Stories
PRIM vs DIY Mutual Funds: Is Professional Management Worth the Cost?
- •Approved by SEBI in September 2026, PRIM offers a professionally managed mutual fund portfolio for a minimum investment of Rs 25 lakh with management fees capped at 1 percent annually.
- •PRIM bridges the gap between do-it-yourself investing and full portfolio management services, delegating fund selection, asset allocation, rebalancing, and execution to a registered manager.
- •The service helps investors avoid scattered holdings, overlapping schemes, emotional decision-making, and delayed rebalancing during market volatility.
- •Specialised investment funds can be included in PRIM portfolios, though a Rs 25 lakh portfolio is practically limited to SIFs from one or two AMCs due to the Rs 10 lakh per AMC minimum.
- •DIY investing remains more economical for disciplined investors who prefer managing a small number of low-cost index funds without paying additional management fees.
Key Questions Answered
Approved by SEBI on September 24, 2026, PRIM (Portfolio Managers Route for Investing in Mutual Fund Units) is a professionally managed mutual fund portfolio service designed to bridge the gap between do-it-yourself investing and full portfolio management services. It allows investors to access a managed portfolio of mutual fund schemes through a single platform with a minimum investment of Rs 25 lakh.
PRIM's fixed management fee is capped at 1 percent a year, but investors must also account for any performance-linked fees and the underlying expenses charged by the mutual fund schemes. This 1 percent cap pushes managers toward utilizing low-cost funds, debt, hybrid funds, and specialised investment funds where they add distinct value.
PRIM is well-suited for investors with sufficient capital who lack the time, expertise, or emotional discipline required to handle asset allocation, scheme selection, and periodic rebalancing across volatile markets. Conversely, investors comfortable building a diversified strategy using a small number of low-cost index funds may find that a DIY approach remains the more economical choice.
