PMS Overhaul: Your ₹25 Lakh Fund Route Explained
SEBI's board approved a fresh rulebook for portfolio managers. If you invest through one, you could get a mutual-fund-only service from ₹25 lakh, a fixed-fee cap of 1%, unlisted bonds only with your consent, and a simpler agreement.
People who use, or are considering, a portfolio management service, mainly larger investors, since the new mutual-fund-only option starts at ₹25 lakh.
Your minimum investment for the new mutual-fund-only portfolio manager service.
Key Takeaways
Ask your portfolio manager whether it will offer the mutual-fund-only service, which needs at least ₹25 lakh.
Check the fee: the fixed charge is capped at 1% of your portfolio, though a performance-based fee is also allowed.
Decide on unlisted bonds yourself: your consent is required before up to 10% of your money can go into them.
Example: 1.0% on ₹50,00,000
- Amount
- ₹50,00,000
- maximum fixed management fee on a ₹50 lakh portfolio
- ₹50,000
Illustrative amount.
SEBI's board approved a fresh rulebook for portfolio managers. If you invest through one, you could get a mutual-fund-only service from ₹25 lakh, a fixed-fee cap of 1%, unlisted bonds only with your consent, and a simpler agreement.
Here's what happened: SEBI's Board approved a 2026 rulebook for portfolio managers, replacing the 2020 one, to simplify compliance and grow the industry. Managers may use IPOs, foreign securities and derivatives up to 1.25 times your portfolio value; unlisted bonds are capped at 10%, with consent. A mutual-fund-only service gets a ₹25 lakh minimum, a 1% fixed-fee cap, and a 25% cap on the manager's own group schemes.
What you should do: Ask your portfolio manager whether it will offer the mutual-fund-only service, which needs at least ₹25 lakh. Check the fee: the fixed charge is capped at 1% of your portfolio, though a performance-based fee is also allowed. Decide on unlisted bonds yourself: your consent is required before up to 10% of your money can go into them.
Pro tip: under the mutual-fund-only service, a manager cannot put more than 25% of your money into schemes run by its own group's fund houses.
Written by GoCredit from the official Securities and Exchange Board of India (SEBI) document cited below. Every figure is checked against that document. This is general information, not legal or financial advice.
For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.
Questions people ask
What is the new PRIM service from SEBI?
It lets a portfolio manager put your money into direct mutual fund plans, including ETFs, index funds and specialised investment funds. The minimum is ₹25 lakh, and the fixed fee is capped at 1%.
Can my PMS invest my money in unlisted bonds?
Under the discretionary service, up to 10% of your portfolio can go into unlisted bonds rated investment grade. This needs your consent.
Are these portfolio manager rules in force already?
The document says SEBI's Board approved the new rulebook. It gives no start date for these rules, so wait for the final notification.
Explore TARA — Your Financial Co-Pilot
Retirement, tax, EMI, refinance and savings calculators — all free. Get a plan aligned to YOUR income, goals and CIBIL.
Try TARA — Free →References
- [1]“PR No.59/2026 Key decisions taken in the SEBI Board Meeting dated 24th September, 2026” Securities and Exchange Board of India (SEBI) · 19 Oct 2026
Official source. GoCredit wrote this explainer from the document above, and every figure in it is checked against that document automatically. The worked example is calculated by GoCredit. How we write news
Every story here posts to X the moment it breaks. Follow @gocredit_news →