Expense ratio performs a vital position in figuring out long-term mutual fund returns. Whereas buyers typically examine efficiency, class, and danger ranges, the price of managing a fund is usually ignored. Some mutual funds cost very excessive expense ratios, which may considerably have an effect on investor wealth over time. On this article, we recognized the 10 mutual funds with the very best expense ratios in India, starting from 1.95% to 2.57%, and analysed their goals, returns, dangers and suitability.
Earlier we lined article about 20 Fairness Mutual Funds That Delivered Optimistic Returns Each 12 months within the Final 10 Years (2015 to 2024) and buyers liked such evaluation.
How We Filtered These Funds?
To make sure transparency and accuracy, we adopted this course of:
- Thought-about all fairness mutual funds in India.
- Filtered solely direct plans (since common plans have even greater expense ratios).
- Sorted the funds by highest expense ratio.
- Picked the highest 10 schemes, that are charging between 1.95% and a couple of.57%.
Why Excessive Expense Ratios Matter?
The next expense ratio straight reduces returns. Over lengthy durations, even a 1% distinction could make a huge effect.
For instance:
- Typical direct fairness fund expense ratio: 0.5%
- Excessive-cost fund expense ratio: 2.5%
- Distinction: 2% yearly
For those who make investments ₹10 lakhs for 10 years:
- At regular price (0.5%), assuming 12% returns:
Ultimate worth ≈ ₹31.06 lakhs - At excessive price (2.5%), internet return turns into 10%:
Ultimate worth ≈ ₹25.93 lakhs
Wealth misplaced as a consequence of greater expense ratio = ₹5+ lakhs
Over 20 years, the distinction turns into even bigger, simply crossing ₹15–20 lakhs.
This clearly exhibits that high-cost funds can considerably erode long-term wealth.
Like we indicated earlier in The best way to Create a ₹ 10 Crore Wealth with ₹ 25,000 Mutual Fund SIP’s, buyers ought to choose funds with low expense ratios whereas creating wealth in long-term.
Record of 10 Mutual Funds With the Highest Expense Ratios (1.95% to 2.57%)
Information as of 15-Nov-2025
| S No | Fund Identify | Expense Ratio (%) |
|---|---|---|
| 1 | Taurus Flexi Cap Fund | 2.57 |
| 2 | Motilal Oswal Lively Momentum Fund | 2.56 |
| 3 | Motilal Oswal Particular Alternatives Fund | 2.56 |
| 4 | Motilal Oswal Infrastructure Fund | 2.51 |
| 5 | Motilal Oswal Companies Fund | 2.49 |
| 6 | Taurus Massive Cap Fund | 2.41 |
| 7 | Taurus Mid Cap Fund | 2.13 |
| 8 | Aditya Birla Solar Life Worldwide Fairness Fund | 2.08 |
| 9 | Tata Youngsters’s Fund | 2.07 |
| 10 | Taurus Infrastructure Fund | 1.95 |
Deep Dive Into Every Fund
Under is an in depth evaluation of every fund together with goal, returns, minimal funding, exit load, suitability and dangers.
#1 – Taurus Flexi Cap Fund
Expense Ratio: 2.57%
Minimal Funding: ₹500
Exit Load: 1% (three hundred and sixty five days)
Goal
Goals to speculate throughout market caps—giant, mid, and small cap firms—to seize development alternatives.
Returns
- 3-12 months CAGR: 14.1%
- 5-12 months CAGR: 15.9%
- 10-12 months CAGR: 10.5%
Who Can Make investments?
Buyers in search of diversified publicity however should tolerate greater prices and reasonable danger.
Dangers
- Market cap volatility
- Excessive expense ratio reduces long-term income
#2 – Motilal Oswal Lively Momentum Fund
Expense Ratio: 2.56%
Minimal Funding: ₹500
Exit Load: 1% (90 days)
Goal
A momentum-based technique investing in shares exhibiting sturdy worth traits.
Returns
- Fund launched < 3 years again, therefore no efficiency historical past
Who Can Make investments?
Aggressive buyers snug with trend-based methods.
Dangers
- Excessive volatility
- Technique-dependent returns
- No historic knowledge
We additionally analysed this fund at 20 Mutual Fund Schemes at 52 Week Excessive NAVs.
#3 – Motilal Oswal Particular Alternatives Fund
Expense Ratio: 2.56%
Minimal Funding: ₹500
Exit Load: 1% (90 days)
Goal
Targets firms concerned in particular conditions reminiscent of mergers, restructuring, cyclic recoveries.
Returns
- Fund launched < 3 years again, therefore no efficiency historical past
Who Can Make investments?
Buyers looking for thematic alternatives.
Dangers
- Excessive thematic focus
- No long-term efficiency knowledge
#4 – Motilal Oswal Infrastructure Fund
Expense Ratio: 2.51%
Minimal Funding: ₹500
Exit Load: 1% (90 days)
Goal
Invests in infrastructure-related shares which will profit from India’s long-term growth.
Returns
- Fund launched < 3 years again, therefore no efficiency historical past
Who Can Make investments?
Buyers bullish on India’s infra enlargement.
Dangers
- Sector-specific danger
- Coverage and execution delays
#5 – Motilal Oswal Companies Fund
Expense Ratio: 2.49%
Minimal Funding: ₹500
Exit Load: 1% (90 days)
Goal
Deal with high-growth companies sectors like telecom, IT, finance and retail.
Returns
- Fund launched < 3 years again, therefore no efficiency historical past
Who Can Make investments?
Buyers looking for services-oriented publicity.
Dangers
- Sector volatility
- Restricted historic knowledge
#6 – Taurus Massive Cap Fund
Expense Ratio: 2.41%
Minimal Funding: ₹500
Exit Load: 1% (three hundred and sixty five days)
Goal
Invests primarily in giant cap firms with secure enterprise profiles.
Returns
- 3-12 months CAGR: 14.1%
- 5-12 months CAGR: 15.9%
- 10-12 months CAGR: 10.9%
Who Can Make investments?
Buyers looking for stability over excessive development.
Dangers
- Underperformance in comparison with friends
- Excessive prices scale back return potential
Whereas this fund exhibits good efficiency, that is amongst 10 Largecap Mutual Funds That Did not Beat the Benchmark in Final 5 Years.
#7 Taurus Mid Cap Fund
Expense Ratio: 2.13%
Minimal Funding: ₹500
Exit Load: 1% (three hundred and sixty five days)
Goal
Invests in mid-sized firms with excessive development potential.
Returns
- 3-12 months CAGR: 18.4%
- 5-12 months CAGR: 20.6%
- 10-12 months CAGR: 15.8%
Who Can Make investments?
Buyers with excessive danger urge for food and long-term horizon.
Dangers
- Mid-cap volatility
- Excessive expense ratio
#8 – Aditya Birla Solar Life Worldwide Fairness Fund
Expense Ratio: 2.08%
Minimal Funding: ₹1,000
Exit Load: 1% (30 days)
Goal
Invests in worldwide equities for geographical diversification.
Returns
- 3-12 months CAGR: 15.9%
- 5-12 months CAGR: 12.4%
- 10-12 months CAGR: 11.3%
Who Can Make investments?
Buyers looking for international publicity.
Dangers
- Forex fluctuations
- Geopolitical danger
#9 – Tata Youngsters’s Fund
Expense Ratio: 2.07%
Minimal Funding: ₹500
Exit Load: 1% (18 days)
Goal
Geared toward long-term wealth creation for kids with multi-cap publicity.
Returns
- 3-12 months CAGR: 13.6%
- 5-12 months CAGR: 17.2%
- 10-12 months CAGR: 12.4%
Who Can Make investments?
Mother and father planning for kids’s long-term targets.
Dangers
- Market fluctuations
- Excessive price could scale back long-term compounding
#10 – Taurus Infrastructure Fund
Expense Ratio: 1.95%
Minimal Funding: ₹500
Exit Load: 1% (three hundred and sixty five days)
Goal
Invests in infrastructure-focused firms.
Returns
- 3-12 months CAGR: 19.6%
- 5-12 months CAGR: 23.1%
- 10-12 months CAGR: 16.1%
Who Can Make investments?
Buyers in search of long-term infra development alternative.
Dangers
- Excessive sector focus
- Coverage and financial dependency
Abstract of Efficiency and Insights
- The highest three funds charging above 2.5% don’t have any long-term efficiency historical past, which will increase danger.
- Taurus funds dominate the listing with a number of schemes above 2% expense ratio.
- A couple of high-cost funds like Taurus Mid Cap Fund and Taurus Infrastructure Fund delivered sturdy long-term returns.
- Expense ratio alone shouldn’t be the deciding issue, however buyers should consider worth delivered vs price charged. Buyers needs to be like what we indicated in 10 Finest Mutual Funds for Subsequent 10 Years whereas they assessment periodically.
Conclusion
Excessive expense ratios can considerably scale back wealth creation over the long run. Whereas a few of these funds have delivered cheap returns, buyers should test whether or not the efficiency justifies the fee.
If a fund constantly underperforms and fees 2%+ expense ratio, it might be higher to change to a low-cost, high-performing various.
At all times examine returns, danger, class common, and expense ratio earlier than investing.
