India's ETF AUM Grows Over 5 Times In 5 Years, Retail Investor Folios Jump 11-Fold: Report

2025-07-02 07:58:05

(MENAFN- IANS) Mumbai, July 2 (IANS) India's Exchange-Traded Funds (ETFs) have seen tremendous growth over the last five years, with total Assets Under Management (AUM) rising more than five times and retail investor folios increasing eleven-fold, a new report said on Wednesday.

The total AUM of ETFs in India grew nearly 5.5 times between March 2020 and March 2025, according to a new report released by Zerodha Fund House.

By the end of this period, ETFs accounted for Rs 8.38 lakh crore, making up around 13 per cent of the overall Rs 65.74 lakh crore mutual fund industry.

In comparison, ETFs held only a 7 per cent share in 2020. This shows the growing popularity of ETFs as an investment option in the country.

The number of retail folios in ETF schemes also saw massive growth -- from just over 23 lakh in March 2020 to about 2.63 crore in March 2025.

Retail investors now make up more than 97 per cent of all ETF folios -- reflecting a sharp rise in awareness and trust in ETFs among common investors.

“This study highlights the new era for Indian ETFs, marked by surging retail participation and expanding product diversity reflected in higher resultant volumes,” Vishal Jain, CEO, Zerodha Fund House said.

The retail AUM itself has more than tripled in this five-year period, growing from Rs 5,335 crore to over Rs 17,800 crore.

The total number of ETF offerings has also increased nearly threefold during this time.

New products, including commodity ETFs like silver-backed funds introduced in 2022, have expanded the choices available to investors.

Equity ETFs continue to dominate, with nearly 80 per cent of the total ETF AUM consistently coming from equity-linked instruments since 2020.

The trading activity in ETFs has also grown rapidly. The trading volume rose from Rs 51,101 crore in FY 2019-20 to Rs 3.83 lakh crore in FY 2024-25 -- a more than sevenfold jump.

Notably, the volume more than doubled just in the last one year, pointing to growing liquidity and investor interest, as per the report.

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