India witnessed a historic shift in investor behavior in January 2026 asgold ETFs outperformed equity mutual fundsin net inflows for the first time. According to data from theAssociation of Mutual Funds in India (AMFI), investments in gold ETFs reached a record₹24,040 crore, more than doubling from December 2025. This marks the third consecutive monthly rise and highlights growing demand for gold as a safe-haven asset amid global uncertainty.
The rally in gold prices, which havedoubled in the past year, has spurred investor interest. Silver ETFs also saw robust inflows of₹9,463 crore, bringing total assets under management (AUM) to₹1.17 lakh crore. Gold ETFs’ AUM now stands at₹1.84 lakh crore, reflecting strong market confidence in precious metals.
In contrast,equity mutual funds saw a 14% declinein net inflows to ₹24,029 crore, continuing a three-month downtrend. While large-cap funds witnessed a modest 28% rise to ₹2,005 crore, mid-cap, small-cap, flexi-cap, and sectoral funds reported lower inflows. Overall, inflows into equity MFs weredown 39% year-on-year, indicating a cautious stance by investors amid a 3% drop in the Nifty 50 index.
Debt funds recovered from December’s outflows of ₹1.32 lakh crore, attracting₹74,827 crorein January 2026. Liquid and overnight funds were major contributors, with inflows of ₹30,682 crore and ₹46,280 crore, respectively. Hybrid funds also saw a surge of61%to ₹17,356 crore, highlighting investors’ focus on balanced risk and returns.
Despite market volatility, SIP inflows remained steady at₹31,002 crore, and the number of SIP accounts increased from 10.11 crore to10.29 crorein January.
Foreign investors had net sold nearly₹36,000 crore ($4 billion)in Indian equities in January but returned in February, purchasing over₹15,000 crore ($1.7 billion)of shares after the US reduced tariffs on Indian goods from 50% to 18%. This dynamic underscores the influence of global events on domestic investment flows.
A Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC Ltd, noted that the surge in gold and silver ETFs reflects investors seeking alternative avenues amid equity volatility, but emphasized equities remain thepreferred vehicle for long-term wealth creation.
Gold and silver ETFs are attractive amid geopolitical uncertainty and rising precious metal prices.
Equity mutual fund inflows are slowing, highlighting market caution.
Debt and hybrid funds provide stable alternatives for capital preservation.
SIP participation continues to grow, reflecting disciplined long-term investing.
The January 2026 trends indicate adiversifying investment landscape in India, with investors balancing risk between equities, precious metals, and debt instruments while remaining alert to global economic developments.
