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I have updated my Lumia 535 DS (RM-1090) on Windows 10(10.0.14393.693). It originally came with WP8.1. Here I was told that the phone will remain updated with W10M even after performing a hard reset. (Also providing screenshot incase link is broken.)

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But I am a little bit confused and don't want to take risk. Does resetting means resetting of phone to its original state or it simply means to wipe out user data? So my question is that will my phone retain the W10M as its OS or will reset back to WP8.1?

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Hard reset simply wipes user data and puts the phone back in the OOBE (Out-Of-Box Experience, i.e. initial setup) state. It will not affect the operating system or firmware versions. You will remain on your current build of W10M.

To reset all the way back to the factory OS version, you would need to re-flash the phone using something like the Windows Device Recovery Tool.

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