Lowest Expense Ratio ETFs In India: A Comparison Table

Last Reviewed and Updated: 17 Aug 2026

Why The Cheapest Category Keeps Getting Cheaper

Broad market index ETFs, tracking the Nifty 50 or the Sensex, have gone through a genuine, sustained wave of fee competition.

Nippon India and ICICI Prudential were among the earlier movers on cutting expense ratios for their Nifty 50 and Sensex offerings, with UTI and SBI following, and other AMCs subsequently extending similar cuts across their broader passive lineups, including Nifty Next 50 and other factor based index funds.

The direct result: the most competitive Nifty 50 and Sensex ETFs available today commonly charge as little as 0.02% to 0.05% a year, a figure that has trended down over time as more fund houses compete for the same, largely undifferentiated product.

Expense Ratios By Category

Category	Typical Expense Ratio Range	Why
Broad equity index (Nifty 50, Sensex)	0.02% to 0.05%	The most heavily competed category, with many AMCs offering nearly identical products
Sectoral and thematic	Generally higher than broad index funds	Narrower competition and more specialised index licensing costs, covered in our earlier sectoral and thematic ETF articles
International	Generally higher than domestic broad index funds	Added cost of accessing and replicating a foreign index, covered in our earlier international ETF article
Gold and silver	Roughly 0.4% to 1%, varying by fund	Physical commodity storage, insurance, and custody costs, covered in our earlier gold and silver ETF articles
Specific debt structures, like target maturity funds	As low as 0.0005% to 0.01%	A simple, buy and hold bond portfolio with minimal active management, covered in our earlier debt ETF article

A 1% expense ratio on a gold ETF is not a worse deal than a 0.05% expense ratio on a Nifty 50 ETF. They are different products solving different problems, and the honest comparison only makes sense within the same category.

Fund	Category	Approximate Expense Ratio
A competitively priced Nifty 50 or Sensex ETF	Broad equity index	0.02% to 0.05%
Axis Silver ETF	Silver	Around 0.42%
SBI Silver ETF	Silver	TER of roughly 0.41%
Bharat Bond ETF, target maturity series	Debt, target maturity	0.0005% to 0.01%

The Cheapest Is Not Always The Best Choice

Our earlier article on tracking error covered a concrete, real example: a fund with an excellent NAV based tracking error of just 0.02% still showed a tracking error of 1.77% when measured against actual market price, nearly ninety times larger, driven by bid ask spread and trading costs the headline expense ratio never captured.

A low expense ratio is a genuine advantage, but it is not the complete cost of owning a fund, and two ETFs quoting the same expense ratio on the same index can still deliver meaningfully different real world results depending on liquidity and tracking discipline.

What To Actually Compare

● Compare expense ratios within the same category, not across different ones. A gold ETF and a Nifty 50 ETF are not competing products, and comparing their fee levels directly does not tell you anything useful.

● Check tracking difference alongside the expense ratio for any two funds tracking the identical index, since the stated fee and the fund's actual real world drag are not always the same number.

● Confirm the current figure directly in the fund's factsheet before assuming any number from an article, including this one, remains accurate, since expense ratios in this market have changed more than once in the recent past.

Note: Our earlier articles in this series covered why expense ratio is not the whole cost picture, bid ask spread and tracking difference both matter alongside it. This piece focuses specifically on the expense ratio number itself, category by category, while repeating that reminder rather than dropping it: the cheapest fund on paper is not automatically the cheapest fund in practice.

This article is for general informational purposes only and does not constitute investment advice. Expense ratios cited here reflect figures reported at specific points in 2026 and change over time as fund houses revise pricing. Confirm the current expense ratio directly in a fund's factsheet before investing, and consult a qualified financial adviser for guidance specific to your situation.

Disclaimer

The content on this website is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or a solicitation to buy or sell any security, mutual fund, or financial instrument. Equity Research India is not a SEBI-registered investment advisor or research analyst, and nothing on this site constitutes personalized financial advice.

Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. NAV, returns, rankings, and other data may change and may not reflect the most current information at the time of reading.

Readers should conduct their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Equity Research India and its authors accept no liability for any loss or damage arising from the use of this content.