Gold and silver ETFs beat equity ETFs in FY26: What investors should make of the shift

Indian investors are showing a growing appetite for precious metals through exchange-traded funds, with gold and silver ETFs together attracting more money than equity ETFs in FY26. The shift marks a significant change in the composition of passive-fund flows, as investors increasingly use ETFs beyond equity exposure.

Precious metals overtake equity in ETF flows

Data from the CRISIL-AMFI Factbook 2026 shows that passive funds received ₹2.07 lakh crore in net inflows in FY26, four times the ₹1.3 lakh crore recorded in FY21. Commodity ETFs, comprising gold and silver, were a major driver of this acceleration, amid elevated global uncertainty and a rally in precious-metal prices.

A separate analysis of AMFI data by Zerodha Fund House puts total ETF net inflows at ₹1.81 lakh crore in FY26. Gold ETFs attracted ₹68,868 crore, while silver ETFs drew ₹30,412 crore. Combined, the two commodity categories received ₹99,280 crore, or around 55% of total ETF inflows, compared with ₹77,780 crore, or 43%, for equity ETFs.

Importantly, gold ETFs alone did not surpass equity ETFs in inflows. Rather, it was gold and silver together that overtook equity ETFs. Gold ETFs recorded ₹68,868 crore of inflows in FY26, more than twice the roughly ₹30,213 crore they accumulated cumulatively during FY21-FY25.

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Gold ETF assets nearly triple

The surge in flows was accompanied by a sharp rise in gold ETF assets. Gold ETF AUM increased from around ₹59,000 crore in March 2025 to ₹1.71 lakh crore in March 2026, a 191% jump. The increase reflected both fresh investor inflows and the rise in gold prices.

Gold ETFs accounted for 12.5% of passive-fund AUM as of March 2026, with assets of ₹1.71 lakh crore. The category has recorded a 64.7% CAGR in AUM since March 2021, underlining its growing role as a portfolio-diversification instrument.

Silver adds another layer to diversification

Silver ETFs, which were launched in India in 2022, also saw a sharp rise in investor interest. They attracted more than ₹30,000 crore in FY26, exceeding their entire AUM at the beginning of the year, when assets stood at ₹15,339 crore. The CRISIL-AMFI report attributes the surge to a sharp rally in silver prices, rising industrial demand and safe-haven buying amid equity-market uncertainty.

ETF flows in FY26: Gold and silver vs equity

The flow data suggests that ETFs are no longer being used predominantly as an equity-investing vehicle. Commodity ETFs are increasingly being used to diversify portfolios, particularly during periods when uncertainty is high and correlations between asset classes become important.

However, the surge in gold and silver ETF flows should not automatically be read as a signal to replace equity allocations with commodities. Precious metals can play a diversification role, but their prices can also be volatile and are driven by factors different from corporate earnings.

The key takeaway for investors is therefore not equity versus gold, but whether a portfolio has an appropriate mix of asset classes for its risk profile and investment horizon. The FY26 ETF-flow data suggests that Indian investors are increasingly recognising that diversification can extend beyond stocks and bonds to commodities as well.

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