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SEBI's New PMS Rules: Wider Access, Diversified Portfolios for Investors
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CNBC TV18•01-10-2026, 16:10
SEBI's New PMS Rules: Wider Access, Diversified Portfolios for Investors
- •SEBI's revised PMS framework lowers the minimum investment threshold to –25 lakh for a new mutual fund portfolio management route, opening professionally managed portfolios to more mass-affluent investors.
- •The new rules expand PMS from an equity-focused product to a diversified portfolio solution, allowing exposure across mutual funds, ETFs, index funds, and other instruments.
- •For investors with the –50 lakh PMS threshold, the scope further includes global investments, listed and unlisted investment-grade debt, REITs, InvITs, and derivatives.
- •The –25 lakh route, known as MFPMS or PRIM framework, enables portfolio managers to build and manage a basket of direct mutual fund schemes, ETFs, and SIFs with a fee capped at 1% of AUM.
- •The expanded investment universe, including global equities and IPO access, offers greater flexibility for portfolio managers to construct diversified portfolios for high-net-worth and ultra-high-net-worth investors.
Key Questions Answered
The minimum investment threshold for the new mutual fund portfolio management route has been reduced from ₹50 lakh to ₹25 lakh, potentially bringing more mass-affluent investors into professionally managed solutions.
Investors meeting the ₹50 lakh threshold gain access to a wider set of opportunities, including global investments, listed and unlisted investment-grade debt, REITs, InvITs, derivatives for hedging, and IPOs.
Under the new framework, the management fee is capped at 1% of assets under management, and a performance-linked fee is also permitted alongside access to direct plans.
