Now Reading: SEBI approves PRIM route with Rs 25 lakh minimum investment
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SEBI approves PRIM route with Rs 25 lakh minimum investment
SEBI has approved the Portfolio Managers Regulations, 2026, introducing the Portfolio Managers Route for Investing in Mutual Fund units (PRIM). Under PRIM, portfolio managers can build customised portfolios using direct plans of…
SEBI has approved the Portfolio Managers Regulations, 2026, introducing the Portfolio Managers Route for Investing in Mutual Fund units (PRIM). Under PRIM, portfolio managers can build customised portfolios using direct plans of mutual funds, ETFs, index funds and SIFs, with a minimum investment of Rs 25 lakh, compared to Rs 50 lakh for conventional PMS. Fixed management fees under PRIM are capped at 1% of client AUM.
The new framework expands the permissible universe for PMS managers to include IPOs, overseas investments, exchange-traded derivatives, and up to 10% in investment-grade unlisted debt with client consent. Industry participants called the move game-changing, noting it could allow investment advisers and wealth managers to take responsibility for portfolio construction, allocation and rebalancing. PRIM-only portfolio managers will require a minimum net worth of Rs 2 crore.
Indian Opinion Analysis
Both Livemint and BusinessLine report the PRIM framework as a straightforward regulatory expansion, with BusinessLine adding industry reaction calling it game-changing. Neither outlet questions the potential conflict of allowing managers to select affiliated AMC funds up to a 25% cap, nor examines whether the Rs 25 lakh threshold excludes smaller retail investors effectively. The coverage is uniform wire-style reporting, meaning the significant question is whether the 1% fee cap plus underlying fund expenses creates a cost advantage over regular mutual fund plans. The first quarterly AUM disclosure for PRIM will show take-up.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), thehindubusinessline.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 2 sources.
