According to AMFI data, silver ETFs saw an outflow of Rs 126 crore in April, compared with outflows of Rs 683 crore in March and Rs 826 crore in February.
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Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India, said gold ETFs continued to witness net inflows in April 2026, with the category recording inflows of Rs 3,040 crore. While this represented a modest increase from March’s inflows of Rs 2,266 crore, the pace remained well below the exceptionally strong inflows seen earlier in the year, particularly in January.
Nehal further said that the improvement in April flows appeared to reflect steady, incremental demand rather than a sharp rise in risk aversion.
Performance check
In April, commodity-based ETFs remained largely flat, with gold ETFs witnessing marginal declines of up to 0.28%, while silver-based ETFs gained up to 0.15%.
There were 26 gold-based ETFs during the period, of which Nippon India ETF Gold BeES declined the most, by around 0.28%. It was followed by Baroda BNP Paribas Gold ETF, Groww Gold ETF and Zerodha Gold ETF, which fell up to 0.27% each.
Around 18 silver ETFs were active during the same period and delivered an average return of 0.13%. Aditya Birla SL Silver ETF gained the most at around 0.15%, whereas Zerodha Silver ETF delivered the lowest return of 0.08%.
Viraj Gandhi, CEO of Samco Mutual Fund, said that gold ETF inflows at Rs 3,040 crore remained below the FY26 monthly average of Rs 4,783 crore. “Taken together, this is not a market chasing momentum — it is an investor base building wealth with discipline,” he said.
Umesh Sharma, CIO–Debt at The Wealth Company Mutual Fund, said that among other categories, ETFs and index funds saw strong inflows, while gold ETFs received moderate allocations, reflecting balanced positioning between risk and safety.
What happened in April
According to a report by ETMarkets, instead of rallying on fear, gold has remained subdued—trapped in a narrow range of $4,600–$4,800 since mid-March. April offered little excitement, with prices ending virtually flat, rising just 0.03% to close at Rs 1.51 lakh per kilogram. In a market where fear would typically spark a surge, gold’s muted response highlights a far more complex interplay of forces.
According to a report by Tata Mutual Fund, the month witnessed comparatively lower market volatility; the investor confidence returned (with a clear orientation toward equities), which reduced opportunities for gold & silver and weighed on performance but this was countered by strong ETF inflows, a moderately weaker US dollar and other dip buying as a result of the sharp March sell-off.
Industrial demand, particularly from the solar energy and electric vehicle sectors, continued to sustain strong support for silver prices, the report by Tata Mutual Fund further said.
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The assets under management (AUM) of gold ETFs rose 4% month-on-month to Rs 1.78 lakh crore in April, compared with Rs 1.71 lakh crore in March. On the other hand, the AUM of silver ETFs increased 3% month-on-month to Rs 81,944 crore in April from Rs 79,805 crore in March. In March, silver ETF AUM had declined 13% compared with February.
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), said that while gold remains part of long-term portfolio allocation, equity mutual funds continue to witness sustained domestic participation despite global and market-related concerns. She added that domestic inflows have continued to support market stability and reflect the long-term investment approach adopted by investors today.
What should investors do?
Gold: The report by Tata Mutual Fund said that the fund house expects gold prices to consolidate in the near term, amid mixed macro signals—“higher for longer” US rates, a stronger dollar, and elevated bond yields. Any meaningful correction should be viewed as an accumulation opportunity. Overall, we believe the prevailing environment continues to support gold as a strategic, long term portfolio allocation.
Silver: Tata Mutual Fund believes that silver prices may fluctuate along with volatile industrial metals over demand concerns and we may see short term price gain over supportive China demand. One can look for a staggered approach to invest in the medium term to long term investment considering the volatile nature of the commodity.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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