Top 10 Mutual Funds with NAV Below ₹100 and Low Expense Ratio
5paisa Capital Ltd
- 5 min read
Last Updated: 11th March 2026 - 02:43 pm
Mutual funds with a NAV (Net Asset Value) below ₹100 typically draw attention from the conscious investors, especially those at the accumulation or early phase of their investment path. Although NAV alone does not show value, funds with lower NAV periodically belong to the schemes that were introduced later or have followed an incremental and steady growth instead of sharp price appreciation. According to AMFI (Associations of Mutual Funds in India), the mutual fund sector’s asset under management stands at ₹80.23 trillion (₹80,23,379 Crore) as of December 31st, 2025.
This reflects on the steady household participation in market-associated instruments. At the same time, the express sensitivity has also increased as investors are constantly evaluating the total cost of ownership instead of the headline returns. This has brought in renewed focus on the funds blending accessible NAV levels with reasonable expense ratios. This blog explains about NAV in mutual funds, mutual funds with NAV below ₹100, and why investors want mutual funds with NAV.
Invest in Indian Markets and Unlock Future Potential With 5paisa!What is NAV in Mutual Funds?
NAV is said to represent the per-unit market value of the mutual fund scheme. It gets calculated by dividing the overall value of the fund’s assets, subtracting the liabilities, by the number of outstanding units. NAV changes every day according to the underlying security’s closing market value. Lower NAV does not mean that the fund is affordable or that it is undervalued. To understand the NAV calculations well, here is the formula that needs to be followed:
NAV = (Total Assets - Total Liabilities) / Total Outstanding Units
Similarly, a higher NAV does not mean that the fund is expensive. NAV mainly reflects on the fund’s historical distribution, growth trajectory and age. From an investor’s view, the returns are driven by the percentage growth in NAV over time and not by the rupee value at which the units are bought.
Top Mutual Funds NAV Below ₹100 with Low Expense Ratio
The table below is a representative list of mutual funds that currently have NAVs below ₹100. They are well-known to have moderate expense ratios:
| Fund Name | NAV (INR) | Type of Fund | Expense Ratio |
|---|---|---|---|
| DSP Quant Fund - Direct (G) | 23.31 | Equity (Quant-based) | 0.55% |
| Kotak Flexi Cap - Direct (G) | 99.36 | Flexi Cap Equity | 0.60% |
| Parag Parikh Flexi Cap - Direct (G) | 93.79 | Flexi Cap Equity | 0.63% |
| Mirae Asset ELSS Tax Saver - Direct (G) | 56.92 | Equity (ELSS) | 0.58% |
| ICICI Prudential India Opportunities - Direct (G) | 41.08 | Equity (Thematic) | 0.66% |
| Axis Large Cap - Direct (G) | 70.67 | Large-Cap Equity | 0.72% |
| Kotak Multicap - Direct (G) | 10.00 | Multi-Cap Equity | 0.45% |
| UTI Flexi Cap Fund - Direct (G) | 334.4 | Flexi Cap Equity | 1.04% |
| HDFC Balanced Advantage Fund - Direct (G) | 575.41 | Hybrid (Dynamic Asset Allocation) | 0.76% |
| SBI Equity Hybrid Fund - Direct (G) | 340.44 | Hybrid (it is equity -oriented) | 0.72% |
Why Investors Prefer Mutual Funds with NAV Below ₹100?
Funds that have much lower NAVs are usually viewed as more accessible. However, this specific perception is a lot more psychological than mathematical. Below are some of the reasons that show why investors want mutual funds with a NAV under ₹100:
The Perceived Affordability
Lower NAVs can make things easier for the investors by letting them visualise the unit accumulation, especially when beginning the systematic investment plans.
Smooth Rebalancing of Portfolio
Selling and purchasing units in the form of whole numbers can feel simpler when the NAVs are much lower, even when the fractional units are permitted.
Often Connected to New Fund Cycles
Lower NAV in mutual funds might show funds that are still in the earlier growth stages. However, this is not intrinsically negative or positive.
Lower Behavioural Entry Barrier
Investors usually find it easier to start investing when the unit price is modest. A lower NAV can lessen the hesitation at the entry phase, even when there is no change in the underlying economics.
Perceived Flexibility in Allocation
The low expense ratio mutual funds enable investors to adjust the allocations in smaller and more visible increments. This helps in creating a sense of control during the rebalancing, specifically in staggering or systematic investments.
Familiarity with the SIP Structures
The most systemic investment plans lead to the purchase of countless units when the NAVs are much lower. This aligns with how the investors usually track down the progress, even when the value creation relies on the percentage growth.
Reduced Aversion to Market Volatility
Short-term NAV fluctuations appear smaller in the funds with lower NAVs. This can lessen the emotional responses during the market corrections, which, in turn, supports the longer holding durations.
Equity vs Debt vs Hybrid Funds: Which Is Better Under ₹100 NAV?
The structure of the affordable mutual funds in India is much more important than the NAV. Cost efficiency, asset allocation, and risk profile help in determining the suitability, especially when you compare hybrid, debt and equity funds. The table below offers a clear insight into these funds:
| Fund Category | Typical Level of Risk | Return Characteristics | Relevance of NAV Under ₹100 |
|---|---|---|---|
| Equity Funds | High | Returns are connected to the equity market performance and also to the long-term development cycles. | The NAV level is incidental. The time horizon and portfolio quality are much more essential. |
| Debt Funds | Low to Moderate | The returns are income-driven, which are influenced by the credit quality and interest rates. | Lower NAVs are common. The expense ratio is said to have a much bigger impact on the results. |
| Hybrid Funds | Moderat | Combined returns balancing debt stability and equity upside. | Lower NAVs typically reflect steady allocation instead of aggressive growth. |
Common Mistakes Investors Make While Choosing Low NAV Funds
The best low expense ratio mutual funds do attract plenty of attention. However, evaluating them without proper context can lead to misaligned expectations and flawed investment decisions over time. Here are some of the common blunders investors usually end up making when picking the low NAV funds:
Assuming Low NAV As Undervaluation
Many investors wrongly believe that a lower NAV means a cheaper fund. They ignore the fact that NAV reflects the history and not the future return possibility.
Ignoring Expenses Ratios Completely
Keeping the focus only on the NAV while ignoring the expense ratios can lower the long-term returns. This is especially true for the hybrid and debt funds.
Overlooking the Portfolio Composition
Investors typically do not analyse the asset allocation, credit quality and sector exposure, which affects the returns and risks a lot more compared to NAV.
Expecting an Instant Growth Due to the Low Base
Lower NAV in mutual funds does not assure instant appreciation. Here, the performance depends heavily on the market conditions and assets, not on the starting price.
Neglecting the Investment Horizon Alignment
Picking the mutual funds with lower NAV in mutual funds without properly matching them to risk tolerance and time horizon typically leads to unsuitable allocations or premature exits.
Cost Efficiency And Long-Term Growth: Low NAV Mutual Funds
Mutual funds with low NAVs occur in a certain place within the investor portfolios. They are mostly shaped by cost awareness, accessibility and perception instead of intrinsic valuation. Regulatory disclosures from SEBI (Securities and Exchange Board of India) constantly highlight that risk alignment, portfolio transparency and expense ratios are reliable indicators of suitability instead of NAV levels alone.
The long-term wealth creation within the affordable mutual funds in India is mainly driven by time in the market, controlled expenses and disciplined allocations. Funds that have lower expense ratios can retain a structural advantage by letting the returns compound with minimal leakage. For the investors, low NAV funds stand out as efficient vehicles when they are evaluated within a much broader context of investment horizon, risk tolerance and asset allocation.
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