Value Research announces rating suspension of few fundsOne of India’s leading mutual fund ratings agencies, Value Research, has announced that it has suspended the ratings of 59 funds following the industry-wide SEBI reclassification exercise. If you include direct plans, the total number of schemes which have seen their ratings suspended goes to 118 schemes. The suspensions have been on various grounds. At the end of this article, we give you a list of schemes with suspended ratings due to the merger or the drastic change of investment mandate. 

Ashutosh Gupta, Vice President at Value Research, in a written reply to RupeeIQ gave the details of ratings suspensions as follows:

Fund merger: 18 funds (counting the Direct and Regular plans separately)

Number of funds in the category is below 10: 47

Change in investment mandates: 36

Category is not rated as funds are not comparable: 17

Thus if you specifically consider drastic changes in investment mandates, the number of funds whose rating has been suspended on this ground is 36.

Morningstar, India’s other major ratings agencies, has also provided the details of funds whose ratings have been suspended due to a drastic change in investment mandate. The ratings agency provided details of eight such funds. It indicated that the list was bigger if you include other grounds of ratings suspensions such as the shift to a category not rated by Morningstar.

The eight funds whose ratings are suspended include Reliance Balanced Advantage Fund, Franklin India Corporate Debt Fund, Principal Credit Risk Fund, JM Dynamic Debt Fund, Invesco India Corporate Bond Fund, Taurus Discovery (Midcap), ICICI Prudential Smallcap and Principal Corporate Bond Fund. RupeeIQ had written about two of these funds in its analysis of mandate changes – ICICI Prudential Small Cap and Reliance Balanced Advantage Fund.

List of funds of whose ratings are suspended by Value Research 

This is a partial list of funds who have either merged or changed investment mandate

Merger

  • Aditya Birla Sun Life Constant Maturity 10 Year Gilt Fund
  • Aditya Birla Sun Life MIP
  • Aditya Birla Sun Life MIP II Savings 5 Plan
  • Aditya Birla Sun Life Monthly Income
  • Franklin India Government Securities Fund – Composite Plan
  • Franklin India Government Securities Fund – PF Plan
  • HDFC Prudence Fund
  • Tata Dividend Yield Fund
  • Tata Gilt Mid Term Fund
Change in investment mandate
  • Canara Robeco Short Duration Fund
  • Edelweiss Dynamic Bond Fund
  • Edelweiss Multi Asset Allocation Fund
  • HDFC Balanced Advantage Fund
  • HDFC Hybrid Equity Fund
  • HDFC Multi Asset Fund
  • ICICI Prudential Multi Asset Fund
  • ICICI Prudential Ultra Short Term Fund
  • IDBI Equity Savings Fund
  • IDFC Equity Savings Fund
  • Invesco India Multicap Fund
  • Invesco India Ultra Short Term Fund
  • JM Dynamic Debt Fund
  • Reliance Balanced Advantage Fund
  • Reliance Strategic Debt Fund
  • SBI Banking and PSU Fund
  • SBI Multi Asset Allocation Fund
  • Sundaram Short Term Credit Risk Fun
Author
Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at neil@rupeeiq.com.