Equity funds attract flows while gold ETFs cool off

Equity mutual funds regained momentum in February, even as flows into gold and silver exchange-traded funds (ETFs) cooled after the surge seen in January. While equity schemes attracted higher allocations during the month, gold ETF inflows fell sharply and silver ETFs recorded net outflows amid volatility in silver prices.

According to data from the Association of Mutual Funds in India (AMFI), equity-oriented schemes recorded net inflows of Rs 25,978 crore in February, up from Rs 24,029 crore in January. The increase suggests investors continued allocating money to equities despite volatility in broader markets.

During the month, the BSE Sensex declined by 1.2 per cent, while the BSE Midcap and BSE Smallcap indices edged up 1 per cent and 0.5 per cent, respectively.

Where the money flowed

Among equity categories, flexi-cap funds once again led inflows, attracting Rs 6,925 crore. Mid-cap and small-cap funds followed with Rs 4,003 crore and Rs 3,881 crore, respectively, reflecting continued investor interest in growth-oriented segments.

Sectoral and thematic funds also collected Rs 2,987 crore during the month, largely driven by a few new fund offers (NFOs) launched in February.

Hybrid schemes continued to see healthy participation as well. The category recorded net inflows of Rs 11,983 crore, with multi-asset allocation funds accounting for the bulk at Rs 8,476 crore.

Systematic investment plan (SIP) inflows dipped slightly to Rs 29,845 crore in February from Rs 31,002 crore in January. However, the decline appears largely technical rather than behavioural.

According to AMFI, the dip was mainly due to February having fewer days and the 28th falling on a Saturday, a non-banking day when many SIP debits are processed. As a result, some transactions are likely to be reflected in March numbers.

Precious metal ETF flows cool

Within passive funds, gold ETF inflows slowed sharply to about Rs 5,255 crore compared with Rs 24,039 crore in January. Silver ETFs, meanwhile, recorded outflows of Rs 826 crore, which industry participants attributed to volatility in silver prices and profit booking after the metal’s strong rally earlier in the year.

Silver funds delivered an average return of -17 per cent in February after rising 40.08 per cent in January 2026 and 38.32 per cent in December 2025. Gold funds declined by an average of 2.7 per cent in February, compared with a gain of 22.30 per cent in January.

Meanwhile, the newly introduced specialised investment funds (SIFs) category continued to gain traction. Assets under the category rose from Rs 6,564 crore to Rs 9,711 crore in February, supported by inflows of about Rs 3,127 crore, including collections from newly launched strategies.

Also read: Gold ETFs nearly match equity inflows in January