Mutual Funds in India (AMFI) released data showing that net inflows into Gold ETFs plummeted by 78% month-on-month in February 2026.
After a historic January where gold ETFs attracted a record ₹24,040 crore, inflows cooled significantly to ₹5,255 crore in February.
The “Rebalancing” Factor
Analysts describe this drop not as a loss of confidence, but as a “normalization” after an unprecedented start to the year.
- Profit Booking: Following the sharp rally in late January—where gold hit an all-time high of ₹1.83 lakh per 10g on January 29—investors used the steady prices in February to book profits.
- Rotation to Equity: While gold cooled, Equity Mutual Funds saw an 8% rise in inflows to ₹25,978 crore. Experts suggest investors rotated capital back into stocks following a mid-February market correction.
- January Outlier: January’s massive surge was driven by “start-of-the-year” portfolio rebalancing and high anxiety over the initial U.S.-Iran tensions, making any subsequent month look weak by comparison.
Performance Highlights (February 2026)
Despite the lower inflows, the gold ETF category remained in the green, with an average return of 0.19% for the month.
| Top Performing Gold ETFs | Monthly Return |
| Aditya Birla SL Gold ETF | +6.93% |
| Zerodha Gold ETF | +6.93% |
| Invesco India Gold ETF | +0.72% |
| LIC MF Gold ETF | +0.64% |
- Worst Performers: The Union Gold ETF and Nippon India ETF Gold BeES were outliers, losing 3.67% and 3.65% respectively during the month.
- AUM Impact: The total Assets Under Management (AUM) for Gold ETFs dipped slightly (1%) to ₹1.83 lakh crore, down from ₹1.84 lakh crore in January.
Broader Passive Market Trends
The slowdown in gold was part of a wider “cool down” in the passive investment segment:
- Silver ETFs: Faced a complete reversal, recording a net outflow of ₹826 crore in February as silver prices turned highly volatile.
- Index Funds: In contrast, index funds saw a massive 11,745% jump in inflows, rising from just ₹27 crore in January to ₹3,233 crore in February.
- Total Passive Flows: Combined inflows into Gold, Silver, Index Funds, and FoFs fell 65% to ₹13,879 crore.
Strategic Outlook
Financial planners note that gold has moved from a “tactical hedge” to a “strategic core” in Indian portfolios. Despite the 78% monthly drop, February 2026 inflows were still 165% higher than the ₹1,979 crore recorded in February 2025, suggesting that the long-term trend of “gold financialization” is still accelerating.
