SEBI has proposed lowering the minimum investment for mutual fund-only Portfolio Management Services (PMS) from ₹50 lakh to ₹25 lakh. This aims to make professional investment management more accessible to a wider pool of affluent investors.
₹25 lakh
Proposed MF-PMS Minimum
Traditional PMS Minimum: ₹50 lakh→₹25 lakh
⏳ Time Machine
How today’s news fits into the bigger picture
1993
First SEBI PMS Regulations
The Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993, were introduced to govern the registration and operation of portfolio managers, laying the groundwork for organized services in India.
February 2012
PMS AUM surpasses ₹500 crore
The combined Assets Under Management (AUM) of portfolio managers reached significant levels, prompting early discussions about refining regulations to accommodate growth and ensure investor protection.
January 2020
SEBI revamps PMS Regulations
The SEBI (Portfolio Managers) Regulations, 2020, replaced the earlier framework, doubling the minimum investment threshold to ₹50 lakh and introducing stricter norms for disclosures, fee structures, and reporting to enhance transparency and investor safety.
May 2026
PMS AUM reaches ₹42.61 lakh crore
The Assets Under Management (AUM) of the PMS industry demonstrated significant growth, reaching ₹42.61 lakh crore, showcasing the increasing demand for professional services.
July 23, 2026
SEBI releases consultation paper
SEBI published a consultation paper proposing a comprehensive review of the Portfolio Managers Regulations, including the new framework for mutual fund-only PMS with a lower investment floor.
Today
SEBI proposed lowering the minimum investment for mutual fund-only PMS to ₹25 lakh.
What happens next?
SEBI will review public feedback on the proposal before finalizing the new regulations, which could be implemented in the coming months.
The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing to reduce the minimum investment threshold for mutual fund-only Portfolio Management Services (MF-PMS) to **₹25 lakh** from the current **₹50 lakh**. This move is designed to make professionally managed investment portfolios more accessible to a larger segment of affluent investors who currently fall below the traditional PMS entry barrier. The proposed framework specifically targets portfolio managers who exclusively invest client funds in direct plans of mutual fund schemes, including ETFs and Specialized Investment Funds. Alongside this, SEBI is also considering simplifying other requirements for these portfolio managers, aiming to foster growth in the PMS industry and offer more tailored investment solutions.
💭 If you're wondering…
MF-only PMS will exclusively invest clients' money in direct plans of mutual fund schemes, including ETFs and SIFs, while traditional PMS has a broader mandate to invest directly in securities like stocks, bonds, and derivatives.
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