Top 20 Mutual Funds with Lowest Expense Ratio in 2025

Top Mutual Funds with Lowest Expense Ratio in July 2025

Fund Name	Expense Ratio	AUM in Cr
BHARAT Bond FOF - April 2031 Direct (G)	0.06	4888
Kotak Nasdaq 100 FOF Direct (G)	0.25	3158
BHARAT Bond ETF FOF - April 2032 Direct (G)	0.06	4600
Parag Parikh Flexi Cap Fund Direct (G)	0.63	103868
HDFC Floating Rate Debt Fund Direct (G)	0.26	15221
ICICI Prudential Liquid Fund Direct (G)	0.20	50000
Nippon India Arbitrage Fund Direct (G)	0.38	14511
HDFC Overnight Fund Direct (G)	0.10	10149
HDFC Gold ETF Fund of Fund Direct (G)	0.18	4088
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund Direct (G)	0.20	7693
ICICI Prudential US Bluechip Equity Fund Direct (G)	1.25	3015
BHARAT Bond FOF - April 2030 Direct (G)	0.06	9872
ICICI Prudential Large Cap Fund Direct (G)	0.85	69763
Aditya Birla Sun Life Money Manager Fund Direct (G)	0.22	25693
Aditya Birla Sun Life Savings Fund Direct (G)	0.34	19189
SBI ELSS Tax Saver Fund Direct (G)	0.93	29667
HDFC Large and Mid Cap Fund Direct (G)	0.96	25412
DSP ELSS Tax Saver Fund Direct (G)	0.72	16974
HDFC Flexi Cap Fund Direct (G)	0.81	75784
Kotak Gold Fund Direct (G)	0.16	3099

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

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Top 10 Mutual Funds with Lowest Expense Ratio in July 2025

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 10.8% and a 3 Years return of 9.1%. The fund has an expense ratio of 0.1% and an AUM of ₹4888 crores as of 2025-07-08. It was Launched on 2020-07-23. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 095.73% to debt and 4.27% to other assets.

2. Kotak Nasdaq 100 FOF Direct (G)

Kotak Nasdaq 100 FOF Direct (G) is a International Equity fund that has delivered a 1 Year return of 15.2% and a 3 Years return of 28.7%. The fund has an expense ratio of 0.3% and an AUM of ₹3158 crores as of 2025-07-08. It was Launched on 2021-02-02. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 100.10% to equities and -0.10% 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 10.5% and a 3 Years return of 9.2%. The fund has an expense ratio of 0.1% and an AUM of ₹4600 crores as of 2025-07-08. It was Launched on 2021-12-15. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.83% to debt and 3.17% to other assets.

4. 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 10.5%, a 3 Years return of 25.2% and a 5 Years return of 26.4%. The fund has an expense ratio of 0.6% and an AUM of ₹103868 crores as of 2025-07-08. It was Launched on 2013-05-24. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 77.24% to equities, 21.44% to debt and 1.32% to other assets.

5. 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 9.3%, a 3 Years return of 8.4% and a 5 Years return of 7.0%. The fund has an expense ratio of 0.3% and an AUM of ₹15221 crores as of 2025-07-08. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.51% to debt and 3.49% to other assets.

6. ICICI Prudential Liquid Fund Direct (G)

ICICI Prudential Liquid Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 7.2%, a 3 Years return of 7.0% and a 5 Years return of 5.6%. The fund has an expense ratio of 0.2% and an AUM of ₹50000 crores as of 2025-07-08.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹1000. The fund allocates 0118.62% to debt and -18.62% 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 7.5%, a 3 Years return of 7.5% and a 5 Years return of 6.2%. The fund has an expense ratio of 0.4% and an AUM of ₹14511 crores as of 2025-07-08.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates -0.33% to equities, 26.24% to debt and 74.09% to other assets.

8. HDFC Overnight Fund Direct (G)

HDFC Overnight Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 6.3%, a 3 Years return of 6.4% and a 5 Years return of 5.1%. The fund has an expense ratio of 0.1% and an AUM of ₹10149 crores as of 2025-07-08. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 07.69% to debt and 92.31% to other assets.

9. 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 31.9%, a 3 Years return of 21.9% and a 5 Years return of 13.9%. The fund has an expense ratio of 0.2% and an AUM of ₹4088 crores as of 2025-07-08. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 01.63% to other assets.

10. Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund Direct (G)

Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.0% and a 3 Years return of 8.0%. The fund has an expense ratio of 0.2% and an AUM of ₹7693 crores as of 2025-07-08. It was Launched on 2022-02-11. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.70% to debt and 2.30% to other assets.

Mutual Fund with Lowest Expense Ratio