Indian Investors Shift Focus from Stocks to ETFs, Breaking Records in Gold and Silver Investments The era of the stock market as the primary investment avenue for Indians is fading, with a significant shift toward exchange-traded funds (ETFs), particularly those focused on gold and silver. According to the latest financial year (FY26) data, Indian investors have poured over ₹1.81 lakh crore into ETFs, surpassing the previous record of ₹83,390 crore set in the financial year 2021-22. This marks a doubling of investments compared to the previous year, reflecting a growing preference for diversified and safer investment options. The trend highlights a broader transformation in investor behavior, as traditional stock-centric strategies are being replaced by a mix of equity and commodity-based ETFs. For instance, gold ETFs attracted ₹68,868 crore, while silver ETFs received ₹30,412 crore in FY26, collectively accounting for nearly 55% of total ETF investments. This surge in commodity ETFs is driven by factors such as rising gold prices, a search for safety amid economic uncertainties, and tax advantages. Investors in gold and silver ETFs benefit from a shorter holding period for tax exemption compared to physical gold, which requires a 24-month waiting period for long-term capital gains tax benefits. The shift is also evident in the volume of daily trading. ETF transactions, which averaged ₹237 crore per day in FY21, have surged to over ₹4,200 crore daily, with commodity ETFs contributing significantly to this growth. Notably, the record monthly investment of ₹39,000 crore in January 2026 underscores the confidence of Indian investors in navigating market fluctuations through diversified instruments.#gold_etfs #exchange_traded_funds #indian_investors #silver_etfs #vishal_jain
