Gold Silver ETFs: Gold ETFs inflows in India dropped sharply by 78% month-on-month to Rs 5,255 crore in February, according to data from the Association of Mutual Funds in India (AMFI), mainly due to a normalisation after record inflows in January and a correction in gold prices. At the same time, silver ETFs recorded a net outflow of ₹826 crore in February. The data also mentioned that the average net assets under management (AUM) of silver ETFs fell from ₹95,203.63 crore in January to ₹89,323.66 crore
At the same time, it was noticed that investors’ interest had shifted toward equity mutual funds, with inflows rising 8% to ₹25,978 crore during the month, particularly in the mid-cap and small-cap segments. Despite a slowdown in fresh flows, the average assets under management of gold ETFs rose to ₹1.8 lakh crore, indicating that existing investments remained largely intact, while the broader mutual fund industry saw total inflows decline from January.
What does it mean for Silver and Gold ETFs?
The drop in ETF inflows coincided with a cooling in gold prices after a sharp rally earlier in the year. Gold futures on the Multi-Commodity Exchange of India had surged to an all-time high of ₹1,93,096 per 10 grams in late January before correcting in the following weeks.
By February, prices had retreated to around ₹1,61,851 per 10 grams. The correction encouraged some investors to book profits after the strong run-up in the precious metal earlier in the year.
Despite the moderation in fresh investments, the average assets under management (AUM) of gold ETFs continued to rise. The total average AUM increased to ₹1.8 lakh crore in February compared with ₹1.5 lakh crore in the previous month, suggesting that existing investors largely held on to their positions.
Shift Away from Silver, Gold ETF to Equity Funds
The moderation in gold ETF flows also coincided with improving investor interest in equities. As gold prices stabilised and equity markets showed signs of recovery, investors appeared to redirect funds toward equity-oriented mutual funds in search of long-term growth opportunities.
According to AMFI data, inflows into equity mutual funds rose 8% to ₹25,978 crore in February despite the shorter month. Mid-cap and small-cap funds saw particularly strong interest, with inflows rising significantly as investors looked to capitalise on volatility in the broader market. Large-cap funds also recorded modest growth in inflows, while sectoral and thematic funds saw a noticeable surge in investor participation.
Silver ETFs See Outflows
Silver ETFs also experienced a reversal in investor flows during February. After several months of strong inflows, the segment recorded a net outflow of ₹826 crore. This shift came as silver prices moderated following a strong rally earlier in the year.
The average AUM of silver ETFs declined to ₹89,323.66 crore from ₹95,203.63 crore in the previous month, reflecting the pullback in investor interest.
Systematic investment plan (SIP) inflows also dipped slightly during February, declining 4% to ₹29,845 crore. The decline was partly attributed to the shorter 28-day month, as SIP instalments scheduled for the final days of February are typically processed in early March.
Even with the moderation in ETF inflows and mutual fund sales, overall investor participation in mutual funds remained stable. Adjusted for the shorter month, industry data suggests that the underlying investment momentum continues to remain healthy.
The latest data, therefore, indicates that while gold ETF inflows have cooled after a record surge, the broader investment landscape remains active, with equities regaining traction as market conditions evolve.
FAQs
1. Why did gold ETF inflows fall in February 2026?
Gold ETF inflows fell mainly due to normalization after unusually high inflows in January, profit-booking after gold prices corrected from record highs, and a shift in investor interest toward equity mutual funds.
2. How much did gold ETF inflows decline?
According to data from the Association of Mutual Funds in India, gold ETF inflows dropped 78% month-on-month to ₹5,255 crore in February.
3. What happened to gold prices during this period?
Gold prices on the Multi Commodity Exchange of India declined from a peak of around ₹1.93 lakh per 10 grams in late January to about ₹1.61 lakh per 10 grams, leading some investors to book profits.
4. Did investors move money into other mutual fund categories?
Yes, equity mutual funds saw increased inflows during February, with stronger interest in mid-cap and small-cap funds as investors sought long-term growth opportunities.
5. Did gold ETFs lose assets under management (AUM)?
No, despite lower inflows, the average AUM of gold ETFs actually increased to around ₹1.8 lakh crore, suggesting that existing investors largely held on to their investments.
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