Investors slowed down investments in passive funds during July 2026, with net inflows falling to ₹12,517 crore compared to ₹16,724 crore in June. While interest in silver and gold ETFs moderated due to profit-booking, SIP contributions remained resilient, indicating continued investor discipline amidst market volatility.
Passive investment vehicles, which include Index Funds and Exchange Traded Funds (ETFs), recorded net inflows of ₹12,517 crore in July 2026. This data, released by the Association of Mutual Funds in India (AMFI), shows a 25.1% decline compared to the ₹16,724 crore attracted in June. This moderation follows a broader trend where the overall equity mutual fund industry also saw a cooling in net inflows, which fell by nearly 15% during the same month.
Precious metal ETFs, which had seen significant activity earlier in the year, witnessed a noticeable shift in July. Silver ETFs, in particular, saw inflows moderate to ₹1,285 crore from a high of ₹4,286 crore in June. This drop follows a period of heavy volatility in silver prices, which often encourages investors to book profits after a sustained rally. Gold ETFs also saw lower inflows of ₹1,559 crore in July. While the interest in gold remains positive due to its role as a hedge against global economic and geopolitical uncertainty, market analysts suggest that recent price appreciation has led many investors to reduce their exposure or lock in gains.
Despite the cooling in lump-sum and ETF-specific investments, the retail investor's commitment to the market via Systematic Investment Plans (SIPs) remains strong. In July 2026, SIP contributions stood at ₹31,961 crore, demonstrating that regular, disciplined investing remains a preferred route for Indian investors. This resilience in SIP flows often helps cushion the impact when larger institutional or tactical flows into specific ETF categories fluctuate.
Fund houses continued to expand their product offerings despite the moderation in flows. In July, 16 new passive schemes were launched, raising approximately ₹507 crore, compared to seven launches in June. While the number of launches increased, the total assets under management (AUM) for passive funds saw a modest growth of 2% to reach ₹15.61 lakh crore.
For investors, the recent data highlights the importance of monitoring valuations in commodity-based ETFs. Profit-booking is a natural market reaction when prices reach high levels. Looking ahead, investors may track how gold and silver prices react to global cues, such as US Federal Reserve interest rate policies and shifts in the value of the US dollar. Additionally, continued monitoring of SIP inflow trends will provide a better understanding of whether retail investor confidence remains stable in the face of ongoing market volatility.