What is PRIM? The ₹25 lakh managed mutual fund route, explained
PRIM lets a SEBI-registered portfolio manager run a client's whole mutual fund portfolio, in direct plans, from ₹25 lakh. Here is how it works and who it is for.
Last updated 5 November 2026
PRIM stands for Portfolio Managers Route for Investing in Mutual Fund units. SEBI's board approved it on 24 September 2026, and it is part of the new SEBI (Portfolio Managers) Regulations, 2026, which take effect on 1 April 2027. The notified regulations call it the Portfolio Management Service Route for Investment in Mutual Fund units; both names mean the same thing.
What PRIM does
Under PRIM, a SEBI-registered portfolio manager builds and manages a client's portfolio made up only of mutual fund units. The portfolio manager decides which schemes to hold, how much in each, and when to rebalance. The fund managers of the underlying schemes still pick the stocks and bonds inside each fund.
So there are two layers: the mutual fund manages each scheme, and the PRIM manager manages your mix of schemes as one portfolio.
The rules at a glance
| Rule | What it says |
|---|---|
| Minimum investment | ₹25 lakh per client (regular PMS: ₹50 lakh) |
| What it can hold | Direct plans of mutual funds, including ETFs, index funds and Specialised Investment Funds (SIFs) of Indian AMCs |
| Fees | Fixed management fee capped at 1% of assets a year; performance fee allowed |
| Who can offer it | Existing portfolio managers, through a separate investment approach; or new firms registered for PRIM only |
| PRIM-only net worth | ₹2 crore (regular portfolio manager: ₹5 crore) |
| Distribution | PRIM must be kept separate from mutual fund distribution, except for accredited investors |
| Starts | 1 April 2027 |
Why direct plans matter
Direct plans have no distributor commission built into the expense ratio. Under PRIM, the client pays the portfolio manager an explicit fee instead. The cost is visible, and the manager is paid for managing the portfolio rather than for selling a scheme.
Who PRIM is for
- Investors with ₹25 lakh or more in mutual funds who want someone accountable to choose, allocate and rebalance for them.
- Distributors and advisers who want a fee-based, regulated way to manage clients' mutual fund portfolios.
- Portfolio managers who want a lower-ticket product alongside their regular PMS.
What is still pending
SEBI has said some operating details will follow separately. These include how orders are placed and reported, and transition provisions for existing portfolio managers. See what we are still waiting for.
PRIMSetu explains the rules; it does not recommend any scheme or portfolio manager. Read a manager's disclosure document before you invest.