Top 20 Mutual Funds with Lowest Expense Ratio in 2026

Top Mutual Funds with Lowest Expense Ratio in March 2026

Fund Name	Expense Ratio	AUM in Cr
BHARAT Bond FOF - April 2031 Direct (G)	0.09	4643
Kotak US Specific Equity Passive FoF Direct (G)	0.25	3707
BHARAT Bond ETF FOF - April 2032 Direct (G)	0.09	4493
HDFC Overnight Fund Direct (G)	0.10	10920
ICICI Prudential Liquid Fund Direct (G)	0.20	53738
HDFC Floating Rate Debt Fund Direct (G)	0.26	16766
Nippon India Arbitrage Fund Direct (G)	0.38	16515
HDFC Gold ETF Fund of Fund Direct (G)	0.18	11766
Parag Parikh Flexi Cap Fund Direct (G)	0.63	134253
BHARAT Bond FOF - April 2030 Direct (G)	0.08	9285
Aditya Birla Sun Life Money Manager Fund Direct (G)	0.22	30778
ICICI Prudential Large Cap Fund Direct (G)	0.85	77452
SBI ELSS Tax Saver Fund Direct (G)	0.94	32171
HDFC Flexi Cap Fund Direct (G)	0.68	100455
Aditya Birla Sun Life Savings Fund Direct (G)	0.34	21467
Kotak Gold Fund Direct (G)	0.16	6866
ICICI Prudential US Bluechip Equity Fund Direct (G)	1.15	3693
HDFC Large and Mid Cap Fund Direct (G)	0.84	28580
DSP ELSS Tax Saver Fund Direct (G)	0.64	17250
Nippon India Multi Cap Fund Direct (G)	0.71	50820

Note : *NA implies that Fund is relatively new. Not enough data available

Confused if your portfolio is performing right enough to meet your goals?

Avail a free session with a certified financial expert.

Get a second opinion on your portfolio and much more.

Schedule a Call

Top 10 Mutual Funds with Lowest Expense Ratio in March 2026

Below are the top mutual funds with lowest expense ratio in india:

1. BHARAT Bond FOF - April 2031 Direct (G)

BHARAT Bond FOF - April 2031 Direct (G) is a Debt fund that has delivered a 1 Year return of 7.5%, a 3 Years return of 8.0% and a 5 Years return of 6.9%. The fund has an expense ratio of 0.1% and an AUM of ₹4643 crores as of 2026-03-20. It was Launched on 2020-07-23. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.23% to debt and 2.77% to other assets.

2. Kotak US Specific Equity Passive FoF Direct (G)

Kotak US Specific Equity Passive FoF Direct (G) is a International Equity fund that has delivered a 1 Year return of 31.5%, a 3 Years return of 29.4% and a 5 Years return of 19.2%. The fund has an expense ratio of 0.3% and an AUM of ₹3707 crores as of 2026-03-20. 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.

3. BHARAT Bond ETF FOF - April 2032 Direct (G)

BHARAT Bond ETF FOF - April 2032 Direct (G) is a Debt fund that has delivered a 1 Year return of 7.1% and a 3 Years return of 8.0%. The fund has an expense ratio of 0.1% and an AUM of ₹4493 crores as of 2026-03-20. It was Launched on 2021-12-15. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 095.92% to debt and 4.08% to other assets.

4. HDFC Overnight Fund Direct (G)

HDFC Overnight Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 5.5%, a 3 Years return of 6.3% and a 5 Years return of 5.5%. The fund has an expense ratio of 0.1% and an AUM of ₹10920 crores as of 2026-03-20. 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.

5. ICICI Prudential Liquid Fund Direct (G)

ICICI Prudential Liquid Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 6.3%, a 3 Years return of 7.0% and a 5 Years return of 6.0%. The fund has an expense ratio of 0.2% and an AUM of ₹53738 crores as of 2026-03-20.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹1000. The fund allocates 0109.75% to debt and -9.75% to other assets.

6. HDFC Floating Rate Debt Fund Direct (G)

HDFC Floating Rate Debt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 7.6%, a 3 Years return of 8.1% and a 5 Years return of 6.9%. The fund has an expense ratio of 0.3% and an AUM of ₹16766 crores as of 2026-03-20. 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.

7. Nippon India Arbitrage Fund Direct (G)

Nippon India Arbitrage Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 6.9%, a 3 Years return of 7.7% and a 5 Years return of 6.6%. The fund has an expense ratio of 0.4% and an AUM of ₹16515 crores as of 2026-03-20.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates -0.46% to equities, 22.93% to debt and 77.53% to other assets.

8. HDFC Gold ETF Fund of Fund Direct (G)

HDFC Gold ETF Fund of Fund Direct (G) is a Precious Metals fund that has delivered a 1 Year return of 63.8%, a 3 Years return of 34.6% and a 5 Years return of 25.3%. The fund has an expense ratio of 0.2% and an AUM of ₹11766 crores as of 2026-03-20. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 01.28% to other assets.

9. Parag Parikh Flexi Cap Fund Direct (G)

Parag Parikh Flexi Cap Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 3.5%, a 3 Years return of 18.4% and a 5 Years return of 16.9%. The fund has an expense ratio of 0.6% and an AUM of ₹134253 crores as of 2026-03-20. 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.

10. BHARAT Bond FOF - April 2030 Direct (G)

BHARAT Bond FOF - April 2030 Direct (G) is a Debt fund that has delivered a 1 Year return of 7.2%, a 3 Years return of 7.8% and a 5 Years return of 7.0%. The fund has an expense ratio of 0.1% and an AUM of ₹9285 crores as of 2026-03-20. It was Launched on 2019-12-30. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.68% to debt and 3.32% to other assets.

Mutual Fund with Lowest Expense Ratio