SEBI has proposed a new portfolio management tier with a lower entry barrier of ₹25 lakh, restricted strictly to mutual funds. This initiative aims to bridge the gap between retail mutual funds and high-end wealth services for affluent investors.
₹65 lakh crore
Indian mutual fund industry assets
2025: ₹55 lakh crore→₹65 lakh crore
⏳ Time Machine
How today’s news fits into the bigger picture
2013
Direct mutual fund plans launch
SEBI mandated direct plans for all mutual funds, allowing retail investors to bypass distributor commissions and save on fees.
2019
PMS minimum raised to ₹50 lakh
The regulator doubled the standard PMS entry limit to protect smaller retail investors from high-risk concentrated stock portfolios.
2022
Retail demat boom takes off
A post-pandemic surge saw tens of millions of new retail investors enter the stock and mutual fund markets, driving up asset sizes.
Mid-2025
Finfluencer regulations tighten
Regulators cracked down on unauthorized financial influencers, pushing investors toward formally registered investment advisors.
Today
SEBI releases a consultation paper proposing a new ₹25 lakh entry bar for mutual fund-only PMS.
What happens next?
Licensed advisory platforms launch their first mutual fund-only PMS products by early 2027.
The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a lower ₹25 lakh minimum investment threshold for a new 'mutual fund-only' Portfolio Management Service (PMS). Currently, the regulatory minimum for any standard PMS is set at ₹50 lakh, which keeps customized wealth management out of reach for many emerging affluent investors. Under the proposed framework, portfolio managers will be allowed to construct personalized baskets consisting solely of various mutual fund schemes. This structured approach offers investors a professionally curated portfolio without the high risks associated with direct stock picking in standard PMS. By lowering the entry bar, SEBI seeks to formalize the growing gray market of unofficial investment advisory services and provide a safer, regulated path for wealth creation.
💭 If you're wondering…
In a mutual fund, all investors pool their money into a single giant fund managed identically for everyone. In a PMS, the portfolio manager manages a separate bank and demat account for each individual client, tailoring the asset mix to their specific financial goals and risk tolerance.
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