Fund House noted that higher liquidity has contributed to tighter spreads, improved price discovery, and smoother trade execution for investors. Retail participation has emerged as a key growth driver. The number of ETF investor accounts rose more than eight-fold over five years, increasing from about 41 lakh folios in November 2020 to over three crore folios by November 2025. This rise has been supported by greater investor awareness and easier access through 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," said Vaibhav Jalan, CBO, Zerodha Fund House. Equity ETFs continue to dominate the segment, accounting for 25 lakh new folios added in the last 12 months. However, investor preferences are gradually becoming more diversified, with rising allocations to precious metals, it added. Gold and silver ETFs together now represent nearly 15 per cent of total ETF AUM as of November 2025. Over the past year, gold ETF AUM doubled to cross Rs 1 lakh crore, while silver ETF AUM quadrupled to over Rs 49,000 crore, indicating growing interest in portfolio diversification. Vishal Jain, CEO, Zerodha Fund House, said, "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 an Asset Management Company, a JV between Zerodha Broking Ltd. and CASE Platforms Private Limited (Formerly known as 'Smallcase Technologies Private Limited'). (ANI)
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