Equity funds will be reclassified into the high and high risk categories, the news channel reported. All credit risk funds will be moved to the new very high risk category.
The report said credit risk funds will be judged on the basis of quality, duration, and liquidity of bonds.
The new risk classification will be scheme-specific, and not category specific.
Asset management companies (AMCs) will be required an annual timeline of how the risk has evolved in each fund, the report added. Any change in a scheme's underlying assets should reflect in the scheme's risk classification.