Several stacks with coins and the term ETF and a chart with stock prices. | Photo Credit: gopixa
Equity ETFs remained the biggest contributor, attracting ₹23,500 crore during the quarter, while real-asset ETFs, led by precious metals, drew ₹12,130 crore, up from ₹7,270 crore in the June quarter.
Large-cap ETFs accounted for the bulk of equity inflows, attracting ₹21,880 crore. Morningstar attributed the concentration partly to continued allocations to broad-market index products, supported by a wider range of large-cap ETF offerings and fewer choices in the mid- and small-cap segments.
Nippon India ETF Nifty 50 BeES received the highest inflows among individual funds at ₹3,680 crore. SBI Nifty 50 ETF followed with ₹3,360 crore, while ICICI Prudential Nifty 50 ETF attracted ₹2,830 crore.
Technology ETFs recorded the largest outflows among equity segments at ₹490 crore, despite a recovery in the Nifty IT index. Infrastructure ETFs also saw outflows of ₹190 crore.
Tech shift
The divergence comes at a time of global selling in technology and AI-linked stocks, even as Indian technology services companies have seen relatively better investor interest. Foreign portfolio investors (FPIs), meanwhile, returned as net buyers of Indian equities in November after two consecutive months of withdrawals, with the global technology sell-off among the factors supporting the shift towards Indian markets.
India’s ETF assets under management edged up to a record ₹11.50 lakh crore at the end of September, from ₹11.45 lakh crore in June. Morningstar said that weaker market performance limited the increase in assets despite positive net flows.
ETFs across the Asia-Pacific region attracted $130 billion in net inflows in the September quarter, reversing two consecutive quarters of net outflows. China-domiciled ETFs accounted for nearly 60 per cent of regional inflows, while equity ETFs made up 73 per cent of the total.
Large-cap equity products remained a key driver across the region, ranking among the top two categories by net flows in India, Australia, China, Japan and Taiwan. Fixed-income ETFs also attracted inflows, accounting for 17 per cent of regional net flows.
Debt-oriented ETFs continued to face pressure, with medium-to-long-duration funds recording outflows of ₹810 crore. Morningstar said the redemptions from longer-duration fixed-income funds to the Reserve Bank of India’s neutral-to-hawkish policy stance, which reduced investor appetite for duration risk. Inflows into capital-preservation strategies also slowed to ₹680 crore from ₹2,440 crore in the previous quarter.
Within financial-services ETFs, there was also a shift towards private-bank funds and away from broader banking indices. Private-bank ETFs attracted ₹1,300 crore, following inflows of ₹1,610 crore in the previous quarter. In contrast, broad banking index ETFs saw outflows of ₹870 crore in the September quarter, taking their year-to-date withdrawals to ₹4,150 crore.
Published on November 12, 2026
