Top 10 Mutual Funds with Lowest Expense Ratio in May 2026
Below are the top mutual funds with lowest expense ratio in india:
1. 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 58.0%, a 3 Years return of 34.4% and a 5 Years return of 20.5%. The fund has an expense ratio of 0.2% and an AUM of ₹3592 crores as of 2026-05-06. 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.
2. 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 4.3%, a 3 Years return of 7.2% and a 5 Years return of 6.3%. The fund has an expense ratio of 0.1% and an AUM of ₹4538 crores as of 2026-05-06. 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.
3. 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 6.2%, a 3 Years return of 7.8% and a 5 Years return of 6.8%. The fund has an expense ratio of 0.3% and an AUM of ₹16432 crores as of 2026-05-06. 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.
4. 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 54.9%, a 3 Years return of 32.6% and a 5 Years return of 24.6%. The fund has an expense ratio of 0.2% and an AUM of ₹10990 crores as of 2026-05-06. 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.
5. HDFC Overnight Fund Direct (G)
HDFC Overnight Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 5.4%, a 3 Years return of 6.2% and a 5 Years return of 5.5%. The fund has an expense ratio of 0.1% and an AUM of ₹9431 crores as of 2026-05-06. 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.
6. Nippon India Arbitrage Fund Direct (G)
Nippon India Arbitrage Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 6.4%, a 3 Years return of 7.5% and a 5 Years return of 6.6%. The fund has an expense ratio of 0.3% and an AUM of ₹15788 crores as of 2026-05-06.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates -0.31% to equities, 28.88% to debt and 71.43% to other assets.
7. 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 6.1%. The fund has an expense ratio of 0.2% and an AUM of ₹42888 crores as of 2026-05-06.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.
8. 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 3.7%, a 3 Years return of 17.6% and a 5 Years return of 16.9%. The fund has an expense ratio of 0.6% and an AUM of ₹128966 crores as of 2026-05-06. 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.
9. 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 3.5% and a 3 Years return of 7.0%. The fund has an expense ratio of 0.1% and an AUM of ₹4365 crores as of 2026-05-06. 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.
10. ICICI Prudential Large Cap Fund Direct (G)
ICICI Prudential Large Cap Fund Direct (G) is a Equity fund that has delivered a 1 Year return of 1.2%, a 3 Years return of 15.8% and a 5 Years return of 15.6%. The fund has an expense ratio of 0.8% and an AUM of ₹69948 crores as of 2026-05-06.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 93.47% to equities, 0.75% to debt and 5.78% to other assets.
