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Mutual funds

Top 10 Equity Mutual Funds with Lowest Expense Ratio for Smart Investing in 2025

Strategic Insights

— 2 min read

Top-rated mutual funds with low expense ratios have become the go-to choice for savvy investors seeking consistent returns with lower costs. Among them, 10 funds stand out for their exceptional performance, low fees, and flexibility across various categories like largecap, smallcap, ELSS, and flexicap. These funds have given investors competitive returns in the last 1 year, 3 years, and 5 years, making them ideal for long-term investors looking to build a robust portfolio.

Key Takeaways:

  • Bandhan Small Cap Fund -- Direct Plan has given a 17.35% return in 1 year, 37.96% CAGR in 3 years, and 38.99% in 5 years with an expense ratio of 0.39%.
  • Invesco India Smallcap Fund -- Direct Plan has delivered a 12.89% return in 1 year, 33.82% CAGR in 3 years, and 36.55% return in 5 years with an expense ratio of 0.44%.
  • Nippon India Consumption Fund -- Direct Plan has given stellar returns in the long term, a 24.21% annualised yield in 3 years, and a 26.97% CAGR in 5 years with an expense ratio of 0.57%.
  • HDFC Focused 30 Fund -- Direct Plan has delivered an 11.98% return in 1 year, 29.07% CAGR in 3 years, and 31.94% in 5 years with an expense ratio of 0.61%.
  • Parag Parikh ELSS Tax Saver Fund -- Direct Plan has given investors a 14.91% return in 1 year, 24.50% CAGR in 3 years, and 27.95% return in 5 years with an expense ratio of 0.62%.
  • SBI Contra Fund -- Direct Plan has performed well over the long term with returns of 27.54% CAGR in 3 years and 35.46% in 5 years with an expense ratio of 0.62%.
  • Parag Parikh Flexi Cap Fund -- Direct Plan has given a 12.97% return in 1 year, 25.60% CAGR in 3 years, and 27.59% return in 5 years with an expense ratio of 0.63%.
  • Motilal Oswal Large and Midcap Fund -- Direct Plan has delivered a 15.73% return in 1 year, 36.41% CAGR in 3 years, and 32.70% return in 5 years with an expense ratio of 0.66%.
  • Nippon India Large Cap Fund -- Direct Plan has delivered a 6.82% return in the last 1 year, 26.79% CAGR in 3 years, and 28.33% CAGR in 5 years with an expense ratio of 0.67%.
  • These funds have been rated 5-star by Value Research and have a long history, ranging from 5 years to 12.5 years.
  • These funds are a mix of different categories, offering investors flexibility to choose based on their risk profile, investment horizon, and goals.

Statistics:

  • 10 top-rated mutual funds have been identified with the lowest expense ratios across various categories.
  • These funds have delivered competitive returns in the last 1 year, 3 years, and 5 years.
  • Bandhan Small Cap Fund -- Direct Plan has given a 17.35% return in 1 year, 37.96% CAGR in 3 years, and 38.99% in 5 years.
  • Invesco India Smallcap Fund -- Direct Plan has delivered a 12.89% return in 1 year, 33.82% CAGR in 3 years, and 36.55% return in 5 years.
  • Nippon India Consumption Fund -- Direct Plan has a 24.21% annualised yield in 3 years, and a 26.97% CAGR in 5 years.

Sources:

  • Value Research
  • Bandhan Small Cap Fund -- Direct Plan
  • Invesco India Smallcap Fund -- Direct Plan
  • Nippon India Consumption Fund -- Direct Plan
  • HDFC Focused 30 Fund -- Direct Plan
  • Parag Parikh ELSS Tax Saver Fund -- Direct Plan
  • SBI Contra Fund -- Direct Plan
  • Parag Parikh Flexi Cap Fund -- Direct Plan
  • Motilal Oswal Large and Midcap Fund -- Direct Plan
  • Nippon India Large Cap Fund -- Direct Plan

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