SEBI plans MF-only PMS with ₹25L minimum investment requirement
Business
SEBI is planning a new option called MF-only PMS, where portfolio managers can build and manage portfolios using just mutual funds.
The catch? You'll need at least ₹25 lakh to get started.
MF-only fees 2.5% versus FY25 0.42%
These MF-only PMS accounts can charge up to 2.5% in fees, way more than the average distributor commission of 0.42% in FY25.
Supporters say the extra cost buys you expert management and active tweaks during market ups and downs, but it's worth comparing with regular mutual funds before jumping in.