On 24 September 2026, SEBI approved PRIM (Portfolio Managers’ Route for Investing in Mutual Fund Units), allowing portfolio managers to manage portfolios made up only of direct mutual fund plans, with the minimum investment halved to ₹25 lakh.

Many PMS strategies invest directly in a concentrated set of 20 to 25 stocks, which can swing far more than a diversified mutual fund. The ₹50 lakh minimum was meant to keep those swings for investors who could absorb them. PRIM portfolios hold only direct plans, so no distributor commission is built into any fund you own. The fixed management fee is capped at 1% of AUM, though a performance-based fee is also allowed.

Why Extra Fees can be Worth It assumed in Eg. Invest ₹1 crore in a top-performing fund and, after seven years, it could grow to about ₹3.91 crore. Put it in a poorly performing fund, and you’d have about ₹2.40 crore. Even after a 1% annual fee on the better outcome, you’d still have about ₹3.69 crore, roughly ₹1.29 crore more.

Source:- https://www.sebi.gov.in/media-and-notifications/press-releases/sep-2026/