Sharp fluctuations in silver prices led to investor pullbacks from India's silver ETFs in February, ending a 28-month run of net inflows, as per data from the Association of Mutual Funds in India (AMFI).
While the funds attracted fresh investments of Rs 4,628 crore, redemption requests amounted to Rs 5,455 crore during the month. This resulted in a net outflow of Rs 826.3 crore, the first since November 2023, compared with net inflows of Rs 9,463.40 crore recorded in January.
The silver market witnessed a dramatic crash in January-end, after prices dropped by around 40% after peaking to a high of around Rs 4.2 lakh per kilogram in the retail market. Still, the metal logged a net month-on-month gain of 19% in January, followed by a 10% growth in February. This brings the metal's year-to-date gain in 2026 to around 20%.
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The surge comes after a strong finish to 2025, when silver rose 27% MoM in December and 16% MoM in November. For the entirety of 2025, the metal delivered a striking 148% increase, following a 22% rise in 2024.
Amid this strong performance, investor interest in silver ETFs in India has remained high. The category recorded inflows of Rs 23,472 crore in 2025, compared with Rs 8,568 crore the year before.
Analysts say silver may be heading into a phase of price consolidation in calendar year 2026 after last year's sharp rally, before potentially moving higher over the medium term. The rapid gains recorded in CY2025 encouraged many investors to book profits. In addition, some market participants appear to have rotated funds out of precious metals and into equities, which have recently looked more reasonably valued.
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In contrast, gold ETF inflows lost momentum in February. Investors poured Rs 5,255 crore into the funds, markedly lower than the Rs 24,039.96 crore invested in January 2026. Gold ETF investments climbed 165% year-on-year (YoY), up from Rs 1,979 crore in February 2025.
The slowdown in gold ETF inflows came after an unusually strong surge in January, when investors boosted allocations at the start of the year and rebalanced portfolios, alongside some profit-taking.
On the other hand, silver ETFs recorded net withdrawals and a decline in assets under management compared with the previous month.
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