HDFC, ICICI Prudential, Quant and Other Mutual Funds Revise Scheme Risk Ratings

Key Takeaways

• HDFC Mutual Fund revised the risk ratings of four schemes, including reducing HDFC Dynamic Term Fund's classification from moderately high to moderate.
• ICICI Prudential Mutual Fund increased the risk classifications of four schemes, including two life-cycle funds and two fund-of-funds products.
• Quant, Aditya Birla Sun Life and Franklin Templeton also announced changes to selected scheme risk ratings in November 2026.

Mutual Fund Houses Update Risk Classifications

Several asset management companies have revised their mutual fund scheme risk-o-meters following their latest portfolio assessments, with changes spanning debt, hybrid, gold, equity-linked and fund-of-funds products.

HDFC Mutual Fund, ICICI Prudential Mutual Fund, Quant Mutual Fund, Aditya Birla Sun Life Mutual Fund and Franklin Templeton Mutual Fund are among the fund houses that announced revisions during the first week of November 2026.

The changes reflect updated assessments of the risks associated with individual schemes. They do not necessarily indicate changes to a scheme's investment objective, underlying structure or other fundamental attributes.

HDFC Mutual Fund Revises Four Scheme Ratings

HDFC Mutual Fund announced revisions on 7 November based on portfolios assessed as of 31 October 2026.

HDFC Dynamic Term Fund's risk classification declined from moderately high to moderate. HDFC Multi-Asset Active Fund of Funds and HDFC Nifty Large Midcap 250 Plus 8-13 yr G-Sec 70:30 Index Fund moved from high to very high risk.

Meanwhile, HDFC NIFTY SDL Plus G-Sec Jun 2027 40:60 Index Fund moved from low to moderate to low risk.

The AMC stated that benchmark risk-o-meters and other scheme terms remained unchanged.

ICICI Prudential Updates Gold and Life-Cycle Schemes

ICICI Prudential Mutual Fund revised four risk classifications.

ICICI Prudential Gold ETF Fund of Fund and ICICI Prudential Multi-Asset Active Fund of Fund moved from high to very high risk.

The changes were more pronounced for the life-cycle schemes. ICICI Prudential Life Cycle Fund 2036 moved from moderate to very high risk, while ICICI Prudential Life Cycle Fund 2041 shifted from moderately high to very high.

These classifications were also based on portfolios as of 31 October.

Other AMCs Announce Revisions

Quant Mutual Fund reduced Quant Income Plus Arbitrage Fund of Fund's risk classification from moderate to low to moderate.

Aditya Birla Sun Life Mutual Fund increased the risk classification of its Liquid Fund from moderate to moderately high, while its Gold Fund moved from very high to high.

Franklin Templeton raised Franklin India Conservative Hybrid Fund's risk level from moderate to moderately high. Its Ultra Short to Short Term Fund and Money Market Fund moved from moderate to low to moderate.

What the Changes Represent

SEBI's risk-o-meter framework classifies mutual fund schemes across six levels, ranging from low to very high risk.

The classifications are based on factors relevant to the underlying portfolios, including market exposure, credit quality, interest-rate sensitivity and liquidity.

A revised risk classification is a disclosure of assessed portfolio risk at a particular point. It does not guarantee future performance or indicate that a scheme's returns will move in a corresponding direction.

The latest revisions illustrate how risk classifications can change even when a mutual fund retains its existing investment mandate.