Commodity Inflows Plunge in Feb Despite Strong Returns: Vallum Capital Report

• Net inflows into commodities dropped sharply by 89% in February to ₹5,774 crore, despite strong returns.
• Overall net flows across asset classes nearly halved to ₹73,842 crore in February from ₹1.64 lakh crore in January.
• The decline was primarily due to a correction in gold and silver prices, leading to waning investor interest in precious metals.
• Equity flows proved more resilient, declining 19% to ₹42,017 crore, with investors showing selective interest in mid-cap and small-cap segments.
• Vallum Capital attributes February's trends to "mean reversion" after January's extreme activity, with investors repositioning rather than exiting risk assets.