INCOME TAX25 Sept 2026
PRIM vs mutual funds vs PMS: Experts explain how they differ on portfolio structure, costs, taxation and suitability | Mint
SEBI has introduced a new PRIM route under the Portfolio Managers Regulations, 2026. It lets a portfolio manager build your customised portfolio using direct plans of mutual funds, ETFs and SIFs. The minimum investment is ₹25 lakh, and fixed fees are capped at 1% of your assets. Compare cost, flexibility and taxation before choosing between PRIM, PMS and mutual funds.
Key Statutory Highlights
- Under PRIM, the portfolio manager decides fund selection, allocation and rebalancing, while the fund's own manager runs the underlying securities.
- A conventional PMS builds a customised portfolio of stocks, bonds and other permitted securities, and the minimum investment is ₹50 lakh.
- Mutual funds are pooled vehicles with a generally low minimum of ₹100, and the investor decides when to redeem units, which triggers the capital gains event.
Actionable Advice for Taxpayers / Founders:If you are weighing PRIM, PMS or mutual funds, speak to a tax adviser about how each route's buying and selling creates short-term or long-term capital gains in your hands, and compare the total cost before you commit.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: