The recategorization of funds, as mandated by the regulator, has been completed.
The fund research team is taking a fresh look at the funds in light of the revised mandates announced by the fund houses. They are also visiting the AMCs to gain a perspective from the fund managers on how they intend to run their respective fund within the confines of the revised mandate.
As far as the Star Rating goes, if there is a dramatic change in mandate, the historical returns of the fund become irrelevant. In such cases, we have the option to suspend the rating on the fund if deemed appropriate and only consider it once it completes 3 years under the new mandate.
We have suspended our Star Ratings on the below funds as we noticed there was a significant change in mandate. Going ahead, these funds will receive a Star Rating only once they complete 3 years under the new mandate.
Having said that, these are not the only funds with a stark change in mandate. There are several other funds that had significant mandate changes. But the latter, as per the new categorization, now fall into categories for which we do not issue ratings due to heterogenous nature of funds within that category - Multi Asset Allocation and Focused Equity being two examples. Consequently, these funds had an automatic rating suspension, i.e. they did not require a rating override from us as was the case for the 8 funds mentioned here.
