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SEBI's New PRIM Route: What Investors Need to Know About Managed MFs
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CNBC TV18•29-09-2026, 13:58
SEBI's New PRIM Route: What Investors Need to Know About Managed MFs
- •SEBI's new PRIM (Portfolio Managers' Route for Investing in Mutual Funds) allows portfolio managers to create customized portfolios using direct plans of mutual funds, including ETFs, index funds, and Specialised Investment Funds.
- •The minimum investment for PRIM is –25 lakh, half the –50 lakh required for conventional PMS.
- •PRIM is ideal for investors with complex, multi-scheme portfolios who need professional management for fund selection, asset allocation, monitoring, and rebalancing.
- •Investors must consider the cost of professional management, including a fixed component of up to 1% of assets under management, in addition to underlying mutual fund expenses.
- •Existing investors should evaluate potential tax implications from restructuring their current mutual fund portfolios when considering a move to PRIM.
Key Questions Answered
The minimum investment under SEBI's new Portfolio Managers Route for Investing in Mutual Funds (PRIM) is ₹25 lakh.
Under PRIM, investors bear the expenses of the underlying mutual fund investments while also paying the portfolio manager's fee, which has its fixed component capped at 1% of assets under management.
Conventional PMS requires a minimum investment of ₹50 lakh where managers can invest in various assets like shares and bonds, whereas PRIM creates a dedicated route solely for managing mutual fund units with a lower entry threshold of ₹25 lakh.
