Commodity fund inflows in February 2026 decreased by Rs 45,708 crore, despite the asset class achieving an 80.3% annual return, as per a report. The total net asset level flows saw a significant decline from Rs 1,64,277 crore in January to Rs 73,842 crore in February. Commodities experienced a decline in net fund flows from Rs 51,483 crore in January to Rs 5,774 crore in February, marking an 89% drop.
Money market flows also decreased to Rs 42,970 crore, down by about 45%, while equity flows reduced from Rs 52,110 crore to Rs 42,017 crore on a monthly basis, showing a 19% decline. Fixed income net outflows slightly narrowed from Rs 17,037 crore to Rs 16,919 crore. In the commodities sector, there was a sharp dip in gold and silver in February following January’s surge, representing the most significant single-month flow reversal across all asset classes.
The report highlighted that February saw a normalization from the extremes of January, with gold mania cooling, money market stabilizing, and a rise in dip-buying in mid/small caps and tech sectors. Broad market equity funds decreased to Rs 27,254 crore from Rs 30,359 crore, with Large-Cap funds easing to Rs 9,316 crore from Rs 11,007 crore but remaining dominant. Mid-Cap and Small-Cap stocks moved against the trend, signaling dip-buying in these segments. Factor funds also increased to Rs 4,495 crore from Rs 3,116 crore, driven by quality funds at Rs 2,261 crore.
