Investment News · 18 October 2026 · 2 min read
In short: SEBI notified its new Portfolio Managers Regulations, 2026 on 12 October. They create a route called PRIM, where a registered portfolio manager builds and manages a portfolio of mutual funds for you. The minimum is ₹25 lakh, half the usual ₹50 lakh for portfolio management services (PMS). The rules take effect on 1 April 2027.
How PRIM works
- The manager invests only in direct plans of Indian mutual funds, including index funds, ETFs and Specialised Investment Funds.
- The manager decides which funds to hold and how much in each. Unlike regular PMS, PRIM cannot buy individual shares or bonds.
- Existing portfolio managers can offer PRIM alongside their other services. Firms that want to offer only PRIM need a minimum net worth of ₹2 crore.
What it means for you
Nothing changes if you invest in mutual funds yourself, through a SIP, an app or an advisor. PRIM is an extra option for people with ₹25 lakh or more who want someone to pick and rebalance funds for them.
Fees for PRIM have not been announced. Before signing up, compare the manager’s fee with what you pay today. Direct plans already have lower expense ratios than regular plans, so the manager’s fee is the main extra cost.
Sources
- 5paisa: SEBI notifies PRIM route for ₹25 lakh-plus mutual fund portfolios
- Outlook Money: SEBI’s new Portfolio Managers Regulations 2026 explained
This is a news summary for education, not financial advice. Rates and terms change; confirm the latest details with your bank or the official source.