Archive · 28 Jul 2026
Sebi Proposes MF-PMS Framework to Boost Investor Participation
The Securities and Exchange Board of India (Sebi) has proposed a new framework called MF-PMS, which stands for mutual fund-portfolio management services.
This new framework aims to make professional portfolio management services more accessible to a wider range of investors.
Currently, portfolio management services (PMS) are customised investment solutions designed for high net-worth individuals, requiring a minimum investment of Rs 50 lakh.
The new MF-PMS framework will reduce this threshold to Rs 25 lakh and will invest only in direct plans of mutual funds, exchange-traded funds (ETFs), and specialised investment funds (SIFs).
This move is expected to broaden access to portfolio management services, making it more inclusive and potentially boosting inflows into direct plans of mutual funds and SIFs.
The reduced net-worth and compliance norms are also expected to encourage smaller advisers to participate, fostering a more accessible and inclusive professional investment landscape.
Sebi proposes a new MF-PMS framework with a reduced investment threshold of Rs 25 lakh.
MF-PMS will invest only in direct plans of mutual funds, ETFs, and SIFs.
The framework aims to boost investor and intermediary participation.
Eased compliance norms and reduced net-worth requirements for portfolio managers.
MF-PMS is expected to be more tax-efficient compared to conventional PMS.
- Who
- Securities and Exchange Board of India (Sebi)
- What
- Proposed a new MF-PMS framework
- When
- Not specified
- Where
- India
- Why
- To boost investor and intermediary participation
Proponents of MF-PMS
Critics of MF-PMS
Investment Threshold
Proponents of MF-PMS
Supports reduced investment threshold, making it accessible to more investors.
Critics of MF-PMS
Concerns about the potential risks for less affluent investors.
Compliance Norms
Proponents of MF-PMS
Eased compliance norms will encourage more intermediaries to participate.
Critics of MF-PMS
Potential for reduced oversight and increased risk of non-compliance.
Tax Efficiency
Proponents of MF-PMS
MF-PMS is expected to be more tax-efficient compared to conventional PMS.
Critics of MF-PMS
Questions about the long-term tax implications and potential loopholes.
- Minimum Investment Threshold
- Rs 25 lakh
- Management Fee
- Up to 2.5% of assets under management
- Performance-Based Fee
- Allowed with client consent
- Exit Load
- Waived to protect investors
- PMS Industry Size
- 43.26 lakh crore (as of June 2026)
- Non-EPFO Assets
- Rs 10.82 lakh crore
- Number of Portfolio Managers
- 526
- Distributor Network
- Over 20,000