The number
The median direct-plan equity fund charged 1.07% a year at the end of September 2026.
That figure covers 540 active equity schemes at least a year old, using the direct-plan expense ratio each fund house reported to AMFI on 29 or 30 September 2026. Index funds and ETFs are left out; they are covered in Nifty 50 index funds ranked by cost.
Direct plans are the cheap version of a fund, without a distributor's commission. Even so, the dearest charges six times what the cheapest does.
The distribution
| Direct expense ratio | Funds |
|---|---|
| 0.50% to 0.74% | 35 |
| 0.75% to 0.99% | 170 |
| 1.00% to 1.24% | 170 |
| 1.25% to 1.49% | 80 |
| 1.50% to 1.99% | 64 |
| 2.00% or more | 21 |
Most funds sit in a band around one percent: 340 of the 540, about 63%, charge between 0.75% and 1.24%.
- The cheapest tenth charge 0.78% or less.
- The middle half charge between 0.91% and 1.31%.
- The dearest tenth charge 1.68% or more.
The full range runs from 0.51% to 3.20%.
The dearest funds
| Fund | Category | Direct | Regular |
|---|---|---|---|
| Motilal Oswal Active Momentum | Thematic | 3.20% | 3.31% |
| Motilal Oswal Special Opportunities | Thematic | 2.93% | 3.05% |
| Axis Quant | Thematic | 2.73% | 4.14% |
| Taurus Flexi Cap | Flexi cap | 2.69% | 2.74% |
| Union Active Momentum | Thematic | 2.61% | 3.99% |
| Bandhan Multi-Factor | Thematic | 2.58% | 4.09% |
| Taurus Large Cap | Large cap | 2.54% | 2.76% |
| LIC MF Focused | Focused | 2.51% | 3.65% |
| Axis Momentum | Thematic | 2.40% | 3.85% |
| Taurus Mid Cap | Mid cap | 2.36% | 2.80% |
Two patterns stand out.
Rules-based strategies dominate. Five of the ten are momentum, quant or multi-factor funds, which pick stocks by formula and typically trade often. Trading costs money, and some of those costs can appear in the expense ratio.
One fund house appears three times. Taurus's flexi cap, large cap and mid cap funds are all in the ten. For two of them, the direct plan costs within a quarter of a point of the regular plan.
That last point is unusual. For the median equity fund the regular plan costs more than a point more than the direct plan. For Motilal Oswal Active Momentum the gap is 0.11 points, and for Taurus Flexi Cap 0.05. Where the gap is that thin, the direct plan's saving is small too.
The cheapest funds
| Fund | Category | Direct |
|---|---|---|
| Tata Small Cap | Small cap | 0.51% |
| SBI Equity Minimum Variance | Thematic | 0.53% |
| Kotak Mid Cap | Mid cap | 0.54% |
| Bandhan Small Cap | Small cap | 0.61% |
| Mirae Asset Healthcare | Sectoral | 0.62% |
| Kotak Pioneer | Thematic | 0.63% |
Small and mid cap funds take three of the six cheapest places. A fund's category says little about what it charges.
Why funds younger than a year are left out
A new fund's expense ratio is a poor guide to its cost. Its assets are small and its fixed costs are not, so the first weeks can show extreme figures: two direct-plan equity funds launched in the last year reported 8.57% and 5.60% at the end of September. Those numbers tend to fall as a fund grows, which is why the ranking here starts at funds a year old.
What this does not tell you
An expense ratio is one day's figure. It is what the fund house reported for 29 or 30 September 2026. Funds change their expense ratios, often as their assets grow or shrink.
Cost is not the only thing. A fund that charges 2% and returns 4 points a year more than a cheaper rival may still have been the better holding. But the fee is certain and the outperformance is not.
We have not broken the figure into its parts. SEBI caps expense ratios on a sliding scale by fund size, so smaller funds are allowed to charge more, and certain charges are permitted on top. AMFI's figure is the total, and this post reads it as published.
Where to go from here
The screener can filter any category by expense ratio, and the impact of 1% calculator shows what a fee difference costs over time. The guide to what a fund really costs covers the charges an expense ratio leaves out.
For how much more a regular plan costs than a direct one, category by category, see the direct vs regular expense gap.
Frequently asked questions
What is a normal expense ratio for a direct equity fund?
On AMFI's data for the end of September 2026, the median direct-plan equity fund at least a year old charged 1.07% a year, across 540 schemes. The middle half charged between 0.91% and 1.31%, and one in ten charged 1.68% or more.
Which equity fund has the highest expense ratio?
Among direct-plan equity funds at least a year old, Motilal Oswal Active Momentum Fund reported the highest expense ratio at the end of September 2026, at 3.20%, followed by Motilal Oswal Special Opportunities Fund at 2.93% and Axis Quant Fund at 2.73%.
Which equity funds are the cheapest?
The lowest direct-plan expense ratios among equity funds at least a year old were Tata Small Cap Fund at 0.51%, SBI Equity Minimum Variance Fund at 0.53% and Kotak Mid Cap Fund at 0.54%, on AMFI's end-September 2026 figures.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
Keep reading
Nifty 50 index funds ranked by cost, October 2026
Direct-plan expense ratios on 26 Nifty 50 index funds run from 0.10% to 0.86%. Over a year, the cheapest funds also lost the least to the same index.
Direct vs regular plans: the 1.16-point equity fee gap
A regular equity plan costs a median 1.16 points a year more than its direct twin, on AMFI's September 2026 data. Over ten years, direct ended 10.2% ahead.
Equity fund exit loads: what 569 schemes charge
Of 521 non-ELSS equity funds with a Scheme Summary Document, 484 charge an exit load. 82% of those charge 1%, and 39% keep it for a full year.