Expense ratio in mutual funds includes annual operating costs such as management fees, allocation charges, advertisement costs etc. Here is a list of top 20 funds with lowest expense ratios in July 2026
Note : *NA implies that Fund is relatively new. Not enough data available
Below are the top mutual funds with lowest expense ratio in india:
Kotak US Specific Equity Passive FoF Direct (G) is a International Equity fund that has delivered a 1 Year return of 29.5%, a 3 Years return of 26.5% and a 5 Years return of 18.7%. The fund has an expense ratio of 0.2% and an AUM of ₹4588 crores as of 2026-07-31. It was Launched on 2021-02-02. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 99.94% to equities and 0.06% to other assets.
BHARAT Bond FOF - April 2031 Direct (G) is a Debt fund that has delivered a 1 Year return of 5.1%, a 3 Years return of 7.7% and a 5 Years return of 6.7%. The fund has an expense ratio of 0.1% and an AUM of ₹4645 crores as of 2026-07-31. It was Launched on 2020-07-23. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 095.87% to debt and 4.13% to other assets.
HDFC Corporate Bond Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 5.0%, a 3 Years return of 7.4% and a 5 Years return of 6.5%. The fund has an expense ratio of 0.4% and an AUM of ₹30721 crores as of 2026-07-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.08% to debt and 2.92% to other assets.
HDFC Small Cap Fund Direct (G) is a Equity fund that has delivered a 1 Year return of -0.0%, a 3 Years return of 13.2% and a 5 Years return of 15.8%. The fund has an expense ratio of 0.8% and an AUM of ₹40417 crores as of 2026-07-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 91.97% to equities and 8.03% to other assets.
Bandhan Income Plus Arbitrage Active FoF Direct (G) is a Debt fund that has delivered a 1 Year return of 6.0%, a 3 Years return of 7.4% and a 5 Years return of 6.3%. The fund has an expense ratio of 0.0% and an AUM of ₹1640 crores as of 2026-07-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates -0.21% to equities, 66.40% to debt and 33.82% to other assets.
Parag Parikh Flexi Cap Fund Direct (G) is a Equity fund that has delivered a 1 Year return of -1.0%, a 3 Years return of 14.0% and a 5 Years return of 13.4%. The fund has an expense ratio of 0.6% and an AUM of ₹143388 crores as of 2026-07-31. It was Launched on 2013-05-24. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 74.81% to equities, 22.45% to debt and 2.08% to other assets.
BHARAT Bond ETF FOF - April 2032 Direct (G) is a Debt fund that has delivered a 1 Year return of 5.0% and a 3 Years return of 7.5%. The fund has an expense ratio of 0.1% and an AUM of ₹4346 crores as of 2026-07-31. It was Launched on 2021-12-15. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.10% to debt and 2.90% to other assets.
HDFC Floating Rate Debt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 6.2%, a 3 Years return of 7.8% and a 5 Years return of 6.9%. The fund has an expense ratio of 0.3% and an AUM of ₹16452 crores as of 2026-07-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.72% to debt and 3.28% to other assets.
HDFC Overnight Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 5.3%, a 3 Years return of 6.1% and a 5 Years return of 5.6%. The fund has an expense ratio of 0.1% and an AUM of ₹9991 crores as of 2026-07-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 04.51% to debt and 95.49% to other assets.
ICICI Prudential Liquid Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 6.4%, a 3 Years return of 7.0% and a 5 Years return of 6.2%. The fund has an expense ratio of 0.2% and an AUM of ₹54543 crores as of 2026-07-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹1000. The fund allocates 0113.18% to debt and -13.18% to other assets.
