Silver exchange-traded funds (ETFs) in India recorded their first monthly outflows in over two years during February 2026. According to industry data, investors withdrew around ₹826 crore after strong inflows in January.
Data released by the Association of Mutual Funds in India (AMFI) indicates that silver ETFs registered net outflows of approximately ₹826 crore in February 2026.
This development marked the first monthly outflow in around 26 months, reversing the significant inflows recorded in January. During the previous month, silver ETFs had attracted around ₹9,463 crore, reflecting heightened investor interest amid rising silver prices.
In February, gross inflows into silver ETFs stood at ₹4,628 crore, while redemptions reached ₹5,455 crore, resulting in the overall net outflow.
As per news reports, the outflows are largely linked to profit booking after a strong rally in silver prices earlier in the year.
Additionally, the sharp price correction toward the end of January may have prompted investors to adopt a more cautious short-term approach.
Silver prices experienced significant fluctuations during January 2026. The metal surged nearly 19% during the month as global uncertainty and currency trends increased demand for precious metals.
However, the rally was followed by a sharp correction. Silver futures on the Multi Commodity Exchange (MCX) briefly crossed ₹4 lakh per kilogram before witnessing a sudden reversal, with prices falling sharply in the final trading sessions of the month.
Such volatility may have encouraged investors to book profits and temporarily reduce allocations to silver ETFs.
Silver has significant industrial applications. It is widely used in sectors such as electronics, solar energy and electric vehicles.
This dual demand structure means silver prices can be influenced both by investment demand and by industrial consumption trends.
The performance of silver ETFs varied during February as prices corrected. Some funds recorded declines during the month following the sharp fall in silver prices.
Despite the short-term correction, several silver ETFs have still delivered positive returns so far in 2026, reflecting the strong rally seen earlier in the year.
The outflows recorded in silver ETFs during February appear to reflect a combination of profit booking and short-term investor caution following sharp price movements.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 13, 2026, 11:31 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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