Top 5 Highest & Lowest Expense Ratio Small-Cap Mutual Funds – Dec 2025

Tracking expense ratios is essential for investors evaluating small-cap mutual funds, as these charges can significantly influence long-term returns. Understanding which funds carry the highest and lowest expense ratios helps investors make more informed decisions, compare costs effectively, and align their investments with their financial goals and risk appetite. In this article, find the top 5 small-cap mutual funds with the highest and lowest expense ratios in December 2025.

Top 5 Highest Expense Ratio Small Cap Mutual Funds – December 2025

Note: The small-cap mutual funds listed here are as of December 4, 2025. The funds are of AUM ₹500 crore to ₹5000 crore. They are sorted by their expense ratio (high to low). 

Overview of Highest Expense Ratio Small Cap Mutual Funds

1. UTI Infrastructure Fund 

UTI Infrastructure Fund is an open-ended equity scheme that focuses on the infrastructure theme. The fund seeks to generate capital appreciation by investing in companies that are directly or indirectly involved in infrastructure-related activities. The minimum investment amount is ₹5,000.

Key Metrics: 

• 5y Returns: 26.79%
• 1y Returns: 2.56%

2. Sundaram Infra Advantage Fund 

Sundaram Infra Advantage Fund is a sectoral equity fund designed to capture opportunities in India’s infrastructure development story. The fund primarily invests in companies within the infrastructure and heavy engineering sectors, as well as ancillary sectors that support these industries. It allocates across market capitalisations in infrastructure-related stocks, with a minimum investment amount of ₹100.

Key Metrics: 

• 5y Returns: 25.60%
• 1y Returns: 4.27%

3. Sundaram Value Fund 

Sundaram Value Fund focuses on investing in businesses trading below their fair value while maintaining strong fundamentals and sustainable competitive advantages to avoid value traps. The fund considers stocks with stakes in profitable operating companies and maintains a diversified portfolio of 45 to 50 stocks across sectors and market capitalisations. The minimum investment amount is ₹100.

Key Metrics: 

• 5y Returns: 16.84%
• 1y Returns: 5.41%

4. Sundaram ELSS Tax Saver Fund 

Sundaram ELSS Tax Saver Fund is a diversified equity fund that invests in fundamentally strong companies across market capitalisations. With multi-cap investment flexibility, it has the potential to outperform over market cycles. The fund comes with a 3-year lock-in period and offers tax benefits under Section 80C of the Income Tax Act, 1961. The minimum investment amount is ₹500.

Key Metrics: 

• 5y Returns: 16.84%
• 1y Returns: 5.41%

5. ICICI Pru Exports & Services Fund

ICICI Prudential Exports & Services Fund is an open-ended equity scheme that focuses on the Exports & Services theme. The minimum application amount for fresh subscriptions is ₹5,000.

Key Metrics: 

• 5y Returns: 22.49%
• 1y Returns: 8.85%

Top 5 Lowest Expense Ratio Small Cap Mutual Funds – December 2025

Note: The small-cap mutual funds listed here are as of December 4, 2025. The funds are of AUM ₹500 crore to ₹5000 crore. They are sorted by their expense ratio (low to high).

Also Read: Best Gold Mutual Funds in India for Dec 2025!

Conclusion

While expense ratios are an important factor, investors should also carefully review each small-cap fund’s investment objective, strategy, and their own risk appetite before making decisions. This ensures that their investments align with long-term financial goals and tolerance for market volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.