Inflows into precious metals exchange-traded funds (ETFs) slowed sharply in February as a stronger US dollar and profit booking tempered investor enthusiasm after record allocations in the previous month.
Gold ETFs attracted inflows of ₹5,254.95 crore in February, a steep decline from the record ₹24,040 crore seen in January, according to Amfi data. Silver ETFs, meanwhile, recorded an outflow of ₹826 crore during the month compared with inflows of ₹9,463 crore in January.
The moderation in flows coincided with a correction in global precious metal prices during early February.
Gold prices on the Comex had dropped sharply from a peak of $5,487 per ounce on January 28 to $4,736 per ounce by February 5 before recovering to $5,296 per ounce by the end of the month. Silver too witnessed a steep correction from $117 per ounce on January 28 to $67 per ounce by February 5, before rebounding to $93.8 per ounce by February 28.
Market observers said the slowdown in ETF inflows reflected profit booking by investors following the sharp rally in precious metals earlier in the year.
“Inflows into gold ETFs and other ETFs were down significantly from last month, though on an absolute basis, the numbers remain healthy. This comes amid heightened risks as investors continue to be drawn to the rally in precious metals,” said Suranjana Borthakur, head of distribution and strategic alliances at Mirae Asset Investment Managers (India).
Analysts also pointed to a revival in investor appetite for equities as global risk sentiment improved during the month, before the West Asia crisis.
“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,” said Nitin Agrawal, CEO for mutual funds at InCred Money.
Equity mutual funds registered steady inflows of ₹25,978 crore in February compared with ₹24,028 crore in January, supported by improved investor sentiment after the announcement of a US-India trade framework and positive foreign portfolio investor flows.
Debt mutual funds recorded inflows of ₹42,106 crore during the month, largely driven by allocations to liquid and money market funds.
Systematic investment plan (SIP) contributions stood at ₹29,845 crore in February, down from ₹31,002 crore in January. Venkat Chalasani, chief executive of Amfi, said the marginal moderation was largely due to February being a shorter month, with some end-of-month SIP instalments typically processed in early March.
Meanwhile, the mutual fund industry body plans to approach Sebi regarding its decision to discontinue retirement and children’s fund categories.
