SEBI just redrew the PMS map — and MFDs may be now inside it
Something significant came out of SEBI yesterday.
A consultation paper proposes a new category — MF-PMS — where a portfolio manager runs client money exclusively in direct plans of mutual funds, ETFs, and SIFs. Minimum investment: ₹25 lakh, down from ₹50 lakh. Net worth requirement for the entity: ₹2 crore, down from ₹5 crore.
For distributors who already hold a PMS registration, this may open a door.
Fee cap is fixed at 2.5% of AUM. Performance-linked fees are permitted with explicit client consent.
For investors, this is still only a proposal—not a new product to act on today. But it does reflect SEBI's continued effort to offer more choices across different stages of an investor's wealth journey.
Comments are open until 13 August. Read the paper before then.
Rahul Karandikar
After two decades in technology, Rahul now works with individuals and families who want to think about money with clarity, patience, and a long-term perspective.
