MF-PMS to provide a boost to registered investment advisers

The Securities and Exchange Board of India (SEBI) introduced a new framework for mutual fund portfolio management services (MF-PMS) aimed at registered investment advisers (RIAs).

The framework permits RIAs to offer MF-PMS with a minimum investment of ₹10 lakh, reducing the earlier threshold for portfolio management services. It also allows RIAs to charge a fee based on a percentage of assets under management (AUM) instead of only fixed fees.

Fee-based advisory is expected to become more popular among RIAs under the new rules, as they can now earn recurring income from AUM-based charges.

The move is intended to encourage more financial advisers to register as RIAs and provide professional investment management services to retail investors.