Top 5 Highest & Lowest Expense Ratio Small-Cap Mutual Funds – Jan 2026

Monitoring expense ratios is crucial for investors assessing small-cap mutual funds, as these costs can have a meaningful impact on long-term investment returns. Knowing which funds have the highest and lowest expense ratios enables investors to compare costs more effectively, make better-informed choices, and ensure their investments align with their financial objectives and risk tolerance. In this article, find the top 5 small-cap mutual funds with the highest and lowest expense ratios in January 2026.

Top 5 Highest Expense Ratio Small Cap Mutual Funds – January 2026

Note: The small-cap mutual funds listed here are as of January 2, 2026. The funds are of AUM ₹500 crore to ₹5,000 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’s objective is 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: 23.21%
• 1y Returns: 3.58%

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: 23.02%
• 1y Returns: 3.58%

3. Sundaram Value Fund 

Sundaram Value Fund, earlier known as Sundaram Diversified Equity Fund, is an open-ended equity scheme that adopts a value-oriented investment approach. The minimum investment amount is ₹100.

Key Metrics: 

• 5y Returns: 15.26%
• 1y Returns: 6.23%

4. SBI Comma Fund

SBI Comma Fund seeks to offer investors growth potential with the possibility of steady returns by primarily investing in equities of companies operating in the commodity and commodity-related sectors. The minimum investment amount is ₹5,000.

Key Metrics: 

• 5y Returns: 18.73%
• 1y Returns: 4.92%

5. 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: 16.47%
• 1y Returns: 7.05%

Top 5 Lowest Expense Ratio Small Cap Mutual Funds – January 2026

Note: The small-cap mutual funds listed here are as of January 2, 2026. The funds are of AUM ₹500 crore to ₹5,000 crore. They are sorted by their expense ratio (low to high).

Also Read: Best Gold Mutual Funds in India for Jan 2026!

Conclusion

While expense ratios play a key role, investors should also assess each small-cap fund’s investment objective, strategy, and their own risk tolerance before investing. This helps ensure alignment with long-term goals and the ability to withstand market fluctuations.

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.