What exactly is the rule?
A portfolio manager shall not accept from a client funds or securities worth less than fifty lakh rupees. That is the wording, and it binds the manager rather than you.
It applies to new clients, and to fresh money from existing ones.
Is it per PMS or across all of them?
Per portfolio manager.
The rule limits what one manager may accept. So if you want two houses running different strategies, you need ₹50 lakh with each. ₹50 lakh split across two does not work.
Who is exempt?
Three carve-outs exist.
- Accredited investors. The minimum does not apply at all.
- Co-investment portfolio managers. A separate category with its own rules.
- Pre-2020 investments made before the current regulations came in are grandfathered.
Can I add smaller amounts later?
Not below the floor. The restriction covers fresh funds from existing clients too, so a top-up is subject to the same rule.
In practice, houses handle this differently within the rules. Ask before you assume you can add ₹10 lakh next year.
How does it compare with the others?
The minimum is one of the fastest ways to see where a structure sits.
- PMS: ₹50 lakh
- AIF: ₹1 crore, and usually a commitment drawn down over years rather than a single cheque
- SIF: ₹10 lakh, measured across all strategies of that fund at PAN level
- GIFT City restricted scheme: from US $150,000
- Mutual fund: a few hundred rupees
Why ₹50 lakh?
It is a judgement about who should be here. A PMS runs a concentrated portfolio, which falls harder than an index and stays down longer. The floor is the regulator saying this suits people who can lose a meaningful sum without it changing their life.
If the minimum feels like a stretch, that is useful information rather than an obstacle to work around.