Investing in HDFC, ICICI Pru or Quant mutual funds? Check the latest changes in scheme risk ratings in November 2026
Several mutual fund houses have revised the risk-o-meters of their schemes in November 2026, changing the level of risk disclosed to investors across equity, debt, hybrid, gold and fund-of-funds categories.
The changes matter because the risk-o-meter is an important indicator investors use to understand the risk associated with a mutual fund scheme. However, a higher or lower risk rating does not necessarily mean that a scheme’s investment objective or fundamental attributes have changed.
The key distinction for investors is that these revisions largely reflect changes in the assessed risk of the underlying portfolios, rather than a change in the schemes themselves.
1. HDFC Mutual Fund: Four schemes see risk-rating changes
HDFC Mutual Fund announced changes to the risk-o-meters of four schemes on November 7, based on an assessment of their portfolios as of October 31, 2026.
- HDFC Dynamic Term Fund: Risk rating reduced from moderately high to moderate.
- HDFC Multi-Asset Active Fund of Funds: Increased from high to very high.
- HDFC Nifty Large Midcap 250 Plus 8-13 yr G-Sec 70:30 Index Fund: Increased from high to very high.
- HDFC NIFTY SDL Plus G-Sec Jun 2027 40:60 Index Fund: Reduced from low to moderate to low.
The fund house clarified that the benchmark risk-o-meters remain unchanged and that other scheme details, including product labels and terms and conditions, have not been modified.
HDFC Mutual Fund has published the corresponding addendum on its official website.
ICICI Prudential Mutual Fund: Gold and life-cycle funds move to very high risk
ICICI Prudential Mutual Fund announced changes to the risk ratings of four schemes on November 7.
The risk-o-meter of ICICI Prudential Gold ETF Fund of Fund and ICICI Prudential Multi-Asset Active Fund of Fund has moved from high to very high.
Two life-cycle schemes have also seen a significant change in their disclosed risk levels:
- ICICI Prudential Life Cycle Fund 2036: Moderate to very high.
- ICICI Prudential Life Cycle Fund 2041: Moderately high to very high.
These assessments are based on the schemes’ portfolios as of October 31, 2026. The fund house said other provisions of the Scheme Information Documents and Key Information Memorandums remain unchanged.
The shift is particularly worth noting for investors in life-cycle funds, which are designed around investment horizons and changing asset allocations. Investors should check the latest portfolio and asset allocation rather than assuming that the fund’s year in its name automatically determines its current risk level.
Quant Mutual Fund: Arbitrage fund’s risk rating falls
Quant Mutual Fund has reduced the risk-o-meter of Quant Income Plus Arbitrage Fund of Fund from moderate to low to moderate.
The revision was announced on November 6. The fund house clarified that the other product-label details, features and terms and conditions of the scheme remain unchanged.
Investors should not interpret the lower rating as a guarantee of capital protection or assured returns. The fund continues to be subject to market risks.
Aditya Birla Sun Life Mutual Fund: Gold fund moves to lower risk category
Aditya Birla Sun Life Mutual Fund revised the risk-o-meters of four schemes on November 6, based on their monthly portfolios as of October 30.
- Aditya Birla Sun Life Liquid Fund: Moderate to moderately high.
- Aditya Birla Sun Life Ultra Short to Short Term Fund: Moderate to low to moderate.
- Aditya Birla Sun Life Gold Fund: Very high to high.
- Aditya Birla Sun Life Financial Services Sectoral Debt Fund: Moderate to low to moderate.
The change in the Liquid Fund’s risk rating is noteworthy because liquid funds are commonly used by investors to park short-term surplus money. A higher risk classification warrants a closer look at the portfolio’s underlying exposures.
Meanwhile, the Gold Fund’s rating has fallen by one level. This does not mean gold investments have become risk-free or that investors should expect lower volatility going forward.
The AMC clarified that other scheme features and terms and conditions remain unchanged.
Franklin Templeton Mutual Fund: Three schemes see revisions
Franklin Templeton Mutual Fund also revised the risk-o-meters of three schemes on November 6.
- Franklin India Conservative Hybrid Fund: Moderate to moderately high.
- Franklin India Ultra Short to Short Term Fund: Moderate to low to moderate.
- Franklin India Money Market Fund: Moderate to low to moderate.
The fund house said the revised risk ratings were calculated under SEBI’s mutual fund framework using portfolios as of October 30, 2026. Other scheme terms and conditions remain unchanged.
The Ultra Short to Short Term Fund was earlier called Franklin India Low Duration Fund, with the new name effective from August 25, 2026.
What does a mutual fund risk-o-meter change mean for investors?
The Securities and Exchange Board of India (SEBI) requires mutual funds to disclose the risk-o-meter of their schemes. It indicates the level of risk associated with a scheme and helps investors assess whether it matches their risk appetite.
The six risk categories, in ascending order, are:
- Low
- Low to moderate
- Moderate
- Moderately high
- High
- Very high
The assessment considers the underlying portfolio and relevant risk factors, including market risk, credit risk, interest-rate risk and liquidity, depending on the type of scheme. Fund houses also disclose the risk level of the respective benchmark.
SEBI’s mutual fund requirements are set out in its Master Circular dated March 20, 2026.
Should investors buy or sell mutual fund units after these changes?
Not necessarily. A change in the risk-o-meter alone is not a reason to redeem or invest in a scheme.
Investors should consider three things:
- Check the latest portfolio: Examine whether the change reflects a shift in equity exposure, debt duration, credit quality or other underlying investments.
- Compare the benchmark: A scheme’s risk rating should be assessed alongside its benchmark’s risk-o-meter.
- Reassess your investment horizon: Investors in short-term debt funds, gold funds and long-term hybrid schemes should ensure that the revised risk classification is consistent with their financial goals and ability to withstand volatility.
A lower risk rating does not guarantee better returns or capital protection. Similarly, a higher rating does not automatically make a scheme unsuitable.
The important point is to understand what is driving the change rather than making investment decisions based on the risk-o-meter in isolation.
