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Best Mutual Funds with Lowest Expense Ratio

Updated on :  

08 min read.

If you are planning to invest in a mutual fund, you might want to choose one that has a low expense ratio. The expense ratio consists of operating and management fees and can have a crucial impact on the returns that you would receive from a mutual fund. Therefore, you need to know about the low-expense ratio mutual funds that are available in the market right now.

Take a look at the list below.

Top 5 mutual funds with lowest expense ratio 

Here is a list of 5 mutual funds with the lowest expense ratio:

1.Nippon India Junior BeES FoF Regular Growth – 0.28%

Launched on 8 March 2019, Nippon India Junior BeES FoF Regular Growth is a hybrid mutual fund. It gives you the advantage of diversification and is a large-cap fund scheme. This mutual fund has an investment objective to generate returns corresponding to what Nippon India ETF Junior BeES generates by investing in its units. 

At the time of writing, the expense ratio of this mutual fund is 0.28%. Its net asset value stands at Rs.15.2476. To date, its compound annual growth rate (CAGR) is 12.4%, and the fund size is Rs.152 crore. This mutual fund also has Rs.152.264 crore worth of assets under management average annual returns rate of 12.72%. 

Note – Data in this article is as per the information collected on 14 October 2022.

2. ICICI Prudential Sensex Index Fund Growth – 0.29%

The ICICI Prudential S&P BSE Sensex Index Fund (Growth) is a top-ranking large-cap mutual fund. Its investment objective is to purchase holdings in companies that are included in TRI, BSE, SENSEX and S&P. This mutual fund tries to produce returns by mimicking the performance of these indices. The fund manager will achieve this by investing in the stocks that compose these market indices in a weightage that is similar to what they represent in S&P, BSE, SENSEX and TRI.  

This is a large-cap mutual fund scheme that had its launch on 14 September 2017. Its assets under management (AUM) are worth Rs.627 crore and have an average annual returns rate of 12.82%. Moreover, its expense ratio is just 0.29%.

At the time of writing, the net asset value (NAV) of this mutual fund is Rs.18.2258. Furthermore, the fund size is Rs.626.59 crore, and its compound annual growth rate is 12.69%. 

This fund’s top 5 holdings consist of Reliance Industries Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd. and Housing Development Finance Corp Ltd. 

Note – Data in this article is as per the information collected on 14 October 2022.

3. UTI Nifty Index Fund Regular Plan Growth – 0.30%

UTI Nifty Index Fund Regular Plan Growth is a large-cap mutual fund investment scheme that came into being on 6 March 2000. Its main objective is to invest in stocks of enterprises present in the Nifty 50 Index and generate an income similar to this index by means of passive investment. 

Currently, this mutual fund’s expense ratio stands at 0.30% and has Rs. 8353.643 worth of assets under management. Its net asset value is Rs.114.261, and it has a 5-year compound annual growth rate of 11.8%. 

This mutual fund has a fund size of Rs.8,354 crore. Furthermore, the average annual returns rate of this fund house is 12.21%. 

Stocks of Reliance Industries Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd. and Housing Development Finance Corp Ltd. are its top holdings. 

Note – Data in this article is as per the information collected on 14 October 2022.

4. ICICI Prudential Passive Strategy Fund (FOF) Growth – 0.33%

Launched on 18 December 2003, this mutual fund’s primary objective is to achieve capital appreciation by primarily investing in units of Indian Equity Exchange Traded Funds. At the time of writing, this fund’s net asset value stands at Rs.99.1217. 

Its 5-year compound annual growth rate stands at 10.2%, and its fund size is of Rs.87 crore. This fund house has Rs. 87.208 crore worth of assets under management, and its average annual return rate stands at 11.39%. The expense ratio of this mutual fund currently stands at 0.33%. 

In addition, its top 5 holdings are – ICICI Prudential Nifty Healthcare ETF, ICICI Prudential Nifty It ETF, ICICI Prudential Nifty Private Banks ETF, ICICI Prudential Nifty Bank ETF and ICICI Prudential Nifty Auto ETF.

Note – Data in this article is as per the information collected on 14 October 2022.

5. ICICI Prudential Nifty 50 Index Direct Plan-Growth – 0.4

 ICICI Prudential Nifty 50 Index Direct Plan-Growth is an open-ended mutual fund scheme that aims to generate capital by tracking the returns of Nifty 50 market index. The investment objective of this fund is to invest in stocks of companies listed in the Nifty 50 index and achieve returns similar to this index. 

This scheme’s fund manager will achieve this by investing in almost all stocks present in Nifty 5 with the same weightage in which they are present in the market index.

At the time of writing, this mutual fund has Rs.3,495 crore worth of assets under management. Its net asset value stands at Rs.169.3374, and it has an annual average returns rate of 12.42%. In addition, its 5-year compound annual growth rate is 11.88%.

Furthermore, its expense ratio currently stands at 0.4.  The top 5 holdings of this mutual fund are Reliance Industries Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd. and Housing Development Finance Corp Ltd. 

There are many other low-expense ratio mutual funds available in the market that you can opt for. Remember, a mutual fund’s expense ratio is calculated as the percentage of its total funds under management. Therefore, if the assets under management are low, the expense ratio will be lower. Alternatively, if the assets under management are high, the expense ratio will also be higher. 

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