The total assets of India’s mutual fund industry reached ₹82 trillion for February while silver and gold exchange-traded funds experienced reduced investor interest.
The Association of Mutual Funds in India (AMFI) released data showing that silver ETFs experienced their first net outflow after 28 months because investors booked profits during times of precious metal price fluctuations.
Silver ETFs experienced net outflows during the month of February.
Silver exchange-traded funds received total gross inflows of ₹4,628 crore in February according to AMFI data. The total redemptions reached ₹5,455 crore which led to a net outflow of ₹826.3 crore.
This period experienced its first monthly net outflow because November 2023 while the period before showed strong inflows of ₹9,463 crore during January 2026.
The outflow occurred after silver prices experienced increased price fluctuations throughout the year. The metal has maintained its upward trend after a major 31% single-day decline on January 30.
Silver prices increased by 10% throughout February
The prices increased by 19% during January.
The metal has increased in value by approximately 20% throughout 2026.
Silver achieved remarkable price growth during the two preceding years with a 148% increase during 2025 after a 22% increase in 2024 which caused many investors to sell their holdings.
Gold ETF Inflows Drop Sharply
The February period experienced a major decrease in Gold Exchange-Traded Fund inflows.
Investors put ₹5,255 crore into gold exchange-traded funds during the month which represents a major decrease from the previous month’s total of ₹24,039 crore that occurred in January.
The January 2025 inflows exceeded the total of three previous months while the total January 2025 inflows reached ₹12,987 crore.
Market experts say that gold serves as a key tool for investors who want to diversify their investments during times when global uncertainty exists.
Mutual Fund Industry AUM Hits ₹82 Trillion
The mutual fund industry maintained its upward movement despite the decrease in bullion exchange-traded funds.
The assets under management (AUM) of the industry increased from ₹81.01 trillion in January to ₹82.03 trillion in February according to AMFI.
Retail investor participation also increased significantly:
- Retail folios rose to 20.64 crore, up from 20.43 crore in January
- Retail AUM reached ₹47.14 trillion
Equity Funds Maintain Strong Momentum
Equity mutual funds continued to see steady inflows, marking the 60th consecutive month of positive equity investments since March 2021.
Net equity inflows stood at ₹25,978 crore in February, reflecting strong investor participation despite market volatility.
Market analysts say investors are increasingly focusing on long-term wealth creation rather than short-term price movements.
SIP Contributions Ease Slightly
Systematic Investment Plan (SIP) inflows saw a slight dip during the month.
- SIP inflows: ₹29,845 crore in February
- Previous month: around ₹31,000 crore
Total SIP assets reached ₹16.64 trillion, accounting for about 20.3% of the mutual fund industry’s overall AUM across 9.44 crore accounts.
Growing Interest in Mid and Small Cap Funds
Investment activity remained strong in growth-oriented segments.
According to analysts, mid-cap and small-cap mutual funds attracted significant inflows:
- Mid-cap funds: ₹4,003 crore
- Small-cap funds: ₹3,881 crore
Sectoral and thematic funds also witnessed higher inflows, largely driven by the launch of new schemes.
During February, the industry launched 22 new schemes, including 21 open-ended funds and one close-ended fund, collectively raising ₹5,357 crore.
Investors Diversifying Portfolios
Financial experts say the moderation in precious metal ETF inflows reflects shifting investment strategies.
Some investors are booking profits in silver and gold after their strong rally, while reallocating funds toward equities and diversified strategies.
Overall, the mutual fund industry recorded net inflows of ₹94,543 crore in February, lower than ₹1.56 trillion recorded in January, but still indicating continued investor confidence.
