Indian ETF AUM Crosses Rs 10 Lakh Crore, Doubles In Three Years

India’s ETF market has witnessed exponential growth, driven by increasing retail participation, institutional inflows, and the growing popularity of passive investment strategies. The surge in assets under management highlights how ETFs have become a mainstream investment vehicle, offering transparency, liquidity, and low costs compared to traditional mutual funds.  

Key highlights from the announcement include  

• ETF AUM in India crossed Rs 10 lakh crore in 2025, doubling from Rs 5 lakh crore recorded three years ago.  
• Zerodha Fund House noted that the growth reflects a structural shift toward passive investing among Indian investors.  
• Equity ETFs, particularly those tracking Nifty and Sensex indices, contributed significantly to the surge in assets.  
• Debt ETFs and gold ETFs also gained traction, offering diversification and hedging opportunities for retail and institutional investors.  
• The rise of systematic investment plans (SIPs) in ETFs has broadened access for small investors, making passive investing more inclusive.  
• Institutional investors, including pension funds and insurance companies, have increased allocations to ETFs for long-term stability.  
• The growth aligns with global trends, where ETFs have become dominant vehicles for portfolio diversification and cost efficiency.  
• Experts believe regulatory support, digital platforms, and investor education have played a crucial role in accelerating adoption.  
• Zerodha Fund House emphasized that ETFs are no longer niche products but mainstream instruments shaping India’s capital markets.  
• The milestone underscores India’s evolving investment landscape, where passive strategies are complementing active fund management.  

The doubling of ETF assets in just three years reflects the rapid transformation of India’s financial ecosystem. With Rs 10 lakh crore now managed through ETFs, the industry is poised for further expansion in 2026, supported by innovation, investor awareness, and the continued push toward democratizing wealth creation.  

Sources: Economic Times, Business Standard, Mint, Zerodha Fund House