PRIM mutual fund route explained: How the new PMS option works, ₹25 lakh minimum investment and contract renewal rules

SEBI’s PRIM route lowers the minimum investment for portfolio management services to ₹25 lakh from ₹50 lakh under the conventional PMS route. But renewals are treated as fresh investments, raising questions about investors whose portfolios fall below the threshold. 

If you invest in mutual funds and ETFs, there is a new route to access portfolio management services similar to those offered by Portfolio Management Services (PMS), but with a lower entry threshold. It is called the Portfolio Managers Route for Investing in Mutual Fund Units (PRIM).

Announced at SEBI’s board meeting on 24 September 2026, PRIM will allow investors to access portfolio management services with a minimum investment of ₹25 lakh, compared with the ₹50 lakh minimum for conventional PMS.

Under PRIM, portfolio managers can invest your money only in direct plans of mutual funds, including ETFs, index funds and Specialised Investment Funds (SIFs) offered by Indian asset management companies (AMCs). Direct equity investments in individual stocks are not included under this route.

At its board meeting, SEBI approved the introduction of the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2026, replacing the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020.

After this, SEBI notified the new Portfolio Managers Regulations on 12 October 2026, through a Gazette notification dated 7 October 2026. One provision that PRIM investors should pay attention to is the treatment of renewals.

The regulations mention, “Any renewal of portfolio on maturity of the initial period of agreement shall be deemed as a fresh investment.”

Does this mean investors need to invest another ₹25 lakh to continue? Here’s what the rule means for investors.

What does this renewal rule mean for PRIM investors?