India silver ETFs are investment funds that track the price of silver, allowing investors to gain exposure to the precious metal without physically owning it. After more than two years of consistent inflows, February 2026 marked a significant shift: India silver ETFs recorded their first net outflow in 27 months. This change reflects the combined impact of rising silver prices and market volatility on investor behavior.
India Silver ETFs: February 2026 Net Outflow Snapshot
- Gross inflows: ₹4,628 crore
- Redemptions: ₹5,455 crore
- Net outflow: ₹826.3 crore
This was the first net outflow since November 2023, contrasting sharply with January 2026, which saw net inflows of ₹9,463.40 crore.
Why Did India Silver ETFs See Outflows Now?
- Rapid price gains: Silver prices jumped 10% in February after a 19% rise in January 2026.
- Strong previous performance: In 2025, silver surged ~148%, following gains of 22% in 2024.
- Investor profit booking: The fast appreciation prompted some investors to redeem units to lock in profits.
| Month | Silver Price Change (%) |
|---|---|
| November 2025 | 16% |
| December 2025 | 27% |
| January 2026 | 19% |
| February 2026 | 10% |
| CY2026 (YTD) | ~20% |
Historical Inflows in India Silver ETFs
Investor interest in India silver ETFs has been strong over the past few years:
- 2024: ₹8,568 crore inflows
- 2025: ₹23,472 crore inflows
Despite the February outflow, the long-term trend shows robust demand for silver exposure via ETFs.
How Silver ETFs Compare With Gold ETFs?
February 2026 also saw moderation in gold ETF inflows:
-
Gold ETF inflows: ₹5,255 crore (down from ₹24,039.96 crore in January)
This highlights a broader pattern of cautious investor behavior in precious metals amid high valuations and market volatility.
SEBI Updates Valuation Rules for Physical Gold and Silver
In February, the Securities and Exchange Board of India (SEBI) revised the valuation framework for physical gold and silver held by mutual fund schemes:
- Old method: LBMA global benchmark prices adjusted for currency, duties, and local costs.
- New method: Valuation based on polled spot prices published by recognized domestic stock exchanges.
This move aligns mutual fund valuations with domestic market realities, potentially impacting investor decisions in India silver ETFs.
Key Takeaways for Investors
- February marked a pause in the long inflow streak for India silver ETFs.
- High silver prices are prompting profit-taking and reallocation.
- Regulatory updates by SEBI ensure more transparent, domestic-market-linked valuations.
Investors tracking India silver ETFs should note these trends as part of market dynamics that influence both short-term flows and long-term investment strategies.
