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ETFGI Reports Accelerating Growth In Use Of Gold ETFs In India Driven By Retail Investors And Strategic Allocation Demand

Date 15/06/2026

ETFGI, reports the latest industry data from India highlights a clear divergence in growth profiles, investor composition, and usage between Gold ETFs and nongold ETFs, underscoring their distinct but complementary roles within portfolios. In March 2026, nearly 42.2% of the assets invested in gold ETFs were held by high-net-worth and retail investors, source from Association of Mutual Funds in India. ETFGI, is a 14 year old leading independent research and consultancy firm renowned for its expertise in subscription research, consulting services, 6 annual ETFGI Global ETFs Insights Summits, and ETF TV on global ETF industry trends. (All dollar values in USD unless otherwise noted.) 

Assets invested in Gold ETFs have demonstrated exceptional growth momentum, increasing from approximately $2.5 billion in March 2022 to $18.3 billion in March 2026—representing more than a 7 fold expansion over four years.

Investor participation has expanded significantly, with the number of accounts rising to over 12.4 million in 2026, compared to ~4.2 million in 2022, reflecting strong acceleration in adoption.

Highlights

  • Retail investors dominate flows and ownership, accounting for ~95% of folios in 2026, broadly consistent over time.
  • Corporates remain significant in terms of AUM (~58% of assets) but represent a small number of accounts, reinforcing the concentration of institutional allocation.
  • High‑net‑worth participation has grown steadily, representing ~31% of assets, indicating increasing use in sophisticated portfolio construction.

Gold ETFs are increasingly being used as:

  • A tactical hedge against macro uncertainty
  • A portfolio diversifier amid equity market volatility
  • A liquid alternative to physical gold exposure

The rapid growth in both assets and investor base suggests that Gold ETFs are evolving from niche allocation tools to mainstream portfolio components, particularly among retail investors.

Corporates dominate the investment in non-Gold ETFs in India

ETFs in India excluding gold ETFs have reached substantially larger scale, with assets rising from approximately $54 billion in March 2022 to $95.7 billion in March 2026, nearly doubling over the period.

However, growth has been more measured and structurally stable compared to Gold ETFs, reflecting their role as core portfolio building blocks rather than tactical allocations.

Highlights

  • Corporates dominate AUM, representing ~83% of total assets, reinforcing the institutional nature of allocation.
  • Retail investors account for the vast majority of accounts (~92%), highlighting broad accessibility and retail adoption.
  • Total number of investor accounts increased significantly to ~27.9 million, indicating continued democratization of market access.

Non‑gold ETFs serve as:

  • Core allocation vehicles across equity, fixed income, and diversified strategies
  • Efficient tools for beta exposure, asset allocation, and portfolio construction
  • Central components in both institutional and retail portfolios

The strong institutional asset share reflects long-term capital deployment, while the large and growing retail base signals continued structural demand for low-cost, transparent investment solutions.

Profile of investors in Gold ETFs in India – March 2026

Gold ETFs Investor 
Classification

Assets                 (US$ Mn) 
Mar-26

 % to Total 

 No of Folios 

 % to Total 

  Corporates

10,600

57.79

72,846

0.59

  Banks/FIs

0

0.00

5

0.00

  FIIs

0

0.00

0

0.00

  High Networth Individuals*

5,718

31.17

570,766

4.60

  Retail

2,025

11.04

11,754,114

94.81

  Total

18,342

100

12,397,731

100

*Defined as individuals investing Rs 2 lakhs and above

Source: Association of Mutual Funds in India

Profile of non-Gold ETFs in India – March 2026

ETFs(other than Gold) Investor 
Classification

Assets                 (US$ Mn) 
Mar-26

 % to Total 

 No of Folios 

 % to Total 

  Corporates

79,079

82.63

211,617

0.76

  Banks/FIs

182

0.19

51

0.00

  FIIs

2

0.00

4

0.00

  High Networth Individuals*

12,309

12.86

1,936,861

6.93

  Retail

4,128

4.31

25,795,686

92.31

  Total

95,700

100

27,944,219

100

*Defined as individuals investing Rs 2 lakhs and above

Source: Association of Mutual Funds in India

Assets of $114.04 Bn are the highest record for March 2026, while the second highest was of $98.04 Bn for 2025 and third highest record of $83.38 in 2024.  

Consecutive 5 years March Indian ETFs investment comparison by investor classification – March 2026

Investor Classification

AUM

($ Mn)

Mar-26

AUM

($ Mn)

Mar-25

AUM

($ Mn)

Mar-24

AUM

($ Mn)

Mar-23

AUM

($ Mn)

Mar-22

Corporates

89,678

85,378

73,951

54,842

51,196

Banks/FIs

182

539

153

186

203

FIIs

2

0

13

8

13

High Networth Individuals*

18,027

10,038

7,148

5,167

3,581

Retail

6,152

2,087

2,111

1,491

1,817

Total

114,042

98,042

83,377

61,695

56,810

 

*Defined as individuals investing Rs 2 lakhs and above

source: Association of Mutual Funds in India

At the end of March 2026, the Indian ETF industry had 323 ETFs, with 323 listings, assets of $113.88 Bn, from 27 providers on 2 exchanges, source from ETFGI. During March, the ETFs industry in India gathered net inflows of $3.59 Bn. Equity ETFs gathered the largest net inflows with $3.28 Bn, followed by commodity ETFs with $686.53 Mn, while fixed income ETFs experienced net outflows with $376.56 Mn.

ETFs industry in India asset growth at end of March 2026