Questions about PRIM
17 of 17 questions
PRIM basics
What does PRIM stand for?
Portfolio Managers Route for Investing in Mutual Fund units. The notified regulations word it as the Portfolio Management Service Route for Investment in Mutual Fund units. It is a route under the SEBI (Portfolio Managers) Regulations, 2026.
When does PRIM start?
The SEBI (Portfolio Managers) Regulations, 2026, including PRIM, take effect on 1 April 2027.
What is the minimum investment?
₹25 lakh per client. A regular PMS needs ₹50 lakh.
What can a PRIM portfolio hold?
Direct plans of mutual funds of Indian AMCs, including ETFs, index funds and Specialised Investment Funds (SIFs). It cannot hold individual stocks or bonds directly.
Why only direct plans?
Direct plans have no distributor commission inside the expense ratio. Under PRIM the client pays the portfolio manager an explicit fee instead, so the cost is visible.
How much can a PRIM manager charge?
The fixed management fee is capped at 1% of assets a year. A performance fee is allowed on top. Upfront fees are prohibited for portfolio managers under the 2026 regulations.
Is PRIM the same as a mutual fund?
No. A mutual fund pools many investors' money into one scheme. PRIM is an individually managed account that holds several mutual fund schemes chosen for you.
For distributors and managers
Can a mutual fund distributor offer PRIM?
Only after registering with SEBI as a portfolio manager. A firm can register for PRIM only, with ₹2 crore net worth. PRIM activities and clients must then be kept separate from distribution, except for accredited investors.
What does PRIM-only registration need?
₹2 crore net worth, a Principal Officer who is a graduate, CFA or CA with two years' securities-market experience and a simplified NISM certification, a separate Compliance Officer, at least one more employee, and SEBI fees of ₹1 lakh (application) and ₹10 lakh (registration).
Do existing portfolio managers need a new registration?
No. An existing portfolio manager can offer PRIM through a separate investment approach with the ₹25 lakh minimum.
What is an Independent Fund Manager?
A fund manager who manages client portfolios in association with a registered portfolio manager, on terms SEBI will specify. The registered portfolio manager stays fully responsible for the Independent Fund Manager's activities.
What operating details are still pending?
SEBI has said some limits and operating details will be specified separately. These include order placement, custody and reconciliation, reporting formats and transition for existing managers.
Accredited investors
Who is an accredited investor?
An investor accredited under SEBI's framework as able to take on products with lighter investor-protection rules, such as lower minimums. Individuals can qualify through income, net worth, or from 2026 through ₹5 crore of securities-market exposure.
Who can accredit an investor?
Accreditation agencies (CDSL Ventures and NSDL Database Management), and now, under the 2026 changes, AIF managers, AMCs offering SIFs and portfolio managers themselves.
How long is accreditation valid?
Manager-led accreditation for the same manager's products is proposed to be valid for three years, with agency accreditation aligned to the same period.
About PRIMSetu
Is PRIMSetu connected to SEBI?
No. PRIMSetu is an independent information service. We link to SEBI's own documents wherever we can.
Does PRIMSetu recommend portfolio managers?
No. The directory lists SEBI-registered portfolio managers neutrally. We do not rank, rate or recommend any manager or scheme.
PRIMSetu is an independent information service. It is not affiliated with SEBI and does not provide investment advice or recommend any scheme or portfolio manager.