Neutral impactSector
SEBI proposes MF-only PMS with ₹25 lakh entry: Expert explains how it differs from traditional PMS
Mint 1d ago·27 Jul 2026, 5:52 pm
SEBI has proposed a new 'MF-only PMS' framework that allows professional fund managers to operate within a mutual fund structure. This new category is designed to sit between standard mutual funds and traditional Portfolio Management Services (PMS), offering a regulated middle ground for investors.
The key difference lies in the entry barrier and the underlying structure. Traditional PMS often requires a high minimum investment, typically ₹50 lakh, and is priced as a service. The proposed MF-only PMS lowers the entry point to ₹25 lakh and charges a fee similar to a mutual fund, making it more accessible to retail investors.
For investors, this move could offer a hybrid benefit: the professional management of a PMS with the liquidity and regulatory framework of a mutual fund. It is important to note that this is a proposal and not yet an active product. Investors should wait for the final regulations to understand the exact fee structures and operational details before making any decisions.
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