Why should you invest in Debt Funds with Low Expense Ratio?

Investing in low-expense debt funds allows cost-efficient access to fixed-income securities. These funds offer stability compared to equity investments, making them ideal for conservative investors. With a lower expense ratio, a greater portion of returns is retained, ensuring more efficient capital preservation and steady income generation over time.

What are the advantages of investing in Debt Funds with Low Expense Ratio?

A key benefit of low-expense debt funds is cost efficiency, which enhances net returns. These funds provide predictable income with relatively lower volatility. They also help diversify an investment portfolio, reducing exposure to stock market fluctuations. The lower costs make them attractive for risk-averse investors seeking stable returns.

What are the risks of investing in Debt Funds with Low Expense Ratio?

Despite lower fees, debt funds are exposed to interest rate fluctuations, credit risks, and liquidity concerns. Rising interest rates may impact returns, and downgrades in bond ratings can pose credit risks. While safer than equities, these funds are not entirely risk-free and require proper evaluation before investing.

Who should look to invest in Debt Funds with Low Expense Ratio?

Investors seeking stable returns with lower costs may find these funds suitable. They are ideal for individuals with a conservative risk profile or those looking for short- to medium-term investment avenues. Retirees, income-focused investors, and those looking to balance portfolio risk with debt exposure can benefit from them.

How can you invest in Debt Funds with Low Expense Ratio?

Search for debt funds with low expense ratios on Dhan and compare them based on credit quality, duration, and risk profile. A SIP can help spread investment over time, reducing interest rate risk, while a lump sum investment might suit those looking for stable returns and low volatility.

Low Expense Ratio Debt Funds - Invest in Minimal Expense Debt Funds

Home Mutual Funds

MF To Invest

Low Expense Ratio Debt Funds

Here you get all debt mutual funds with an expense ratio of 0.50% or lower. These funds offer a low-cost way to invest in fixed-income securities, balancing stability and returns. Evaluating their duration, credit quality, and expense ratios helps in identifying a suitable debt fund for your portfolio.

Name	NAV	AUM (in Cr.)	1M Returns	3M Returns	1 Yr Returns	3 Yr Returns	5 Yr Returns	Rating	Exp Ratio	Risk	Min Monthly SIP	Min Lumpsum	Category	Sub Category

DSP Credit Risk Fund Direct Growth fuzz it	₹ 61.18	₹ 336.00	0.36%	0.86%	10.66%	13.79%	13.44%	5	0.43%	Moderately High	₹ 100	₹ 100	Debt	Credit Risk Fund
Invesco India Credit Risk Fund Direct Growth fuzz it	₹ 2,359.02	₹ 174.64	0.32%	0.52%	7.12%	8.84%	8.42%	4	0.28%	Moderately Low	₹ 1,000	₹ 1,000	Debt	Credit Risk Fund
UTI Banking & PSU Debt Fund Direct Growth fuzz it	₹ 24.19	₹ 1,440.72	0.36%	1.39%	5.80%	7.44%	7.82%	5	0.24%	Moderate	₹ 500	₹ 500	Debt	Banking and PSU Debt Fund
Axis Floating Interest Rates Fund Direct Growth fuzz it	₹ 1,439.61	₹ 145.09	0.91%	1.08%	6.95%	8.48%	7.34%	5	0.22%	Moderately Low	₹ 1,000	₹ 5,000	Debt	Floating Interest Rates Fund
Franklin India Floating Interest Rates Fund Direct Growth fuzz it	₹ 48.35	₹ 247.00	0.30%	0.89%	5.84%	7.94%	7.18%	5	0.38%	Moderately Low	₹ 500	₹ 1,000	Debt	Floating Interest Rates Fund
ICICI Prudential Short Term Fund Direct Growth fuzz it	₹ 71.13	₹ 18,468.30	0.45%	0.65%	5.55%	7.65%	7.15%	5	0.45%	Moderate	₹ 500	₹ 500	Debt	Short Term Fund
ICICI Prudential Floating Interest Rates Fund Direct Growth fuzz it	₹ 504.55	₹ 8,026.97	0.37%	0.74%	6.02%	7.73%	7.13%	5	0.29%	Moderately Low	₹ 100	₹ 500	Debt	Floating Interest Rates Fund
Nippon India Ultra Short Term Fund Direct Growth fuzz it	₹ 4,862.24	₹ 11,833.40	0.45%	1.57%	6.87%	7.52%	7.05%	5	0.34%	Moderate	₹ 100	₹ 100	Debt	Ultra Short Term Fund
HSBC Ultra Short to Short Term Fund Direct Growth fuzz it	₹ 32.87	₹ 806.40	0.29%	1.15%	6.00%	7.74%	6.98%	5	0.40%	Moderately Low	₹ 1,000	₹ 5,000	Debt	Ultra Short to Short Term Fund
Tata Money Market Fund Direct Growth fuzz it	₹ 5,250.41	₹ 32,701.20	0.40%	1.51%	6.53%	7.45%	6.92%	4	0.18%	Moderately Low	₹ 500	₹ 5,000	Debt	Money Market Fund
HDFC Floating Interest Rates Fund Direct Growth fuzz it	₹ 55.18	₹ 15,497.80	0.42%	0.78%	5.50%	7.48%	6.90%	5	0.27%	Moderate	₹ 100	₹ 100	Debt	Floating Interest Rates Fund
Aditya Birla Sun Life Short Term Fund Direct Growth fuzz it	₹ 55.49	₹ 5,268.54	0.37%	0.50%	4.96%	7.54%	6.88%	5	0.36%	Moderate	₹ 1,000	₹ 1,000	Debt	Short Term Fund
Axis Short Term Fund Direct Growth fuzz it	₹ 36.52	₹ 7,394.64	0.52%	0.80%	5.36%	7.74%	6.86%	5	0.40%	Moderate	₹ 100	₹ 100	Debt	Short Term Fund
Tata Ultra Short Term Fund Direct Growth fuzz it	₹ 16.30	₹ 5,711.87	0.44%	1.61%	6.92%	7.46%	6.85%	5	0.33%	Moderately Low	₹ 500	₹ 5,000	Debt	Ultra Short Term Fund
Axis Ultra Short Term Fund Direct Growth fuzz it	₹ 17.06	₹ 5,274.10	0.42%	1.55%	6.65%	7.39%	6.85%	5	0.36%	Moderately Low	₹ 100	₹ 100	Debt	Ultra Short Term Fund
Nippon India Money Market Fund Direct Growth fuzz it	₹ 4,582.51	₹ 19,356.70	0.39%	1.47%	6.40%	7.34%	6.84%	5	0.22%	Moderate	₹ 100	₹ 500	Debt	Money Market Fund
Aditya Birla Sun Life Ultra Short Term Fund Direct Growth fuzz it	₹ 608.82	₹ 15,236.10	0.41%	1.48%	6.44%	7.43%	6.84%	5	0.32%	Moderate	₹ 1,000	₹ 1,000	Debt	Ultra Short Term Fund
Axis Money Market Fund Direct Growth fuzz it	₹ 1,575.52	₹ 19,507.30	0.41%	1.51%	6.50%	7.39%	6.83%	5	0.18%	Moderately Low	₹ 100	₹ 100	Debt	Money Market Fund
Aditya Birla Sun Life Floating Interest Rate Fund Direct Growth fuzz it	₹ 387.61	₹ 12,924.90	0.29%	1.07%	5.73%	7.34%	6.83%	4	0.25%	Moderately Low	₹ 1,000	₹ 1,000	Debt	Floating Interest Rates Fund
Bandhan Floating Interest Rates Fund Direct Growth fuzz it	₹ 14.32	₹ 210.44	0.34%	0.80%	6.05%	7.73%	6.83%	4	0.09%	Moderately Low	₹ 100	₹ 1,000	Debt	Floating Interest Rates Fund
Aditya Birla Sun Life Money Market Fund Direct Growth fuzz it	₹ 408.66	₹ 25,875.20	0.39%	1.51%	6.44%	7.34%	6.82%	5	0.22%	Moderate	₹ 1,000	₹ 1,000	Debt	Money Market Fund
Axis Corporate Bond Fund Direct Growth fuzz it	₹ 19.47	₹ 7,309.37	0.45%	0.49%	4.84%	7.61%	6.82%	5	0.36%	Moderate	₹ 100	₹ 100	Debt	Corporate Bond Fund
ICICI Prudential Ultra Short Term Fund Direct Growth fuzz it	₹ 32.67	₹ 14,629.40	0.38%	1.44%	6.46%	7.34%	6.81%	5	0.40%	Moderate	₹ 1,000	₹ 5,000	Debt	Ultra Short Term Fund
Aditya Birla Sun Life Ultra Short to Short Term Fund Direct Growth fuzz it	₹ 788.77	₹ 9,155.07	0.33%	1.10%	5.76%	7.26%	6.80%	5	0.42%	Moderate	₹ 100	₹ 100	Debt	Ultra Short to Short Term Fund
UTI Money Market Fund Direct Growth fuzz it	₹ 3,401.64	₹ 16,004.60	0.39%	1.49%	6.41%	7.31%	6.80%	5	0.17%	Moderate	₹ 500	₹ 500	Debt	Money Market Fund

Total 308 records

*The schemes mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.

Quick Links

Low Expense Ratio ELSS Funds

Low Expense Ratio Index Funds

Low Expense Ratio Equity Funds

Low Expense Ratio Hybrid Funds

FAQs on Low Expense Ratio Debt Funds

Selecting a debt fund involves assessing credit quality, interest rate sensitivity, and duration of underlying securities. A low expense ratio helps optimize returns, but investors should also consider historical performance, liquidity, and risk factors like credit downgrades or defaults. Aligning the fund's investment horizon with financial goals is crucial.

Invest in Top Rated Funds at

0% Commission!

Choose from 1500+ Direct Mutual Funds.

Explore | Sitemap

*All securities mentioned on this website are exemplary and not recommendatory.

*Current prices on the website are delayed by 15 mins, login to check live prices.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:

Dhan App: The only online trading app you need for buying and selling equity, futures, options, commodity, and currency.
Dhan Web: Trade on the big screen across segments with our web trading platform.
Options Trader App: A dedicated option trading app built for India's F&O traders.
Options Trader Web: Love big screens and F&O trading? Use our web option trading platform.
Dhan + TradingView: The magic of Tradingview charts for free with the Lightning-Fast experience of Dhan on tv.dhan.co.
Connect to TradingView: Our Tradingview broker integration allows you to trade in Stocks, Futures, and Commodities directly from tradingview.com via Dhan.

This means that with Dhan, you'll be able to start:

Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2026 Raise Securities Private Limited (formerly Moneylicious Securities Private Limited). All rights reserved. CIN: U74999MH2012PTC433549 Raise Securities is part of Raise Financial Services and works closely with Raise Partners across services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016 | SEBI Research Analyst Registration No: INH000023357
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered & Corporate Office: Unit No. 2201, 22nd Floor, Gold Medal Avenue, S.V. Road, Beside Patel Petrol Pump, Piramal Nagar, Goregaon West, Mumbai – 400104, Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Raise Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.

Disclaimer: All communications with the client via chat, phone, or email are for support purposes only. Any commitments or statements made by the agent (human or virtual) shall not be binding on the company.

DHAN is a brand owned by Raise Securities Private Limited. All DHAN clients are registered under Raise Securities Private Limited. Clients are advised to refer to our company as Raise Securities Private Limited when communicating with regulatory authorities.

Procedure to file a complaint on SEBI SCORES/SMART ODR Portal: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances. You may refer the website https://scores.sebi.gov.in/ for more information. You may also download the SEBI Scores app to log a complaint Android: https://play.google.com›store›apps›sebiscores iOS: https://apps.apple.com›app›sebiscores.

Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit

Attention investors:

Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

SEBI presents Samajh Se Investing Simple:

Understand Before You Invest
Choose Regulated Investment Products
Start Early, Stay Invested
Beware of Investment Frauds

Reporting of Short Sell Transactions by Clients:

Clients must report any short sale transaction, by emailing help@dhan.co with the subject “Reporting of Short Sell” on the same day.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.

Investors should be cautious on unsolicited emails and SMS advising to buy, sell or hold securities and trade only on the basis of informed decision. Investors are advised to invest after conducting appropriate analysis of respective companies and not to blindly follow unfounded rumours, tips etc. Further, you are also requested to share your knowledge or evidence of systemic wrongdoing, potential frauds or unethical behaviour through the anonymous portal facility provided on BSE & NSE website. Issued in the interest of the investors.

Raise Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account. Raise Securities Private Limited (Dhan) does not engage in proprietary trading on its own account.

Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/

Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX

Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets