{"id":22984,"date":"2026-10-15T09:49:05","date_gmt":"2026-10-15T04:19:05","guid":{"rendered":"https:\/\/zerodha.com\/varsity\/?p=22984"},"modified":"2026-10-15T13:57:58","modified_gmt":"2026-10-15T08:27:58","slug":"prim-sebis-portfolio-managers-route-for-investing-in-mutual-funds","status":"publish","type":"post","link":"https:\/\/zerodha.com\/varsity\/prim-sebis-portfolio-managers-route-for-investing-in-mutual-funds\/","title":{"rendered":"PRIM: SEBI\u2019s Portfolio Managers Route for Investing in Mutual Funds"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">SEBI has introduced a new option for investors called PRIM, short for Portfolio Managers Route for Investing in Mutual Funds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have \u20b925 lakh or more and want a professional to manage your mutual fund portfolio, PRIM is one option. But how does it differ from existing routes like working with a Mutual Fund Distributor (MFD) or a Registered Investment Adviser (RIA)?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is a clear breakdown of how PRIM works, how it compares to existing routes, and what it costs.<\/span><\/p>\n<h4><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-22985\" src=\"https:\/\/zerodha.com\/varsity\/wp-content\/uploads\/2026\/10\/HUkwscabcAAO03H.png\" alt=\"\" width=\"512\" height=\"195\" srcset=\"https:\/\/zerodha.com\/varsity\/wp-content\/uploads\/2026\/10\/HUkwscabcAAO03H.png 512w, https:\/\/zerodha.com\/varsity\/wp-content\/uploads\/2026\/10\/HUkwscabcAAO03H-300x114.png 300w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/h4>\n<h4><\/h4>\n<h4><b>What is PRIM?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Under the PRIM route, a portfolio manager takes complete control over your mutual fund investments. They are responsible for making all the key decisions, including which specific schemes to purchase, how much capital to allocate to each fund, and when to make necessary adjustments to the portfolio.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By regulation, these managers must invest exclusively in direct mutual fund plans. Their scope is strictly limited to managing mutual funds, Exchange Traded Funds (ETFs), and Specialized Investment Funds (SIFs), making it a dedicated service for focused investment management rather than comprehensive, life-wide financial planning.<\/span><\/p>\n<h4><b>Comparing Investment Routes<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">To understand how PRIM fits into the landscape, let us look at the existing ways to invest and manage your money.<\/span><\/p>\n<h4><b>Mutual Fund Distributor (MFD)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">An MFD helps you select and invest in mutual funds. You usually invest through regular plans. You do not pay the distributor directly; instead, the fund house pays them a commission. This cost is embedded into the fund\u2019s expense ratio.<\/span><\/p>\n<h4><b>Registered Investment Adviser (RIA)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">An RIA looks at your overall financial life. They can assist with retirement planning, insurance, emergency reserves, tax planning, and investments. They may suggest mutual funds, fixed deposits, bonds, NPS, or other asset classes. You pay them directly for their advice.<\/span><\/p>\n<h4><b>PRIM Manager<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">A PRIM manager focuses strictly on managing your portfolio within mutual funds, ETFs, and SIFs using direct plans. They do not handle broader financial planning or non-mutual fund products.<\/span><\/p>\n<h4><b>Entry Amount Requirements<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The minimum capital required to get started varies across these routes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>MFD &amp; RIA:<\/b><span style=\"font-weight: 400;\"> There is no SEBI-mandated minimum investment amount to use an MFD or RIA, though individual providers may set their own rules.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>PRIM:<\/b><span style=\"font-weight: 400;\"> You need a minimum investment of \u20b925 lakh to use the PRIM route.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Regular PMS:<\/b><span style=\"font-weight: 400;\"> For comparison, traditional Portfolio Management Services (PMS) require a minimum of \u20b950 lakh. Regular PMS managers can invest directly in individual stocks, bonds, mutual funds, and other securities.<\/span><\/li>\n<\/ul>\n<h4><b>How Fee Structures Compare<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Each route charges for services differently:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>MFD:<\/b><span style=\"font-weight: 400;\"> You may pay up to 1% more each year in higher expense ratios via regular plans. On a portfolio of \u20b925 lakh, a 1% difference equals \u20b925,000 per year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>RIA:<\/b><span style=\"font-weight: 400;\"> SEBI allows RIAs to charge up to 2.5% of the advised assets or a fixed fee of up to \u20b91.51 lakh per family per year. On \u20b925 lakh, a 2.5% fee works out to \u20b962,500. However, this fee can cover your entire money plan, not just mutual funds.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>PRIM:<\/b><span style=\"font-weight: 400;\"> The fixed management fee for PRIM can be up to 1% a year. On \u20b925 lakh, that is up to \u20b925,000 annually. Depending on the manager, the fee structure may also be performance-linked instead of a flat percentage.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Note that all of these costs are in addition to the underlying expense ratio charged by direct mutual fund schemes.<\/span><\/p>\n<h4><b>Summary Table<\/b><\/h4>\n<table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>Mutual Fund Distributor (MFD)<\/b><\/td>\n<td><b>Registered Investment Adviser (RIA)<\/b><\/td>\n<td><b>PRIM Manager<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Primary Focus<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Choosing and buying mutual funds<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Overall financial life planning<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Managing a mutual fund portfolio<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Product Scope<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Mutual funds<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Mutual funds, FDs, bonds, NPS, insurance, etc.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Mutual funds, ETFs, and SIFs<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Plan Type<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Regular plans<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Direct plans<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Direct plans (Mandatory)<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>SEBI Minimum Capital<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No SEBI minimum<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No SEBI minimum<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u20b925 lakh<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Maximum Fee Limits<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Up to 1% per year (via expense ratio)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to 2.5% of advised amount or flat fee up to \u20b91.51 lakh\/year<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Up to 1% fixed fee per year (or performance-linked)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h4><\/h4>\n<h4><b>Which Route Fits Your Needs?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">PRIM is scheduled to start from 1 April 2027. Deciding which route to choose comes down to the kind of support you require:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you need basic help choosing and buying mutual funds, an MFD may be a good fit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you need comprehensive advice across your entire financial life, an RIA may be more relevant.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you have at least \u20b925 lakh and want someone to actively manage only your mutual fund portfolio, PRIM provides another option.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>SEBI has introduced a new option for investors called PRIM, short for Portfolio Managers Route for Investing in Mutual Funds. If you have \u20b925 lakh or more and want a professional to manage your mutu .. <\/p>","protected":false},"author":113846,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[927],"tags":[],"class_list":["post-22984","post","type-post","status-publish","format-standard","hentry","category-personal-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>PRIM: SEBI&#039;s Portfolio Managers Route for Mutual Funds<\/title>\n<meta name=\"description\" content=\"Learn about SEBI&#039;s PRIM route for mutual funds, how it works, eligibility requirements, fees, and how it compares to working with an MFD or RIA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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