LONG TERM INCOME FACILITY for regular withdrawal from the scheme

Transcription

1 Introducing May 31, 2016 LONG TERM INCOME FACILITY for regular withdrawal from the scheme * *Long Term Income (LTI) facility is an attempt at answering the need for predictable long term cash ow of investors. This facility will allow investors to redeem a xed sum of money periodically i.e. 0.75% of the investment amount on monthly basis at the prevailing Net Asset Value (NAV). Advantages of Long Term Income Facility Regular Cash ow Easy Liquidity Exit Load Waiver Tax Ef cient For more information log on to assetmanagement.kotak.com or call

2 EXPERT SPEAK Mr. Nilesh Shah May 31, 2016 Dear Friends, The Narendra Modi led National Democratic Alliance government is improving efficiency of government spending, divesting stakes in public sector units (PSUs), following fiscal prudence, lowering inflation, carrying out financial sector reforms and an overall policy of minimum government, maximum governance. While investors are satisfied with the direction of the policies, there are concerns about the lackluster performance of equities in last two years. There is, however, a precedence in to reassure investors that markets will reward good economic policies. In 1979, the UK was suffering from low growth, high inflation, high fiscal deficit and also high unemployment. The period was called 'Winter of Discontent' due to recessionary conditions. Margaret Thatcher, a grocer's daughter, became the first woman prime minister of the country. She fought elections on the issue of a non-performing labour government, under a catchy slogan Labour isn't working. She was once rejected from a job with a remark about being head strong, obstinate and dangerously self-opinionated. Her economic policies, which came to be known as Thatcherism, were based on free markets. She felt that a culture of dependency and welfare state had lowered the country's growth. She focused on controlling inflation, which was around 18% in the early 1980s, through high interest rates, tight liquidity and fiscal prudence. Inflation was brought down significantly albeit initially at the cost of growth through a hard fought battle. She followed the path of fiscal prudence by divesting stakes in PSUs across industries. She did this not only with PSU companies but also in real estate assets like council houses. Some of the assets were sold at a discount to market value to make divestment attractive. and companies worth 47 billion were sold to reduce the debt burden and also to make such companies market oriented. Domination of public sector enterprises in the British economy and the role of the government in providing civic services was significantly reduced through divestment, including strategic sales. Productivity increased significantly, especially labour productivity, in such companies, which eventually benefitted the British economy. Thatcher lowered direct taxes to increase tax revenue through better compliance and increased indirect taxes to bring fiscal deficit under check. She took labour unions head on by closing coal mines that were not commercially viable. During a year long strike, which turned violent at times, she stood her ground. The police was equipped with better riot gear to handle militant labour movement members. The number of working days lost due to strike came down from 29 million in 1979 to 2 million in On her economic policies, Thatcher said, You turn if you want to, the lady's not for turning. She also earned the nickname of Milk Snatcher for abolition of free milk for school goings children in an attempt to cut public spending. According to official documents made public later, it was revealed that Thatcher preferred to live frugally at 10, Downing Street, including paying for an ironing board herself. She encouraged deregulation, especially in the financial sector. She initiated Big Bang reforms in the financial sector, to make London a financial hub for trade and investment flows. She encouraged exchanges to grab global flows. She promoted the concept of small government to reflect the government's priorities towards free market. Initially, however, her economic policies didn't bear fruit. Growth slowed down. Unemployment went up. In 1981, just three years into her tenure, 364 leading economists of that time tore apart her economic policies and warned citizens of impending disaster if her economic policies were allowed to continue. Fortunately, she ignored the intellectuals and pushed the UK from being a welfare state to a free market economy. Eventually, growth returned. Unemployment remained stubborn for a while but finally fell significantly. The stock market handsomely rewarded the Thatcher government's economic policies. FTSE all share index multiplied over five times from a modest base of 221 in 1979 to 1,171 in Thatcher was able to use the revenue from North Sea oil extraction to fund fiscal policies that were balancing the economy. She and her government did face opposition from various quarters for pursuing tough economic policies. Her popularity fell to a level not seen by predecessors within the first two years of becoming Prime Minister. The Falklands War in 1982 provided an opportunity for her to regain popularity, and she won the 1983 elections. That re-election allowed her to reap the benefit of the work put in the first term. She remains first among peers in the post-war history of the UK. At a celebration on her 80th birthday in October 2005, Geoffrey Howe, a long time Cabinet minister under Thatcher, said, Her real triumph was to have transformed not just one party but two, so that when Labour did eventually return, the great bulk of Thatcherism was accepted as irreversible. British history of between 1979 and 1990 does indicate that free market, small government, fiscal prudence, financial sector reforms, policies targeting lower inflation, and improved efficiency of public spending does improve growth and also creates jobs. Such policies handsomely reward long-term investors. What is needed is continuance of policies despite initial hitches. Happy Investing and Best Regards, Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW The Modi government crossed a milestone of being in power for 2 years in the month of May While there has been a lot of debate over how much the government has been able to deliver over the last 2 years, one must certainly give them credit for seeking to tackle the issues and bottlenecks which have curbed economic growth in the last few years. The markets in India (large cap Nifty index) were buoyant in the month of May 2016, marking the third consecutive month of outperformance as compared to global peers. The large cap Nifty Index rose by 3.95% in INR terms while the Midcap index rose by 0.73% in INR terms. One key factor driving the market in the month of May 2016 has been the marginally positive outcome of the Q4FY16 result season (excluding public sector banks). After a considerable period of time, companies have reported improvement in sales momentum and it does appear that the pace of earnings downgrades would slow from hereon. Among the large sectors, private sector retail banks continued to show momentum in both loan growth and earnings while corporate private sector banks and PSU banks struggled under the pressure of high non performing corporate loans. Technology companies reported varied trends on revenue growth with pressure on margins visible for the sector as whole. Automobiles as a sector saw steady volume growth in line with estimates with improvement in gross margins. A factor now to watch out for will be the onset and the progress of the monsoons which would have a bearing on agricultural growth as well as rural demand. From here on, it is imperative that corporate earnings growth trajectory improves and provides support to valuations. The green shoots seen in the economy are now expected to translate into better corporate profitability. Growth in India is likely to remain consumption led with a lagged recovery in investment growth. We must however, remember how integrated the global economy has become. Therefore, the timing of the next Fed rate hike and China's mini-cycles are the key events that could have broader impact on the Indian markets beyond domestic factors. At present the Nifty is trading at 17.8xFY17E EPS and 15x FY18E EPS (free float basis). 2 years of Modi Government focus now on the GST Bill The Modi government completed 2 years in power and at the same time May 2016 also saw the completion of elections in 5 states in India. The outcome of the state elections were not very surprising (exception of Tamil Nadu) with the exit polls having forecasted the outcomes accurately. BJP's (Bhartiya Janata Party) win in Assam will halt its series of losses and strengthen its position as a national party. On the other hand the INC (Indian National Congress) will now remain in power only in three large states. With no elections scheduled in the next 10 months, the focus will now shift to various executive reforms. The last session of the parliament was one of the most productive in the past 15 years, and resulted in the passage of 17 bills through both houses. The most noteworthy of these was the Bankruptcy bill, which provides power to creditors to resolve defaults quickly. While the law aims to resolve a bankruptcy quickly ( days), its implementation and use by creditors will be key to watch. In addition, recent commentary from government officials suggests that the GST (Goods and Services Tax) bill may get introduced in the monsoon session of the parliament (Jul-Aug 2016). The passage of the GST bill would need approval by 2/3rd of the Parliament and will have to be ratified by half of the states. Given that the present government does not have majority in the Rajya Sabha, a lot depends on the ability of the government to bring other political parties to reach a consensus on the same. We do believe that the passage of the bill would be a huge positive in the process of simplification of the tax structure in the country and could over time have a positive impact on real GDP growth to the tune of ~1%, Monetary policy: Expect RBI to pause in June; possibility of 25bps further cut in 2HCY16 The Reserve Bank of India (RBI) is scheduled to meet on June 7, 2016 for its monetary policy review. We expect RBI to stay on hold in the policy review even while we do expect that the central bank has the room to cut rates by 25bps at-least in the H2CY16. At the moment, RBI is likely to focus on the possible outcome of the Federal Reserve meeting in June as well as monitor the progress of the monsoons and its impact on food inflation before embarking on any further rate cut. Recent rhetoric from the US Federal Reserve has raised the probability of a July Fed rate hike. RBI would continue to ensure that liquidity in the system moves gradually towards a neutral levels thereby incentivising banks to lower lending rates as their cost of borrowings comes down. There is a growing discussion around the extension of Dr Raghuram Rajan's term as RBI Governor which ends in Sep-16. While it is difficult for us to predict with 100% certainty whether or not he gets another terms as the RBI Governor, our base case assumption is that the Governor may get another term. Formation of the Monetary Policy Committee- a new paradigm in policy making The government introduced in this year's Finance Bill amendments to the Reserve Bank of India Act. Under these amendments, the RBI will have an inflation target and will set monetary policy through a Monetary Policy Committee. The committee comprises six members, with three appointed by the Reserve Bank of India (RBI), and the remaining nominated by the central government through an external selection committee. The RBI Governor will have the casting vote in case of a tie. The MPC was set up consequent to the agreement reached between Government and RBI to task RBI with the responsibility for price stability and inflation targeting. Under the Monetary Policy Framework Agreement, the RBI will be responsible for containing inflation targets at 4% (with a standard deviation of 2%) in the medium term. Under Section 45ZA(1) of the RBI Act, 1934, the Central Government determines the inflation target in terms of the Consumer Price Index, once in every five years in consultation with the RBI. Though the central bank already had a monetary framework and was implementing the monetary policy, the newly designed statutory framework would mean that the RBI would have to give an explanation in the form of a report to the Central Government, if it failed to reach the specified inflation targets. It shall, in the report, give reasons for failure, remedial actions as well as estimated time within which the inflation target shall be achieved FY16 real GDP growth led by consumption; we maintain FY17E GVA growth at 7.6% In line with the CSO's (Central Statistical Organisation) advance estimate, real GDP in India for FY16 grew at 7.6% and real GVA (Gross Value Added) grew 7.2% (Our estimates were at 7.3%). In Q4FY16, real GDP grew 7.9% while GVA growth was at 7.4% after downward revisions of ~20 bps in two previous quarters. Data does continue to suggest some improvement in growth trajectory in the economy even while the pace of improvement remains muted. We maintain our estimate for FY17E growth on a GVA basis at 7.6% and expect growth would continue to be led by higher consumption. Pick up in gross fixed capital formation remains muted and would be visible only over time. Better monsoons leading to higher agricultural growth and rural demand could provide an upside bias to our GDP estimates. FCNR (B) maturities in Sept Oct 2016 unlikely to exert significant pressure on currency Around USD26bn of FCNR(B) deposits collected in 2013 are due for redemption from Sep-Oct However, this time around it does appear that RBI is well prepared to meet the redemption pressures. In order to mitigate any currency or liquidity risk on account of the FCNR (B) redemption, the RBI has taken the following steps: The RBI has been accumulating long-usd positions in its forward book. These positions largely offset the upcoming maturities The macro impact will depend on what proportion of these deposits is rolled over. We expect only a very small portion to be rolled-over since a large chunk of the inflows were leveraged funds. This could increase the pressure on the balance of payments during these months, but we do not see any sustained balance of payments stress. For banks, we estimate that deposit growth could slow marginally pushing up the credit-deposit ratio. There should be no impact on banks' statutory liquidity ratio (SLR) requirements as these deposits were exempt from the cash reserve ratio/slr requirement. In aggregate, we expect a limited impact on USD/INR. We maintain our view of the INR/USD depreciating mildly in FY17 and expect the INR/USD to trade in the range of in Fy17 and average 68 in FY17 (Average of 65.5 in Fy16) DTAA amendment provides certainty and clarity to the issue of capital gains taxation; provides time before full tax rates are applicable A protocol for amending the convention for the avoidance of double taxation with respect to taxes on capital gains between India and Mauritius was signed this month. This would end the three decade old Double Taxation Avoidance Agreement (DTAA) with Mauritius. With this amendment, India gets taxation rights on capital gains arising from sale shares acquired in a company resident in India on or after April1, This would however not be applicable on shares acquired before April 1, Further, during the transition period spanning FY18-19, the tax rate would be limited to 50% of the domestic tax rate subject to eligibility. Taxation at full domestic tax rates would be applicable only from FY20. The government has also clarified that the General Anti Avoidance rule (GAAR) will come into force from April 1, The amendment only changes the taxation landscape for short term investors (holding period of less than 12 months). Further, it does now provide significant clarity and certainty to the issue of taxation of capital gains and appears fair given that allows for a grandfathering provision and there is no taxation on a retrospective basis Key Variables Short - term Economy Corporate Earnings FII Flow DII Flow Supply of paper Medium - term Remarks Improving growth, falling inflation Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY17) India stands out among global asset classes, with faster EPS growth & improving macro-economic variables, however it is over-owned by FII and any near-term riskoff environment like Fed rate hike impacts Indian flows Focus on improving financial savings of households er disinvestment target and repair of leveraged balance sheet to create supply in markets Interest Rates Policy/Reform Initiative Fall in interest rates to help revive demand and reduce stress for companies with significant debt. Market expecting better transmission of rates. GST is key reform for government to focus on; if it gets passed, can provide a significant fillip 2

4 DEBT VIEW Items May-16 Apr-16 Change Reverse Repo 6.00% 6.00% Nil Repo 6.50% 6.50% Nil CRR 4% 4% Nil SLR 21.25% 21.25% Nil Mibor Overnight 6.54% 6.57% -3 bps Call(O/N) 6.40% 6.55% -15 bps CBLO 6.45% 5.37% 108 bps 1 yr T Bill 6.93% 6.88% 5 bps 10 G Sec 7.47% 7.44% -3 bps 5 Year AAA 8.04% 8.08% -4 bps USD/INR paise Source: RBI; ICRAonline. Key Events: India's GDP grew at a robust 7.9% in the fourth quarter of the financial year gone by as against 7.2% (revised from 7.3% earlier) in Q3 of FY16, thereby making it the fastest growing economy in the world. CPI inflation firmed up substantially to 5.39% in April 2016 from 4.8% in March 2016, driven mainly by food and beverages. India's WPI moved up into the positive zone at 0.34% for April, from (-)0.85% in March and (-)2.43% during the corresponding month of the previous year, after staying in negative zone for 17 straight months, mainly on the back of a rise in global commodity prices. India's trade deficit narrowed for the fourth straight month in April to 4.84 billion, as plunging imports offset a fall in exports. Imports shrank an annual 23.10% yoy to billion in April month. Exports, meanwhile, dropped 6.74 % year-on-year to billion. Imports of oil as well as gold recorded steep falls during the month. Growth in industrial production plunged to 0.1 % in March due to poor performance of manufacturing and mining sectors coupled with a sharp decline in output of capital goods Oil prices inched up and closed at 49.69/barrel (3.24% MoM) on sentiments that global glut was slowly easing. Private weather forecaster Skymet predicted that monsoons (June-September) will remain 'above normal' and revised the benchmark Long Period Average (LPA) from 105 % to 109 % (error margin of +/-4%). According to IMD the monsoon rainfall over the country is expected to be 106% of the long period average (LPA). The Rajya Sabha had passed the Insolvency and Bankruptcy Code 2016, which is seen as a key reform that will encourage recovery of NPAs. The Nikkei India Manufacturing PMI fell from 52.4 in March to 50.5 in April. A stagnation in new orders and increase in input costs resulted in activity in the manufacturing sector declining to a 4-month low in April. The U.S. economy created 160,000 jobs in April, lower than market expectations, while the unemployment rate held steady at 5 %. Greece has agreed to a deal to unlock a further 10.3 billion in loans from its international creditors, after talks in Brussels. Eurozone finance ministers agreed on debt relief for Greece, lengthening the repayment term and capping interest rates. Debt Outlook In the near term we expect market (10 year G Sec) to be range bound by 5-10 bps. We believe the positives (good monsoon, inflation trending downward, GST ) far outweigh the negatives (potential fed rate hike, temporary spike in inflation, uncertainty on account of FCNR rollover) There is possibility of bps repo rate cut in rest of FY 17 if Inflation remains below RBI's target range of 5 % In addition, the RBI's stated intention to reduce liquidity deficit to zero implies an OMO of around Rs lakh crore in FY 17 ( YTD Rs 70,000 Crore OMOs done ) which is positive for bonds. For above stated reasons, we believe that the 10 year gilt may trend downward and hover in the range of % over next 6 months The near term yield curve (less than 2 yr maturities) has steepened. We expect RBI to cut policy rates post good monsoon and provide appropriate liquidity in FY 17 this may lead to flattening of yield curve. Key variables & their impact on interest rates: Key Variables Inflation Rupee Credit Demand Government Borrowing Short - term (3-6 month) Medium term (6month 2 years) RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Liquidity Denotes fall in interest rates 3 3

5 GOLD VIEW The rally witnessed in gold this year has come to a halt. Gold shed around 6 percent in May, its biggest decline in six months. Gold was rallying earlier on the expectation that US Fed would be more circumspect about the rate hike. This led to rally in the dollar backed assets and a consequent fall in gold. Gold prices fell to a near four-month low at the start of this week after hitting a 15-month high at the start of May. The major factor pressuring them has of course been those heightened expectations of a US interest rate hike. Data showed U.S. manufacturing activity expanded for a third straight month in May, but growth in new orders slowed further as factories grappled with sluggish overseas demand and weak capital spending in the energy sector. There is increasing expectation that there will be a (U.S.) rate hike by July and that has weighed on sentiment. er U.S. rates would raise the opportunity cost of holding gold, and lift the dollar, making gold more expensive for buyers in other currencies. The U.S. dollar hit its lowest level in two weeks against the yen but pared losses against the euro, yen, and Swiss franc after the U.S. manufacturing data. 4

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) AAUM as on May 31, 2016: `1, AUM (` In Crores) AUM as on May 31, 2016: `1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 39.72% Beta: 1.05 ## Sharpe : 0.59 Standard Deviation : 16.59% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.19% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.95 Infosys Ltd. Software 8.64 ICICI Bank Ltd. Banks 4.89 IndusInd Bank Ltd. Banks 4.49 Reliance Industries Ltd. Petroleum Products 4.12 Larsen And Toubro Ltd. Construction Project 4.08 ITC Ltd. Consumer Non Durables 4.05 Axis Bank Ltd Banks 3.76 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.52 Maruti Suzuki India Limited Auto 3.40 Tata Consultancy Services Ltd. Software 2.41 HDFC Ltd. Finance 2.32 Tata Motors Ltd - DVR Auto 2.22 Mahindra & Mahindra Ltd. Auto 2.10 Ultratech Cement Ltd. Cement 2.06 HCL Technologies Ltd. Software 1.99 Bharat Petroleum Corporation Ltd. Petroleum Products 1.87 Hero MotoCorp Ltd. Auto 1.85 Shree Cement Ltd. Cement 1.51 The Ramco Cements Ltd Cement 1.43 Power Grid Corporation Of India Ltd Power 1.41 Britannia Industries Ltd. Consumer Non Durables 1.39 Lupin Ltd. Pharmaceuticals 1.35 Grasim Industries Ltd. Cement 1.34 State Bank Of India Banks 1.23 Nestle India Ltd. Consumer Non Durables 1.16 Equitas Holdings Ltd Finance 1.15 Asian Paints Ltd. Consumer Non Durables 1.14 Kajaria Ceramics Ltd. Construction 1.14 MRF Limited Auto Ancillaries 1.12 Jubilant Foodworks Limited Consumer Non Durables 1.11 Persistent Systems Limited Software 1.09 Tech Mahindra Ltd. Software 1.04 Cadila Healthcare Ltd. Pharmaceuticals 1.03 Siemens Ltd. Industrial Capital Goods 1.02 Indraprastha Gas Ltd. Gas 0.95 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.93 Supreme Industries Limited Industrial Products 0.89 Sanofi India Ltd. Pharmaceuticals 0.83 Alstom India Limited Industrial Capital Goods 0.81 Bharat Electronics Ltd Industrial Capital Goods 0.77 Dabur India Ltd Consumer Non Durables 0.71 DB Corp Limited Media and Entertainment 0.68 Bank Of Baroda Banks 0.66 Adani Port and Special Economic Zone Limited Transportation 0.59 Bharat Forge Ltd. Industrial Products 0.54 Fag Bearings India Ltd. Industrial Products 0.49 HDFC Ltd. Warrants Finance 0.37 DR.Lal Pathlabs Ltd Healthcare Services 0.31 Listed/Awaiting Listing on Stock Exchange - Total Futures ITC Ltd.-JUN Tata Motors Ltd - DVR-JUN Futures (Market value represents Notional Value) - Total 0.68 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 1.15 Collateral Borrowing & Lending obligation 2.08 Net Current /(Liabilities) Inception : - December 29, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak 50 NAV as on May 31, 2016: ` (Dividend Option), `35.739(Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Construction Project Petroleum Products Finance CBLO & Term Deposits & Rev.Repo Others 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,080, , , ,048 1,274,163 2,129,545 12,152, , , ,998 1,110,053 1,825,804 6,932, , , ,196 1,093,213 1,787,924 7,009, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 5 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) AAUM as on May 31, 2016: `99.42 AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.87 ## Sharpe : 0.50 Standard Deviation : 14.15% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.70% Direct: 1.19% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 6.97 HDFC Bank Ltd. Banks 5.90 Reliance Industries Ltd. Petroleum Products 5 Grasim Industries Ltd. Cement 4.05 Bharat Petroleum Corporation Ltd. Petroleum Products 3.45 Asian Paints Ltd. Consumer Non Durables 3.43 Hero MotoCorp Ltd. Auto 3.21 Zee Entertainment Enterprises Ltd Media and Entertainment 2.88 Hindustan Unilever Ltd. Consumer Non Durables 2.63 Ultratech Cement Ltd. Cement 2.46 Tata Motors Ltd. Auto 2.41 Bajaj Auto Ltd. Auto 1.84 Eicher Motors Ltd Auto 1.74 Bajaj Finance Limited Finance 1.71 HDFC Ltd. Finance 1.57 Tata Consultancy Services Ltd. Software 1.54 Wipro Ltd. Software 1.49 Lupin Ltd. Pharmaceuticals 1.35 Power Grid Corporation Of India Ltd Power 1.25 Petronet LNG Ltd. Gas 1.21 Axis Bank Ltd Banks 1.10 ITC Ltd. Consumer Non Durables 1.04 GAIL (India) Ltd. Gas 1.01 Dr Reddys Laboratories Ltd Pharmaceuticals 0.90 Mahindra & Mahindra Ltd. Auto 0.90 DR.Lal Pathlabs Ltd Healthcare Services 0.89 HDFC Ltd. Warrants Finance 0.88 JSW Steel Ltd. Ferrous Metals 0.86 Tata Steel Limited. Ferrous Metals 0.79 Britannia Industries Ltd. Consumer Non Durables 0.77 HCL Technologies Ltd. Software 0.73 National Thermal Power Corporation Limited Power 0.71 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.70 IndusInd Bank Ltd. Banks 0.68 Marico Ltd. Consumer Non Durables 0.68 Ashok Leyland Ltd. Auto 0.62 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Alkem Laboratories Ltd Pharmaceuticals 0.61 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.60 Equitas Holdings Ltd Finance 0.58 Larsen And Toubro Ltd. Construction Project 0.56 Divi s Laboratories Limited Pharmaceuticals 0.53 Bajaj Finserv Ltd. Finance 0.52 Bharti Airtel Ltd. Telecom - Services 0.37 Bosch Limited Auto Ancillaries 0.30 Ujjivan Financial Services Ltd Finance 0.30 Aurobindo Pharma Ltd. Pharmaceuticals 0.24 Ambuja Cements Ltd Cement 0.23 TVS Motors Company Ltd Auto 0.21 Cummins India Ltd. Industrial Products 0.16 Oracle Financial Services Software Ltd Software 0.16 Thyrocare Technologies Ltd Pharmaceuticals 0.16 Titan Company Ltd. Consumer Durables 0.16 Godrej Consumer Products Ltd. Consumer Non Durables 0.04 ICICI Bank Ltd. Banks 0.02 Maruti Suzuki India Limited Auto 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Mutual Fund Units - Total Futures CNX NIFTY-JUN ITC Ltd.-JUN IndusInd Bank Ltd.-JUN Yes Bank Ltd-JUN Maruti Suzuki India Limited-JUN ICICI Bank Ltd.-JUN Bajaj Auto Ltd.-JUN Larsen And Toubro Ltd.-JUN Futures (Market value represents Notional Value) -Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 5.26 Collateral Borrowing & Lending obligation 6.94 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,290, , , ,643 1,206,498 2,034,785 2,301, , , ,958 1,140,909 1,893,325 2,167, , , ,998 1,110,053 1,825,804 2,092, Inception : - July 27,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Classic Equity NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Cement Consumer Non Durables Mutual Fund Units Derivatives Petroleum Products Others CBLO&Term Deposits&Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 22.94% Beta: 0.96 ## Sharpe :0.77 Standard Deviation :15.80% Source: ICRA MFI Explorer. ##Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.37% Direct: 1.19% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 6.65 HDFC Bank Ltd. Banks 5.36 Bajaj Finance Limited Finance 4.04 Hero MotoCorp Ltd. Auto 3.39 Shree Cement Ltd. Cement 3.19 Larsen And Toubro Ltd. Construction Project 3.02 Axis Bank Ltd Banks 2.99 ICICI Bank Ltd. Banks 2.84 Maruti Suzuki India Limited Auto 2.84 Hindustan Petroleum Corporation Ltd Petroleum Products 2.66 Bharat Petroleum Corporation Ltd. Petroleum Products 2.54 IndusInd Bank Ltd. Banks 2.49 UPL Ltd Pesticides 2.44 Ultratech Cement Ltd. Cement 2.42 Reliance Industries Ltd. Petroleum Products 2.29 State Bank Of India Banks 2.24 Tech Mahindra Ltd. Software 2.01 Tata Motors Ltd. Auto 1.99 Britannia Industries Ltd. Consumer Non Durables 1.95 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.93 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.92 The Ramco Cements Ltd Cement 1.68 Indraprastha Gas Ltd. Gas 1.60 Petronet LNG Ltd. Gas 1.59 Dalmia Bharat Ltd Cement 1.54 HCL Technologies Ltd. Software 1.52 ITC Ltd. Consumer Non Durables 1.44 MRF Limited Auto Ancillaries 1.38 Ashok Leyland Ltd. Auto 1.34 Lupin Ltd. Pharmaceuticals 1.32 Max Financial Services Ltd. Finance 1.24 Arvind Ltd Textile Products 1.23 Persistent Systems Limited Software 1.21 Multi Commodity Exchange of India Limited Finance 1.18 Va Tech Wabag Limited Engineering Services 1.18 Healthcare Global Enterprises Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - September 09, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Opportunities NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement Industrial Products Construction Project * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,390, , , ,459 1,334,306 2,281,954 3,311, , , ,407 1,152,523 1,884,147 2,527, , , ,998 1,110,020 1,825,771 2,493, Ltd Healthcare Services 1.14 Mahindra & Mahindra Ltd. Auto 1.08 Fag Bearings India Ltd. Industrial Products 1.03 Bank Of Baroda Banks 0.98 Container Corporation of India Ltd. Transportation 0.98 AIA Engineering Limited Industrial Capital Goods 0.96 DR.Lal Pathlabs Ltd Healthcare Services 0.96 Whirlpool of India Ltd. Consumer Durables 0.96 Cummins India Ltd. Industrial Products 0.87 JK Cement Ltd. Cement 0.87 CESC Ltd. Power 0.82 National Buildings Construction Corporation Limited Construction 0.76 Techno Electric & Engineering Co Ltd. Construction Project 0.74 Federal Bank Ltd. Banks 0.72 Equitas Holdings Ltd Finance 0.66 Prestige Estates Projects Limited Construction 0.63 MBL Infrastructures Ltd. Construction 0.60 D-Link (India) Ltd Hardware 0.54 HDFC Ltd. Warrants Finance 0.54 Bharat Forge Ltd. Industrial Products 0.52 SKF India Ltd Industrial Products 0.51 Swaraj Engines Ltd Industrial Products 0.45 Max India Limited Healthcare Services % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Max Ventures and Industries Limited Industrial Products 0.01 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.48 Collateral Borrowing & Lending obligation 1.28 Net Current /(Liabilities) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) AAUM as on May 31, 2016: `4, AUM (` In Crores) AUM as on May 31, 2016: `4, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 23.40% Beta: 1.00 ## Sharpe : 0.89 Standard Deviation : 16.30% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.02% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.06 Infosys Ltd. Software 5.54 Reliance Industries Ltd. Petroleum Products 5.06 Ultratech Cement Ltd. Cement 4.26 The Ramco Cements Ltd Cement 3.74 Hero MotoCorp Ltd. Auto 3.60 IndusInd Bank Ltd. Banks 3.38 Axis Bank Ltd Banks 3.27 Shree Cement Ltd. Cement 3.19 Larsen And Toubro Ltd. Construction Project 2.99 Maruti Suzuki India Limited Auto 2.75 Hindustan Petroleum Corporation Ltd Petroleum Products 2.54 Bajaj Finance Limited Finance 2.33 Britannia Industries Ltd. Consumer Non Durables 2.26 Bharat Electronics Ltd Industrial Capital Goods 2.18 Petronet LNG Ltd. Gas 2.14 ICICI Bank Ltd. Banks 2.13 Tata Motors Ltd. Auto 2.03 Indraprastha Gas Ltd. Gas 2.01 Max Financial Services Ltd. Finance 1.95 Bharat Petroleum Corporation Ltd. Petroleum Products 1.87 State Bank Of India Banks 1.80 HCL Technologies Ltd. Software 1.72 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.69 Ashok Leyland Ltd. Auto 1.66 Arvind Ltd Textile Products 1.60 Godrej Consumer Products Ltd. Consumer Non Durables 1.57 Lupin Ltd. Pharmaceuticals 1.48 Equitas Holdings Ltd Finance 1.47 Container Corporation of India Ltd. Transportation 1.31 MRF Limited Auto Ancillaries 1.27 ITC Ltd. Consumer Non Durables 1.26 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) SYSTEMATIC INVESTMENT PLAN (SIP) Tech Mahindra Ltd. Software 1.16 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.14 Cadila Healthcare Ltd. Pharmaceuticals 0.97 Bajaj Finserv Ltd. Finance 0.96 Jk Lakshmi Cement Ltd. Cement 0.92 Federal Bank Ltd. Banks 0.89 Solar Industries India Limited Chemicals 0.83 Techno Electric & Engineering Co Ltd. Construction Project 0.81 Bank Of Baroda Banks 0.76 AIA Engineering Limited Industrial Capital Goods 0.70 Kec International Ltd. Power 0.64 Max India Limited Healthcare Services 0.56 Navkar Corporation Limited Transportation 0.55 Whirlpool of India Ltd. Consumer Durables 0.45 HDFC Ltd. Warrants Finance 0.34 CESC Ltd. Power 0.32 Kirloskar Oil Engines Ltd. Industrial Products 0.23 Bayer Cropscience Ltd. Pesticides 0.22 IFB Industries Ltd. Consumer Durables 0.22 Max Ventures and Industries Limited Industrial Products Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.02 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.53 Collateral Borrowing & Lending obligation 5.44 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) Inception : - September 11, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Select Focus Fund NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Gas Auto Pharmaceuticals Finance Consumer Non Durables Cement CBLO & Term Deposits & Rev.Repo Others 1 year 3 years 5 years Since Inception 120, , , , , , ,364 1,303, , , ,196 1,033, , , ,998 1,011, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 19.56% Beta: 1.06 ## Sharpe : 0.63 Standard Deviation : 17.57% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.41 Infosys Ltd. Software 6.28 Reliance Industries Ltd. Petroleum Products 4.16 Bajaj Finance Limited Finance 3.50 Shree Cement Ltd. Cement 3.30 IndusInd Bank Ltd. Banks 3.24 ITC Ltd. Consumer Non Durables 3.20 Axis Bank Ltd Banks 3.19 Whirlpool of India Ltd. Consumer Durables 3.18 ICICI Bank Ltd. Banks 2.95 Hero MotoCorp Ltd. Auto 2.92 Ultratech Cement Ltd. Cement 2.71 Maruti Suzuki India Limited Auto 2.62 Bharat Petroleum Corporation Ltd. Petroleum Products 2.57 Britannia Industries Ltd. Consumer Non Durables 2.55 State Bank Of India Banks 2.34 Hindustan Petroleum Corporation Ltd Petroleum Products 2.28 Tech Mahindra Ltd. Software 2.27 Larsen And Toubro Ltd. Construction Project 2.16 Tata Motors Ltd. Auto 2.03 SKF India Ltd Industrial Products 1.87 Techno Electric & Engineering Co Ltd. Construction Project 1.71 Ashok Leyland Ltd. Auto 1.60 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.60 Lupin Ltd. Pharmaceuticals 1.55 The Ramco Cements Ltd Cement 1.55 UPL Ltd Pesticides 1.50 Solar Industries India Limited Chemicals 1.48 MRF Limited Auto Ancillaries 1.42 Cadila Healthcare Ltd. Pharmaceuticals 1.41 Arvind Ltd Textile Products 1.34 HCL Technologies Ltd. Software 1.24 Dalmia Bharat Ltd Cement 1.23 Container Corporation of India Ltd. Transportation 1.21 Multi Commodity Exchange of India Limited Finance 1.21 Bank Of Baroda Banks 1.12 Federal Bank Ltd. Banks 1.10 SRF Ltd. Textile Products 1.09 Max Financial Services Ltd. Finance 1.01 AIA Engineering Limited Industrial Capital Goods 0.99 Blue Dart Express Ltd. Transportation 0.97 Cummins India Ltd. Industrial Products 0.92 Navneet Education Ltd. Media and Entertainment 0.91 Thermax Ltd. Industrial Capital Goods 0.84 Hawkins Cooker Ltd Household Appliances 0.81 Bharat Forge Ltd. Industrial Products 0.79 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 0.69 MBL Infrastructures Ltd. Construction 0.63 KSB Pump Ltd Industrial Products 0.56 Kewal Kiran Clothing Limited. Textile Products 0.45 Max India Limited Healthcare Services Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Max Ventures and Industries Limited Industrial Products 0.02 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.03 Corporate Debt/Financial Institutions - Total 0.03 Collateral Borrowing & Lending obligation 1.10 Net Current /(Liabilities) Initial Investment: `500 and in multiple of `500 Investment: `500 & in multiples of `500 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Exit Load is not applicable for Kotak Tax Saver. (applicable for all plans) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.47% Direct: 1.20% 9 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - November 23, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Tax Saver NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Pharmaceuticals Consumer Non Durables Petroleum Products Cement Finance Construction Project Industrial Products Others * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,250, , , ,412 1,271,431 2,041,971 2,176, , , ,407 1,152,644 1,884,267 2,015, , , ,998 1,110,053 1,825,804 1,962, Auto Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover:50.74% Beta: 1.03 ## Sharpe : 0.97 Standard Deviation : 19.92% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.52% Direct: 1.20% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Finolex Cables Ltd. Industrial Products 3.50 The Ramco Cements Ltd Cement 3.38 Whirlpool of India Ltd. Consumer Durables 3.03 Persistent Systems Limited Software 2.94 Techno Electric & Engineering Co Ltd. Construction Project 2.83 DB Corp Limited Media and Entertainment 2.77 Fag Bearings India Ltd. Industrial Products 2.69 IndusInd Bank Ltd. Banks 2.48 Solar Industries India Limited Chemicals 2.45 ICICI Bank Ltd. Banks 2.41 Federal Bank Ltd. Banks 2.35 Hindustan Petroleum Corporation Ltd Petroleum Products 2.16 Hawkins Cooker Ltd Household Appliances 2.15 Kewal Kiran Clothing Limited. Textile Products 2.12 Strides Arcolab Ltd. Pharmaceuticals 2.08 Va Tech Wabag Limited Engineering Services 2.07 SRF Ltd. Textile Products 2.05 Mahindra & Mahindra Financial Services Ltd. Finance 1.95 Divi s Laboratories Limited Pharmaceuticals 1.93 Motherson Sumi Systems Ltd. Auto Ancillaries 1.91 JK Cement Ltd. Cement 1.81 Atul Ltd. Chemicals 1.70 Thermax Ltd. Industrial Capital Goods 1.66 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.63 Britannia Industries Ltd. Consumer Non Durables 1.61 Arvind Ltd Textile Products 1.60 Bharat Forge Ltd. Industrial Products 1.57 MRF Limited Auto Ancillaries 1.54 Axis Bank Ltd Banks 1.51 HSIL Ltd. Consumer Durables 1.51 Jubilant Foodworks Limited Consumer Non Durables 1.47 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) NIIT Technologies Ltd Software 1.43 Havells India Ltd. Consumer Durables 1.39 Pennar Engineered Building Systems Limited Ferrous Metals 1.39 Jk Lakshmi Cement Ltd. Cement 1.33 Voltas Ltd. Construction Project 1.33 PVR Ltd. Media and Entertainment 1.28 Shriram Transport Finance Co Ltd. Finance 1.26 Bajaj Finance Limited Finance 1.23 Cadila Healthcare Ltd. Pharmaceuticals 1.20 Adani Port and Special Economic Zone Limited Transportation 1.16 Sundaram Finance Ltd. Finance 1.16 Navneet Education Ltd. Media and Entertainment 1.13 Zuari Agro Chemicals Ltd Fertilisers 1.10 UPL Ltd Pesticides 1.09 Kansai Nerolac Paints Ltd Consumer Non Durables 1.08 Bharat Petroleum Corporation Ltd. Petroleum Products 1.05 Alkem Laboratories Ltd Pharmaceuticals 1 Tech Mahindra Ltd. Software 0.93 WPIL Ltd Industrial Products 0.90 Power Mech Projects Ltd Power 0.89 Balrampur Chini Mills Ltd Consumer Non Durables 0.83 SKF India Ltd Industrial Products 0.82 Bank Of Baroda Banks 0.77 Supreme Industries Limited Industrial Products 0.60 Union Bank Of India Banks 0.19 Thyrocare Technologies Ltd Pharmaceuticals 0.12 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 6.24 Net Current /(Liabilities) 0.24 Inception : - February 24,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Mid-cap NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Cement Banks Others Pharmaceuticals CBLO & Term Deposits & Rev.Repo Textile Products Finance Consumer Durables Media & Entertainment Software Industrial Products Midcap and Small cap stocks as a % age of Net : 78.40% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,340, , ,467 1,012,638 1,624,092 2,672,052 3,259, , , ,488 1,315,004 2,222,148 2,741, , , ,998 1,110,053 1,825,804 2,284, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 46.48% Beta: 1.00 ## Sharpe :1.13 Standard Deviation : 19.69% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.30% Direct: 1.08% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) V-Guard Industries Ltd. Industrial Capital Goods 3.98 Whirlpool of India Ltd. Consumer Durables 3.80 The Ramco Cements Ltd Cement 3.69 Finolex Cables Ltd. Industrial Products 3.49 Persistent Systems Limited Software 2.84 Solar Industries India Limited Chemicals 2.77 Fag Bearings India Ltd. Industrial Products 2.65 IndusInd Bank Ltd. Banks 2.59 DB Corp Limited Media and Entertainment 2.46 SRF Ltd. Textile Products 2.39 Federal Bank Ltd. Banks 2.29 Hawkins Cooker Ltd Household Appliances 2.27 Strides Arcolab Ltd. Pharmaceuticals 2.22 ICICI Bank Ltd. Banks 2.20 Mahindra & Mahindra Financial Services Ltd. Finance 2.14 Motherson Sumi Systems Ltd. Auto Ancillaries 2.06 Kewal Kiran Clothing Limited. Textile Products 2.02 PVR Ltd. Media and Entertainment 1.97 Atul Ltd. Chemicals 1.94 Va Tech Wabag Limited Engineering Services 1.86 Jk Lakshmi Cement Ltd. Cement 1.80 Shriram City Union Finance Ltd. Finance 1.73 Navneet Education Ltd. Media and Entertainment 1.72 Sundaram Finance Ltd. Finance 1.53 Jubilant Foodworks Limited Consumer Non Durables 1.52 Divi s Laboratories Limited Pharmaceuticals 1.51 Finolex Industries Ltd. Industrial Products 1.51 PNC INFRATECH LIMITED Construction Project 1.49 Pennar Engineered Building Systems Limited Ferrous Metals 1.47 Indraprastha Gas Ltd. Gas 1.45 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.44 Carborundum Universal Ltd. Industrial Products 1.43 Ramkrishna Forgings Ltd. Industrial Products 1.43 SKF India Ltd Industrial Products 1.41 Britannia Industries Ltd. Consumer Non Durables 1.33 Axis Bank Ltd Banks 1.29 Bajaj Finance Limited Finance 1.28 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) D-Link (India) Ltd Hardware 1.27 Alkem Laboratories Ltd Pharmaceuticals 1.21 Greaves Cotton Ltd. Industrial Products 1.14 KPIT Technologies LImited Software 1.13 Equitas Holdings Ltd Finance 1.12 Maharashtra Seamless Ltd. Ferrous Metals 1.09 Power Mech Projects Ltd Power 1.08 Max Financial Services Ltd. Finance 1.04 Zuari Agro Chemicals Ltd Fertilisers 1.02 Oberoi Realty Ltd Construction 1.01 Coromandel International Ltd. Fertilisers 1 WPIL Ltd Industrial Products 0.93 GMM Pfaudler Ltd. Engineering 0.81 Supreme Industries Limited Industrial Products 0.79 IDFC Bank Limited Banks 0.72 Kec International Ltd. Power 0.69 Kirloskar Brothers Ltd. Industrial Products 0.64 Engineers India Ltd. Construction Project 0.63 Multi Commodity Exchange of India Limited Finance 0.62 IFB Industries Ltd. Consumer Durables 0.51 Bank Of Baroda Banks 0.50 Blue Dart Express Ltd. Transportation 0.49 Max India Limited Healthcare Services 0.31 Max Ventures and Industries Limited Industrial Products 0.01 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.29 Collateral Borrowing & Lending obligation 4.34 Net Current /(Liabilities) Inception : - March 30, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Emerging Equity NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), `27.461(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Pharmaceuticals Banks Consumer Durables Finance Cement Media and Entertainment CBLO & Term Deposits & Rev.Repo Chemicals Textile Products Others Midcap and Small cap stocks as a % age of Net : 87.30% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years Since Inception 120, , , ,000 1,090, , ,415 1,058,886 1,669,231 2,354, , , ,064 1,264,267 1,800, , , ,998 1,110,053 1,584, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. There is no assurance that the investment objective of the will be achieved. However, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover:51.25% Beta: 1.16 ## Sharpe : 0.78 Standard Deviation : 21.60% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.63% Direct: 1.16% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 7.92 Ultratech Cement Ltd. Cement 7.17 Larsen And Toubro Ltd. Construction Project 7.03 SKF India Ltd Industrial Products 5.90 Indraprastha Gas Ltd. Gas 5.81 Bharti Airtel Ltd. Telecom - Services 5.42 Thermax Ltd. Industrial Capital Goods 5.13 Kirloskar Oil Engines Ltd. Industrial Products 5.07 KSB Pump Ltd Industrial Products 4.63 Fag Bearings India Ltd. Industrial Products 4.23 Supreme Industries Limited Industrial Products 3.65 Container Corporation of India Ltd. Transportation 3.23 Power Grid Corporation Of India Ltd Power 3.16 Cummins India Ltd. Industrial Products 3.09 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Gateway Distriparks Ltd. Transportation 3.02 Siemens Ltd. Industrial Capital Goods 2.96 Mahindra & Mahindra Financial Services Ltd. Finance 2.89 AIA Engineering Limited Industrial Capital Goods 2.84 MRF Limited Auto Ancillaries 2.25 Adani Port and Special Economic Zone Limited Transportation 2.22 Kajaria Ceramics Ltd. Construction 2.13 Solar Industries India Limited Chemicals 2.12 Gujarat Gas Company Ltd Gas 1.70 CESC Ltd. Power 1.15 Bharat Electronics Ltd Industrial Capital Goods 1.10 Grasim Industries Ltd. Cement 1.10 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 3.82 Net Current /(Liabilities) Inception : - February 25, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Infrastructure & Economic Reform Fund NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project CBLO & Term Deposits & Rev.Repo Finance Others 1 year 3 years 5 years 7 years Since Inception 120, , , , , , , ,173 1,334,163 1,674, , , ,955 1,113,922 1,408, , , ,998 1,110,053 1,399, Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 49.10% Beta: 1.06 ## Sharpe : 0.47 Standard Deviation : 11.77% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.55% Direct: 1.25% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 4.31 HDFC Bank Ltd. Banks 4.23 ICICI Bank Ltd. Banks 4.03 Larsen And Toubro Ltd. Construction Project 2.93 Maruti Suzuki India Limited Auto 2.57 IndusInd Bank Ltd. Banks 2.18 Axis Bank Ltd Banks 2.07 Reliance Industries Ltd. Petroleum Products 1.99 ITC Ltd. Consumer Non Durables 1.93 Whirlpool of India Ltd. Consumer Durables 1.93 The Ramco Cements Ltd Cement 1.92 Tata Motors Ltd. Auto 1.91 Finolex Cables Ltd. Industrial Products 1.60 Solar Industries India Limited Chemicals 1.60 SRF Ltd. Textile Products 1.59 Mahindra & Mahindra Ltd. Auto 1.52 HDFC Ltd. Finance 1.51 JK Cement Ltd. Cement 1.40 Ultratech Cement Ltd. Cement 1.36 Tata Consultancy Services Ltd. Software 1.34 Va Tech Wabag Limited Engineering Services 1.33 Hindustan Petroleum Corporation Ltd Petroleum Products 1.26 Fag Bearings India Ltd. Industrial Products 1.23 HCL Technologies Ltd. Software 1.17 State Bank Of India Banks 1.14 DB Corp Limited Media and Entertainment 1.11 Motherson Sumi Systems Ltd. Auto Ancillaries 1.06 Engineers India Ltd. Construction Project 1 Ramkrishna Forgings Ltd. Industrial Products 0.93 Strides Arcolab Ltd. Pharmaceuticals 0.92 Mahindra & Mahindra Financial Services Ltd. Finance 0.90 Thermax Ltd. Industrial Capital Goods 0.88 Navkar Corporation Limited Transportation 0.82 UPL Ltd Pesticides 0.82 Oil & Natural Gas Corporation Ltd. Oil 0.80 Adani Port and Special Economic Zone Limited Transportation 0.79 Jubilant Foodworks Limited Consumer Non Durables 0.77 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Cement Banks Software Finance Government Dated Securities Petroleum Products Auto Industrial Products Construction Project Others Consumer Non Durables SYSTEMATIC INVESTMENT PLAN (SIP) Havells India Ltd. Consumer Durables 0.75 Equitas Holdings Ltd Finance 0.74 Voltas Ltd. Construction Project 0.70 Bharat Forge Ltd. Industrial Products 0.67 HDFC Ltd. Warrants Finance 0.66 Coal India Ltd. Minerals/Mining 0.60 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.58 Pennar Engineered Building Systems Limited Ferrous Metals 0.54 Bank Of Baroda Banks 0.50 Federal Bank Ltd. Banks 0.49 Arvind Ltd Textile Products 0.48 Balrampur Chini Mills Ltd Consumer Non Durables 0.47 Tech Mahindra Ltd. Software 0.45 Lupin Ltd. Pharmaceuticals 0.44 IDFC Bank Limited Banks 0.40 Thyrocare Technologies Ltd Pharmaceuticals 0.22 Divi s Laboratories Limited Pharmaceuticals 0.20 The Indian Hotels Company Ltd. Hotels 0.05 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.19 Tata Sons Ltd. CRISIL AAA 0.08 Corporate Debt/Financial Institutions - Total 0.27 Public Sector Undertakings Bank of India ICRA AA Public Sector Undertakings - Total 0.34 Government Dated Securities 7.59% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 0.03 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.86 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Inception : - November 25,1999. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Balance NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,970, , , ,821 1,138,152 1,882,343 7,037, , , ,944 1,132,882 1,871,004 NA NA 115, , ,998 1,110,053 1,825,804 6,137, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund AAUM (` In Crores) AAUM as on May 31, 2016: `4, AUM (` In Crores) AUM as on May 31, 2016: `4, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.72 ## Sharpe : 2.09 Standard Deviation : 0.61% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.54% (FBIL Overnight MIBOR rate as on 31st May 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including STP/SWP) within 90 days from the date of allotment of units, irrespective of the amount of investment: 0.50% II) For redemptions/switch outs (including STP/SWP) after 90 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans), (w.e.f. April 8, 2013) Regular: 1.10% Direct:0.60% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged HDFC Bank Ltd. Banks Aurobindo Pharma Ltd. Pharmaceuticals Shriram Transport Finance Co Ltd. Finance Indiabulls Housing Finance Ltd. Finance Reliance Industries Ltd. Petroleum Products Britannia Industries Ltd. Consumer Non Durables Adani Port and Special Economic Zone Limited Transportation United Spirits Ltd. Consumer Non Durables Coal India Ltd. Minerals/Mining Rural Electrification Corporation Ltd Finance Ashok Leyland Ltd. Auto Eicher Motors Ltd Auto Infosys Ltd. Software Cipla Ltd. Pharmaceuticals HCL Technologies Ltd. Software SKS Microfinance Limited Finance HDFC Ltd. Finance Power Finance Corporation Ltd. Finance Hindustan Petroleum Corporation Ltd Petroleum Products Reliance Infrastructure Ltd Power LIC Housing Finance Ltd. Finance IDFC Limited Finance UPL Ltd Pesticides 1-1 Reliance Capital Ltd. Finance Indian Oil Corporation Ltd Petroleum Products MRF Limited Auto Ancillaries L&T Finance Holdings Ltd Finance Castrol (India ) Ltd. Petroleum Products Reliance Power Ltd Power Adani Power Ltd Power Tech Mahindra Ltd. Software Lupin Ltd. Pharmaceuticals Oil & Natural Gas Corporation Ltd. Oil Bharat Petroleum Corporation Ltd. Petroleum Products Tata Motors Ltd - DVR Auto Tata Elxsi Ltd. Software Vedanta Ltd. Minerals/Mining Grasim Industries Ltd. Cement Reliance Communications Ltd. Telecom - Services Tata Global Beverages Limited Consumer Non Durables NCC Limited Construction Project Wipro Ltd. Software Sun Pharmaceuticals Industries Ltd. Pharmaceuticals TV18 Broadcast Ltd Media and Entertainment Housing Development and Infrastructure Limited Construction Tata Communications Ltd Telecom - Services Century Textiles & Industries Ltd. Cement India Cements Ltd. Cement IRB Infrastructure Developers Ltd Construction Asian Paints Ltd. Consumer Non Durables Cairn India Limited Oil Hindalco Industries Ltd Non - Ferrous Metals * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

16 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth 15 % to Net Derivatives Mahindra & Mahindra Ltd. Auto JSW Steel Ltd. Ferrous Metals Glenmark Pharmaceuticals Ltd Pharmaceuticals Karnataka Bank Ltd Banks Maruti Suzuki India Limited Auto Oracle Financial Services Software Ltd Software Mahindra & Mahindra Financial Services Ltd. Finance Tata Chemicals Ltd. Chemicals Dish TV India Ltd. Media and Entertainment Sun TV Limited. Media and Entertainment Pidilite Industries Ltd. Chemicals United Breweries Ltd. Consumer Non Durables CEAT Ltd. Auto Ancillaries ICICI Bank Ltd. Banks Bharat Earth Movers Ltd. Industrial Capital Goods Dewan Housing Finance Corporation Ltd. Finance Punjab National Bank Banks Bharti Infratel Ltd. Telecom - Equipment & Accessories Siemens Ltd. Industrial Capital Goods GMR Infrastructure Ltd. Construction Project Tata Consultancy Services Ltd. Software Amara Raja Batteries Ltd. Auto Ancillaries Kotak Mahindra Bank Ltd. Banks Zee Entertainment Enterprises Ltd Media and Entertainment Jain Irrigation Systems Ltd. Industrial Products Larsen And Toubro Ltd. Construction Project Dr Reddys Laboratories Ltd Pharmaceuticals DLF Limited Construction NHPC Limited Power Bosch Limited Auto Ancillaries Jindal Steel & Power Ltd. Ferrous Metals The South Indian Bank Ltd. Banks Aditya Birla Nuvo Limited Services Hexaware Technologies Ltd. Software IFCI Ltd. Finance Strides Arcolab Ltd. Pharmaceuticals Granules India Ltd. Pharmaceuticals Power Grid Corporation Of India Ltd Power Wockhardt Ltd. Pharmaceuticals Dabur India Ltd Consumer Non Durables Hindustan Unilever Ltd. Consumer Non Durables Indraprastha Gas Ltd. Gas Tata Power Co. Ltd. Power Torrent Pharmaceuticals Ltd. Pharmaceuticals State Bank Of India Banks Ultratech Cement Ltd. Cement Apollo Hospitals Enterprises Ltd. Healthcare Services Federal Bank Ltd. Banks Jet Airways (India) Ltd. Transportation Cadila Healthcare Ltd. Pharmaceuticals Indiabulls Real Estate Ltd Construction National Thermal Power Corporation Limited Power NMDC Ltd. Minerals/Mining Oriental Bank of Commerce Banks Axis Bank Ltd Banks

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives ITC Ltd. Consumer Non Durables Biocon Ltd. Pharmaceuticals Adani Enterprises Ltd Trading Ambuja Cements Ltd Cement Andhra Bank Banks Apollo Tyres Ltd. Auto Ancillaries Engineers India Ltd. Construction Project Oil India Limited Oil Yes Bank Ltd Banks Ajanta Pharma Ltd. Pharmaceuticals Indo Count Industries Ltd. Textiles - Cotton Godrej Consumer Products Ltd. Consumer Non Durables Jubilant Foodworks Limited Consumer Non Durables Kaveri Seed Company Ltd. Consumer Non Durables SRF Ltd. Textile Products KPIT Technologies LImited Software Marico Ltd. Consumer Non Durables Petronet LNG Ltd. Gas Tata Steel Limited. Ferrous Metals Bank Of Baroda Banks Bharat Heavy Electricals Ltd. Industrial Capital Goods Jaiprakash Associates Ltd Construction JSW Energy Ltd. Power Motherson Sumi Systems Ltd. Auto Ancillaries PTC India Ltd. Power Container Corporation of India Ltd. Transportation Crompton Greaves Ltd. Industrial Capital Goods GAIL (India) Ltd. Gas Godrej Industries Ltd Consumer Non Durables Hero MotoCorp Ltd. Auto IndusInd Bank Ltd. Banks Voltas Ltd. Construction Project Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Liquid Plan A Mutual Fund Units 6.66 Kotak Floater Short Term Direct Growth Mutual Fund Units 4.08 Mutual Fund Units - Total TERM DEPOSITS Kotak Mahindra Bank Ltd IndusInd Bank Ltd Ratnakar Bank Ltd 1.44 Term Deposits - Total Collateral Borrowing & Lending obligation 0.44 Net Current /(Liabilities) 2.32 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Banks Pharmaceuticals Finance Petroleum Products Power Consumer Non Durables Software Others Auto Mutual Fund Units Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Crisil Liquid Fund & 25% in Nifty 50 AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.60% Direct: 0.98% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge Infosys Ltd. Software 1.85 HDFC Bank Ltd. Banks 1.57 Reliance Industries Ltd. Petroleum Products 1.20 Grasim Industries Ltd. Cement 0.95 ITC Ltd. Consumer Non Durables 0.93 Bharat Petroleum Corporation Ltd. Petroleum Products 0.92 HDFC Ltd. Warrants Finance 0.90 Asian Paints Ltd. Consumer Non Durables 0.88 Hero MotoCorp Ltd. Auto 0.82 IndusInd Bank Ltd. Banks 0.82 Bajaj Auto Ltd. Auto 0.80 Maruti Suzuki India Limited Auto 0.80 Hindustan Unilever Ltd. Consumer Non Durables 0.72 Zee Entertainment Enterprises Ltd Media and Entertainment 0.72 Ultratech Cement Ltd. Cement 0.59 Lupin Ltd. Pharmaceuticals 0.56 Bajaj Finance Limited Finance 0.53 Tata Motors Ltd. Auto 0.51 Yes Bank Ltd Banks 0.49 Equitas Holdings Ltd Finance 0.48 Eicher Motors Ltd Auto 0.44 Power Grid Corporation Of India Ltd Power 0.39 Wipro Ltd. Software 0.38 Axis Bank Ltd Banks 0.36 ICICI Bank Ltd. Banks 0.35 Larsen And Toubro Ltd. Construction Project 0.34 Petronet LNG Ltd. Gas 0.31 Geometric Software Solutions Co Ltd Software 0.30 Tata Consultancy Services Ltd. Software 0.28 Britannia Industries Ltd. Consumer Non Durables 0.27 Dr Reddys Laboratories Ltd Pharmaceuticals 0.27 GAIL (India) Ltd. Gas 0.26 Alkem Laboratories Ltd Pharmaceuticals 0.23 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.22 Mahindra & Mahindra Ltd. Auto 0.22 JSW Steel Ltd. Ferrous Metals 0.21 Tata Steel Limited. Ferrous Metals 0.21 Bajaj Finserv Ltd. Finance 0.19 National Thermal Power Corporation Limited Power 0.19 S H Kelkar and Company Ltd Consumer Non Durables 0.19 Ashok Leyland Ltd. Auto 0.18 Marico Ltd. Consumer Non Durables 0.18 Ujjivan Financial Services Ltd Finance 0.17 Bosch Limited Auto Ancillaries 0.16 HDFC Ltd. Finance 0.14 Divi s Laboratories Limited Pharmaceuticals 0.13 Thyrocare Technologies Ltd Pharmaceuticals 0.13 Bharti Airtel Ltd. Telecom - Services 0.12 Aurobindo Pharma Ltd. Pharmaceuticals 0.11 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.11 HCL Technologies Ltd. Software 0.09 Bank Of Baroda Banks 0.07 CNX NIFTY Call Option - December Dish TV India Ltd. Media and Entertainment 0.07 Ambuja Cements Ltd Cement 0.06 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.05 TVS Motors Company Ltd Auto 0.05 Cadila Healthcare Ltd. Pharmaceuticals 0.04 Cummins India Ltd. Industrial Products 0.04 Emami Ltd. Consumer Non Durables 0.04 Titan Company Ltd. Consumer Durables 0.04 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Godrej Consumer Products Ltd. Consumer Non Durables 0.01 Non-Hedged- Total Hedged Reliance Capital Ltd. Finance GMR Infrastructure Ltd. Construction Project Maruti Suzuki India Limited Auto India Cements Ltd. Cement Ashok Leyland Ltd. Auto Karnataka Bank Ltd Banks Tata Communications Ltd Telecom - Services Vedanta Ltd. Minerals/Mining HDFC Bank Ltd. Banks Jain Irrigation Systems Ltd. Industrial Products Infosys Ltd. Software Dish TV India Ltd. Media and Entertainment Housing Development and Infrastructure Limited Construction ITC Ltd. Consumer Non Durables Hindustan Petroleum Corporation Ltd Petroleum Products HDFC Ltd. Finance NCC Limited Construction Project Century Textiles & Industries Ltd. Cement L&T Finance Holdings Ltd Finance IRB Infrastructure Developers Ltd Construction Aurobindo Pharma Ltd. Pharmaceuticals MRF Limited Auto Ancillaries Adani Port and Special Economic Zone Limited Transportation Wockhardt Ltd. Pharmaceuticals SKS Microfinance Limited Finance Tech Mahindra Ltd. Software Bharat Petroleum Corporation Ltd. Petroleum Products Punjab National Bank Banks Reliance Industries Ltd. Petroleum Products Reliance Power Ltd Power Indiabulls Housing Finance Ltd. Finance Shriram Transport Finance Co Ltd. Finance Jet Airways (India) Ltd. Transportation * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives Glenmark Pharmaceuticals Ltd Pharmaceuticals IFCI Ltd. Finance Rural Electrification Corporation Ltd Finance Reliance Communications Ltd. Telecom - Services Adani Power Ltd Power Cipla Ltd. Pharmaceuticals HCL Technologies Ltd. Software DLF Limited Construction Indiabulls Real Estate Ltd Construction Dewan Housing Finance Corporation Ltd. Finance Wipro Ltd. Software UPL Ltd Pesticides Amara Raja Batteries Ltd. Auto Ancillaries LIC Housing Finance Ltd. Finance Indian Oil Corporation Ltd Petroleum Products Aditya Birla Nuvo Limited Services Hindalco Industries Ltd Non - Ferrous Metals Tata Chemicals Ltd. Chemicals United Spirits Ltd. Consumer Non Durables Federal Bank Ltd. Banks Sun TV Limited. Media and Entertainment Strides Arcolab Ltd. Pharmaceuticals Larsen And Toubro Ltd. Construction Project Castrol (India ) Ltd. Petroleum Products IDFC Limited Finance Power Finance Corporation Ltd. Finance Power Grid Corporation Of India Ltd Power TV18 Broadcast Ltd Media and Entertainment Tata Elxsi Ltd. Software Asian Paints Ltd. Consumer Non Durables Mahindra & Mahindra Financial Services Ltd. Finance Tata Global Beverages Limited Consumer Non Durables Zee Entertainment Enterprises Ltd Media and Entertainment Coal India Ltd. Minerals/Mining Cairn India Limited Oil Oil & Natural Gas Corporation Ltd. Oil Reliance Infrastructure Ltd Power Ambuja Cements Ltd Cement National Thermal Power Corporation Limited Power Oracle Financial Services Software Ltd Software SRF Ltd. Textile Products Bharti Infratel Ltd. Telecom - Equipment & Accessories Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Yes Bank Ltd Banks Grasim Industries Ltd. Cement Hindustan Unilever Ltd. Consumer Non Durables Lupin Ltd. Pharmaceuticals NMDC Ltd. Minerals/Mining Pidilite Industries Ltd. Chemicals Tata Consultancy Services Ltd. Software Bharat Earth Movers Ltd. Industrial Capital Goods CESC Ltd. Power Indraprastha Gas Ltd. Gas Jaiprakash Associates Ltd Construction Oriental Bank of Commerce Banks Tata Motors Ltd - DVR Auto Torrent Pharmaceuticals Ltd. Pharmaceuticals Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Mutual Fund Units - Total Government Dated Securities 7.59 Central Government SOV State Government SOV 0.62 Government Dated Securities - Total 5.49 TERM DEPOSITS Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.72 Term Deposits - Total Collateral Borrowing & Lending obligation 2.13 Net Current /(Liabilities) 1.01 Kotak Equity Savings Fund NAV as on May 31, 2016: ` (Growth Option), ` (Monthly Dividend Option), ` (Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Banks Finance Software Auto Government Dated Securities Consumer Non Durables Cement Mutual Fund Units Petroleum Products Others Investors understand that their principal will be at moderately high risk Income from arbitrage opportunities in the equity market & long term capital growth Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 18

20 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software HDFC Bank Ltd. Banks 9.45 ICICI Bank Ltd. Banks 7.23 IndusInd Bank Ltd. Banks 6.24 Larsen And Toubro Ltd. Construction Project 5.69 Maruti Suzuki India Limited Auto 5.32 Axis Bank Ltd Banks 5.22 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 5.08 Reliance Industries Ltd. Petroleum Products 4.85 Hero MotoCorp Ltd. Auto 4.13 Ultratech Cement Ltd. Cement 4.13 Tata Motors Ltd - DVR Auto 3.97 Britannia Industries Ltd. Consumer Non Durables 3.68 Shree Cement Ltd. Cement 3.26 Persistent Systems Limited Software 3.04 Power Grid Corporation Of India Ltd Power 3 Equitas Holdings Ltd Finance 2.93 Oracle Financial Services Software Ltd Software 2.93 Kajaria Ceramics Ltd. Construction 2.74 Jubilant Foodworks Limited Consumer Non Durables 2.50 Listed/Awaiting Listing on Stock Exchange - Total Futures Maruti Suzuki India Limited-JUN Hero MotoCorp Ltd.-JUN Futures (Market value represents Notional Value) - Total -1 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.80 Collateral Borrowing & Lending obligation 3.57 Net Current /(Liabilities) 0.93 Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % The scheme is a close ended scheme. The units of the scheme can be traded on the stock exchange. Entry Load: Nil. Exit Load: Nil. Regular: 2.52% Direct:2.02% Kotak India Growth Fund Series I NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project CBLO & Term Deposits & Rev.Repo Power Others Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity and equity related securities across market capitalisation and sectors * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 19

21 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003; Plan A - November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 9, AUM (` In Crores) AUM as on May 31, 2016: ` 7, Plans: a) Regular & b) Institutional (discontinued for further subscriptions w.e.f. October 1, 2012) c) Plan A (Previously known as Institutional Premium Plan) d) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.18%, Modified Duration: 0.11 yrs, Portfolio Yield: 7.50% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.10% Direct: 0.05% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Indiabulls Housing Finance Limited CARE AAA 2.57 Corporate Debt/Financial Institutions - Total 2.57 Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 0.91 Public Sector Undertakings - Total 0.91 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CARE A Ultratech Cement Ltd. CRISIL A Tata Steel Limited FITCH IND A Dewan Housing Finance Corporation Ltd. CRISIL A Indiabulls Housing Finance Limited CRISIL A Essel Mining & Industries Ltd. ICRA A Mahindra & Mahindra Financial Services Ltd. CRISIL A Aditya Birla Finance Ltd. ICRA A Muthoot Finance Ltd CRISIL A Reliance Capital Ltd. ICRA A Hinduja Leyland Finance Ltd. CARE A Piramal Enterprises Limited ICRA A Adani Port and Special Economic Zone Limited ICRA A Grasim Industries Ltd. CARE A Reliance Retail Limited CARE A Tata Motors Finance Ltd ICRA A ONGC Manglore Petrochemicals Ltd.ICRA A AXIS Bank Ltd. CRISIL A CESC Ltd. CARE A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Developmen CRISIL A Rural Electrification Corporation Ltd. FITCH IND A Steel Authority of India Ltd. CARE A Rural Electrification Corporation Ltd. CARE A Indian Railway Finance Corporation Ltd. A CRISIL PNB Housing Finance Ltd. CARE A Andhra Bank CRISIL A Small Industries Development Bank Of India. CRISIL A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 11/08/2016 SOV Days Treasury Bill 07/07/2016 SOV Days Treasury Bill 07/07/2016 SOV Days Treasury Bill 04/08/2016 SOV 0.23 Treasury Bills - Total 9.96 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.11 years Kotak Liquid Plan A Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current Treasury Bills Net Current RATING PROFILE A1+, AAA, IND A1+, SOV Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no

22 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 8, AUM (` In Crores) AUM as on May 31, 2016: ` 8, A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.15%, Modified Duration:0.12 yrs, Portfolio Yield: 7.71% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: ` U n d e r growth, weekly dividend and monthly dividend option & `1,00,000 under Daily Dividend Reinvestment option, Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.14% Direct: 0.09% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA Corporate Debt/Financial Institutions - Total 2.93 Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 2.53 Public Sector Undertakings - Total 2.53 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CARE A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 9.18 India Infoline Finance Limited ICRA A Muthoot Finance Ltd CRISIL A Tata Steel Limited FITCH IND A Gruh Finance Ltd ICRA A Ultratech Cement Ltd. CRISIL A Piramal Enterprises Limited ICRA A Aditya Birla Nuvo Limited ICRA A Mahindra & Mahindra Financial Services Ltd. CRISIL A Manappuram Finance Ltd ICRA A Reliance Capital Ltd. ICRA A Tata Motors Ltd. ICRA A Au Financiers (India) Limited FITCH IND A Sadbhav Engineering Ltd. CARE A Tata Motors Finance Ltd CRISIL A Tata Power Company Ltd. ICRA A Phoenix ARC Pvt Ltd CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A Power Finance Corporation Ltd. CRISIL A Export-Import Bank of India. CRISIL A Punjab & Sind Bank CRISIL A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 11/08/2016 SOV Days Treasury Bill 28/07/2016 SOV Days Treasury Bill 07/07/2016 SOV Days Treasury Bill 13/07/2016 SOV 0.06 Treasury Bills - Total 8.72 TERM DEPOSITS HDFC Bank Ltd YES Bank Ltd Term Deposits - Total 2.77 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.12 years Kotak Floater Short Term Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE (%) Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds Treasury Bills A1+, A1+(SO), AAA, IND A1+, SOV CBLO & Term Deposits & Rev.Repo AA- Net Current Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 21 Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

23 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 4, AUM (` In Crores) AUM as on May 31, 2016: ` 4, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation: 0.48%, Modified Duration: 0.47 yrs, Portfolio Yield:8.11% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth- `5000 & above (ii) Dividend Payout (Weekly) - `1,00,00,000 & above Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.73% Direct: 0.38% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Kotak Mahindra Prime Ltd. CRISIL AAA 4.49 Shriram Transport Finance Co Ltd. CRISIL AA Mahindra & Mahindra Financial Services Ltd.^ FITCH IND AAA 4.06 HDFC Ltd.^ CRISIL AAA 3.23 Tata Motors Finance Ltd CRISIL AA 3.05 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Shriram Transport Finance Co Ltd. FITCH IND AA Tata Power Renewable Energy Ltd. CARE AA 1.93 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.47 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.41 Nabha Power Ltd. ICRA AAA(SO) 0.31 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.20 Tata Capital Financial Services Limited CRISIL AA Tata Capital Housing Finance Ltd; CRISIL AA India Infoline Finance Limited CARE AA 0.10 Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India.^ CRISIL AAA 2.27 Power Finance Corporation Ltd. CRISIL AAA 1.34 Small Industries Development Bank Of India. CARE AAA 0.92 Note:^ Party blocked against Interest Rate Swap (IRS). Vijaya Bank CARE AA National Bank for Agriculture and Rural Developmen CRISIL AAA 0.03 Public Sector Undertakings - Total 4.87 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Adani Port and Special Economic Zone Limited ICRA A Piramal Enterprises Limited ICRA A Essel Mining & Industries Ltd. ICRA A HDFC Ltd. ICRA A Adani Transmission Ltd FITCH IND A Manappuram Finance Ltd CRISIL A HDFC Bank Ltd. ICRA A AXIS Bank Ltd. CRISIL A Muthoot Finance Ltd CRISIL A1+ 1 ICICI Bank Ltd. ICRA A Tata Steel Limited CRISIL A IL & FS Financial Services Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL A National Bank for Agriculture and Rural Developmen CRISIL A Power Finance Corporation Ltd. CRISIL A IDBI Bank Ltd. CRISIL A Public Sector Undertakings - Total Reverse Repo 1.11 TERM DEPOSITS HDFC Bank Ltd Kotak Mahindra Bank Ltd Term Deposits - Total 4.87 Net Current /(Liabilities) 0.89 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.50 years. K o t a k Tre a s u r y A d v a n t a g e F u n d N AV a s o n M a y 3 1, : ` ( D a i l y D i v i d e n d O p t i o n ), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) CBLO & Term Deposits & Rev. Repo Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current RATING PROFILE AA+, IND AA+, AA, AA- A1+, AAA, AAA(SO), IND A1+, IND AAA CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

24 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 0.61%, Debt Instruments Debentures and Bonds Public Sector Undertakings ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 9.23 Corporate Debt/Financial Institutions - Total 9.23 Public Sector Undertakings State Bank Of India. CRISIL AAA Power Finance Corporation Ltd. ICRA AAA 8.44 State Bank of Travancore CRISIL AAA 8.34 Rural Electrification Corporation Ltd. CRISIL AAA 7.14 Punjab National Bank CRISIL AAA 4.14 Export-Import Bank of India. CRISIL AAA 3.32 Public Sector Undertakings - Total Government Dated Securities 8.39% State Government SOV Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 2.65 Net Current /(Liabilities) 1.72 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 2.18 years. Kotak Banking And PSU Debt Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Modified Duration: 1.77 yrs, Portfolio Yield: 7.76% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Dividend Payout, Dividend Re-investment & Growth `5000 & above. Investment: `1000 & in multiples of `1. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular:0.50% Direct: 0.10% Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds A1+, AAA, IND AAA, SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 23 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 1, AUM (` In Crores) AUM as on May 31, 2016: ` 2, A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.45%, Modified Duration: 0.48 yrs, Portfolio Yield: 9.29% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.00% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA A1+(SO) Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Shriram Transport Finance Co Ltd. FITCH IND AA Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Muthoot Fincorp Ltd. CRISIL A 4.71 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 4.14 Emami Realty Ltd ( Secured by Equity shares of Emami Ltd ) BRICKWORK BWR AA-(SO) 2.60 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 2.42 Janalakshami Financial Services Ltd. ICRA A 2.36 Tata Power Renewable Energy Ltd. CARE AA 2.36 Sterlite Industries (India) Ltd CRISIL AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.89 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 1.68 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A HPCL Mittal Energy Ltd. ICRA AA Tata Capital Financial Services Limited CRISIL AA Shriram Transport Finance Co Ltd. CRISIL AA Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.71 Indostar Capital Finance Private Limited CARE AA India Infoline Finance Limited CARE AA 0.62 Muthoot Finance Ltd ICRA AA HPCL Mittal Energy Ltd. ( ) ICRA AA ECL Finance Limited CARE AA 0.24 Muthoot Finance Ltd CRISIL AA Aspire Home Finance Corporation Ltd ICRA AA HDB Financial Services Ltd. CARE AAA 0.06 Piramal Enterprises Limited ICRA AA 0.02 Corporate Debt/Financial Institutions - Total 63 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 9.11 HDFC Ltd. ICRA A Manappuram Finance Ltd CRISIL A AXIS Bank Ltd. CRISIL A Piramal Enterprises Limited ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL A Export-Import Bank of India. CRISIL A National Bank for Agriculture and Rural Developmen CRISIL A Small Industries Development Bank Of India. CARE A Corporation Bank CRISIL A Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 0.62 Net Current /(Liabilities) 1.42 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.56 years Kotak Duration Fund NAV as on May 31, 2016: ` (Retail Plan-Growth Option), ` (Retail plan Weekly Dividend),` (Retail Plan-Monthly Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) RATING PROFILE A1+, A1+(SO), AAA A+, A, BWR A(SO) AA+, IND AA+, AA, AA-, BWR AA-(SO) Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 2, AUM (` In Crores) AUM as on May 31, 2016: ` 2, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 1.08%, Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 8.98 Reliance Jio Infocomm Limited CRISIL AAA 7.93 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 6.24 Dewan Housing Finance Corporation Ltd. CARE AAA 5.02 Fullerton India Credit Co. Ltd. CARE AAA 4.19 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 4.02 HDB Financial Services Ltd. CRISIL AAA 3.94 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 3.84 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 3.53 Kotak Mahindra Prime Ltd. CRISIL AAA 2.69 LIC Housing Finance Ltd. CRISIL AAA 1.20 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.78 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.74 East-North Interconnection Company Limited CRISIL AAA(SO) 0.63 Bajaj Finance Limited FITCH IND AAA 0.03 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.03 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 8.97 Rural Electrification Corporation Ltd. CRISIL AAA 7.91 Issuer/Instrument Industry/ % to Net Rating National Bank for Agriculture and Rural Developmen CRISIL AAA 5.12 State Bank Of India. CRISIL AAA 1.18 Steel Authority of India Ltd. FITCH IND AA 0.33 Public Sector Undertakings - Total Government Dated Securities 8.53% State Government SOV % State Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % Central Government SOV % Central Government SOV 0.31 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Public Sector Undertakings Andhra Bank CARE A Public Sector Undertakings - Total 0.11 Collateral Borrowing & Lending obligation 0.31 Net Current /(Liabilities) 3.96 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.85 years. Kotak Bond Short Term Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) Modified Duration: 2.23 yrs, Portfolio Yield: 8.37% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth - `5000 & above (ii) Dividend Payout (Monthly Dividend) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 6 months & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 0.25% ii) For redemptions / switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Total Expense Ratio Regular: 1.35%; Direct: 0.26% 25 SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no A1+, AAA, AAA(SO), IND AAA, SOV Net Current CBLO & Term Deposits & Rev.Repo IND AA Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 23

27 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular (discontinued for further subscriptions w.e.f. October 1, 2012) b) Plan A (Previously known as Institutional Plan) c) Direct Plan / Options: Dividend Payout, Dividend Reinvestment, Growth & Bonus Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 2.59%, Modified Duration: 1.96 yrs, Portfolio Yield: 8.23% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 1.00%, ii) For redemptions/ switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: NIL, iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.12% Direct: 0.40% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 7.58 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 2.48 LIC Housing Finance Ltd. CRISIL AAA 1.45 Tata Capital Housing Finance Ltd; CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.38 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 4.02 Export-Import Bank of India. CRISIL AAA 0.38 Rural Electrification Corporation Ltd. CRISIL AAA 0.11 Public Sector Undertakings - Total 4.51 Government Dated Securities 8.53% State Government SOV % State Government SOV % Central Government SOV % State Government SOV % Central Government SOV % State Government SOV 0.37 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Mahindra & Mahindra Financial Services Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 6.14 Collateral Borrowing & Lending obligation 1.32 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.62 years Kotak Flexi Debt Plan A Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) Investors understand that their principal will be at moderately low risk RATING PROFILE A1+, AAA, SOV Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds Net Current AA Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 1, AUM (` In Crores) AUM as on May 31, 2016: ` 1, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annual (12th of March). Ratios Standard Deviation: 0.85%, Modified Duration: 1.58yrs, Portfolio Yield: 9.83% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. II) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.60% Direct:0.60% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Tata Power Renewable Energy Ltd. CARE AA 7.45 DLF Emporio Ltd CRISIL AA 6.15 Janalakshami Financial Services Ltd. ICRA A 6.08 Sterlite Industries (India) Ltd CRISIL AA Au Financiers (India) Limited FITCH IND A+ 6 Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 5.76 Reliance Jio Infocomm Limited CRISIL AAA 5.03 Prestige Estates Projects Limited ICRA A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA HPCL Mittal Energy Ltd. ( ) ICRA AA SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Equitas Micro Finance Ltd. CARE A 2.40 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Dalmia Bharat Ltd ICRA AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 1.52 Reliance Utilities And Power Private Limited CRISIL AAA 1.49 Shriram Transport Finance Co Ltd. FITCH IND AA Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 1.31 HPCL Mittal Pipelines Ltd. ICRA AA Peninsula Land Limited ICRA A 1.14 Issuer/Instrument Industry/ % to Net Rating Indostar Capital Finance Private Limited CARE AA HDFC Ltd. CRISIL AAA 0.96 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.36 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A HDB Financial Services Ltd. CRISIL AAA 0.18 Tata Capital Housing Finance Ltd; CRISIL AA LIC Housing Finance Ltd. CRISIL AAA 0.05 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Indian Overseas Bank CARE CARE BBB 1.99 Bank of India BRICKWORK BWR AA Public Sector Undertakings - Total 2.57 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Manappuram Finance Ltd CRISIL A HDFC Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 1.48 IL & FS Financial Services Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Corporation Bank CRISIL A Public Sector Undertakings - Total 0.57 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.60 Collateral Borrowing & Lending obligation 0.43 Net Current /(Liabilities) 3.30 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.99 years. Kotak Income Opportunities Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). SECTOR ALLOCATION (%) Net Current Debentures and Bonds CBLO & Term Deposits & Rev.Repo Commercial Paper (CP)/Certificate of Deposits (CD) Investors understand that their principal will be at moderately low risk AA+, IND AA+, AA, AA-, BWR AA-, LAA-(SO) A+, IND A+, A CBLO & Term Deposits & Rev.Repo A1+, A1+(SO), AAA CARE BBB Net Current Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` Plans: a) Regular & b) Direct Plan Options: Dividend Payout, Dividend Reinvestment and Growth (applicable for all plans) Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.17%, Modified Duration: 2.01yrs, Portfolio Yield: 8.03% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1for purchase and for `0.01 for switches. Ideal Investment Horizon: 1 Year & Above Entry Load: Nil. Exit Load: 1) For redemptions / switch outs (including SIP/STP) within 3 months from the date of allotment of units, irrespective of the amount of investment 2.00%; 2) For redemptions / switch outs (including SIP/STP) after 3 months from the date of allotment of units, irrespective of the amount of investment Nil Regular: 0.50% Direct: 0.30% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 8.07 Bajaj Finance Limited FITCH IND AAA 8.04 HDFC Ltd. CRISIL AAA 7.59 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 6.33 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 6.29 Reliance Ports And Terminals Limited CRISIL AAA 6.17 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 5.05 Reliance Jio Infocomm Limited CRISIL AAA 4.48 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 4.47 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.63 Inox Air Products Ltd. CRISIL AA 0.90 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.89 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 6.35 Rural Electrification Corporation Ltd. CRISIL AAA 5.40 Small Industries Development Bank Of India. CARE AAA 4.46 Export-Import Bank of India. CRISIL AAA 1.58 Airports Authority of India CRISIL AAA 0.90 National Bank for Agriculture and Rural Developmen CRISIL AAA 0.86 Steel Authority of India Ltd. FITCH IND AA 0.71 Public Sector Undertakings - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) 4.80 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.51 years Kotak Corporate Bond Fund NAV as on May 31, 2016: ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend),` (Standard Plan-Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Standard Plan-Daily Dividend), ` (Retail Plan-Growth Option), ` (Retail Plan- Weekly Dividend), ` (Retail Plan- Monthly Dividend), ` (Retail Plan-Daily Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend), ` (Institutional Plan-Growth Option) Debentures and Bonds Investors understand that their principal will be at moderately low risk AAA, AAA(SO), IND AAA AA+, AA, IND AA Net Current CBLO & Term Deposits & Rev.Repo Regular income over short term Income by investing in fixed income securities of varying maturities & credit * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

30 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 1, AUM (` In Crores) AUM as on May 31, 2016: ` 1, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 1.28%, Modified Duration: 2.27 yrs, Portfolio Yield: 9.83% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%. iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.70% Direct: 0.60% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA HPCL Mittal Energy Ltd. ICRA AA Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Prestige Estates Projects Limited ICRA A Muthoot Finance Ltd ICRA AA ECL Finance Limited CARE AA 3.82 Tata Power Renewable Energy Ltd. CARE AA 3.78 Reliance Utilities And Power Private Limited CRISIL AAA 3.45 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CARE A SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Janalakshami Financial Services Ltd. ICRA A 2.79 Peninsula Land Limited ICRA A 2.67 Intime Properties Ltd. FITCH IND AAA 2.64 Equitas Micro Finance Ltd. CARE A 2.43 Tata Power Company Ltd. CRISIL AA Dalmia Bharat Ltd ICRA AA Au Financiers (India) Limited FITCH IND A Manappuram Finance Ltd CRISIL A East-North Interconnection Company Limited CRISIL AAA(SO) 1.71 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 1.52 Shriram Transport Finance Co Ltd. FITCH IND AA Sterlite Industries (India) Ltd CRISIL AA Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 1.17 HPCL Mittal Energy Ltd. ( ) ICRA AA Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 0.91 Reliance Ports And Terminals Limited CRISIL AAA 0.88 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.65 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.59 IOT Utkal Energy Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 4.50 Bank of India BRICKWORK BWR AA State Bank of Travancore CRISIL AAA 1.03 Rural Electrification Corporation Ltd. CRISIL AAA 0.37 Public Sector Undertakings - Total 7.44 Government Dated Securities 1.44 Central Government SOV 0.97 Government Dated Securities - Total 0.97 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 2.05 AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 3.07 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 1.03 Collateral Borrowing & Lending obligation 0.27 Net Current /(Liabilities) 3.38 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.05 years Kotak Medium Term Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Government Dated Securities Investors understand that their principal will be at moderate risk RATING PROFILE A1+, A1+(SO), AAA, AAA(SO), IND AAA, SOV IND AA+, AA, AA-, BWR AA-, LAA-(SO) A+, IND A+, A, A- Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` 4, AUM (` In Crores) AUM as on May 31, 2016: ` 4, A) Deposit (discontinued for further subscriptions w.e.f. October 1, 2012) B) Plan A (Previously known as Regular Plan) C) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 4.39% Modified Duration: 7.67yrs Portfolio Yield: 8.04% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.77% Direct: 0.97% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA HDFC Ltd. CRISIL AAA 1.32 India InfraDebt Ltd CRISIL AAA 1.19 East-North Interconnection Company Limited CRISIL AAA(SO) 0.78 AXIS Bank Ltd. CRISIL AAA 0.72 Reliance Jio Infocomm Limited CRISIL AAA 0.61 Shriram Transport Finance Co Ltd. CRISIL AA LIC Housing Finance Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total 6.65 Public Sector Undertakings Canara Bank CRISIL AAA 5.96 National Bank for Agriculture and Rural Developmen CRISIL AAA 3.58 Bank of India BRICKWORK BWR AA National Thermal Power Corporation Ltd. CRISIL AAA 0.60 Steel Authority of India Ltd. FITCH IND AA 0.57 Power Finance Corporation Ltd. ICRA AAA 0.12 Power Finance Corporation Ltd. CRISIL AAA 0.05 Public Sector Undertakings - Total Government Dated Securities 7.59% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV 0.06 Government Dated Securities - Total Issuer/Instrument Industry/ % to Net Rating Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Enterprises Limited ICRA A HDFC Ltd. ICRA A Corporate Debt/Financial Institutions - Total 0.17 Public Sector Undertakings Corporation Bank CRISIL A Public Sector Undertakings - Total 1.17 Collateral Borrowing & Lending obligation 0.09 Net Current /(Liabilities) 4.18 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Plan A Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan) SECTOR ALLOCATION (%) Government Dated Securities Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Net Current A1+, AAA, AAA(SO), SOV AA+, IND AA, AA-, BWR AA- Net Current CBLO & Term Deposits & Rev.Repo Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

32 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 4.61%, B) PF & Trust Plan: 4.60%, Modified Duration: 8.23 yrs, Portfolio Yield: 7.87% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: (a) Regular Plan - Entry: Nil. (b) PF & Trust Plan - Entry: Nil. (applicable for all plans) Exit Load: (a) Regular Plan - Exit: Nil. (b) PF&Trust Plan - Exit: Nil. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.40% Direct: 0.40% Issuer/Instrument Industry/ % to Net Rating Government Dated Securities 7.59% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV 0.11 Issuer/Instrument Industry/ % to Net Rating Government Dated Securities - Total Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 0.01 Treasury Bills - Total 0.01 Collateral Borrowing & Lending obligation 1.76 Net Current /(Liabilities) 8.51 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Gilt Investment Fund NAV as on May 31, 2016: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) Treasury Bills CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk SOV 8.51 Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

33 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 5.90% Modified Duration:6.14yrs Portfolio Yield: 7.72% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.40% Direct: 1.39% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.97 Larsen And Toubro Ltd. Construction Project 1.29 Tata Motors Ltd. Auto 1.28 ICICI Bank Ltd. Banks 1.27 Infosys Ltd. Software 0.98 HDFC Bank Ltd. Banks 0.85 Maruti Suzuki India Limited Auto 0.83 Whirlpool of India Ltd. Consumer Durables 0.78 Tata Communications Ltd Telecom - Services 0.69 Equitas Holdings Ltd Finance 0.52 Finolex Cables Ltd. Industrial Products 0.51 Hindustan Petroleum Corporation Ltd Petroleum Products 0.47 Bosch Limited Auto Ancillaries 0.45 Sun TV Limited. Media and Entertainment 0.45 Britannia Industries Ltd. Consumer Non Durables 0.43 Manpasand Beverages Ltd. Consumer Non Durables 0.43 Jubilant Foodworks Limited Consumer Non Durables 0.41 Motherson Sumi Systems Ltd. Auto Ancillaries 0.41 State Bank Of India Banks 0.41 India Cements Ltd. Cement 0.38 Axis Bank Ltd Banks 0.37 Tata Motors Ltd - DVR Auto 0.37 Yes Bank Ltd Banks 0.37 Dalmia Bharat Ltd Cement 0.36 Marksans Pharma Ltd Pharmaceuticals 0.35 Engineers India Ltd. Construction Project 0.33 The Ramco Cements Ltd Cement 0.31 Coromandel International Ltd. Fertilisers 0.28 IndusInd Bank Ltd. Banks 0.26 Century Textiles & Industries Ltd. Cement 0.25 Techno Electric & Engineering Co Ltd. Construction Project 0.25 Thyrocare Technologies Ltd Pharmaceuticals 0.23 Bharat Petroleum Corporation Ltd. Petroleum Products 0.21 Hero MotoCorp Ltd. Auto 0.21 Hawkins Cooker Ltd Household Appliances 0.20 Federal Bank Ltd. Banks 0.15 Issuer/Instrument Industry/ % to Net Rating Pennar Engineered Building Systems Limited Ferrous Metals 0.15 HDFC Ltd. Warrants Finance 0.08 Listed/Awaiting Listing on Stock Exchange - Total Futures Ashok Leyland Ltd.-JUN Futures (Market value represents Notional Value) - Total 0.25 Debt Instruments Debentures and Bonds Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 0.08 Public Sector Undertakings - Total 0.08 Government Dated Securities 7.59% Central Government SOV % Central Government SOV Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.48 Collateral Borrowing & Lending obligation 3.51 Net Current /(Liabilities) 0.80 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :9.97 years. Kotak Monthly Income Plan Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Derivatives Investors understand that their principal will be at moderate risk RATING PROFILE Net Current Derivatives CBLO & Term Deposits & Rev.Repo AAA, SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

34 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.17%, Modified Duration:4.67yrs, Portfolio Yield: 7.72% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `10000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: i) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil. iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.45% Direct: 0.47% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.26 Infosys Ltd. Software 1.25 Reliance Industries Ltd. Petroleum Products 0.82 IndusInd Bank Ltd. Banks 0.68 Bharat Petroleum Corporation Ltd. Petroleum Products 0.66 Grasim Industries Ltd. Cement 0.66 ITC Ltd. Consumer Non Durables 0.65 Asian Paints Ltd. Consumer Non Durables 0.62 Bajaj Auto Ltd. Auto 0.55 Hero MotoCorp Ltd. Auto 0.52 Zee Entertainment Enterprises Ltd Media and Entertainment 0.52 Hindustan Unilever Ltd. Consumer Non Durables 0.51 Ultratech Cement Ltd. Cement 0.45 Lupin Ltd. Pharmaceuticals 0.44 Ujjivan Financial Services Ltd Finance 0.44 Maruti Suzuki India Limited Auto 0.41 Tata Motors Ltd. Auto 0.41 Bajaj Finance Limited Finance 0.39 Eicher Motors Ltd Auto 0.34 Larsen And Toubro Ltd. Construction Project 0.29 Yes Bank Ltd Banks 0.29 Equitas Holdings Ltd Finance 0.27 ICICI Bank Ltd. Banks 0.27 Wipro Ltd. Software 0.27 Tata Consultancy Services Ltd. Software 0.26 Axis Bank Ltd Banks 0.25 Dr Reddys Laboratories Ltd Pharmaceuticals 0.23 Petronet LNG Ltd. Gas 0.22 Power Grid Corporation Of India Ltd Power 0.22 Britannia Industries Ltd. Consumer Non Durables 0.20 GAIL (India) Ltd. Gas 0.17 HCL Technologies Ltd. Software 0.17 Bosch Limited Auto Ancillaries 0.16 Thyrocare Technologies Ltd Pharmaceuticals 0.16 Ashok Leyland Ltd. Auto 0.15 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.15 JSW Steel Ltd. Ferrous Metals 0.15 Tata Steel Limited. Ferrous Metals 0.15 Bajaj Finserv Ltd. Finance 0.14 National Thermal Power Corporation Limited Power 0.13 Mahindra & Mahindra Ltd. Auto 0.12 Marico Ltd. Consumer Non Durables 0.12 Bharti Airtel Ltd. Telecom - Services 0.10 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating HDFC Ltd. Finance 0.10 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.10 Divi s Laboratories Limited Pharmaceuticals 0.09 Aurobindo Pharma Ltd. Pharmaceuticals 0.07 Dish TV India Ltd. Media and Entertainment 0.07 Ambuja Cements Ltd Cement 0.04 Cadila Healthcare Ltd. Pharmaceuticals 0.04 Emami Ltd. Consumer Non Durables 0.04 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.04 Bank Of Baroda Banks 0.03 Cummins India Ltd. Industrial Products 0.03 TVS Motors Company Ltd Auto 0.03 Titan Company Ltd. Consumer Durables 0.02 UPL Ltd Pesticides 0.02 Godrej Consumer Products Ltd. Consumer Non Durables 0.01 Hindustan Petroleum Corporation Ltd Petroleum Products 0.01 IDFC Bank Limited Banks 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.37 Mutual Fund Units - Total 8.37 Futures CNX NIFTY-JUN Futures (Market value represents Notional Value) - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 2.97 Government Dated Securities 7.61% Central Government SOV % State Government SOV % State Government SOV Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 3.68 Net Current /(Liabilities) 2.04 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 7.22 years. Kotak Multi Asset Allocation Fund NAV as on May 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Debentures and Bonds Government Dated Securities Net Current Derivatives Mutual Fund Units Investors understand that their principal will be at moderate risk Mutual Fund Units AA Derivatives SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on 31 May 2016 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Developers and Constructions Private Limited ( Guaranteed by a Piramal Group Company ) 0.16 Adani Port and Special Economic Zone Limited 0.87 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) 0.25 Adani Transmission Ltd 0.34 Aditya Birla Finance Ltd Aditya Birla Nuvo Limited 0.66 Airports Authority of India 0.06 Andhra Bank 0.25 Ashirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.11 Aspire Home Finance Corporation Ltd 0.16 Au Financiers (India) Limited 0.72 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.17 Bajaj Finance Limited 0.88 Bank of India 0.21 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.10 Bharti enterprises (Holding) Pvt. Ltd CBLO/REVERSE REPO 1.17 CESC Ltd Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.49 Canara Bank 0.56 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd) 0.23 Corporation Bank 0.22 DLF Emporio Ltd 0.23 Dalmia Bharat Ltd 0.22 Dewan Housing Finance Corporation Ltd ECL Finance Limited 0.15 East-North Interconnection Company Limited 0.17 Edelweiss Financial Services Limited 0.18 Edelweiss Housing Finanance Limited 0.12 Edisons Untility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.23 Emami Enclave Markets Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.10 Emami Realty Ltd ( Secured by Equity shares of Emami Ltd ) 0.25 Equitas Micro Finance Ltd Essel Mining & Industries Ltd Export-Import Bank of India Fullerton India Credit Co. Ltd Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.41 Grasim Industries Ltd Gruh Finance Ltd 0.89 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) 0.12 Hero Realty Ltd ( Guaranteed by a Hero Group company ) 0.22 Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.19 Hindalco Industries Ltd Hinduja Leyland Finance Ltd ICICI Bank Ltd ICICI Home Finance Company Limited 0.23 IDBI Bank Ltd IDFC Bank Limited 0.05 IL & FS Financial Services Ltd IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.15 IOT Utkal Energy Services Ltd India Infoline Finance Limited 1.70 India Infoline Housing Finance Ltd India InfraDebt Ltd 0.11 Indiabulls Housing Finance Limited 1.10 Indian Oil Corporation Ltd Indian Overseas Bank 0.07 Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.28 Infrastructure Leasing & Financial Services Limite 0.02 Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) 0.51 Issuer Name %age of Exposure to Debt AUM Inox Air Products Ltd Intime Properties Ltd Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.07 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.82 Kotak Mahindra Bank Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.31 LIC Housing Finance Ltd MA MAULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.17 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 1.33 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.39 Muthoot Finance Ltd 1.97 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.46 National Bank for Agriculture and Rural Developmen 4.18 National Housing Bank 0.29 National Thermal Power Corporation Ltd ONGC Manglore Petrochemicals Ltd PNB Housing Finance Ltd Peninsula Land Limited 0.13 Phoenix ARC Pvt Ltd 0.11 Piramal Enterprises Limited 1.84 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.05 Prestige Estates Projects Limited 0.45 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.20 Punjab & Sind Bank 0.11 Punjab National Bank 0.03 Ratnakar Bank Ltd 0.05 Raymond Ltd Reliance Capital Ltd Reliance Jio Infocomm Limited 4.93 Reliance Ports And Terminals Limited 0.04 Reliance Retail Limited 0.22 Reliance Utilities And Power Private Limited 0.17 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.20 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.23 Sadbhav Engineering Ltd Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.23 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.13 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.11 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.08 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.05 State Bank Of India State Bank of Travancore 0.10 State Government 3.47 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.38 Sundaram BNP Paribas Home Finance Ltd 0.10 Sundaram Finance Ltd Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 2.21 Tata Capital Financial Services Limited 0.49 Tata Capital Housing Finance Ltd; 0.78 Tata Motors Finance Ltd 0.70 Tata Motors Ltd Tata Power Company Ltd Tata Power Renewable Energy Ltd Tata Sons Ltd Tata Steel Limited 2.11 Ultratech Cement Ltd Vijaya Bank 0.09 YES Bank Ltd Total 100 Industry / Sector %age of Exposure to Debt AUM BANK 4.31 CASH(CBLO/REVERSE REPO) 1.17 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.68 TOTAL Includes Hybrid schemes - debt scheme schemes having equity exposure 34

36 FUND OF FUNDS KOTAK ASSET ALLOCATOR FUND An Open Ended Fund of Funds (Earlier known as Kotak Equity FOF ) Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate long-term capital appreciation from a portfolio created by investing in specified open-ended equity, and debt schemes of Kotak Mahindra Mutual Fund. However, there is no assurance that the investment objective of the will be realized. August 9, 2004 Mr. Deepak Gupta* Crisil Balanced Fund AAUM (` In Crores) AAUM as on May 31, 2016: ` AUM (` In Crores) AUM as on May 31, 2016: `27.61 A) Regular Plan B) Regular Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) 1% if exit before 1 year from date of allotment. II) Nil if exit after 1 year from the date of allotment. Exit Load shall be applicable incase of switch from Regular Plan (where broker code is mentioned) to Direct Plan Exit Load shall not be applicable: Incase of switch from Regular Plan (where no broker code is mentioned) to Direct Plan In case of switch from Direct Plan to Regular Plan. III) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.50% Direct:1.05% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Select Focus Fund Direct Growth Equity Kotak Mahindra Bond Plan Debt Kotak Liquid Plan A Debt Kotak Floater Long Term Direct Growth Debt 7.67 Mutual Fund Units - Total Net Current /(Liabilities) Kotak Asset Allocator Fund NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 35 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the scheme is to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity related securities of companies having assets, products or operations in the United States. However, there is no assurance that the investment objective of the will be realized. December 20, 2013 Mr. Deepak Gupta* Standard & Poor's 500 Total Return Net Index in USD is the benchmark of the underlying scheme. The same converted into INR using RBI reference rate will be the benchmark for the scheme. AAUM (` In Crores) AAUM as on May 31, 2016: `4.96 AUM (` In Crores) AUM as on May 31, 2016: `5.07 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.40% Direct: 0.61% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 3.85 Kotak US Equity Fund NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund 3.85 Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

38 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. However, there is no assurance that the objective of the scheme will be realized. September 26, 2007 s Mr. Deepak Gupta (Dedicated fund manager for s overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) AAUM as on May 31, 2016: `28.50 AUM (` In Crores) AUM as on May 31, 2016: `28.91 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.85% Direct: 0.51% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units MGF Asian Small Equity Fund Class I Overseas Mutual Fund ishares MSCI Emerging Markets ETF Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 4.15 Net Current /(Liabilities) 0.28 Kotak Global Emerging Market Fund NAV as on May 31, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Investment in overseas mutual fund schemes that invest in a diversified portfolio of securities in global emerging markets * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

39 FUND OF FUNDS KOTAK WORLD GOLD FUND (formerly known as PineBridge World Gold Fund ) An Open Ended Fund of Funds INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the is to provide long term capital appreciation by investing predominantly in units of Falcon Gold Equity Fund. The may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes. The may also invest a certain portion of its corpus in debt and money market securities and/or units of debt/liquid schemes of Mutual Funds, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the will be realized. June 6, 2008 Mr. Deepak Gupta* Financial Times Gold Mines Total Price Index, in USD is the benchmark of Falcon Gold Equity Fund. The above translated to INR using the RBI Reference Rate will be the benchmark of Kotak World Gold Fund. AAUM (` In Crores) AAUM as on May 31, 2016: `48.46 AUM (` In Crores) AUM as on May 31, 2016: `45.85 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.89% Direct: 1.06% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 4.56 Net Current /(Liabilities) Kotak World Gold Fund NAV as on May 31, 2016: `7.950 (Dividend Option), `8.153 (Direct Dividend Option), `9.590(Growth Option), `9.825 (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund Others CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

40 ETF SCHEMES KOTAK GOLD ETF An Open Ended Gold Exchange Traded Fund The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error. July 27, 2007 Mr. Abhishek Bisen* Physical Gold AAUM (`In Crores) AAUM as on May 31, 2016: ` AUM (`In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on May 31, 2016: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 39 * For experience, please refer page For scheme performance, please refer page no 44-53

41 ETF SCHEMES KOTAK NIFTY ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the CNX Nifty subject to tracking errors. February 2, 2010 Mr. Deepak Gupta* Nifty 50 AAUM (`In Crores) AAUM as on May 31, 2016: ` AUM (`In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 30.29% Tracking Error: 0.09% Through Exchange:1 Unit, Through AMC: 5000 Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular:0.10% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 8.34 HDFC Bank Ltd. Banks 7.90 ITC Ltd. Consumer Non Durables 6.61 HDFC Ltd. Finance 6.54 Reliance Industries Ltd. Petroleum Products 5.29 ICICI Bank Ltd. Banks 4.76 Tata Consultancy Services Ltd. Software 4.57 Larsen And Toubro Ltd. Construction Project 4.04 Tata Motors Ltd. Auto 2.97 Axis Bank Ltd Banks 2.88 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.76 Kotak Mahindra Bank Ltd. Banks 2.66 State Bank Of India Banks 2.13 Mahindra & Mahindra Ltd. Auto 2.06 Hindustan Unilever Ltd. Consumer Non Durables 2.03 Maruti Suzuki India Limited Auto 1.85 IndusInd Bank Ltd. Banks 1.80 Bharti Airtel Ltd. Telecom - Services 1.55 Asian Paints Ltd. Consumer Non Durables 1.48 HCL Technologies Ltd. Software 1.40 Dr Reddys Laboratories Ltd Pharmaceuticals 1.34 Hero MotoCorp Ltd. Auto 1.30 Oil & Natural Gas Corporation Ltd. Oil 1.27 Coal India Ltd. Minerals/Mining 1.23 Bajaj Auto Ltd. Auto 1.19 Lupin Ltd. Pharmaceuticals 1.18 National Thermal Power Corporation Limited Power 1.18 Wipro Ltd. Software 1.17 NAV Issuer / Instrument Industry/ % to Net Rating Ultratech Cement Ltd. Cement 1.13 Yes Bank Ltd Banks 1.13 Tech Mahindra Ltd. Software 1.12 Power Grid Corporation Of India Ltd Power 1.10 Grasim Industries Ltd. Cement 0.94 Bharat Petroleum Corporation Ltd. Petroleum Products 0.85 Zee Entertainment Enterprises Ltd Media and Entertainment 0.81 Cipla Ltd. Pharmaceuticals 0.80 Eicher Motors Ltd Auto 0.76 Tata Steel Limited. Ferrous Metals 0.75 Aurobindo Pharma Ltd. Pharmaceuticals 0.71 Bosch Limited Auto Ancillaries 0.68 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.67 Adani Port and Special Economic Zone Limited Transportation 0.59 Ambuja Cements Ltd Cement 0.59 GAIL (India) Ltd. Gas 0.58 Tata Motors Ltd - DVR Auto 0.53 ACC Ltd. Cement 0.48 Bank Of Baroda Banks 0.45 Hindalco Industries Ltd Non - Ferrous Metals 0.45 Tata Power Co. Ltd. Power 0.45 Idea Cellular Ltd. Telecom - Services 0.43 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.36 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.16 Kotak Nifty ETF NAV as on May 31, 2016 : ` Sector Allocation (%) Banks Software Consumer Non Durables Auto Pharmaceuticals Finance Petroleum Products Construction Project Cement Power Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

42 ETF SCHEMES KOTAK SENSEX ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. June 6, 2008 Mr. Deepak Gupta* S&P BSE SENSEX AAUM (`In Crores) AAUM as on May 31, 2016: ` AUM (`In Crores) AUM as on May 31, 2016: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 21.56% Tracking Error: 0.12% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.25% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software HDFC Bank Ltd. Banks 9.66 ITC Ltd. Consumer Non Durables 8.21 HDFC Ltd. Finance 8.12 Reliance Industries Ltd. Petroleum Products 6.58 ICICI Bank Ltd. Banks 5.92 Tata Consultancy Services Ltd. Software 5.48 Larsen And Toubro Ltd. Construction Project 5.02 Axis Bank Ltd Banks 3.62 Tata Motors Ltd. Auto 3.62 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.43 State Bank Of India Banks 2.71 Mahindra & Mahindra Ltd. Auto 2.53 Hindustan Unilever Ltd. Consumer Non Durables 2.52 Maruti Suzuki India Limited Auto 2.30 Bharti Airtel Ltd. Telecom - Services 2.04 Asian Paints Ltd. Consumer Non Durables 1.84 Dr Reddys Laboratories Ltd Pharmaceuticals 1.69 Oil & Natural Gas Kotak Sensex ETF NAV as on May 31, 2016 : ` NAV Issuer / Instrument Industry/ % to Net Rating Corporation Ltd. Oil 1.58 Hero MotoCorp Ltd. Auto 1.57 Coal India Ltd. Minerals/Mining 1.53 Bajaj Auto Ltd. Auto 1.48 Lupin Ltd. Pharmaceuticals 1.46 Wipro Ltd. Software 1.46 National Thermal Power Corporation Limited Power 1.23 Cipla Ltd. Pharmaceuticals 0.99 Tata Steel Limited. Ferrous Metals 0.93 Adani Port and Special Economic Zone Limited Transportation 0.73 GAIL (India) Ltd. Gas 0.72 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.45 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.21 Sector Allocation (%) Banks Software Auto Consumer Non Durables Pharmaceuticals Finance Petroleum Products Construction Project Telecom - Services Others Oil Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 41 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

43 ETF SCHEMES KOTAK BANKING ETF An Open Ended Exchange Traded Fund The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of stocks as represented by the CNX Bank Index subject to tracking errors. There can be no assurance or guarantee that the investment objective of the plan will be achieved. December 04, 2014 Mr. Deepak Gupta* Nifty Bank AAUM (`In Crores) AAUM as on May 31, 2016: ` 1, AUM (`In Crores) AUM as on May 31, 2016: ` 1, Option - Dividend Payout Ratios Portfolio Turnover: 35.05% Tracking Error: 0.10% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular:0.20% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks ICICI Bank Ltd. Banks Axis Bank Ltd Banks Kotak Mahindra Bank Ltd. Banks State Bank Of India Banks 8.73 IndusInd Bank Ltd. Banks 7.38 Yes Bank Ltd Banks 4.65 Bank Of Baroda Banks 1.85 Kotak Banking ETF NAV as on May 31, 2016: ` NAV Issuer / Instrument Industry/ % to Net Rating Federal Bank Ltd. Banks 1.24 Punjab National Bank Banks 0.81 Canara Bank Banks 0.40 Bank of India Banks 0.28 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.04 Sector Allocation (%) Banks Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

44 ETF SCHEMES KOTAK PSU BANK ETF An Open Ended Exchange Traded Fund The investment objective of the scheme is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors. November 8, 2007 Mr. Deepak Gupta* Nifty PSU Bank AAUM (`In Crores) AAUM as on May 31, 2016: ` AUM (`In Crores) AUM as on May 31, 2016: `19.98 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 89.38% Tracking Error: 0.26% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Total Regular:0.49% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) State Bank Of India Banks Bank Of Baroda Banks Punjab National Bank Banks 5.93 Union Bank Of India Banks 3.03 Canara Bank Banks 2.93 Industrial Development Bank of India Ltd. Banks 2.53 Bank of India Banks 2.04 Kotak PSU Bank ETF NAV as on May 31, 2016: ` NAV Issuer / Instrument Industry/ % to Net Rating Syndicate Bank Banks 1.40 Andhra Bank Banks 1.34 Allahabad Bank. Banks 1.18 Oriental Bank of Commerce Banks 1.03 Indian Overseas Bank Banks 0.88 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.07 Sector Allocation (%) Banks Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 43 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

45 Performances as on March 31, 2016 Kotak 50 - Dividend Returns ^ Nifty 50 # S&P BSE Sensex ## (`) #(`) # # (`) Dec 29, 1998 (Since Inception) 19.73% 13.47% 13.05% 224,093 88,677 83,189 Mar 31, 2015 To Mar 31, % -8.86% -9.36% Mar 31, 2014 To Mar 31, % 26.65% 24.89% NA Mar 31, 2013 To Mar 31, % 17.98% 18.85% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Classic Equity - Growth Returns ^ Nifty 100 # Nifty 50 ## (`) #(`) # # (`) Jul 27, 2005 (Since Inception) 11.73% 12.13% 11.94% 32,709 33,997 33,368 Mar 31, 2015 To Mar 31, % -8.07% -8.86% Mar 31, 2014 To Mar 31, % 29.14% 26.65% NA Mar 31, 2013 To Mar 31, % 18.25% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Opportunities Fund - Growth Returns^ Nifty 500 # Nifty 50 ## (`) #(`) # # (`) Sep 09, 2004 (Since Inception) 19.44% 14.14% 14.30% 78,041 46,141 46,928 Mar 31, 2015 To Mar 31, % -7.54% -8.86% Mar 31, 2014 To Mar 31, % 33.56% 26.65% NA Mar 31, 2013 To Mar 31, % 17.72% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Select Focus Fund - Growth Returns ^ Nifty 200 # Nifty 50 ## (`) #(`) # # (`) Sep 11, 2009 (Since Inception) 12.91% 7.63% 7.46% 22,162 16,199 16,023 Mar 31, 2015 To Mar 31, % -8.11% -8.86% Mar 31, 2014 To Mar 31, % 31.47% 26.65% NA Mar 31, 2013 To Mar 31, % 17.57% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). 44

46 Kotak Tax Saver - Growth Returns^ Nifty 500 # Nifty 50 ## (`) #(`) # # (`) Nov 23, 2005 (Since Inception) 10.78% 10.68% 11.07% 28,882 28,606 29,665 Mar 31, 2015 To Mar 31, % -7.54% -8.86% Mar 31, 2014 To Mar 31, % 33.56% 26.65% NA Mar 31, 2013 To Mar 31, % 17.72% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Midcap Fund - Growth Returns ^ Nifty Midcap 100 # Nifty 50 ## (`) #(`) # # (`) Feb 24, 2005 (Since Inception) 15.88% 14.02% 12.68% 51,353 42,944 37,651 Mar 31, 2015 To Mar 31, % -1.91% -8.86% Mar 31, 2014 To Mar 31, % 50.96% 26.65% NA Mar 31, 2013 To Mar 31, % 16.36% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Emerging Equity - Growth Returns^ S&P BSE Midcap # Nifty 50 ## (`) #(`) # # (`) Mar 30, 2007 (Since Inception) 10.79% 9.33% 8.14% 25,170 22,335 20,249 Mar 31, 2015 To Mar 31, % -3.34% -8.86% Mar 31, 2014 To Mar 31, % 51.11% 26.65% NA Mar 31, 2013 To Mar 31, % 14.86% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Infrastructure & Economic Reform Fund - Growth Returns^ S&P BSE 100 # Nifty 50 ## (`) #(`) # # (`) Feb 25, 2008 (Since Inception) 4.94% 4.61% 5.03% 14,782 14,409 14,880 Mar 31, 2015 To Mar 31, % -8.96% -8.86% Mar 31, 2014 To Mar 31, % 28.32% 26.65% NA Mar 31, 2013 To Mar 31, % 18.11% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate)

47 Kotak Balance Returns ^ CRISIL Balanced Fund # Nifty 50 ## (`) #(`) # # (`) Nov 25, 1999 (Since Inception) 14.31% NA 10.98% 89,211 NA 54,935 Mar 31, 2015 To Mar 31, % -2.90% -8.86% Mar 31, 2014 To Mar 31, % 22.53% 26.65% NA Mar 31, 2013 To Mar 31, % 13.40% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Equity Arbitrage Fund - Growth Returns ^ Crisil Liquid Fund # Nifty 50 ## (`) #(`) # # (`) Sep 29, 2005 (Since Inception) 7.81% 7.44% 10.89% 22,032 21,255 29,635 Mar 31, 2015 To Mar 31, % 8.06% -8.86% Mar 31, 2014 To Mar 31, % 8.98% 26.65% NA Mar 31, 2013 To Mar 31, % 9.54% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Liquid - Plan A - Growth Returns^ Crisil Liquid Fund # CRISIL 1 Year T-Bill ## (`) #(`) # # (`) Nov 04, 2003 (Since Inception) 7.52% 6.95% 5.87% 24,596 23,023 20,302 Mar 31, 2015 To Mar 31, % 8.06% 7.69% Mar 31, 2014 To Mar 31, % 8.98% 8.74% NA Mar 31, 2013 To Mar 31, % 9.54% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long termis based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Note-With effect from October 1, 2012 the scheme features has been changed. For more details please refer page 23. Kotak Floater - ST - Growth Returns (%) ^ Crisil Liquid Fund # CRISIL 1 Year T-Bill ## (`) #(`) # # (`) Jul 14, 2003 (Since Inception) 7.41% 6.88% 5.86% 24,824 23,316 20,628 Mar 31, 2015 To Mar 31, % 8.06% 7.69% Mar 31, 2014 To Mar 31, % 8.98% 8.74% NA Mar 31, 2013 To Mar 31, % 9.54% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). 46

48 Kotak Treasury Advantage Fund - Growth Returns ^ Crisil Liquid Fund # CRISIL 1 Year TBill ## (`) #(`) # # (`) Aug 13, 2004 (Since Inception) 7.87% 7.15% 5.99% 24,148 22,337 19,686 Mar 31, 2015 To Mar 31, % 8.06% 7.69% Mar 31, 2014 To Mar 31, % 8.98% 8.74% NA Mar 31, 2013 To Mar 31, % 9.54% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Banking and PSU Debt Fund - Growth Returns^ Crisil Liquid Fund # CRISIL 1 Year TBill ## (`) #(`) # # (`) Dec 29, 1998 (Since Inception) 7.29% NA 6.64% 33,709 NA 30,361 Mar 31, 2015 To Mar 31, % 8.06% 7.69% Mar 31, 2014 To Mar 31, % 8.98% 8.74% NA Mar 31, 2013 To Mar 31, % 9.54% 5.84% Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Duration Fund - Growth Returns^ CRISIL Liquid Fund # CRISIL 1 Year T-Bill ## (`) #(`) # # (`) Mar 06, 2008 (Since Inception) 7.71% 7.73% 6.44% 18,216 18,245 16,558 Mar 31, 2015 To Mar 31, % 8.06% 7.69% Mar 31, 2014 To Mar 31, % 8.98% 8.74% NA Mar 31, 2013 To Mar 31, % 9.54% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRAMFI Explorer. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year:cagr(compounded Annualised Growth Rate). Kotak Bond Short Term Plan - Growth Returns^ Crisil Short Term Bond Fund# CRISIL 1Year T-Bill ## (`) #(`) # # (`) 47 May 02, 2002 (Since Inception) 7.72% 7.16% 5.90% 28,177 26,184 22,212 Mar 31, 2015 To Mar 31, % 8.47% 7.69% Mar 31, 2014 To Mar 31, % 10.32% 8.74% NA Mar 31, 2013 To Mar 31, % 8.86% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term& long termis based on the average maturity of the scheme. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate).

49 Kotak Flexi Debt Fund - Plan A - Growth Returns^ Crisil Composite Bond Fund # CRISIL 1 Year T-Bill ## (`) #(`) # # (`) May 26, 2008 (Since Inception) 8.43% 7.77% 6.44% 18,874 17,990 16,325 Mar 31, 2015 To Mar 31, % 8.24% 7.69% Mar 31, 2014 To Mar 31, % 14.59% 8.74% NA Mar 31, 2013 To Mar 31, % 4.39% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Income Opportunities Fund - Growth Returns^ Crisil Short Term Bond Fund # CRISIL 1 Year TBill ## (`) #(`) # # (`) May 11, 2010 (Since Inception) 8.66% 8.35% 6.84% 16,312 16,046 14,772 Mar 31, 2015 To Mar 31, % 8.47% 7.69% Mar 31, 2014 To Mar 31, % 10.32% 8.74% NA Mar 31, 2013 To Mar 31, % 8.86% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Corporate Bond Fund - Growth Returns ^ Crisil Composite Bond Fund # CRISIL 1 Year Gilt ## (`) #(`) # # (`) Sep 21, 2007 (Since Inception) 8.20% 7.67% 6.39% 19,585 18,790 16,966 Mar 31, 2015 To Mar 31, % 8.24% 7.69% Mar 31, 2014 To Mar 31, % 14.59% 8.74% NA Mar 31, 2013 To Mar 31, % 4.39% 5.84% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Medium Term Fund - Growth Returns ^ CRISIL Composite Bond Fund # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Mar 28, 2014 (Since Inception) 10.47% 11.34% 11.19% 12,218 12,412 12,377 Mar 31, 2015 To Mar 31, % 8.24% 7.97% Mar 31, 2014 To Mar 31, % 14.59% 14.57% NA N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). 48

50 Kotak Bond - Plan A - Growth Returns^ Crisil Composite Bond Fund # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Nov 25, 1999 (Since Inception) 9.18% NA NA 42,047 NA NA Mar 31, 2015 To Mar 31, % 8.24% 7.97% NA Mar 31, 2014 To Mar 31, % 14.59% 14.57% Mar 31, 2013 To Mar 31, % 4.39% -0.96% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Gilt - Investment Regular Plan - Growth Returns^ ISEC Composite # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Dec 29, 1998 (Since Inception) 9.84% NA NA 50,532 NA NA Mar 31, 2015 To Mar 31, % 8.22% 7.97% NA Mar 31, 2014 To Mar 31, % 15.60% 14.57% Mar 31, 2013 To Mar 31, % 3.96% -0.96% Kotak Gilt Investment PF & Trust Plan - Growth Returns^ ISEC Composite # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Nov 11, 2003 (Since Inception) 7.28% 7.25% 5.23% 23,901 23,812 18,820 Mar 31, 2015 To Mar 31, % 8.22% 7.97% NA Mar 31, 2014 To Mar 31, % 15.60% 14.57% Mar 31, 2013 To Mar 31, % 3.96% -0.96% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Monthly Income Plan - Growth Returns ^ Crisil MIP Blended # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Dec 02, 2003 (Since Inception) 7.47% 7.85% 5.32% 24,313 25,412 18,953 Mar 31, 2015 To Mar 31, % 5.67% 7.97% NA Mar 31, 2014 To Mar 31, % 16.45% 14.57% Mar 31, 2013 To Mar 31, % 6.52% -0.96% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term& long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). 49

51 Kotak Multi Asset Allocation Fund - Growth Returns ^ 75% Crisil Short term Bond Fund,15% Nifty 50 & 10% Prices of Gold # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Jan 21, 2011 (Since Inception) 7.70% 8.72% 7.18% 14,700 15,442 14,338 Mar 31, 2015 To Mar 31, % 6.32% 7.97% NA Mar 31, 2014 To Mar 31, % 11.10% 14.57% Mar 31, 2013 To Mar 31, % % N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. #Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak US Equity Fund - Growth Returns ^ Standard & Poor s 500 Total Return Net # Nifty 50 ## (`) #(`) # # (`) Dec 20, 2013 (Since Inception) 7.45% 11.01% 9.64% 11,780 12,688 12,334 Mar 31, 2015 To Mar 31, % 8.05% -8.86% NA Mar 31, 2014 To Mar 31, % 17.28% 26.65% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. #Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak World Gold Fund - Growth Returns ^ Financial Times Gold Mines Total-Price # Nifty 50 ## (`) #(`) # # (`) Jun 06, 2008 (Since Inception) -2.22% -3.48% 6.79% 8,388 7,583 16,722 Mar 31, 2015 To Mar 31, % 28.08% -8.86% NA Mar 31, 2014 To Mar 31, % % 26.65% Mar 31, 2013 To Mar 31, % % 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Gold ETF Returns^ Physical Gold Price # CRISIL 10 Year Gilt ## (`) #(`) # # (`) Jul 27, 2007 (Since Inception) 13.52% 14.88% 6.74% 30,070 33,372 17,614 Mar 31, 2015 To Mar 31, % 11.47% 7.97% NA Mar 31, 2014 To Mar 31, % -6.19% 14.57% Mar 31, 2013 To Mar 31, % -6.28% -0.96% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailingnav. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). 50

52 Kotak Nifty ETF Returns ^ Nifty 50 # S&P BSE Sensex ## (`) #(`) # # (`) Feb 08, 2010 (Since Inception) 9.32% 8.23% 7.84% 17,292 16,256 15,903 Mar 31, 2015 To Mar 31, % -8.86% -9.36% NA Mar 31, 2014 To Mar 31, % 26.65% 24.89% Mar 31, 2013 To Mar 31, % 17.98% 18.85% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak SENSEX ETF Returns^ S&P BSE Sensex # Nifty 50 ## (`) #(`) # # (`) Jun 06, 2008 (Since Inception) 7.50% 6.42% 6.79% 17,600 16,274 16,722 Mar 31, 2015 To Mar 31, % -9.36% -8.86% NA Mar 31, 2014 To Mar 31, % 24.89% 26.65% Mar 31, 2013 To Mar 31, % 18.85% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak PSU Bank ETF Returns^ Nifty PSU Bank # Nifty 50 ## (`) #(`) # # (`) Nov 08, 2007 (Since Inception) 0.05% -1.93% 3.71% 10,039 8,487 13,579 Mar 31, 2015 To Mar 31, % % -8.86% NA Mar 31, 2014 To Mar 31, % 24.53% 26.65% Mar 31, 2013 To Mar 31, % % 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Global Emerging Equity Market Fund Returns^ MSCI Emerging Market Index # Nifty 50 ## (`) #(`) # # (`) Sep 26, 2007 (Since Inception) 2.77% 1.97% 5.41% 12,616 11,805 15,663 Mar 31, 2015 To Mar 31, % -8.85% -8.86% NA Mar 31, 2014 To Mar 31, % 1.94% 26.65% Mar 31, 2013 To Mar 31, % 5.88% 17.98% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). 51

53 Kotak Asset Allocator Fund - Growth Returns ^ CRISIL Balanced Fund # S&P BSE SENSEX ## (`) #(`) # # (`) Aug 09, 2004 (Since Inception) 16.82% 11.85% 14.50% 61,182 36,848 48,425 Mar 31, 2015 To Mar 31, % -2.90% -9.36% NA Mar 31, 2014 To Mar 31, % 22.53% 24.89% Mar 31, 2013 To Mar 31, % 13.40% 18.85% N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Banking ETF Returns ^ Nifty Bank # Nifty 50## (`) #(`) ## (`) Dec 10, 2014 (Since Inception) -9.26% -9.77% -5.70% Mar 31, 2015 To Mar 31, % % -8.86% NA N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). Kotak Equity Savings Fund - Growth Returns ^ 75% Crisil Liquid Fund Index & 25% Nifty 50 # Nifty 50 ## (`) #(`) ## (`) Oct 13, 2014 (Since Inception) 6.49% 3.17% -1.27% 10,966 10,469 9,815 Mar 31, 2015 To Mar 31, % -1.24% -8.86% NA N.A stands for data not available. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may not be sustained in the future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns <= 1 year: Absolute; Returns > 1 year: CAGR (Compounded Annualised Growth Rate). FMP's and Gold Fund Performance as on April 30, 2016 Kotak FMP Series (1061D) - Reg - Growth Returns ^ Crisil Short Term Bond Fund # CRISIL 1 Year T-Bill ## (`) #(`) ## (`) Dec 23, 2013 (Since Inception) 10.81% 9.50% 8.23% 12,626 12,290 11,967 Mar 31, 2015 To Mar 31, % 8.47% 7.69% NA Mar 31, 2014 To Mar 31, % 10.32% 8.74% OTHER PERFORMANCE 52

54 Kotak FMP Series (546D) - Reg - Growth Returns (%) ^ Crisil Short Term Bond Fund # CRISIL 1 Year T-Bill ## (`) #(`) ## (`) Jan 08, 2014 (Since Inception) 8.99% 9.50% 8.21% 12,113 12,241 11,921 Mar 31, 2015 To Mar 31, % 8.47% 7.69% NA Mar 31, 2014 To Mar 31, % 10.32% 8.74% Kotak FMP Series (733D) - Reg - Growth Returns (%) ^ Crisil Short Term Bond Fund # CRISIL 1 Year T-Bill ## (`) #(`) ## (`) Aug 07, 2013 (Since Inception) 9.18% 9.73% 8.26% 12,621 12,790 12,340 Mar 31, 2015 To Mar 31, % 8.47% 7.69% NA Mar 31, 2014 To Mar 31, % 10.32% 8.74% Kotak FMP Series (371D) - Reg - Growth Returns (%) ^ Crisil Short Term Bond Fund # CRISIL 1 Year T-Bill ## (`) #(`) ## (`) Dec 16, 2013 (Since Inception) 8.40% 9.53% 8.26% 12,030 12,318 11,993 Mar 31, 2015 To Mar 31, % 8.47% 7.69% NA Mar 31, 2014 To Mar 31, % 10.32% 8.74% Kotak Gold Fund Returns ^ Physical Gold Price # CRISIL 10 Year Gilt ## (`) #(`) ## (`) Mar 25, 2011 (Since Inception) 4.45% 6.87% 6.91% 12,446 13,962 13,985 Mar 31, 2015 To Mar 31, % 11.47% 7.97% NA Mar 31, 2014 To Mar 31, % -6.19% 14.57% Mar 31, 2013 To Mar 31, % -6.28% -0.96% N.A stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) Returns in INR show the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of ## Name of ^ Past performance may or may not be sustained in the future All payouts during the period have been reinvested in the units the scheme at the then prevailingnav. Returns <= 1 year:absolute; Returns > 1 year:cagr(compoundedannualised Growth Rate). 53

55 ABOUT OUR FUND MANAGERS Name: Mr. Harsha Upadhyaya (experience in managing these funds since) Kotak Opportunities (Aug 1, 12), Kotak Select Focus Fund (Aug 1, 12), Kotak Tax Saver (Aug. 25,'15) Business Experience Mr. Harsha has nearly two decades of rich experience spread over Equity Research and Fund Management. His prior stints have been with companies such as DSP BlackRock, UTI Asset Management, Reliance Group and SG Asia Securities. Mr. Harsha is a Bachelor of Engineering (Mechanical) from National Institute of Technology, Suratkal, a Post Graduate in Management (Finance) from Indian Institute of Management, Lucknow and Chartered Financial Analyst from the CFA Institute. Name: Mr. Harish Krishnan (experience in managing these funds since) Kotak 50 (Nov. 15, 13), Kotak Infrastructure & Economic Reform Fund (Jan31,'15), Kotak Classic Equity (Aug. 25,'15), Kotak India Growth Fund Series I (May 06, 15) Business Experience Mr. Harish has a decade of experience spread over Equity Research and Fund Management. Prior to joining Kotak Mutual Fund, he was based out of Singapore and Dubai, managing Kotak's offshore funds. Mr. Harish has also worked at Infosys Technologies Ltd in his earlier stint. He is a Bachelor of Technology (Electronics & Communications) from Government Engineering College, Trichur, a post Graduate in Management from Indian Institute of Management, Kozhikode and a Chartered Financial Analyst from the CFA Institute. Name: Mr. Pankaj Tibrewal (experience in managing these funds since) Kotak Midcap (Jan. 21, 10), Kotak Emerging Equity (May 27,'10), Kotak Balance (Aug. 25,'15) Business Experience Mr. Pankaj is a graduate in Commerce from St. Xavier's College, Kolkata and holds a Master's degree in Finance from Manchester University. He has been associated with the mutual fund industry since 2003 where he has managed several debt and equity schemes. He has been a part of the organization since January Mr. Pankaj's earlier stint was with Principal Mutual Fund. Name: Mr. Deepak Gupta (experience in managing these funds since) Kotak Equity Arbitrage (Sept.1, 08), Kotak Asset Allocator Fund (Earlier Know as Kotak Equity FOF) (Sept.1, 08), Kotak Global Emerging Market Fund (Apr.4, 11), (Dedicated fund manager for over seas investment), Kotak Balance (Aug. 25,'15), Kotak Multi Asset Allocation Fund (Sept.10, 13), Kotak Equity Savings Fund (Oct. 13, '14), Kotak World Gold Fund (Jan.31, 15), Kotak US Equity Fund (Jan.31, 15), Kotak PSU Bank ETF (Nov. 8, 07), Kotak SENSEX ETF (Jun. 6, 08), Kotak NIFTY ETF (Feb. 8, 10), Kotak Banking ETF (Dec. 11, 14) Business Experience Mr. Deepak has almost 10 years of experience in the mutual fund industry. He had joined the Equity Fund Management team as a research analyst. He is now an Equity. Mr. Deepak is a Graduate in Commerce from Mumbai University. He is a qualified Chartered Accountant, a Cost Accountant and has cleared the AIMR CFA Level 3. Performance of top 3 and bottom 3 schemes of the Top 3 Bottom 3 Mr. Deepak Gupta Refer Page No. Kotak Equity Arbitrage Fund - Growth 14 Kotak Asset Allocator Fund - Growth 35 Kotak US Equity Fund - Growth 36 Kotak Banking ETF 42 Kotak Global Emerging Market Fund - Growth 37 Kotak PSU Bank ETF 43 54

56 Name: Mr. Abhishek Bisen (experience in managing these funds since) Kotak Balance (Apr. 15, 2008), Kotak Monthly Income Plan (Apr. 15, 08), Kotak Bond (Plan A) (Apr 15, 2008), Kotak Gilt Investment (Regular & PF-Trust) (Apr. 15, 08), Kotak Global Emerging Market Fund (Apr. 15, 08), Kotak Multi Asset Allocation Fund (Jan. 21, 11), Kotak Equity Savings Fund (Oct. 13, '14), Kotak Gold ETF (Jul. 27, 07), Kotak Gold Fund (Mar. 25, '11) Business Experience Mr. Abhishek has been associated with the company since October 2006 and his key responsibilities include fund management of debt schemes. Prior to joining Kotak AMC, Me, Abhishek was working with Securities Trading Corporation Of India Ltd where he was looking at Sales & Trading of Fixed Income Products apart from doing Portfolio Advisory. He has been awarded twice as one of the ly Commended Investors in Indian Rupees Bonds from the Asset magazine Hong Kong. His educational background is B.A (Management) and MBA (Finance). Performance of top 3 and bottom 3 schemes of the Top 3 Bottom 3 Mr. Abhishek Bisen Refer Page No. Kotak Gold Fund - Growth 53 Kotak Gilt - Investment - PF and Trust - Growth 31 Kotak Gilt - Investment - Regular - Growth 31 Kotak Multi Asset Allocation Fund - Growth 33 Kotak Balance - Dividend 13 Kotak Global Emerging Market Fund - Growth 37 Name: Mr. Deepak Agrawal (experience in managing these funds since) (Kotak Bond Short Term (Apr. 14, 08), Kotak Flexi Debt (Jul. 11, 07), Kotak Floater Short Term (Jul. 11, 07), Kotak Liquid (Jul. 11, 07), Kotak Kotak Banking and PSU Debt Fund (Apr. 14, 08), Kotak Treasury Advantage Fund (Formerly Known as Kotak Floater Long Term ) (Jul. 11, 07), Kotak Income Opportunities Fund (May 11, '10), Kotak Medium Term Fund (Mar. 21, 14), Kotak Duration Fund (Jan. 31, 15), Kotak Corporate Bond Fund (Jan. 31, 15), All Fix Maturity Plans in existence (Aug. 13,'15), All Quarterly Interval Plans (QIPs) (Aug. 13,'15) Business Experience Mr. Deepak's career has started from Kotak AMC when he joined the organization in December 2002 where he was initially in Research, Dealing and then moved into Fund Management from November Mr. Deepak is a Post Graduate in Commerce, Chartered Account and Company Secretary. Performance of top 3 and bottom 3 schemes of the Top 3 Bottom 3 Mr. Deepak Agrawal Refer Page No. Kotak Medium Term Fund - Regular Plan - Growth 29 Kotak FMP Series (1061D) - Regular Plan - Growth 52 Kotak Income Opportunities Fund - Growth 27 Kotak FMP Series (546D) - Regular Plan - Growth 53 Kotak FMP Series (733D) - Regular Plan - Growth 53 Kotak FMP Series (371D) - Regular Plan - Growth 53 Name: Mr. Devender Singhal (experience in managing these funds since) Kotak Monthly Income Plan (Aug. 25, 15) Business Experience Mr. Devender has been associated with the Kotak Group since July He is responsible for the research coverage of FMCG, Automobiles and Media sectors at Kotak AMC since Feb Devender has an overall working experience of 14 years in equity research and fund management. Prior to joining Kotak AMC, Devender worked with the PMS divisions of Kotak, Religare, Karvy and P N Vijay Financial Services. 55

57 DIVIDEND HISTORY Equity s Kotak Equity Arbitrage Fund May Apr Mar Kotak Equity Arbitrage Fund - Bimonthly Dividend May Mar Jan Kotak 50 - Dividend Jun Dec Feb Kotak Classic Equity Record Date Nov Jul Jan Kotak Opportunities Record Date Cum Dividend NAV Cum Dividend NAV Aug Aug Nov Kotak Midcap Record Date Cum Dividend NAV Kotak Asset Allocator Fund (Earlier Know as Kotak Equity FOF) `/Unit `/Unit `/Unit Feb Feb Feb Kotak Tax Saver Record Date Cum Dividend NAV `/Unit Mar Jan Dec Kotak Emerging Equity Record Date Cum Dividend NAV `/Unit May Apr May Aug Individual/ HUF: Others: Kotak Select Focus Record Date Cum Dividend NAV `/Unit Oct Sept Oct Kotak Equity Saving Fund - Monthly Dividend Option Record Date May Apr Mar Kotak Infrastructure and Economic Reform Record Date Cum Dividend NAV `/Unit Jun ETF SCHEMES Kotak PSU Bank ETF Record Date Cum Dividend NAV Nov Feb Kotak SENSEX ETF Record Date Cum Dividend NAV Cum Dividend NAV `/Unit Kotak Equity Saving Fund - Quarterly Dividend Mar Dec Sep Hybrid s Kotak Balance May Apr Mar Kotak Monthly Income Plan - Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Monthly Income Plan - Quarterly Dividend Mar Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: `/Unit `/Unit Nov June Kotak Nifty ETF Record Date Cum Dividend NAV `/Unit May Nov Jan DEBT SCHEMES Kotak Bond Plan A-Quarterly Dividend Mar Individual/ HUF: Others: Sep Individual/ HUF: Others: Sep Individual/ HUF: Others:

58 Debt s Kotak Bond Plan A-Annual Dividend Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Bond Short Term - Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Bond Short Term-Half Yearly Dividend Sep Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Kotak Income Opportunities Fund-Annual Dividend Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Income Opportunities Fund-Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Income Opportunities Fund-Quarterly Dividend Mar Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Kotak Floater Short Term-Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Treasury Advantage Fund-Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Debt s Kotak Flexi Debt Plan A-Quarterly Dividend Sep Individual/ HUF: Others: Jun Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Corporate Bond Fund-Standard Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Corporate Bond Fund-Retail Monthly Dividend Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Apr Individual/ HUF: Others: Kotak Corporate Bond Fund-Standard Quarterly Dividend Mar Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Kotak Gilt Investment Regular Plan-Dividend Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Jun Individual/ HUF: Others: Kotak Gilt Investment Provident Fund and Trust Plan-Dividend Mar Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Kotak Banking and PSU Debt Fund-Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Banking and PSU Debt Fund-Annual Dividend Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: Mar Individual/ HUF: Others:

59 Debt s Kotak Duration Fund-Retail Monthly Dividend Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Apr Individual/ HUF: Others: Kotak Duration Fund-Standard Monthly Dividend May Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Multi Asset Allocation Fund-Annual Dividend Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: Debt s Asset Allocation Graph Kotak Multi Asset Allocation Fund-Monthly Dividend Jun Individual/ HUF: Others: Apr Individual/ HUF: Others: Mar Individual/ HUF: Others: Kotak Multi Asset Allocation Fund-Quarterly Dividend Mar Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Kotak Medium Term Fund-Quarterly Dividend Mar Individual/ HUF: Others: Dec Individual/ HUF: Others: Sep Individual/ HUF: Others: Kotak Medium Term Fund-Annual Dividend Mar Individual/ HUF: Others: Mar Individual/ HUF: Others: This asset allocation guide helps you to determine the suggested equity exposure at different valuations levels based on the Sensex. Valuation levels of the Sensex based on rolling 12month fwd EPS estimate of 1580 Suggested equity allocation (Assuming 50% equity allocation as neutral) 56 58