50 Lakh PMS: Minimum Ticket Size, Fees and Rules

A 50 lakh PMS is a portfolio management account opened at the minimum ticket size SEBI allows. Under the SEBI (Portfolio Managers) Regulations, 2020, a portfolio manager must take at least ₹50 lakh from each client, in cash, in securities, or both.

The figure gets most of the attention, but three other things decide what ₹50 lakh is like to own. The first is what the fees cost in rupees. The second is the set of rules that follow the money after day one. The third is the routes that now start below ₹50 lakh.

This guide covers each, with a five-year fee example. Information is as of October 2026.

50 lakh PMS rules at a glance

Information as of October 2026. Sources: SEBI (Portfolio Managers) Regulations, 2020; SEBI FAQ on Portfolio Managers; SEBI Board press release PR No. 59/2026.

In short, a PMS is an account where a professional manager buys and sells shares for you, held in your own demat. You need ₹50 lakh to start, and you can leave at any time for a capped exit fee. The main risk is that a concentrated portfolio of shares can fall sharply, and fees still apply in bad years.

How the 50 lakh PMS minimum came about

SEBI has raised the floor twice. It stood at ₹5 lakh until 2012, when SEBI lifted it to ₹25 lakh. In November 2019 the SEBI Board approved a rise to ₹50 lakh, which took effect through the Portfolio Managers Regulations, 2020.

SEBI’s reasoning was that PMS suits investors who can bear concentrated equity risk and higher costs than a mutual fund. A higher minimum filters for that. It also means a PMS is rarely a first investment; most clients already hold mutual funds or shares.

Paying in shares instead of cash

The minimum counts securities as well as cash. An investor can transfer shares worth ₹50 lakh from their own demat into the PMS account, or mix shares and cash.

The manager values the transferred shares at the market price on the day. It may then sell holdings that don’t fit the strategy. Each sale creates capital gains tax in the investor’s hands, since the investor owns the shares throughout. That tax cost is worth estimating before moving a large portfolio of old, low-cost holdings.

Top-ups and withdrawals after you join

Once the account is open, SEBI’s rules apply each time money moves. A partial withdrawal must leave at least ₹50 lakh invested. A client who wants to take out more has to close the account.

Some older clients opened accounts at ₹25 lakh before 2020. If they want to add money, they must first bring the account up to ₹50 lakh. Someone holding ₹30 lakh, for example, has to add at least ₹20 lakh.

The minimum applies when money goes in or comes out. A fall in market value below ₹50 lakh does not, by itself, require a top-up.

What a 50 lakh PMS costs to run

Take ₹50 lakh in a strategy with a 2.5% fixed fee, plus GST at 18%. Assume it earns 12% a year before fees, for five years. The example is illustrative.

Illustrative. Kalviro calculation; fee on average of opening and closing value; before brokerage, other expenses and tax.

Over five years the fees total about ₹9.3 lakh. The 12% gross return becomes about 8.9% a year after fees. Without fees, ₹50 lakh at 12% would reach about ₹88.1 lakh, against ₹76.5 lakh here.

A performance-fee or hybrid option would cost less in weak years and more in strong ones. Kalviro’s guide to the PMS fee structure compares the models over five years, and the PMS fee calculator runs the numbers on your own terms.

When a strategy asks for more than ₹50 lakh

SEBI sets the floor; managers can set their own minimum above it. Some strategies ask for ₹1 crore or more, to limit the number of accounts or to keep position sizes workable. An investor with ₹50 lakh therefore has a shorter list to choose from than the full market.

Within one account, ₹50 lakh goes to one strategy. Spreading ₹50 lakh across two managers is not possible, because each account needs its own ₹50 lakh. Kalviro’s note on PMS selection criteria covers how investors narrow the list.

Routes that start below a 50 lakh PMS

Three routes now start lower, each with different rules.

A mutual-fund-only PMS route starts at ₹25 lakh. The SEBI Board approved it on 24 September 2026 under new PMS Regulations, 2026. A portfolio manager will run a portfolio of mutual fund products for the client, with a fixed fee of at most 1% a year. It applies once SEBI notifies the regulations.

Accredited investors can open a PMS below ₹50 lakh where the strategy allows it. Once SEBI notifies its September 2026 decisions, NRIs and OCIs will count as accredited investors without a certificate. Kalviro’s guide to the accredited investor in India covers the tests.

50 lakh PMS questions investors ask

Can NRIs open a 50 lakh PMS? Yes. NRIs usually invest through a PIS-linked NRE or NRO account and demat, subject to the manager’s policy. The ₹50 lakh minimum applies to them as well, unless they invest as accredited investors.

What if my portfolio falls below ₹50 lakh? A market fall does not force a top-up. The minimum matters again if you want to withdraw part of the account or add money.

Can I start with shares I already own? Yes. Securities count towards the minimum at market value. Selling unsuitable holdings later creates capital gains in your hands.

Is there a lock-in? No. A manager may charge an exit load of up to 3% in year one, 2% in year two and 1% in year three.

A 50 lakh PMS buys a single strategy, run in your own name, with full visibility and an exit at a capped cost. At 2.5% plus GST it also costs about ₹1.5 to ₹2.2 lakh a year at that size, which the strategy has to earn back. The mutual-fund-only PMS route and accreditation now offer ways in below ₹50 lakh. Kalviro’s PMS strategies in India page lists strategies with their own minimums.