Gold ETF inflows decline to Rs 5,255 cr in February from Rs 24k cr in January

Gold ETF inflows decline to Rs 5,255 cr in February from Rs 24k cr in January

Inflows into gold exchange-traded funds slowed sharply in February after the record surge seen in the previous month, indicating that investors may have paused allocations after aggressively adding the safe-haven asset to portfolios at the start of the year.

According to data from the Association of Mutual Funds in India (AMFI), gold ETFs recorded inflows of about Rs 5,255 crore in February 2026, a steep moderation from the Rs 24,039.96 crore that flowed into the category in January.

The January surge had pushed gold ETF investments close to equity mutual fund inflows, highlighting strong investor demand for gold amid global uncertainties and volatile equity markets. February’s decline in inflows therefore reflects a normalisation after the unusually strong allocations seen in the previous month rather than a reversal in investor sentiment.

On Gold ETFs, Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India noted that the category

continued to attract healthy inflows in February 2026, albeit at a slower pace compared to the exceptionally strong surge in January. Despite the moderation, the figures reflect continued investor interest in gold-backed products, she noted adding that the moderation in inflows was likely due to some profit-booking by investors. "January’s unusually strong number also likely reflected start-of-year allocations and portfolio rebalancing, making February’s figure look softer on a sequential basis. Nevertheless, inflows remained firmly positive, underscoring gold’s enduring appeal amid heightened market volatility and ongoing geopolitical risks," she said adding that  Gold ETFs continue to benefit from their role as portfolio diversifiers and their convenience, liquidity, and transparency as a means of gaining exposure to the metal.

Across passive fund categories, which include index funds, gold ETFs, other ETFs and fund of funds investing overseas, total inflows stood at about Rs 13,879 crore in February, significantly lower than the record Rs 39,954 crore seen in January and Rs 11,000 crore in December.

In other ETF category, Silver ETFs saw a slight dip during the month with outflows of around Rs 826 crores.  Index funds continued to see steady investor interest, attracting about Rs 3,233 crore during the month, while other ETFs recorded inflows of roughly Rs 4,487 crore. Funds of funds investing overseas also saw inflows of about Rs 904 crore.