3 min readMumbaiMar 11, 2026 05:34 AM IST
Inflows into gold exchange-traded funds (ETFs) fell 78% month-on-month (m-o-m) in February after booming in January, while those into equity-oriented mutual funds rose, data released by the Association of Mutual Funds in India (AMFI) showed. The sharp moderation in flows into ETFs led to inflows for the overall mutual fund industry dropping to Rs 94,543 crore from Rs 1.56 lakh crore. Flows into debt-oriented funds also fell sharply.
Flows into gold ETFs moderated sharply to Rs 5,255 crore after it had more than doubled and crossed flows into equity funds for the first time in January. This also comes after flows into gold ETFs had risen for three straight months. “Gold ETFs, which saw record inflows in January 2026, appear to have moderated, suggesting that some of that defensive positioning is unwinding and equity is regaining its appeal as the preferred vehicle for long-term wealth creation,” said Nitin Agrawal, Chief Executive Officer of mutual funds at InCred Money.
Gold prices have moderated recently after reaching fresh highs in the bull run at the start of the year, which may have allowed investors to book some profits. Gold futures have fallen to Rs 161,851 per 10 grams at the Multi-Commodity Exchange from their all-time high of Rs 193,096 in late January. While flows fell, the average net assets under management (AUM) of such funds rose to Rs 1.8 lakh crore from Rs 1.5 lakh crore in the previous month.
Silver prices have also moderated in that time, coinciding with silver ETFs seeing a net outflow of Rs 826 crore in February after inflows had risen for the last three months and had more than doubled to Rs 9,463 crore in the previous month. The average net AUM of such funds also moderated to Rs 89,323.66 crore from Rs 95,203.63 crore a month ago. Overall, the other schemes category, which includes gold and silver ETFs, overseas fund of funds, and index funds, saw monthly inflows fall by 65%.
Equity-oriented mutual funds were back in favour as flows rose 8% to Rs 25,978 in February despite the shorter month. Flows into mid-cap funds shot up 26% to Rs 4,003 crore, and those into small-cap funds grew 32% to Rs 3,881 crore as investors likely hunted for bargains at a time when the equity market has been volatile, and the broader market has bled more than the blue chips. Inflows into large-cap funds also grew 5%. Flows into sectoral and thematic funds nearly tripled to Rs 2,987 crore.
Among the categories that saw noticeable drops, flows into dividend yield funds and focused funds dipped 27% and 42%, respectively. Monthly inflows as part of systematic investment plans (SIPs) also declined 4% to Rs 29,845 crore during the month. However, that might have also been affected by the shorter month as installments for February scheduled for the 29th, 30th, and 31st typically get processed in early March.
“Mutual fund gross sales in February were Rs 65,542 crore, lower than Rs 69,642 crore in January, while net sales remained stable at Rs 27,385 crore compared to Rs 27,804 crore in the previous month. Adjusted for the shorter 28-day month, gross and net sales translate to roughly Rs 70,224 crore and Rs 29,341 crore on a 30-day basis, indicating that underlying sales momentum remained healthy,” explained Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal Asset Management Company.
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