RIA vs PMS: Which Fits at ₹50 Lakh and ₹1 Crore?

RIA vs PMS comes down to who decides. An RIA gives you advice and is paid only by you, while you place the trades. A PMS manager decides and places the trades for you, under a mandate you sign.

Take a post-liquidity founder with ₹1 crore and a retiring promoter with ₹50 lakh who needs steady income. Both can use either route, so the ticket size does not choose for them. This guide prices both routes at those two sizes and shows where SEBI's newly approved PRIM route fits.

TL; DR

1. An RIA advises and you execute. A PMS manager decides and executes under a mandate.

2. ₹50 lakh opens both doors but does not choose between them.

3. SEBI's board approved a ₹25 lakh PRIM route for mutual funds on 24 September 2026. It awaits notification, and we do not offer it.

4. At ₹50 lakh and ₹1 crore, each route's certain cost can be priced in rupees today.

5. Your time, temperament, need for control and tax situation decide the route, not the ticket.

6. Switching later is possible, but exit terms, tax and notice differ.

 Prefer to keep the final say on every trade? Our advisory strategies start at ₹10 lakh.

What Is the Real Difference Between RIA vs PMS?

An RIA advises, and you execute. A PMS manager decides and executes for you, within a mandate you sign. In a PMS the securities sit in an account in your name, held with a custodian.

An RIA is a fee-only adviser registered as an Investment Adviser (INA). It takes no commissions or performance-linked fees, as our RIA guide explains. A PMS manager is registered separately as a Portfolio Manager (INP), and charges a fixed fee, a profit share or both.

Non-discretionary PMS, where you approve each trade, also exists; see our discretionary vs non-discretionary PMS guide. In wealth-management terms, an advisory mandate is the RIA model and a discretionary mandate is the PMS model.

For the retiring promoter, the real question is whether to approve trades or delegate them.

What Are the Three Routes, RIA vs PRIM vs PMS, After SEBI's 24 September 2026 Approval?

Two routes are open today. SEBI's board approved a third, PRIM, on 24 September 2026, and the regulations await notification. Our PMS minimum investment guide explains the ₹50 lakh floor.

• RIA (open): ₹10 lakh with us. You place the trades in your own accounts, on written advice. The fee is an advisory fee capped by SEBI.

• PRIM (approved, awaiting notification): ₹25 lakh. The manager places the trades, in direct mutual fund plans, ETFs, index funds and SIFs only. The fixed fee is capped at 1% of AUM.

• PMS (open): ₹50 lakh for most investors. The manager places the trades, in stocks and other permitted securities, for a fixed fee, a profit share or both.

We do not offer PRIM, and on the sources available on 23 October 2026, no manager can yet. The founder with ₹1 crore therefore compares two live routes today.

Certain Cost First: What Does RIA vs PMS Cost at ₹50 Lakh and ₹1 Crore?

Price the certain cost first. A fixed or capped fee is due whatever the portfolio does, so it can be worked out today. A profit share is conditional, and the agreement says when it starts.

 The RIA column shows SEBI ceilings, not any adviser's actual fee, including ours. The PMS columns use our disclosed fixed fee and a 25% profit share over a 7% hurdle, before operating expenses and taxes. PRIM's cap excludes the mutual funds' own expense ratios.

The hurdle column is a threshold, not a projection or an expectation of what any portfolio will earn. Past performance is not indicative of future results.

For the retiring promoter, the fixed fee is the figure to plan around. Our PMS fee structure guide explains how fixed and profit-share fees combine.

Which Should You Choose: RIA vs PMS by Time, Temperament, Control and Tax?

Your habits decide, not the ticket. Four questions separate the routes: your time, your temperament, your need for control and your tax position.

1. Time: can you review advice and place trades within a day or two? Yes points to an RIA, and no points to a PMS.

2. Temperament: do you place trades steadily, even in a falling market? Yes points to an RIA, and a habit of delaying points to a PMS.

3. Control: do you want the final say on every trade? Yes points to an RIA, and accepting a mandate points to a PMS.

4. Tax: do you want to approve each sale before it triggers tax? Yes points to an RIA, and accepting sales within a mandate points to a PMS.

A textile promoter on the factory floor all day may prefer delegation, and one who watches the market daily may prefer to keep control. Our financial advisor vs portfolio manager guide covers when each role fits.

According to SEBI's chairman, reported by Cafemutual, India has about 1,000 registered investment advisers: 470 individuals and 530 non-individual entities.

Source: Cafemutual; as of 16 March 2026

Tell Us Which Route You Are Weighing

Choose RIA or PMS in the booking form, add your portfolio size, and we will walk you through the fee basis in writing.

Can You Switch Later Between an RIA and a PMS?

Yes, in either direction, but not for free. Neither route locks you in. The exit terms, the tax on any sale and the notice each agreement requires are what differ.

• Leaving a PMS: SEBI's FAQ bars a lock-in, though an exit fee can apply. Our PMS exit guide has the schedule.

• Leaving an RIA: SEBI's adviser rules require a refund of the unexpired fee. The adviser may keep at most one quarter's fee as breakage, for individual and HUF clients.

• Moving shares: a switch can mean selling first, and each sale is taxable. The founder moving ₹1 crore should price the tax before the fee.

Who Should Not Choose RIA or PMS Yet?

Below ₹10 lakh, neither route is open here. Our advisory strategies start at ₹10 lakh and our PMS at ₹50 lakh. If you want PRIM, we do not offer it, and the route is not yet open.

If you are weighing a smallcase instead, our smallcase vs PMS vs RIA guide compares the three.

If you are moving because a portfolio's recent return disappointed you, a different route carries no promise of a different return. Our guide to switching from mutual funds to PMS covers that decision. A family weighing a succession or tax event should start with a tax adviser.

What Do Your Four Answers Say About RIA vs PMS?

Count your answers from the four questions above. Mostly RIA answers point to an advisory conversation, and mostly PMS answers to a mandate conversation. A split means asking for both fee bases in writing.

We hold both licences, so the question is which route suits your situation, not which firm. Ask us what we earn under each route, in writing.

Bring your four answers and your portfolio size.