EXPERT SPEAK. Mr. Nilesh Shah. November 30, 2015

Transcription

1

2 EXPERT SPEAK Mr. Nilesh Shah November 30, 2015 Dear Friends, We Indians are terrific savers. But the same can t be said about our investment habits. I say this because we are stuck in many habits and ideas which are not only ineffective but also outright counterproductive in many cases. For example, many amongst us believe that children are parent s best retirement solutions. This is not only an erroneous idea, it is also unjust. This notion binds a growing child and limits their ambition and risk capability in favour of more predictable incomes. Alternatively, such children who want to pursue their dreams inevitably have to unshackle themselves of these parental commitments. Even if a child supports the parent, it can be uneasy adjustment and a dependent parent has little say in the expenditure and support. Thus, a blood relationship is reduced to a transactional one and creates bickering. The thing is that alternative is already available. A parent has to only plan a financial retirement solution and stick to it. Such a parent has money to give away in old age rather than dependency to suffer at such critical time. Another myth afflicting indian investors is that equity is risky. The tones are usually: I lost X amount in stock market. My 2nd cousin s father-in-law says not to put money in stocks. Or things like, Market is Juaa (gambling). Another variant of this is, I lost money in won t put money again. The fact is these are experiences of a trader. A speculator. Naturally, the outcomes will be in similar line. An equity investment is a long term commitment. Investing in equity is like taking a proportionate share in a business. And no honest business makes returns in in few months time. You have to give it time to grow and allow your share to become highly valuable. In my opinion not investing in equities is risky. Another myth associated with equity investment is the expectation of predictability. Many investors wish to see their equity investment grow at a steady rate of growth. The truth is investing in equities is like growing a bamboo plant. It may show spurt of rapid growth in first year or it may remain a sapling for next 5 years. But you have to be at it. Because the growth offshoot of 6th year would be so rapid that it overpowers the non-performance of previous years. The point is: you have to be patient, diligent and long term with equity. There is another set of fiction that plagues the market. That is, Since mutual fund investments are subject to market risks, so let us avoid the investment. Not investing in mutual fund is also a risk here. Such an investor refuses the low cost advantage, the equity investment advantage, and the professional portfolio management advantage. And all this probably for a low yielding investment or negative real return. Then there is the Insurance for investment myth. The very idea of insurance is to protect you from risk of loss, damage or casualty. Insurance is worth dying for. However, for living, you require investment solution. It is always advised that insurance and investment be kept separate. Insurance is only to cover risks. Investors must remember and internalise that. Another strain of myth infecting the investors is that Debt is a safe investment. That is not always true. I haven t seen any one becoming wealthy by investing in bank fixed deposits. Thus, there are many months and years when fixed income yields are lower than even an inflation rate. What we have as a result is a negative return in real terms! Here you are poorer in real terms as higher inflation has eroded your investment value. Therefore, even a risk averse investor must, at the least, seek an investment option that gives more than the nominal inflation. The list goes on and on. But frankly it only requires a change of mind-set and habit to make your money work for you effectively. The action points are simple. So simple that many violate it flagrantly at their own risk. The points are: plan and invest in equity early, remain consistent and steady, stay the course for long-term, cover life and loss risk through insurance - and have patience. Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW INDIA: Slow but steady economic recovery ahead With the Q2FY16 earnings season and elections in the state of Bihar now behind us, the focus has once again shifted towards global monetary policy and the debate over whether the US Federal Reserve (Fed) would hike rates in the December 2015 meeting. On the domestic front, all eyes were on the recommendations of the 7th Pay Commission. While the absence of arrears this time around implies that the 23.6% hike recommended by the Commission would be have a lower impact on fiscal deficit, we do believe that sectors such as automobiles and consumer durables would get a boost. The commencement of the winter session of Parliament from November 26th (till December 23rd, 2015) is another key event to watch out for. A number of legislations (19 bills in all) are still waiting passage, the main ones being the Good and Services Tax (GST), amendments to the Reserve Bank of India Act to set up a public debt management authority and a monetary policy committee and the passage of the new bankruptcy code. The passage of the GST Bill in the Rajya Sabha (the upper house) still looks uncertain. The Government is however working towards building a consensus among the opposition parties to enable the passage of the bill and ensure implementation by April 2016, the earlier announced timeline. While there are elections in another 5 states in 2016, the next important one is Uttar Pradesh scheduled in April This would hopefully give the Government some more time to undertake key structural reforms. Domestic macro variables remain in favor; earnings downgrades nearing their peak The markets remained volatile in the month of November, with the large cap CNX Nifty Index falling by 1.6% and the CNX Midcap Index remaining flat at 0.8% (in INR terms). Foreign Institutional Investors (FIIs) remained net sellers in the equity market to the tune of USD1.1bn while Domestic Institutional Investors (DIIs) were net buyers to the tune of USD1.5bn. With earnings expectations for FY16 having been significantly cut, it does appear that the pace of earnings downgrades for the market is close to its peak. We expect a modest recovery going into the second half of FY16 driven by two factors: A very low base effect A recovery in margins as the complete pass through of lower input prices and interest rates is effected With GDP growth expected to show an improvement in FY17, we are hopeful of a volume recovery and the current global construct is favorable for India macros. commodity and oil prices together with global liquidity would help keep India s balance of payments and fiscal deficit under check. Across all central banks globally, it does seem unlikely that there would be any aggressive tightening of rates anywhere and if at all in most cases (except the Fed) rates would continue to ease. Given these expectations, we believe that the market is currently trading at valuations which appear comfortable at 18.7xFY16E EPS and 15.4xFY17E EPS (Nifty on a free float basis). India s real GDP growth appears to be on the path of steady recovery Growth in India s real GDP as measured by Gross Value Added (GVA at basic prices) improved to 7.4% in Q2FY16 from 7.1% in the previous quarter. GDP at market prices also stood at 7.4% in Q2FY16 as compared to 7.0% in Q1FY16.The growth in the GVA was led by manufacturing growth which improved to 9.3% YoY and agricultural growth which stood at 2.2% YoY. On the expenditure side, growth was led by investment demand, with Gross Fixed Capital Formation (GFCF) rising 6.8% YoY. While the trends in the real GDP growth points towards a slow but steady recovery (H1FY16 growth at 7.2%) with growth improving further as we move into FY17, the key worry is the sharp moderation in nominal GDP growth during H1FY16 which stood at 7.4% as compared to 13.5% in H1FY15. GDP deflator fell 1.3% YoY in Q2FY16 (1.7% in Q1FY16) reflecting the muted trends in inflation as measured by the wholesale price index. Overall, we do expect that the gradual recovery will continue and the signs of improvement in manufacturing and investment growth (on the back of public spend) appear encouraging. However, impact of poor monsoons on agricultural output will manifest itself in terms of numbers in Q3FY16 and exports weakness is persisting for longer (still contracting on real basis). Thus, we are maintaining our growth forecast for FY16 at 7.3% on GVA basis (7.2% in FY15). We introduce FY17 numbers with the expectations of real GDP growth improving to 7.8%. RBI to stay on hold atleast till the Union Budget; 25-50bps cut in FY17E; probability of Fed rate hike in December increases On the domestic front, as expected the Reserve Bank of India (RBI) left key policy rates unchanged in the meeting on Dec 1, At present the benchmark repo rate stands at 6.75% and the central bank has cut rates by a cumulative 125bps in CY15. RBI has also kept its GDP growth projection unchanged at 7.4% for FY16 but now with a mild downside bias. We do expect that RBI will get comfort on inflation moving towards its medium term target of 4% (target of 5% by March 2017). This would prompt the central bank to cut rates further (by 25-50bps) over the next fiscal while staying on hold in the near term. While RBI remains in an accommodative stance, the Union Budget as well as the Fed rate hike would be events that RBI would wait for before cutting rates further. Global markets seem to have partly discounted the first 25 bps increase in US Fed Rate based on the upward movement in global yields (especially post the October US payroll data release). The minutes from the October Federal Reserve (Fed) meeting shows that most members of the policy-setting Federal Open Market Committee (FOMC) were comfortable not raising rates in October but seemed ready for a December lift-off. The Fed fund futures are pricing in an implied probability of ~72% of a rate hike in December. Even if the Fed does hike interest rates in December 2015, the pace of future rate increases would depend on the strength of economic recovery in the US. US Federal fund futures show a high probability of US Fed Rate at % by the end of the next 12 months. 7th Central Pay Commission to provide a consumption boost; additional expenditure of 0.65% of GDP The 7th Central Pay Commission recommended an average increase in total pay, allowance and pension for central government employees to the tune of 23.6% for FY17. If accepted, the recommendations would result in an additional expenditure of INR740Bn(USD11.2Bn) through the Union Budget and INR280Bn (USD4.2Bn) through the railway budget. This will translate into 65bps of GDP, out of which 45bps will reflect through the Union Budget. Post the announcement of the recommendations of the Pay Commission, it is to be seen whether the Government s commitment to its fiscal consolidation target of 3.5% of GDP in FY17 remains intact. If the fiscal deficit target for FY17 has to be met, the focus would have to be on higher taxes and disinvestments in the FY17 budget. Government launches project Uday to address the problems of the State Electricity Boards (SEBs) A major part of India s bad debt problem comprises state electricity boards distribution companies (discoms) and the related stranded assets of independent power producers. The government recently launched project UDAY (which seeks to rejuvenate the ailing discoms or distribution companies). This project entails that the state governments would take over 75% of discom debt by FY17 with interest cost lowered for the balance 25% of the debt. The project however involves each states acceptance of the underlying plan. 2

4 DEBT VIEW Items Nov-15 Oct-15 Change Reverse Repo 5.75% 5.75% Nil Repo 6.75% 6.75% Nil CRR 4% 4% Nil SLR 21.50% 21.50% Nil Mibor Overnight 6.84% 6.79% 5 bps Call(O/N) 6.75% 6.64% 11 bps CBLO 6.69% 6.50% 19 bps 1 yr T Bill 7.20% 7.18% 2 bps 10 G Sec 7.79% 7.64% 15 bps 5 Year AAA 8.25% 8.13% 12 bps USD/INR Rs Source: RBI; ICRAonline. Key Events: RBI kept policy rates unchanged in its Dec 1 monetary policy review, while reiterating its accommodative stance while keeping the economy anchored to the projected disinflation path. Headline CPI for October 2015 rose to 5% from 4.41%. The core inflation was at 4.50% from 4.30%. WPI inflation for the October month came at -3.81% from -4.54% (negative for 12th month in a row). Fed Futures are indicating a higher probability of Fed rate hike (76% as on 30th Nov 2015 ) in December 15 on back of improved labor data in November. With ECB expected to provide monetary stimulus amidst near-zero interest rates, divergence between advanced economies as regards monetary policy will further increase (2 yr US yields are at 0.9% v/s 2 yr German yields at -0.4%) The IMF agreed to include Yuan in SDR basket at 10.92% weight above JPY and GBP; Yuan now joins an elite group of reserve currencies. The 7th Pay commission has proposed a 23.55% increase in emoluments for 4.7 million government employees and 5.2 million pensioners, providing a boost to consumer economy. Government of India has received 63,000 applications under the gold bond scheme for purchase of bonds worth Rs 246 crore in the first tranche. India's exports declined for the 11th month running in October by 17.5% YoY, but a sharper fall in imports ie 21.15% (mainly due to fall in crude prices) reduced trade deficit to 9.7 billion. RBI has allowed foreign investors to buy bonds in default, subject to minimum tenor of 3 years. While this is a laudable move, efficacy will be undermined due to tenor restriction. Inflation: 12.00% 10.00% 8.00% CPI Core CPI 6.00% 4.00% 5.00% 4.50% 2.00% 0.00% Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Source: MOSPI 3 Although there was an uptick in CPI inflation in October, it is still on RBI s expected trajectory Prices of Pulses was one of the key reasons in pushing up CPI But crude oil & other commodity prices remain subdued to India s advantage RBI s target of 5.8% CPI by Jan-16 is achievable, but containing it around 5% by FY-17 and 4% by FY-18 would be important Overall, the current outlook for agricultural growth in appears moderate at best at this juncture 7th Pay Commission Impact The seventh pay commission that was formed in February-2014 has submitted its list of recommendations to the government to revise the pay scale of government employees. The main list of recommendations made is the following: The commission has recommended a total of 23.55% increase in allowances, pays and pensions for all government employees to be applicable for FY17. This works out to about a net increase of INR 1,02,100 cr or 0.65% of GDP that will be shared by the union government (0.47% of GDP) and the railways. Fiscal arithmetic may come under pressure as Government will need to cut expenditure to meet FY17 deficit target of 3.5% Also, pay hikes for central employees have traditionally been followed by similar hikes for state government employees. How it will be funded In INR crore Borne by the Central Government Borne by the railways Total Pay Allowance HRA TPTA Other Allowances Pension Total Debt Outlook Long Term: 10 year yields are at pre-rate cut levels in September; we believe most of the negatives are priced in We believe that RBI is still in accommodative mode and likely to cut further when space emerges and will keep ample liquidity in the market. 100 bps spread between 10 yr and overnight rates is very attractive With muted credit growth and high positive carry of approx 100 bps, we expect demand for Gilt to remain good. We expect 10 year to trend lower around 7.40% band by March 2016 as bulk of supply is behind us With inflation expected to fall well below the targeted 5% by Jan 2017 and RBI s indicated real interest rate of 1.5-2%, we expect further rate cut of 50 bps in next 18 months. We would recommend duration funds with a 18 month view. Short-Term: Yields in the 6 months -2 yr band are down by bps as compared to 50 bps rate cut by RBI. As liquidity eases and uncertainty reduces we expect short term rates to reduce by at least 25 bps. As rate cut expectation increase on the back of declining inflation, we expect yield curve to flatten. 3

5 GOLD VIEW For the month, spot gold closed at per ounce, down per ounce or 8.02%. The down fall in gold prices in the month of November is at its lowest level since September The bullion market was pressured by a surging U.S. Dollar, which was being supported by expectations of an interest rate hike by the Fed in December. Since the start of FY16 gold prices were pressured mostly before the FOMC meetings largely due to the expectation of an interest rate hike by the Fed. Please refer below table for 1 Month Gold USD returns prior to FOMC meetings FOMC Meetings Dates (CY 2015) Gold USD 1 Month Return prior to FOMC Meetings (%) : Jan Mar Apr Jun Jul Sep Oct Dec 16-17* * returns till 30th Nov 2015 (Source: Bloomberg) Going forward the month of December could witnesses more downward pressure in gold prices until the Fed interest rate announcement date on December 16, till then investors will be observing the language in the Fed statement for guidance pertaining to the timing of future rate hikes. Furthermore if the Fed is dovish on how it plans to make additional rate hikes then there could be a short-covering rally in gold around mid-month. 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. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) AAUM as on Nov 30, 2015: `1, AUM (` In Crores) AUM as on Nov 30, 2015: `1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 47.41% Beta: 1.07 ## Sharpe : 0.61 Standard Deviation : 14.92% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.20% Direct: 1.10% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 8.64 HDFC Bank Ltd. Banks 7.54 ICICI Bank Ltd. Banks 6.10 Larsen And Toubro Ltd. Construction Project 4.75 Axis Bank Ltd Banks 4.27 Reliance Industries Ltd. Petroleum Products 3.81 Maruti Suzuki India Limited Auto 3.67 IndusInd Bank Ltd. Banks 3.16 Tata Consultancy Services Ltd. Software 2.98 State Bank Of India Banks 2.83 Ultratech Cement Ltd. Cement 2.81 ITC Ltd. Consumer Non Durables 2.51 Sun Pharmaceuticals Industries Pharmaceuticals 2.37 Tata Motors Ltd - DVR Auto 2.29 Tata Motors Ltd. Auto 2.22 Mahindra & Mahindra Ltd. Auto 2.18 Colgate Palmolive (India ) Ltd. Consumer Non Durables 2.05 Power Grid Corporation Of India Power 1.99 Britannia Industries Ltd. Consumer Non Durables 1.75 HCL Technologies Ltd. Software 1.74 Jubilant Foodworks Limited Consumer Non Durables 1.63 The Ramco Cements Ltd Cement 1.55 HDFC Ltd. Finance 1.53 Kajaria Ceramics Ltd. Construction 1.50 Shree Cement Ltd. Cement 1.43 Hero MotoCorp Ltd. Auto 1.37 Siemens Ltd. Industrial Capital Goods 1.36 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sept. 30, 2015 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) MRF Limited Auto Ancillaries 1.34 Bharat Petroleum Corporation Petroleum Products 1.31 Persistent Systems Limited Software 1.31 Grasim Industries Ltd. Cement 1.26 Asian Paints Ltd. Consumer Non Durables 1.23 Tata Communications Ltd Telecom - Services 1.23 Oil & Natural Gas Corporation Oil 1.14 Bharat Electronics Ltd Industrial Capital Goods 1.10 Tech Mahindra Ltd. Software 1.08 Cadila Healthcare Ltd. Pharmaceuticals 1.04 Supreme Industries Limited Industrial Products 0.95 Lupin Ltd. Pharmaceuticals 0.94 Bank Of Baroda Banks 0.88 Alstom India Limited Industrial Capital Goods 0.77 Sanofi India Ltd. Pharmaceuticals 0.77 HDFC Ltd. Warrants Finance 0.47 IDFC Bank Limited Banks 0.47 IDFC Limited Finance 0.43 Federal Bank Ltd. Banks 0.26 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.40 Collateral Borrowing & Lending obligation 1.73 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 November 30, 2015: ` (Dividend Option), `34.769(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 Industrial Capital Goods Others 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,530, , , ,682 1,428,900 2,347,125 5,106, , , ,864 1,239,395 1,986,863 3,704, , , ,932 1,227,500 1,954,778 3,730, 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. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.83 ## Sharpe : 0.54 Standard Deviation : 12.21% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.69% Direct: 1.29% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 7.21 Maruti Suzuki India Limited Auto 5.73 HDFC Bank Ltd. Banks 5.40 IndusInd Bank Ltd. Banks 5.21 Bharat Petroleum Corporation Petroleum Products 4.12 Dr Reddys Laboratories Ltd Pharmaceuticals 3.99 Tata Motors Ltd. Auto 3.81 Zee Entertainment Enterprises Media and Entertainment 3.77 HDFC Ltd. Finance 3.64 Lupin Ltd. Pharmaceuticals 3.21 Tata Consultancy Services Ltd. Software 3.15 HCL Technologies Ltd. Software 3.02 Hindustan Unilever Ltd. Consumer Non Durables 3.00 Bosch Limited Auto Ancillaries 2.90 Asian Paints Ltd. Consumer Non Durables 2.59 ICICI Bank Ltd. Banks 2.48 Britannia Industries Ltd. Consumer Non Durables 2.11 Larsen And Toubro Ltd. Construction Project 2.10 Axis Bank Ltd Banks 2.07 Bajaj Finance Limited Finance 1.96 Bajaj Finserv Ltd. Finance 1.96 Dish TV India Ltd. Media and Entertainment 1.93 Bajaj Auto Ltd. Auto 1.66 ITC Ltd. Consumer Non Durables 1.59 Cummins India Ltd. Industrial Products 1.51 Ultratech Cement Ltd. Cement 1.50 Ashok Leyland Ltd. Auto 1.33 Cadila Healthcare Ltd. Pharmaceuticals 1.22 Bank Of Baroda Banks 1.14 IDFC Bank Limited Banks 1.06 HDFC Ltd. Warrants Finance 1.04 Reliance Industries Ltd. Petroleum Products 0.97 Sun Pharma Advance Research Pharmaceuticals 0.73 Bharti Infratel Ltd. Telecom - Total amount invested (Rs) Total Value as on Sept.30, 2015 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Equipment & Accessories 0.69 Emami Ltd. Consumer Non Durables 0.66 Yes Bank Ltd Banks 0.65 Aurobindo Pharma Ltd. Pharmaceuticals 0.61 Oracle Financial Services Software Software 0.50 Grasim Industries Ltd. Cement 0.35 Aditya Birla Nuvo Limited Services 0.33 UPL Ltd Pesticides 0.32 Divi s Laboratories Limited Pharmaceuticals 0.26 Wipro Ltd. Software 0.19 Bharat Electronics Ltd Industrial Capital Goods 0.18 Shree Cement Ltd. Cement 0.17 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.16 Mahindra & Mahindra Ltd. Auto 0.15 The Indian Hotels Company Ltd - CCD Hotels 0.11 Adani Port and Special Economic Zone Limited Transportation 0.09 Listed/Awaiting Listing on Stock Exchange - Total Futures Yes Bank Ltd-DEC CNX NIFTY-DEC Bank Of Baroda-DEC Axis Bank Ltd-DEC ICICI Bank Ltd.-DEC Rural Electrification Corporation Ltd-DEC Futures (Market value represents Notional Value) - Total 5.31 Options CNX NIFTY Call Option - December Options (Market value represents Notional Value) - Total 0.11 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.79 Collateral Borrowing & Lending obligation 4.93 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 1,230, , , ,171 1,391,337 2,254,899 2,354, , , ,773 1,286,962 2,067,570 2,171, , , ,864 1,239,395 1,986,863 2,088, 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 November 30, 2015: `18.04 (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Media & Entertainment Consumer Non Durables Pharmaceuticals 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. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 34.89% Beta: 0.94 ## Sharpe : 0.77 Standard Deviation : 13.95% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.38% Direct: 1.23% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 5.14 HDFC Bank Ltd. Banks 5.12 ICICI Bank Ltd. Banks 4.07 Bajaj Finance Limited Finance 3.95 Maruti Suzuki India Limited Auto 3.63 State Bank Of India Banks 3.58 Axis Bank Ltd Banks 3.53 Larsen And Toubro Ltd. Construction Project 2.95 Shree Cement Ltd. Cement 2.80 Bharat Petroleum Corporation Petroleum Products 2.45 Hindustan Petroleum Corp Ltd Petroleum Products 2.28 IndusInd Bank Ltd. Banks 2.21 Ultratech Cement Ltd. Cement 2.21 Britannia Industries Ltd. Consumer Non Durables 2.20 Torrent Pharmaceuticals Ltd. Pharmaceuticals 2.14 Tech Mahindra Ltd. Software 2.08 Sun Pharmaceuticals Industries Pharmaceuticals 1.93 Tata Motors Ltd. Auto 1.92 Federal Bank Ltd. Banks 1.90 HCL Technologies Ltd. Software 1.87 UPL Ltd Pesticides 1.79 Lupin Ltd. Pharmaceuticals 1.68 MRF Limited Auto Ancillaries 1.67 ITC Ltd. Consumer Non Durables 1.47 Indraprastha Gas Ltd. Gas 1.45 Petronet LNG Ltd. Gas 1.42 The Ramco Cements Ltd Cement 1.36 Dalmia Bharat Ltd Cement 1.34 Bank Of Baroda Banks 1.29 Arvind Ltd Textile Products 1.28 Max India Ltd. Finance 1.27 Ashok Leyland Ltd. Auto 1.22 Mahindra & Mahindra Ltd. Auto 1.17 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sept 30, 2015 (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 November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), `82.79 (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Ancillaries Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement Construction Project 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 1,330, , , ,117 1,541,311 2,566,044 3,393, , , ,205 1,300,048 2,046,058 2,542, , , ,864 1,239,361 1,986,830 2,500, MBL Infrastructures Ltd. Construction 1.15 Persistent Systems Limited Software 1.15 Cummins India Ltd. Industrial Products 1.14 Multi Commodity Exchange of India Limited Finance 1.12 JK Cement Ltd. Cement 1.09 Fag Bearings India Ltd. Industrial Products 1.08 Bosch Limited Auto Ancillaries 1.07 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.04 Motherson Sumi Systems Ltd. Auto Ancillaries 1.04 Tata Consultancy Services Ltd. Software 1.02 Va Tech Wabag Limited Engineering Services 1 Container Corporation of India Transportation 0.99 AIA Engineering Limited Industrial Capital Goods 0.95 Whirlpool of India Ltd. Consumer Durables 0.92 CESC Ltd. Power 0.87 National Buildings Construction Corporation Limited Construction 0.84 Techno Electric & Engineering Co Construction Project 0.81 D-Link (India) Ltd Hardware 0.77 Prestige Estates Projects Limited Construction 0.73 HDFC Ltd. Warrants Finance 0.67 Bharat Forge Ltd. Industrial Products 0.61 Power Grid Corporation Of India Power 0.58 SKF India Ltd Industrial Products 0.53 Swaraj Engines Ltd Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.16 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.50 Collateral Borrowing & Lending obligation 1.75 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. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) AAUM as on Nov 30, 2015: `3, AUM (` In Crores) AUM as on Nov 30, 2015: `3, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 34.93% Beta: 1.00 ## Sharpe : 0.93 Standard Deviation : 14.78% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.03% Direct: 1.18% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.31 Infosys Ltd. Software 5.24 Maruti Suzuki India Limited Auto 3.72 Ultratech Cement Ltd. Cement 3.59 Larsen And Toubro Ltd. Construction Project 3.41 IndusInd Bank Ltd. Banks 3.18 Axis Bank Ltd Banks 3.13 Shree Cement Ltd. Cement 3.05 Max India Ltd. Finance 3.04 ICICI Bank Ltd. Banks 2.81 State Bank Of India Banks 2.75 The Ramco Cements Ltd Cement 2.56 Bharat Electronics Ltd Industrial Capital Goods 2.46 Britannia Industries Ltd. Consumer Non Durables 2.29 Tata Motors Ltd. Auto 2.29 Hindustan Petroleum Corporation Ltd Petroleum Products 2.15 HCL Technologies Ltd. Software 2.11 Sun Pharmaceuticals Industries Pharmaceuticals 1.91 Bharat Petroleum Corporation Petroleum Products 1.89 Lupin Ltd. Pharmaceuticals 1.87 Bajaj Finance Limited Finance 1.80 MRF Limited Auto Ancillaries 1.78 Arvind Ltd Textile Products 1.66 Ashok Leyland Ltd. Auto 1.61 Container Corporation of India Transportation 1.54 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.52 Indraprastha Gas Ltd. Gas 1.45 Tech Mahindra Ltd. Software 1.41 ITC Ltd. Consumer Non Durables 1.34 Federal Bank Ltd. Banks 1.33 Petronet LNG Ltd. Gas 1.33 Cadila Healthcare Ltd. Pharmaceuticals 1.31 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) SYSTEMATIC INVESTMENT PLAN (SIP) Bank Of Baroda Banks 1.18 Jk Lakshmi Cement Ltd. Cement 1.18 Bosch Limited Auto Ancillaries 1.17 Bajaj Finserv Ltd. Finance 1.11 Hindustan Unilever Ltd. Consumer Non Durables 1.06 Techno Electric & Engineering Co Ltd. Construction Project 1.03 Solar Industries India Limited Chemicals 0.94 AIA Engineering Limited Industrial Capital Goods 0.76 Navkar Corporation Limited Transportation 0.67 Godrej Consumer Products Ltd. Consumer Non Durables 0.56 IFB Industries Ltd. Consumer Durables 0.54 Whirlpool of India Ltd. Consumer Durables 0.50 HDFC Ltd. Warrants Finance 0.49 Kec International Ltd. Power 0.49 IDFC Bank Limited Banks 0.42 CESC Ltd. Power 0.40 Kirloskar Oil Engines Ltd. Industrial Products 0.30 Siemens Ltd. Industrial Capital Goods 0.29 Bayer Cropscience Ltd. Pesticides % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.03 Listed/Awaiting Listing on Stock Exchange - Total Futures CNX NIFTY-DEC Futures (Market value represents Notional Value) - Total 2.60 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 1.12 Collateral Borrowing & Lending obligation 8.44 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Total Value as on Sept. 30, 2015 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) 1 year 3 years 5 years Since Inception 120, , , , , ,866 1,004,794 1,285, , , ,485 1,003, , , , , 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 November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Construction Project Auto Pharmaceuticals Finance Consumer Non Durables Cement CBLO & Term Deposits & Rev.Repo Others 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. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 25.93% Beta: 1.08 ## Sharpe : 0.54 Standard Deviation : 16.15% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.46% Direct: 1.26% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.74 Infosys Ltd. Software 5.38 ICICI Bank Ltd. Banks 4.19 Maruti Suzuki India Limited Auto 3.80 Axis Bank Ltd Banks 3.72 State Bank Of India Banks 3.48 Larsen And Toubro Ltd. Construction Project 3.11 Bajaj Finance Limited Finance 2.84 Whirlpool of India Ltd. Consumer Durables 2.84 Shree Cement Ltd. Cement 2.74 Britannia Industries Ltd. Consumer Non Durables 2.71 IndusInd Bank Ltd. Banks 2.70 Tech Mahindra Ltd. Software 2.33 Bharat Petroleum Corp Ltd Petroleum Products 2.32 Ultratech Cement Ltd. Cement 2.31 Hindustan Petroleum Corp Ltd Petroleum Products 2.08 ITC Ltd. Consumer Non Durables 2.01 Reliance Industries Ltd. Petroleum Products 1.99 Tata Motors Ltd. Auto 1.84 SKF India Ltd Industrial Products 1.82 Techno Electric & Engineering Co Ltd. Construction Project 1.74 Hindustan Unilever Ltd. Consumer Non Durables 1.66 Cadila Healthcare Ltd. Pharmaceuticals 1.65 Federal Bank Ltd. Banks 1.62 MRF Limited Auto Ancillaries 1.60 Solar Industries India Limited Chemicals 1.52 Sun Pharmaceuticals Industries Pharmaceuticals 1.50 Lupin Ltd. Pharmaceuticals 1.47 Max India Ltd. Finance 1.47 HCL Technologies Ltd. Software 1.43 Bank Of Baroda Banks 1.39 Ashok Leyland Ltd. Auto 1.36 Arvind Ltd Textile Products 1.31 Total amount invested (Rs) Total Value as on Sept 30, 2015 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Blue Dart Express Ltd. Transportation 1.29 MBL Infrastructures Ltd. Construction 1.18 The Ramco Cements Ltd Cement 1.17 Container Corporation of India Transportation 1.15 Cummins India Ltd. Industrial Products 1.12 Multi Commodity Exchange of India Limited Finance 1.07 UPL Ltd Pesticides 1.03 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1 Thermax Ltd. Industrial Capital Goods 0.99 Navneet Education Ltd. Media and Entertainment 0.97 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 0.97 Bosch Limited Auto Ancillaries 0.96 AIA Engineering Limited Industrial Capital Goods 0.91 Bharat Forge Ltd. Industrial Products 0.88 Adani Port and Special Economic Zone Limited Transportation 0.83 Dalmia Bharat Ltd Cement 0.77 Hawkins Cooker Ltd Household Appliances 0.75 Tata Consultancy Services Ltd. Software 0.58 Kewal Kiran Clothing Limited. Textile Products 0.47 KSB Pump Ltd Industrial Products 0.46 IDFC Bank Limited Banks % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 The Indian Hotels Company Ltd - CCD Hotels 0.13 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 1.31 Net Current /(Liabilities) 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 November 30, 2015: ` (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 1 year 3 years 5 years 7 years Since Inception 120, , , ,000 1,190, , , ,405 1,477,874 2,243, , , ,205 1,300,172 2,015, , , ,864 1,239,395 1,954, 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. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 62.36% Beta: 0.98 ## Sharpe : 0.82 Standard Deviation : 18.40% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 1.27% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Techno Electric & Engineering Co Ltd. Construction Project 3.84 IndusInd Bank Ltd. Banks 3.25 The Ramco Cements Ltd Cement 3.05 Finolex Cables Ltd. Industrial Products 2.75 Solar Industries India Limited Chemicals 2.72 Persistent Systems Limited Software 2.67 Federal Bank Ltd. Banks 2.47 DB Corp Limited Media and Entertainment 2.44 Supreme Industries Limited Industrial Products 2.39 Fag Bearings India Ltd. Industrial Products 2.35 Hawkins Cooker Ltd Household Appliances 2.33 ICICI Bank Ltd. Banks 2.13 Britannia Industries Ltd. Consumer Non Durables 2.10 Whirlpool of India Ltd. Consumer Durables 2.07 Cadila Healthcare Ltd. Pharmaceuticals 1.98 Jubilant Foodworks Limited Consumer Non Durables 1.98 Strides Arcolab Ltd. Pharmaceuticals 1.96 Divi s Laboratories Limited Pharmaceuticals 1.95 HSIL Ltd. Consumer Durables 1.94 Kewal Kiran Clothing Limited. Textile Products 1.94 Motherson Sumi Systems Ltd. Auto Ancillaries 1.87 MRF Limited Auto Ancillaries 1.85 JK Cement Ltd. Cement 1.84 Va Tech Wabag Limited Engineering Services 1.84 Mahindra & Mahindra Financial Services Ltd. Finance 1.78 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.75 Arvind Ltd Textile Products 1.69 SRF Ltd. Textile Products 1.65 Bajaj Finance Limited Finance 1.64 Axis Bank Ltd Banks 1.63 Kansai Nerolac Paints Ltd Consumer Non Durables 1.61 Pennar Engineered Building Total amount invested (Rs) Total Value as on Sept. 30, 2015 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Systems Limited Ferrous Metals 1.56 PVR Ltd. Media and Entertainment 1.55 Bharat Petroleum Corp Ltd. Petroleum Products 1.53 Atul Ltd. Chemicals 1.51 Bharat Forge Ltd. Industrial Products 1.48 Container Corporation of India Transportation 1.37 MBL Infrastructures Ltd. Construction 1.34 UPL Ltd Pesticides 1.34 Bank Of Baroda Banks 1.31 Navneet Education Ltd. Media and Entertainment 1.31 Adani Port and Special Economic Zone Limited Transportation 1.30 NIIT Technologies Ltd Software 1.26 Voltas Ltd. Construction Project 1.26 Tech Mahindra Ltd. Software 1.17 WPIL Ltd Industrial Products 1.08 Shriram Transport Finance Co Finance 1.07 Zuari Agro Chemicals Ltd Fertilisers 1.05 Havells India Ltd. Consumer Durables 1 Tube Investments of India Ltd. Consumer Durables 1 Union Bank Of India Banks 0.99 Jk Lakshmi Cement Ltd. Cement 0.91 Yes Bank Ltd Banks 0.91 Power Mech Projects Ltd Power 0.88 SKF India Ltd Industrial Products 0.87 Hindustan Petroleum Corp Ltd Petroleum Products 0.66 INOX WIND LIMITED Power 0.50 LIC Housing Finance Ltd. Finance 0.49 Listed/Awaiting Listing on Stock Exchange - Total Options CNX NIFTY Call Option - December Options (Market value represents Notional Value) - Total 0.14 Collateral Borrowing & Lending obligation 0.85 Net Current /(Liabilities) 0.85 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 November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Industrial Products Consumer Durables Pharmaceuticals Cement Consumer Non Durables Textile Products Construction Project Media & Entertainment Software Others Midcap and Small cap stocks as a % age of Net : 80.97% * 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 1,280, , ,396 1,075,404 1,848,582 2,834,995 3,216, , , ,938 1,495,016 2,397,177 2,730, , , ,864 1,239,395 1,986,863 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. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 44.69% Beta: 1.01 ## Sharpe : 0.97 Standard Deviation : 18.61% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.33% Direct: 1.12% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Whirlpool of India Ltd. Consumer Durables 3.49 The Ramco Cements Ltd Cement 3.42 Solar Industries India Limited Chemicals 3.01 IndusInd Bank Ltd. Banks 2.77 V-Guard Industries Ltd. Industrial Capital Goods 2.54 Persistent Systems Limited Software 2.46 Strides Arcolab Ltd. Pharmaceuticals 2.42 Hawkins Cooker Ltd Household Appliances 2.33 Fag Bearings India Ltd. Industrial Products 2.30 Finolex Cables Ltd. Industrial Products 2.30 DB Corp Limited Media and Entertainment 2.26 Federal Bank Ltd. Banks 2.22 Shriram City Union Finance Ltd. Finance 2.22 Supreme Industries Limited Industrial Products 2.05 Jubilant Foodworks Limited Consumer Non Durables 2.04 Navneet Education Ltd. Media and Entertainment 1.87 SRF Ltd. Textile Products 1.86 Britannia Industries Ltd. Consumer Non Durables 1.82 PNC INFRATECH LIMITED Construction Project 1.80 Kewal Kiran Clothing Limited. Textile Products 1.77 Mahindra & Mahindra Financial Services Ltd. Finance 1.71 Ramkrishna Forgings Ltd. Industrial Products 1.68 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.68 Va Tech Wabag Limited Engineering Services 1.68 Greaves Cotton Ltd. Industrial Products 1.65 PVR Ltd. Media and Entertainment 1.63 MBL Infrastructures Ltd. Construction 1.56 KPIT Technologies LImited Software 1.51 D-Link (India) Ltd Hardware 1.50 Pennar Engineered Building Systems Limited Ferrous Metals 1.47 Divi s Laboratories Limited Pharmaceuticals 1.46 ICICI Bank Ltd. Banks 1.46 Finolex Industries Ltd. Industrial Products 1.43 Max India Ltd. Finance 1.43 Axis Bank Ltd Banks 1.35 Jk Lakshmi Cement Ltd. Cement 1.35 Total amount invested (Rs) Total Value as on Sept 30, 2015 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Bajaj Finance Limited Finance 1.34 Blue Dart Express Ltd. Transportation 1.27 Motherson Sumi Systems Ltd. Auto Ancillaries 1.24 Carborundum Universal Ltd. Industrial Products 1.22 WPIL Ltd Industrial Products 1.16 Yes Bank Ltd Banks 1.10 Oberoi Realty Ltd Construction 1.06 Power Mech Projects Ltd Power 1.05 IFB Industries Ltd. Consumer Durables 1.03 Bank Of Baroda Banks 1.01 Marksans Pharma Ltd Pharmaceuticals 1.01 Atul Ltd. Chemicals 1 Rural Electrification Corp Ltd Finance 1 Zuari Agro Chemicals Ltd Fertilisers 1 Kirloskar Brothers Ltd. Industrial Products 0.94 SKF India Ltd Industrial Products 0.92 Coromandel International Ltd. Fertilisers 0.81 IDFC Bank Limited Banks 0.81 Maharashtra Seamless Ltd. Ferrous Metals 0.80 GMM Pfaudler Ltd. Engineering 0.79 Multi Commodity Exchange of India Limited Finance 0.61 Amara Raja Batteries Ltd. Auto Ancillaries 0.56 IDFC Limited Finance 0.56 WABCO India Ltd. Auto Ancillaries 0.52 National Buildings Construction Corporation Limited Construction 0.49 Alembic Pharmaceuticals Ltd. Pharmaceuticals 0.44 Shree Cement Ltd. Cement 0.19 Listed/Awaiting Listing on Stock Exchange - Total Options CNX NIFTY Call Option - December Options (Market value represents Notional Value) - Total 0.14 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.01 Corporate Debt/Financial Institutions - Total 0.01 Collateral Borrowing & Lending obligation 4.39 Net Current /(Liabilities) 0.03 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 November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Pharmaceuticals Banks Consumer Durables Finance Cement Media and Entertainment Others Chemicals Software CBLO & Term Deposits & Rev.Repo Midcap and Small cap stocks as a % age of Net : 89.84% * 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 1,030, , ,828 1,160,530 1,933,853 2,374, , , ,296 1,452,284 1,798, , , ,864 1,239,395 1,566, 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. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 58.92% Beta: 1.21 ## Sharpe : 0.58 Standard Deviation : 20.74% Source: ICRAMFI Explorer. Beta, Standard Deviation &Sharpe Ratio are calculated onannualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 2.64% Direct: 1.18% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Larsen And Toubro Ltd. Construction Project 7.23 Shree Cement Ltd. Cement 6.85 Bharti Airtel Ltd. Telecom - Services 6.83 Ultratech Cement Ltd. Cement 6.83 Indraprastha Gas Ltd. Gas 6.30 SKF India Ltd Industrial Products 6.03 Thermax Ltd. Industrial Capital Goods 5.88 Kirloskar Oil Engines Ltd. Industrial Products 5.58 KSB Pump Ltd Industrial Products 5.26 Fag Bearings India Ltd. Industrial Products 4.74 Cummins India Ltd. Industrial Products 4.43 Supreme Industries Limited Industrial Products 3.93 Power Grid Corp Of India Ltd Power 3.30 AIA Engineering Limited Industrial Capital Goods 2.96 Total amount invested (Rs) Total Value as on Sept 30, 2015 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Tata Motors Ltd - DVR Auto 2.90 Container Corporation of India Transportation 2.85 Gateway Distriparks Ltd. Transportation 2.56 Solar Industries India Limited Chemicals 2.35 MRF Limited Auto Ancillaries 2.32 Kajaria Ceramics Ltd. Construction 2.23 MBL Infrastructures Ltd. Construction 2.03 Adani Port and Special Economic Zone Limited Transportation 1.54 Siemens Ltd. Industrial Capital Goods 1.44 IDFC Bank Limited BANKING and FINANCE 0.96 IDFC Limited Finance 0.84 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 1.68 Net Current /(Liabilities) 0.15 Systematic Investment Plan (SIP) If you had invested `10,000 every month 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 November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project Construction Auto Others 1 year 3 years 5 years 7 years Since Inception 120, , , , , , , ,183 1,497,362 1,651, , , ,787 1,254,339 1,390, , , ,864 1,239,395 1,376, 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. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: % Beta: 0.92 ## Sharpe : 0.54 Standard Deviation : 9.17% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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: 1.31% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 4.60 HDFC Bank Ltd. Banks 4.24 ICICI Bank Ltd. Banks 3.71 Larsen And Toubro Ltd. Construction Project 3.12 Maruti Suzuki India Limited Auto 2.19 Axis Bank Ltd Banks 2.10 IndusInd Bank Ltd. Banks 2.07 The Ramco Cements Ltd Cement 1.92 Reliance Industries Ltd. Petroleum Products 1.91 HDFC Ltd. Finance 1.70 Ultratech Cement Ltd. Cement 1.68 HCL Technologies Ltd. Software 1.44 Fag Bearings India Ltd. Industrial Products 1.42 ITC Ltd. Consumer Non Durables 1.31 Tata Consultancy Services Ltd. Software 1.29 Solar Industries India Limited Chemicals 1.18 Supreme Industries Limited Industrial Products 1.16 Finolex Cables Ltd. Industrial Products 1.12 Container Corporation of India Transportation 1.08 Hindustan Unilever Ltd. Consumer Non Durables 1.08 Jubilant Foodworks Limited Consumer Non Durables 1.08 State Bank Of India Banks 1.08 Va Tech Wabag Limited Engineering Services 1.01 Mahindra & Mahindra Ltd. Auto 0.94 Sun Pharmaceuticals Industries Pharmaceuticals 0.94 Tata Motors Ltd. Auto 0.94 Britannia Industries Ltd. Consumer Non Durables 0.91 JK Cement Ltd. Cement 0.91 Navkar Corporation Limited Transportation 0.91 Ramkrishna Forgings Ltd. Industrial Products 0.91 UPL Ltd Pesticides 0.89 PNC INFRATECH LIMITED Construction Project 0.83 Coal India Ltd. Minerals/Mining 0.81 Ahluwalia Contracts (India) Ltd. Cement 0.80 SRF Ltd. Textile Products 0.79 Voltas Ltd. Construction Project 0.79 Bank Of Baroda Banks 0.77 MBL Infrastructures Ltd. Construction 0.76 Oil & Natural Gas Corporation Oil 0.76 IDFC Bank Limited Banks 0.75 Hero MotoCorp Ltd. Auto 0.74 Hindustan Petroleum Corp Ltd Petroleum Products 0.72 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sept 30, 2015 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Government Dated Securities Industrial Products Banks Software CBLO & Term Deposits & Rev.Repo Finance Consumer Non Durables Auto Cement Construction Project Others SYSTEMATIC INVESTMENT PLAN (SIP) S H Kelkar and Company Ltd Consumer Non Durables 0.72 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.68 HDFC Ltd. Warrants Finance 0.68 IDFC Limited Finance 0.67 Amara Raja Batteries Ltd. Auto Ancillaries 0.63 Bharat Forge Ltd. Industrial Products 0.63 DB Corp Limited Media and Entertainment 0.59 Federal Bank Ltd. Banks 0.58 Lupin Ltd. Pharmaceuticals 0.55 Mahindra & Mahindra Financial Services Ltd. Finance 0.54 Cadila Healthcare Ltd. Pharmaceuticals 0.51 Gujarat State Petronet Ltd. Gas 0.47 Tech Mahindra Ltd. Software 0.47 Cairn India Limited Oil 0.46 Yes Bank Ltd Banks 0.42 Cipla Ltd. Pharmaceuticals 0.38 Pennar Engineered Building Systems Limited Ferrous Metals 0.38 Tata Motors Ltd - DVR Auto 0.37 Adani Port and Special Economic Zone Limited Transportation 0.36 Power Mech Projects Ltd Power 0.31 Hindustan Zinc Ltd. Non - Ferrous Metals 0.14 The Indian Hotels Company Ltd - CCD Hotels 0.04 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.20 Tata Sons Ltd. CRISIL AAA 0.08 Corporate Debt/Financial Institutions - Total 0.28 Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 1.98 Government Dated Securities - Total Collateral Borrowing & Lending obligation 6.49 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 1,910, , , ,935 1,252,895 2,035,884 7,141, , , ,994 1,216,792 1,975,919 NA NA 113, , ,864 1,239,395 1,986,863 6,243, 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 November30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) 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. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `4, AUM (` In Crores) AUM as on Nov 30, 2015: `4, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth 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: 0.60 ## Sharpe : 2.90 Standard Deviation : 0.59% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 6.84% (3 months T-bill yield as on Nov 30, 2015) 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) within 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 Derivative Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged Aurobindo Pharma Ltd. Pharmaceuticals Adani Port and Special Economic Zone Limited Transportation Indiabulls Housing Finance Ltd. Finance Hindustan Petroleum Corporation Ltd Petroleum Products Axis Bank Ltd Banks Britannia Industries Ltd. Consumer Non Durables Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Yes Bank Ltd Banks HDFC Bank Ltd. Banks Eicher Motors Ltd Auto HDFC Ltd. Finance Vedanta Ltd. Minerals/Mining Rural Electrification Corporation Ltd Finance IDFC Limited Finance Indian Oil Corporation Ltd Petroleum Products Larsen And Toubro Ltd. Construction Project Reliance Industries Ltd. Petroleum Products Cipla Ltd. Pharmaceuticals Oil & Natural Gas Corporation Ltd. Oil UPL Ltd Pesticides Reliance Capital Ltd. Finance SKS Microfinance Limited Finance Sun TV Limited. Media and Entertainment Power Finance Corporation Ltd. Finance Wockhardt Ltd. Pharmaceuticals Dr Reddys Laboratories Ltd Pharmaceuticals MRF Limited Auto Ancillaries Castrol (India ) Ltd. Petroleum Products Hindalco Industries Ltd Non - Ferrous Metals Dish TV India Ltd. Media and Entertainment Tata Global Beverages Limited Consumer Non Durables Shriram Transport Finance Co Ltd. Finance LIC Housing Finance Ltd. Finance JSW Steel Ltd. Ferrous Metals Adani Power Ltd Power Tata Communications Ltd Telecom - Services Reliance Power Ltd Power ITC Ltd. Consumer Non Durables Century Textiles & Industries Ltd. Cement Tata Consultancy Services Ltd. Software Dewan Housing Finance Corporation Ltd. Finance Ultratech Cement Ltd. Cement Kotak Mahindra Bank Ltd. Banks Zee Entertainment Enterprises Ltd Media and Entertainment Jindal Steel & Power Ltd. Ferrous Metals Tata Chemicals Ltd. Chemicals Bharti Infratel Ltd. Telecom - Equipment & Accessories Ajanta Pharma Ltd. Pharmaceuticals Cadila Healthcare Ltd. Pharmaceuticals Canara Bank Banks CESC Ltd. Power SRF Ltd. Textile Products * 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 Bosch Limited Auto Ancillaries TV18 Broadcast Ltd Media and Entertainment IFCI Ltd. Finance Infosys Ltd. Software Bharat Petroleum Corporation Ltd. Petroleum Products Hexaware Technologies Ltd. Software NCC Limited Construction Project Punjab National Bank Banks Apollo Tyres Ltd. Auto Ancillaries Oracle Financial Services Software Ltd Software India Cements Ltd. Cement Jain Irrigation Systems Ltd. Industrial Products Pidilite Industries Ltd. Chemicals Amara Raja Batteries Ltd. Auto Ancillaries Cairn India Limited Oil Lupin Ltd. Pharmaceuticals Bank Of Baroda Banks PTC India Ltd. Power Housing Development and Infrastructure Limited Construction GMR Infrastructure Ltd. Construction Project Allahabad Bank. Banks Biocon Ltd. Pharmaceuticals CEAT Ltd. Auto Ancillaries IRB Infrastructure Developers Ltd Construction Karnataka Bank Ltd Banks L&T Finance Holdings Ltd Finance Tata Power Co. Ltd. Power Indiabulls Real Estate Ltd Construction Unitech Ltd Construction Industrial Development Bank of India Ltd. Banks Ambuja Cements Ltd Cement The South Indian Bank Ltd. Banks Union Bank Of India Banks Motherson Sumi Systems Ltd. Auto Ancillaries Engineers India Ltd. Construction Project Siemens Ltd. Industrial Capital Goods Bharat Earth Movers Ltd. Industrial Capital Goods Adani Enterprises Ltd Trading Andhra Bank Banks Bajaj Finance Limited Finance Apollo Hospitals Enterprises Ltd. Healthcare Services Bharat Forge Ltd. Industrial Products HCL Technologies Ltd. Software Hindustan Zinc Ltd. Non - Ferrous Metals Oriental Bank of Commerce Banks Jubilant Foodworks Limited Consumer Non Durables Reliance Infrastructure Ltd Power Havells India Ltd. Consumer Durables MindTree Ltd. Software NHPC Limited Power Tech Mahindra Ltd. Software UCO Bank Banks Asian Paints Ltd. Consumer Non Durables Hindustan Unilever Ltd. Consumer Non Durables

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Indraprastha Gas Ltd. Gas IndusInd Bank Ltd. Banks Strides Arcolab Ltd. Pharmaceuticals Tata Motors Ltd - DVR Auto Aditya Birla Nuvo Limited Services Syndicate Bank Banks Bank of India Banks Federal Bank Ltd. Banks National Thermal Power Corporation Limited Power TVS Motors Company Ltd Auto United Breweries Ltd. Consumer Non Durables Divi s Laboratories Limited Pharmaceuticals Jaiprakash Associates Ltd Construction Glenmark Pharmaceuticals Ltd Pharmaceuticals Mcleod Russel India Ltd Consumer Non Durables Wipro Ltd. Software Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Liquid Plan A Mutual Fund Units 7.48 Mutual Fund Units - Total 7.48 TERM DEPOSITS Kotak Mahindra Bank Ltd IndusInd Bank Ltd Ratnakar Bank Ltd 1.81 Term Deposits - Total Collateral Borrowing & Lending obligation 1.28 Net Current /(Liabilities) 3.49 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) Mutual Fund Units SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Banks Pharmaceuticals Finance Auto Petroleum Products Transportation Consumer Non Durables Software Others 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. 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 Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` 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 exit within 1 year from date of allotment of units: 1%; ii) For exit after 1year from the date of allotment of units: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the. iii) 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 1.69 Maruti Suzuki India Limited Auto 1.50 IndusInd Bank Ltd. Banks 1.44 HDFC Bank Ltd. Banks 1.29 Lupin Ltd. Pharmaceuticals 1.28 Bharat Petroleum Corporation Ltd. Petroleum Products 1.14 Dr Reddys Laboratories Ltd Pharmaceuticals 1.11 Zee Entertainment Enterprises Ltd Media and Entertainment 0.94 HCL Technologies Ltd. Software 0.91 Tata Consultancy Services Ltd. Software 0.86 Hindustan Unilever Ltd. Consumer Non Durables 0.83 Axis Bank Ltd Banks 0.81 Bosch Limited Auto Ancillaries 0.81 Asian Paints Ltd. Consumer Non Durables 0.69 HDFC Ltd. Warrants Finance 0.67 Bajaj Finance Limited Finance 0.62 Britannia Industries Ltd. Consumer Non Durables 0.61 ICICI Bank Ltd. Banks 0.60 Bajaj Finserv Ltd. Finance 0.59 Tata Motors Ltd. Auto 0.59 Dish TV India Ltd. Media and Entertainment 0.53 Larsen And Toubro Ltd. Construction Project 0.53 Bank Of Baroda Banks 0.50 S H Kelkar and Company Ltd Consumer Non Durables 0.49 Bajaj Auto Ltd. Auto 0.42 Yes Bank Ltd Banks 0.40 Ashok Leyland Ltd. Auto 0.36 HDFC Ltd. Finance 0.35 Cadila Healthcare Ltd. Pharmaceuticals 0.28 Cummins India Ltd. Industrial Products 0.28 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.27 ITC Ltd. Consumer Non Durables 0.26 Emami Ltd. Consumer Non Durables 0.23 Ultratech Cement Ltd. Cement 0.21 Bharti Airtel Ltd. Telecom - Services 0.20 Aurobindo Pharma Ltd. Pharmaceuticals 0.17 Reliance Industries Ltd. Petroleum Products 0.15 UPL Ltd Pesticides 0.12 Coal India Ltd. Minerals/Mining 0.11 Oracle Financial Services Software Ltd Software 0.11 Aditya Birla Nuvo Limited Services 0.07 Divi s Laboratories Limited Pharmaceuticals 0.07 Cipla Ltd. Pharmaceuticals 0.06 Grasim Industries Ltd. Cement 0.05 Wipro Ltd. Software 0.05 Bharat Electronics Ltd Industrial Capital Goods 0.04 Mahindra & Mahindra Ltd. Auto 0.04 Shree Cement Ltd. Cement 0.04 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Adani Port and Special Economic Zone Limited Transportation 0.01 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.01 Non-Hedged- Total Hedged HDFC Bank Ltd. Banks Strides Arcolab Ltd. Pharmaceuticals Tata Communications Ltd Telecom - Services Reliance Capital Ltd. Finance Jain Irrigation Systems Ltd. Industrial Products Power Finance Corporation Ltd. Finance MRF Limited Auto Ancillaries Axis Bank Ltd Banks Vedanta Ltd. Minerals/Mining SKS Microfinance Limited Finance India Cements Ltd. Cement IFCI Ltd. Finance Castrol (India ) Ltd. Petroleum Products Century Textiles & Industries Ltd. Cement Housing Development and Infrastructure Limited Construction NHPC Limited Power Oil & Natural Gas Corporation Ltd. Oil Aurobindo Pharma Ltd. Pharmaceuticals ITC Ltd. Consumer Non Durables Yes Bank Ltd Banks Tata Chemicals Ltd. Chemicals UPL Ltd Pesticides Adani Power Ltd Power Reliance Power Ltd Power Reliance Industries Ltd. Petroleum Products L&T Finance Holdings Ltd Finance Indiabulls Housing Finance Ltd. Finance Sun TV Limited. Media and Entertainment Indian Oil Corporation Ltd Petroleum Products Indiabulls Real Estate Ltd Construction Hexaware Technologies Ltd. Software Hindalco Industries Ltd Non - Ferrous Metals Engineers India Ltd. Construction Project Adani Enterprises Ltd Trading Dish TV India Ltd. Media and Entertainment IDFC Limited Finance * 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 Eicher Motors Ltd Auto Bharat Petroleum Corporation Ltd. Petroleum Products Hindustan Petroleum Corporation Ltd Petroleum Products Syndicate Bank Banks Cipla Ltd. Pharmaceuticals Andhra Bank Banks Tata Global Beverages Limited Consumer Non Durables NCC Limited Construction Project UCO Bank Banks Wockhardt Ltd. Pharmaceuticals Adani Port and Special Economic Zone Limited Transportation Amara Raja Batteries Ltd. Auto Ancillaries Dewan Housing Finance Corporation Ltd. Finance Dr Reddys Laboratories Ltd Pharmaceuticals IRB Infrastructure Developers Ltd Construction Shriram Transport Finance Co Ltd. Finance TV18 Broadcast Ltd Media and Entertainment Kotak Mahindra Bank Ltd. Banks Rural Electrification Corporation Ltd Finance HDFC Ltd. Finance Hindustan Zinc Ltd. Non - Ferrous Metals Asian Paints Ltd. Consumer Non Durables Bharti Infratel Ltd. Telecom - Equipment & Accessories Punjab National Bank Banks HCL Technologies Ltd. Software Infosys Ltd. Software PTC India Ltd. Power Karnataka Bank Ltd Banks Cairn India Limited Oil DLF Limited Construction CESC Ltd. Power Jaiprakash Associates Ltd Construction Ajanta Pharma Ltd. Pharmaceuticals Ambuja Cements Ltd Cement Divi s Laboratories Limited Pharmaceuticals Federal Bank Ltd. Banks Hindustan Unilever Ltd. Consumer Non Durables Jubilant Foodworks Limited Consumer Non Durables Ultratech Cement Ltd. Cement Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Liquid Plan A Mutual Fund Units 8.66 Mutual Fund Units - Total 8.66 Government Dated Securities 7.72% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 0.61 Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.74 Term Deposits - Total Collateral Borrowing & Lending obligation 6.17 Net Current /(Liabilities) Notes: #Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Savings Fund NAV as on November 30, 2015: ` (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 Pharmaceuticals Government Dated Securities Consumer Non Durables Petroleum Products Auto Mutual Fund Units 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. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 9.32 HDFC Bank Ltd. Banks 8.86 ICICI Bank Ltd. Banks 8.09 Tata Motors Ltd - DVR Auto 6.55 Maruti Suzuki India Limited Auto 6.18 Larsen And Toubro Ltd. Construction Project 5.46 IndusInd Bank Ltd. Banks 5.45 Reliance Industries Ltd. Petroleum Products 5.32 Axis Bank Ltd Banks 4.97 Sun Pharmaceuticals Industries Pharmaceuticals 4.35 Hero MotoCorp Ltd. Auto 4.10 Britannia Industries Ltd. Consumer Non Durables 3.93 Ultratech Cement Ltd. Cement 3.69 Persistent Systems Limited Software 3.33 Kajaria Ceramics Ltd. Construction 3.26 Power Grid Corporation Of India Power 3.18 MRF Limited Auto Ancillaries 2.82 Shree Cement Ltd. Cement 2.75 Oracle Financial Services Software Ltd Software 2.09 Jubilant Foodworks Limited Consumer Non Durables 1.90 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 4.73 Net Current /(Liabilities) Kotak India Growth Fund Series I NAV as on November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 10.42% 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% SECTOR ALLOCATION (%) Banks Cement Software Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project Construction Auto Others CBLO & Term Deposits & Rev.Repo 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. 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 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 Nov 30, 2015: `6, AUM (` In Crores) AUM as on Nov 30, 2015: `6, 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: 0.10 yrs, Portfolio Yield: 7.30% 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 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. ICRA A Piramal Enterprises Limited ICRA A Larsen and Toubro Ltd. CRISIL A Mahindra & Mahindra Financial Services Ltd. CRISIL A Aditya Birla Nuvo Limited ICRA A Manappuram Finance Ltd CRISIL A Au Financiers (India) Limited FITCH A1+(IND) 2.92 Muthoot Finance Ltd CRISIL A Adani Port and Special Economic Zone Limited ICRA A ECL Finance Limited CRISIL A Shapoorji Pallonji and Company Private Limited ICRA A Tata Motors Finance Solutions Private Limited (100 subsidiary of Tata Motors Finance Ltd) CRISIL A Aditya Birla Money Ltd CRISIL A India Infoline Finance Limited ICRA A Ratnakar Bank Ltd CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Steel Authority of India Ltd. FITCH A1+(IND) 7.10 Punjab & Sind Bank CRISIL A1+ 3 Public Sector Undertakings - Total Reverse Repo 1.38 Treasury Bills 91 Days Treasury Bill 31/12/2015 SOV Days Treasury Bill 18/12/2015 SOV Days Treasury Bill 03/12/2015 SOV 0.52 Treasury Bills - Total TERM DEPOSITS HDFC Bank Ltd Ratnakar Bank Ltd 1.93 Term Deposits - Total 7.06 Collateral Borrowing & Lending obligation 7.13 Net Current /(Liabilities) 0.25 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.10 years Kotak Liquid Plan A Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE Regular: 0.09% Direct: 0.06% Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Net Current Treasury Bills A1+, A1+(IND), A1+, SOV Net Current CBLO & Term Deposits & Rev.Repo 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. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `7, AUM (` In Crores) AUM as on Nov 30, 2015: `7, A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily Weekly (Every Monday), Monthly (12th of every Month) Ratios Standard Deviation: 0.19%, Modified Duration: 0.12 yrs, Portfolio Yield: 7.55% 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: 0.16% Direct: 0.12% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Dewan Housing Finance Corp CARE AAA 0.92 HDB Financial Services Ltd. CRISIL AAA 0.46 Corporate Debt/Financial Institutions - Total 1.38 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CARE A Suraksha Reality Ltd (lending against shares of Sun Pharmaceuticals Industries Ltd) CRISIL A1+(SO) 6.91 Mahindra & Mahindra Financial Services Ltd. CRISIL A Muthoot Finance Ltd CRISIL A India Infoline Finance Limited ICRA A HDFC Ltd. ICRA A ONGC Manglore Petrochemicals ICRA A Edelweiss Commodities Services CRISIL A ECL Finance Limited CRISIL A Suraksha Reality Ltd (lending against shares of Sun Pharmaceuticals Industries Ltd) CARE A RHC Finance Private Limited FITCH A1+(IND) 2.77 Manappuram Finance Ltd CRISIL A Piramal Enterprises Limited ICRA A Hinduja Leyland Finance Ltd. CARE A Sadbhav Engineering Ltd. CARE A Sundaram Finance Ltd. CRISIL A Tata Motors Finance Solutions Pvt Ltd (100 subsidiary of Tata Motors Finance Ltd) CRISIL A JM Financial Asset Reconstruction Co. Pvt. Ltd ICRA A Edelweiss Financial Services CRISIL A HDFC Ltd Larsen and Toubro Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Small Industries Development Bank Of India. CARE A PNB Housing Finance Ltd. CARE A Punjab & Sind Bank CRISIL A Export-Import Bank of India. CRISIL A Vijaya Bank CRISIL A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 31/12/2015 SOV Treasury Bills - Total TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.42 Collateral Borrowing & Lending obligation 0.17 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 November 30, 2015: ` (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) CBLO & Term Deposits & Rev.Repo Net Current Debentures and Bonds Treasury Bills A1+, AAA, A1+, A1+(SO), AAA, A1+(IND), A1+, SOV CBLO & Term Deposits & Rev.Repo Net Current Unrated 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 Nov 30, 2015: `4, AUM (` In Crores) AUM as on Nov 30, 2015: `4, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily Monthly (12th of every Month), Weekly (Every Monday) Ratios Standard Deviation: 0.31%, Modified Duration: 0.50 yrs, Portfolio Yield: 8.32% 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: 0.63% Direct: 0.28% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Prime Ltd. CRISIL AAA 5.59 Indiabulls Housing Finance Ltd CARE AAA 4.98 Mahindra & Mahindra Financial Services Ltd. FITCH AAA(IND) 4.97 Karelides Traders Private Ltd. ICRA AA Adani Power Ltd (lending against shares of Adani Ports and SEZ Ltd) BRICKWORK BWR A1+ (SO) 3.63 Shriram Transport Finance Co Ltd. FITCH AA+(IND) 2.49 Dewan Housing Finance Corporation Ltd. CARE AAA 2.37 Lands End Properties Private Limited CARE AA+(SO) 2.05 Bahadur Chand Investments Private Limited (lending to promoters of Hero Motocorp Ltd) ICRA AA 2.00 Nabha Power Ltd. (backed by unconditional and irrevocable guarantee by L&T) ICRA AAA 1.86 HDFC Ltd. CRISIL AAA 1.61 Tata Capital Financial Services Limited CRISIL AA HPCL Mittal Energy Ltd. ICRA AA Grand View Estate Pvt Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) ICRA AA 1.25 SP Jammu Udhampur way Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) ICRA AAA 0.86 L & T Finance Limited ICRA AA LIC Housing Finance Ltd. CRISIL AAA 0.62 Reliance Capital Ltd. CARE AAA 0.41 Tata Capital Housing Finance Ltd; CRISIL AA Tata Motors Finance Ltd CRISIL AA 0.17 Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India. CRISIL AAA 3.15 Power Finance Corporation Ltd. CRISIL AAA 0.10 Public Sector Undertakings - Total 3.25 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Enterprises Limited ICRA A Larsen and Toubro Ltd. CRISIL A Sun Pharmaceutical Industries ICRA A ECL Finance Limited CRISIL A Adani Transmission Ltd FITCH A1+(IND) 4.89 Adani Port and Special Economic Zone Limited ICRA A Edelweiss Financial Services Ltd CRISIL A Aditya Birla Nuvo Limited ICRA A Tata Capital Financial Services ICRA A IL & FS Financial Services Ltd. CRISIL A ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A PNB Housing Finance Ltd. CARE A Small Industries Development Bank Of India. CRISIL A Corporation Bank CRISIL A Punjab & Sind Bank CRISIL A Vijaya Bank CRISIL A Public Sector Undertakings - Total 4.25 Net Current /(Liabilities) 0.63 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.54 years. Kotak Treasury Advantage Fund NAV as on November 30, 2015: ` (Daily Dividend Option), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current 19.2 RATING PROFILE BWR A1+ (SO), A1+, AAA, A1+, AAA, A1+(IND), AAA(IND), A1+, AAA AA+(SO), AA+, AA+(IND), AA+, AA, AA- 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. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 0.45%, Debt Instruments Debentures and Bonds Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA Steel Authority of India Ltd. CARE AAA Rural Electrification Corporation CRISIL AAA 7.58 State Bank Of India. CRISIL AAA 7.51 Vijaya Bank CRISIL AA Public Sector Undertakings - Total Government Dated Securities 8.47 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 ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Small Industries Development Bank Of India. CRISIL A Vijaya Bank CRISIL A Punjab & Sind Bank CRISIL A Public Sector Undertakings - Total Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 1.92 Treasury Bills - Total 1.92 Collateral Borrowing & Lending obligation 0.99 Net Current /(Liabilities) 2.34 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 1.05 years. Kotak Banking And PSU Debt Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Modified Duration: 0.96 yrs, Portfolio Yield: 7.77% 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% Net Current Debentures and Bonds Government Dated Securities Treasury Bills A1+, AAA, A1+, SOV CBLO & Term Deposits & Rev.Repo AA+ Net Current 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. There is no assurance or guarantee that the investment objective of the scheme will be achieved. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `1, AUM (` In Crores) AUM as on Nov 30, 2015: `1, 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: 0.47%, Modified Duration: 0.50 yrs, Portfolio Yield: 9.41% 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: 0.90% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA Adani Power Ltd (lending against shares of Adani Ports and SEZ Ltd) BRICKWORK BWR A1+ (SO) Shriram Transport Finance Co FITCH AA+(IND) 6.44 Karelides Traders Private Ltd. ICRA AA Muthoot Fincorp Ltd. CRISIL A 6.43 Pune Solapur Expressways Pvt. Ltd. (toll road project of Tata Realty & Infrastructure Ltd) ICRA A 5.65 Indostar Capital Finance Pvt Ltd CARE AA Bahadur Chand Investments Pvt Ltd (lending to promoters of Hero Motocorp Ltd) ICRA AA 4.54 Shivprasad Realty Pvt Ltd (backed by unconditional and irrevocable undertaking by Axis Capital) ICRA AAA 3.51 Dewan Housing Finance Corporation Ltd. CARE AAA 3.44 Emami Realty Ltd (lending against shares of Emami Ltd) Hero Realty Ltd. (project-backed BRICKWORK BWR AA-(SO) 3.38 lending to Hero Group) ICRA A Sahyadri Agencies Ltd (lending against shares of Jyothy Laboratories Ltd) BRICKWORK BWR A(SO) 2.17 Muthoot Finance Ltd CRISIL AA HDB Financial Services Ltd. CARE AAA 0.08 Tata Motors Ltd. CARE AA Fullerton India Credit Co. Ltd. ICRA AA Corporate Debt/Financial Institutions - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Bharat Alluminum Co. Ltd. CRISIL A1+(SO) 9.52 HDFC Ltd. CRISIL A Edelweiss Commodities Services CRISIL A Aditya Birla Finance Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Corporation Bank CRISIL A Public Sector Undertakings - Total 0.96 Treasury Bills 91 Days Treasury Bill 31/12/2015 SOV 3.20 Treasury Bills - Total 3.20 Collateral Borrowing & Lending obligation 1.43 Net Current /(Liabilities) 1.46 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.55 years Kotak Duration Fund NAV as on November 30, 2015: ` (Retail Plan-Growth Option), ` (RetailPlan-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). ` (Direct Plan- Bonus) SECTOR ALLOCATION (%) Treasury Bills 36.4 RATING PROFILE A+, BWR A(SO), A BWR A1+ (SO), AAA, A1+, A1+(SO), AAA, SOV AA+, AA+(IND), AA+, AA, BWR AA-(SO), AA- 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. There is no assurance that the investment objective of the will be realised. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `2, AUM (` In Crores) AUM as on Nov 30, 2015: `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: 0.86%, Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Nabha Power Ltd. (backed by unconditional and irrevocable guarantee by L&T) ICRA AAA Dewan Housing Finance Corporation Ltd. CARE AAA 8.07 Reliance Jio Infocomm Limited CRISIL AAA 7.60 Mandava Holdings Private Limited (backed by unconditional and irrevocable undertaking by Axis Capital) ICRA AAA 6.73 HDB Financial Services Ltd. CRISIL AAA 4.89 Fullerton India Credit Co. Ltd. CARE AAA 4.79 Shriram Transport Finance Co Ltd. CRISIL AA Sterlite Industries (India) Ltd CRISIL AA 4.49 Kotak Mahindra Prime Ltd. CRISIL AAA 3.07 Tata Capital Financial Services Limited CRISIL AA HDFC Ltd. CRISIL AAA 2.14 Shriram Transport Finance Co Ltd. FITCH AA+(IND) 1.91 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 1.34 SP Jammu Udhampur way Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) ICRA AAA 1.27 Piramal Enterprises Limited ICRA AA 0.76 Tata Motors Finance Ltd CRISIL AA 0.19 L & T Finance Limited CARE AA Mahindra & Mahindra Financial Services Ltd. FITCH AAA(IND) 0.07 Issuer/Instrument Industry/ % to Net Rating HDB Financial Services Ltd. CARE AAA 0.04 IDFC Bank Limited ICRA AAA 0.04 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 8.93 National Bank for Agriculture and Rural Development CRISIL AAA 1.91 State Bank Of India. CRISIL AAA 1.35 Steel Authority of India Ltd. CARE AAA 0.57 Rural Electrification Corporation Ltd. CRISIL AAA 0.49 Public Sector Undertakings - Total Government Dated Securities 8.24% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % Central Government SOV 0.37 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Public Sector Undertakings Vijaya Bank CRISIL A Public Sector Undertakings - Total 0.07 Collateral Borrowing & Lending obligation 4.51 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :3.68 years. Kotak Bond Short Term Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Half Yearly Dividend), ` (Direct Half Yearly Dividend) Modified Duration: 2.63 yrs, Portfolio Yield: 8.57% 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: (w.e.f. December 11, 2014) 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 Regular: 1.25%; Direct: 0.35% 25 SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev. Repo 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 AAA, A1+, AAA, AAA(SO), AAA(IND), AAA, SOV AA+, AA+(IND), AA Net Current CBLO & Term Deposits & Rev.Repo 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. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` 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: 2.64%, Modified Duration: 1.70 yrs, Portfolio Yield: 7.94% 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: 1.15% Direct: 0.40% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA Tata Capital Housing Finance Ltd; CRISIL AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 0.42 Rural Electrification Corporation Ltd. CRISIL AAA 0.15 Public Sector Undertakings - Total 0.57 Government Dated Securities 1.44 Central Government SOV Central Government SOV Central Government SOV State Government SOV 0.53 Government Dated Securities - Total Collateral Borrowing & Lending obligation 7.00 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.99 years Kotak Flexi Debt Plan A Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) Net Current CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds RATING PROFILE AAA, SOV AA+ Net Current CBLO & Term Deposits & Rev.Repo 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. 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

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. There is no assurance that or guarantee that the investment objective of the scheme will be achieved. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `1, AUM (` In Crores) AUM as on Nov 30, 2015: `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 March / June / September / December), Annual (12th of March). Ratios Standard Deviation: 0.62%, Modified Duration: 1.59 yrs, Portfolio Yield: 10.40% 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 redemptions/ switch outs (including SIP/ STP) within 1 year from the date of allotment of units,irrespective of the amount of investment: 2%. 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. 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: 1.60% Direct: 0.30% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions DLF Emporio Ltd CRISIL AA 8 Adani Power Ltd (lending against shares of Adani Ports and SEZ Ltd) BRICKWORK BWR AA Au Financiers (India) Limited FITCH A+(IND) 7.80 Talwandi Sabo Power Limited (backed by unconditional and irrevocable guarantee of Vedanta Ltd) CRISIL AA 6.19 Prestige Estates Projects Limited ICRA A Karelides Traders Private Ltd. ICRA AA Dewan Housing Finance Corporation Ltd. CARE AAA 5.05 Janalakshami Financial Services Ltd. ICRA A Reliance Capital Ltd. CARE AAA 4.27 Sterlite Industries (India) Ltd CRISIL AA 4.20 HDFC Ltd. CRISIL AAA 3.21 Haldhar Developers Private Limited (backed by unconditional and irrevocable undertaking by Piramal) ICRA LAA-(SO) 3.16 Equitas Micro Finance Ltd. CARE A 3.15 SBK Properties Pvt Ltd. (lending to promoters of Bharat Forge group) ICRA AA Grand View Estate Pvt Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) ICRA AA 2.36 Manappuram Finance Ltd CRISIL A SP Jammu Udhampur way Ltd (backed by unconditional and Issuer/Instrument Industry/ % to Net Rating irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) ICRA AAA 1.99 Shriram Transport Finance Co Ltd. FITCH AA+(IND) 1.95 HPCL Mittal Energy Ltd. ICRA AA Reliance Jio Infocomm Limited CRISIL AAA 1.76 HPCL Mittal Pipelines Ltd. ICRA AA Peninsula Land Limited ICRA A 1.48 Tata Capital Housing Finance Ltd; CRISIL AA Hero Realty Ltd. (project-backed lending to Hero Group) ICRA A Kotak Mahindra Prime Ltd. CRISIL AAA 0.31 HDB Financial Services Ltd. CRISIL AAA 0.24 LIC Housing Finance Ltd. CRISIL AAA 0.07 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Indian Overseas Bank BRICKWORK BWR A 2.93 Bank of India BRICKWORK BWR AA Tamil Nadu Generation & Distribution Corporation Ltd (backed by unconditional and irrevocable guarantee of Tamilnadu State Government) ICRA A-(SO) 0.75 State Bank Of India. CRISIL AAA 0.02 Public Sector Undertakings - Total 4.53 Treasury Bills 91 Days Treasury Bill 31/12/2015 SOV 2.72 Treasury Bills - Total 2.72 Collateral Borrowing & Lending obligation 1.00 Net Current /(Liabilities) 2.77 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.96 years. Kotak Income Opportunities Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). SECTOR ALLOCATION (%) Debentures and Bonds Treasury BIlls Net Current CBLO & Term Deposits & Rev.Repo BWR AA+, AA+, AA+(IND), AA, BWR AA-, AA-, LAA-(SO) AAA, SOV CBLO & Term Deposits & Rev.Repo A+, A+(IND), A+, BWR A, A, A-, A-(SO) 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. Investors understand that their principal will be at moderately low risk 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. There is no assurance or guarantee that the investment objective of the scheme will be achieved. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `35.83 AUM (` In Crores) AUM as on Nov 30, 2015: `36.08 Plans: a) Regular & b) Direct Plan Options: Dividend Payout, Dividend Reinvestment and Growth (applicable for all plans) Dividend Frequency Monthly and Quarterly Ratios Standard Deviation: 1.92%, Modified Duration: 1.85 yrs, Portfolio Yield: 8.18% 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 1 year from the date of allotment of units, irrespective of the amount of investment 2.00%; 2) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment Nil Regular: 0.50% Direct: 0.28% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA Nabha Power Ltd. (backed by unconditional and irrevocable guarantee by L&T) ICRA AAA IOT Utkal Energy Services Ltd. CRISIL AAA(SO) HDFC Ltd. CRISIL AAA 9.70 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 5.09 Inox Air Products Ltd. CRISIL AA 2.81 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 2.77 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 5.58 Export-Import Bank of India. CRISIL AAA 4.92 Rural Electrification Corp Ltd. CRISIL AAA 2.81 Airports Authority of India CRISIL AAA 2.80 National Bank for Agriculture and Rural Developmen CRISIL AAA 2.58 Steel Authority of India Ltd. CARE AAA 2.25 Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 9.56 Net Current /(Liabilities) 5.59 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.14 years Kotak Corporate Bond Fund NAV as on November 30, 2015: ` (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) AAA, AAA(SO), AAA Net Current AA+, AA 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. 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

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. There is no assurance or guarantee that the investment objective of the scheme will be achieved. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `1, AUM (` In Crores) AUM as on Nov 30, 2015: `1, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of March / June / September / December), Annually (12th of March) Ratios Standard Deviation: 1.08%, Modified Duration: 2.36 yrs, Portfolio Yield: 10.19% 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 exit on or within 18 months from date of allotment of units: 2%, ii) For exit after 18 months from the date of allotment of units: Nil (applicable for all plans) 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: 1.75% Direct: 0.30% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA SBK Properties Pvt Ltd. (lending to promoters of Bharat Forge group) ICRA AA Dewan Housing Finance Corporation Ltd. CARE AAA 6.58 Prestige Estates Projects Limited ICRA A Muthoot Finance Ltd ICRA AA Haldhar Developers Private Limited (backed by unconditional and irrevocable undertaking by Piramal) ICRA LAA-(SO) 4.72 Adani Power Ltd (lending against shares of Adani Ports and SEZ Ltd) BRICKWORK BWR AA Ashirvad Microfinance Private Limited (85 subsidiary of Manappuram Finance Ltd) CARE A ECL Finance Limited CARE AA 3.90 Janalakshami Financial Services ICRA A L & T Finance Limited ICRA AA Intime Properties Ltd. FITCH AAA(IND) 3.26 Peninsula Land Limited ICRA A 3.19 Equitas Micro Finance Ltd. CARE A 2.93 Tata Power Company Ltd. CRISIL AA Au Financiers (India) Limited FITCH A+(IND) 2.11 SP Jammu Udhampur way Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) ICRA AAA 1.94 Powergrid Vizag Transminssion Ltd. CRISIL AAA(SO) 1.67 Shriram Transport Finance Co Ltd. FITCH AA+(IND) 1.66 Reliance Ports And Terminals Limited CRISIL AAA 1.63 Aasan Developers and Constructions Private Limited (lending to promoters of Piramal Enterprises Ltd) ICRA A HDFC Ltd. CRISIL AAA 0.83 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.74 India Infoline Finance Limited CARE AA 0.25 IOT Utkal Energy Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 2.27 Bank of India BRICKWORK BWR AA Public Sector Undertakings - Total 4.23 Government Dated Securities 1.44% Central Government SOV 2.18 Government Dated Securities - Total 2.18 Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 0.79 Treasury Bills - Total 0.79 Collateral Borrowing & Lending obligation 2.65 Net Current /(Liabilities) 3.81 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.18 years Kotak Medium Term Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). CBLO & Term Deposits & Rev.Repo Debentures and Bonds Treasury Bills Government Dated Securities Investors understand that their principal will be at moderate risk Net Current RATING PROFILE BWR AA+, AA+(IND), AA+, AA, BWR AA-, AA-, LAA-(SO) AAA, AAA(SO), AAA(IND), AAA, SOV 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. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) AAUM as on Nov 30, 2015: `5, AUM (` In Crores) AUM as on Nov 30, 2015: `5, 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: 3.97% Modified Duration: 8.63 yrs Portfolio Yield: 8.10% 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: 1.76% Direct: 0.96% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA Reliance Jio Infocomm Limited CRISIL AAA 0.30 India InfraDebt Ltd CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total 2.51 Public Sector Undertakings Bank of India Tamil Nadu Generation & Distribution Corporation Ltd (backed by unconditional and irrevocable guarantee BRICKWORK BWR AA of Tamilnadu State Government) ICRA A-(SO) 0.67 Rural Electrification Corporation Ltd. CRISIL AAA 0.60 Public Sector Undertakings - Total 2.92 Government Dated Securities 7.73% Central Government SOV % Central Government SOV Issuer/Instrument Industry/ % to Net Rating 8.17% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 0.01 Government Dated Securities - Total Collateral Borrowing & Lending obligation 4.87 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :18.16 years. Kotak Bond Plan A Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan), ` (Deposit Dividend) SECTOR ALLOCATION (%) Net Current Debentures and Bonds AAA SOV BWR AA+, AA- A-(SO) 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. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` 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: 4.37%, B) PF & Trust Plan: 4.41%, Modified Duration: 8.60 yrs, Portfolio Yield: 7.97% 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 7.73% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 7.23 Issuer/Instrument Industry/ % to Net Rating 1.44% Central Government SOV % State Government SOV % Central Government SOV 0.10 Government Dated Securities - Total Collateral Borrowing & Lending obligation 8.69 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :18.68 years. Kotak Gilt Investment Fund NAV as on November 30, 2015: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo SOV Net Current CBLO & Term Deposits & Rev.Repo 31 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 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. 23

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. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) AAUM as on Nov 30, 2015: ` AUM (` In Crores) AUM as on Nov 30, 2015: ` 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: 3.42%, Modified Duration: 5.78 yrs, Portfolio Yield: 7.99% 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 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: 2.41% Direct: 1.82% Issuer/Instrument Industry/ % to Net Rating ITC Ltd. Consumer Non Durables 1.73 Infosys Ltd. Software 1.38 Tata Motors Ltd. Auto 1.25 HDFC Bank Ltd. Banks 0.92 Maruti Suzuki India Limited Auto 0.89 State Bank Of India Banks 0.80 Axis Bank Ltd Banks 0.75 S H Kelkar and Company Ltd Consumer Non Durables 0.58 Britannia Industries Ltd. Consumer Non Durables 0.57 Navkar Corporation Limited Transportation 0.49 Sun TV Limited. Media and Entertainment 0.48 Hindustan Petroleum Corporation Ltd Petroleum Products 0.47 Hero MotoCorp Ltd. Auto 0.46 ICICI Bank Ltd. Banks 0.46 PVR Ltd. Media and Entertainment 0.46 Reliance Industries Ltd. Petroleum Products 0.46 PNC INFRATECH LIMITED Construction Project 0.45 Motherson Sumi Systems Ltd. Auto Ancillaries 0.44 Tata Consultancy Services Ltd. Software 0.42 TVS Motors Company Ltd Auto 0.40 Supreme Industries Limited Industrial Products 0.38 Dalmia Bharat Ltd Cement 0.36 Power Mech Projects Ltd Power 0.36 IndusInd Bank Ltd. Banks 0.35 Strides Arcolab Ltd. Pharmaceuticals 0.35 HSIL Ltd. Consumer Durables 0.34 Persistent Systems Limited Software 0.34 Techno Electric & Engineering Co Ltd. Construction Project 0.34 Bank Of Baroda Banks 0.33 Dish TV India Ltd. Media and Entertainment 0.30 Issuer/Instrument Industry/ % to Net Rating Federal Bank Ltd. Banks 0.30 Yes Bank Ltd Banks 0.29 Adani Port and Special Economic Zone Limited Transportation 0.27 IDFC Bank Limited BANKING and FINANCE 0.23 Finolex Cables Ltd. Industrial Products 0.22 Zee Entertainment Enterprises Ltd Media and Entertainment 0.21 Fag Bearings India Ltd. Industrial Products 0.18 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.18 Oil & Natural Gas Corporation Ltd. Oil 0.17 Pennar Engineered Building Systems Limited Ferrous Metals 0.17 Whirlpool of India Ltd. Consumer Durables 0.15 HDFC Ltd. Warrants Finance 0.10 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Public Sector Undertakings Indian Overseas Bank BRICKWORK BWR A 6.17 Rural Electrification Corporation Ltd. CRISIL AAA 0.09 Public Sector Undertakings - Total 6.26 Government Dated Securities 7.72% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 6.87 Government Dated Securities - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :10.67 years. Kotak Monthly Income Plan Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo AAA, SOV BWR A RATING PROFILE CBLO & Term Deposits & Rev.Repo 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 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. 32

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. 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 Nov 30, 2015: `34.91 AUM (` In Crores) AUM as on Nov 30, 2015: `30.60 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: 3.46%, Modified Duration: 3.90 yrs, Portfolio Yield: 7.28% 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: 1.71% Issuer/Instrument Industry/ % to Net Rating HDFC Bank Ltd. Banks 1.76 Infosys Ltd. Software 1.48 Maruti Suzuki India Limited Auto 1.32 IndusInd Bank Ltd. Banks 1.26 Lupin Ltd. Pharmaceuticals 1.14 Dr Reddys Laboratories Ltd Pharmaceuticals 1.04 Bharat Petroleum Corp Ltd. Petroleum Products 0.96 Hindustan Unilever Ltd. Consumer Non Durables 0.84 HCL Technologies Ltd. Software 0.82 Zee Entertainment Enterprises Ltd Media and Entertainment 0.82 Bosch Limited Auto Ancillaries 0.71 Tata Consultancy Services Ltd. Software 0.65 Asian Paints Ltd. Consumer Non Durables 0.59 ICICI Bank Ltd. Banks 0.55 Britannia Industries Ltd. Consumer Non Durables 0.54 Tata Motors Ltd. Auto 0.54 Axis Bank Ltd Banks 0.52 Bajaj Finance Limited Finance 0.52 Bajaj Finserv Ltd. Finance 0.50 Larsen And Toubro Ltd. Construction Project 0.47 Dish TV India Ltd. Media and Entertainment 0.44 Bajaj Auto Ltd. Auto 0.35 Ashok Leyland Ltd. Auto 0.31 HDFC Ltd. Finance 0.26 ITC Ltd. Consumer Non Durables 0.26 Cadila Healthcare Ltd. Pharmaceuticals 0.24 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.24 Cummins India Ltd. Industrial Products 0.23 Emami Ltd. Consumer Non Durables 0.20 Bank Of Baroda Banks 0.19 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.18 Ultratech Cement Ltd. Cement 0.18 Yes Bank Ltd Banks 0.17 Bharti Airtel Ltd. Telecom - Services 0.16 Reliance Industries Ltd. Petroleum Products 0.14 Aurobindo Pharma Ltd. Pharmaceuticals 0.11 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.10 Issuer/Instrument Industry/ % to Net Rating Oracle Financial Services Software Ltd Software 0.09 UPL Ltd Pesticides 0.09 Coal India Ltd. Minerals/Mining 0.08 Aditya Birla Nuvo Limited Services 0.06 Divi s Laboratories Limited Pharmaceuticals 0.06 Cipla Ltd. Pharmaceuticals 0.05 Bharat Electronics Ltd Industrial Capital Goods 0.04 Eicher Motors Ltd Auto 0.04 Grasim Industries Ltd. Cement 0.04 Mahindra & Mahindra Ltd. Auto 0.04 Shree Cement Ltd. Cement 0.04 Wipro Ltd. Software 0.04 Adani Port and Special Economic Zone Limited Transportation 0.01 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.01 Jubilant Foodworks Limited Consumer Non Durables 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.44 Mutual Fund Units - Total 8.44 Futures CNX NIFTY-DEC 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 2.58 Government Dated Securities 7.73% Central Government SOV % Central Government SOV 6.66 Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 3.27 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 4.72 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 8.19 years. Note: #Term Deposit as provided above is towards margin for derivatives transactions Kotak Multi Asset Allocation Fund NAV as on November 30, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Net Current Derivative Mutual Fund Units SOV Mutual Fund Units AA- Derivative Investors understand that their principal will be at moderate risk 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 30 November 2015 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Developers and Constructions Private Limited (lending to promoters of Piramal Enterprises Ltd) 0.18 Adani Port and Special Economic Zone Limited 0.75 Adani Power Ltd (Secured by Equity shares of Adani Ports and SEZ Ltd) 1.27 Adani Transmission Ltd 0.5 Aditya Birla Finance Ltd Aditya Birla Money Ltd 0.01 Aditya Birla Nuvo Limited 0.76 Airports Authority of India 0.07 Ashirvad Microfinance Private Limited (85% subsidiary of Manappuram Finance Ltd) 0.13 Au Financiers (India) Limited 0.82 Bahadur Chand Investments Private Limited (lending to promoters of Hero Motocorp Ltd) 0.39 Bajaj Finance Limited 0.78 Bank of India 0.31 Bhanu Vyapaar Private Limited (Secured by Equity shares of Emami Ltd) 0.11 Bharat Alluminum Co. Ltd CBLO/REVERSE REPO 4.79 Central Government 22.7 Corporation Bank 0.03 DLF Emporio Ltd 0.26 Dewan Housing Finance Corporation Ltd ECL Finance Limited 1.56 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.58 Edelweiss Housing Finanance Limited 0.13 Emami Enclave Markets Pvt Ltd. (Secured by Equity shares of Emami Ltd) 0.11 Emami Realty Ltd (Secured by Equity shares of Emami Ltd) 0.27 Equitas Micro Finance Ltd Export-Import Bank of India Fullerton India Credit Co. Ltd GSPC Distribution Networks Ltd. (backed by unconditional and irrevocable guarantee of Gujarat State Petroleum Corp group) 0.03 Grand View Estate Pvt Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) 0.22 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) 0.25 Hero Realty Ltd. (project-backed lending to Hero Group) 0.26 Hinduja Leyland Finance Ltd ICICI Bank Ltd ICICI Home Finance Company Limited 0.18 IDFC Bank Limited 0.22 IL & FS Financial Services Ltd IOT Utkal Energy Services Ltd India Infoline Finance Limited 1.09 India Infoline Housing Finance Ltd India InfraDebt Ltd 0.00 Indiabulls Housing Finance Limited 0.51 Indian Oil Corporation Ltd Indian Overseas Bank 0.11 Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.19 Infrastructure Leasing & Financial Services Limite 0.03 Inox Air Products Ltd Intime Properties Ltd. 0.1 JM Financial Asset Reconstruction Co. Pvt. Ltd 0.19 Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.08 Karelides Traders (backed by an irrevocable and unconditional undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd) 0.96 Kotak Mahindra Bank Ltd. 0 Kotak Mahindra Prime Ltd L & T Finance Limited 0.53 LIC Housing Finance Ltd Lands End Properties Private Limited (backed by unconditional and irrevocable undertaking by Indian Hotels) 0.28 Issuer Name %age of Exposure to Debt AUM Larsen and Toubro Ltd Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 1.18 Mandava Holdings Private Limited (backed by unconditional and irrevocable undertaking by Axis Capital) 0.45 Muthoot Finance Ltd 1.49 Muthoot Fincorp Ltd Nabha Power Ltd. (backed by unconditional and irrevocable guarantee by L&T) 1.64 National Bank for Agriculture and Rural Developmen 4.88 National Housing Bank 0.33 ONGC Manglore Petrochemicals Ltd PNB Housing Finance Ltd Peninsula Land Limited 0.15 Piramal Enterprises Limited 2.52 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 0.51 Pune Solapur Expressways Pvt. Ltd. (toll road project of Tata Realty & Infrastructure Ltd) 0.22 Punjab & Sind Bank 1.12 RHC Finance Private Limited 0.51 Ratnakar Bank Ltd 0.35 Raymond Ltd Reliance Capital Ltd Reliance Jio Infocomm Limited 2.43 Reliance Media Works Limited (backed by unconditional and irrevocable guarantee of Reliance Capital Ltd) 0.04 Reliance Ports And Terminals Limited 0.05 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. (lending to promoters of Bharat Forge group) 0.33 SP Jammu Udhampur way Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) 0.3 Sadbhav Engineering Ltd Sahyadri Agencies Ltd (Secured by Equity shares of Jyothy Laboratories Ltd) 0.25 Shapoorji Pallonji and Company Private Limited 0.25 Shivprasad Realty Pvt Ltd (backed by unconditional and irrevocable undertaking by Axis Capital) 0.14 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 Equith shares of Emami Ltd) 0.05 State Bank Of India State Bank of Hyderabad 0.13 State Government 2.35 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.44 Sun Pharmaceutical Industries Ltd Sundaram BNP Paribas Home Finance Ltd 0.11 Sundaram Finance Ltd Suraksha Reality Ltd (Secured by Equit shares of Sun Pharmaceuticals Industries Ltd) 1.79 Talwandi Sabo Power Limited (backed by unconditional and irrevocable guarantee of Vedanta Ltd) 0.2 Tamil Nadu Generation & Distribution Corporation Ltd (backed by unconditional and irrevocable guarantee of Tamilnadu State Government) 0.11 Tata Capital Financial Services Limited 0.95 Tata Capital Housing Finance Ltd; 0.9 Tata Motors Finance Ltd 0.09 Tata Motors Finance Solutions Private Limited (100% subsidiary of Tata Motors Finance Ltd) 0.38 Tata Motors Ltd Tata Power Company Ltd Tata Sons Ltd Ultratech Cement Ltd Vijaya Bank 0.19 Vizag General Cargo Berth Private Limited (backed by unconditional and irrevocable guarantee of Vedanta Ltd) 0.03 TOTAL Industry / Sector %age of Exposure to Debt AUM BANK 3.99 CASH(CBLO/REVERSE REPO) 4.79 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.78 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 Nov 30, 2015: `26.43 AUM (` In Crores) AUM as on Nov 30, 2015: `26.41 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: 1.85% Direct: 1.42% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Select Focus Fund Direct Growth Equity Kotak Liquid Plan A Debt Kotak Mahindra Bond Plan Debt Kotak Floater Long Term Direct Growth Debt Mutual Fund Units - Total Collateral Borrowing & Lending obligation 7.57 Net Current /(Liabilities) 8.43 Kotak Asset Allocator Fund NAV as on November 30, 2015: ` (Dividend Option), `59.807(Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt Others CBLO & Term Deposit & Rev Repo 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 Nov 30, 2015: `5.66 AUM (` In Crores) AUM as on Nov 30, 2015: `5.71 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: 0.65% 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) 2.06 Kotak US Equity Fund NAV as on November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), `12.069(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund 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. 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 Nov 30, 2015: `31.63 AUM (` In Crores) AUM as on Nov 30, 2015: `31.83 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: 1.84% Direct: 1.34% 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 4.56 Net Current /(Liabilities) 4.64 Kotak Global Emerging Market Fund NAV as on November 30, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo 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 Nov 30, 2015: `30.77 AUM (` In Crores) AUM as on Nov 30, 2015: `31.06 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: 1.91% Direct: 1.31% 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 5.39 Net Current /(Liabilities) Kotak World Gold Fund NAV as on November 30, 2015: `5.155 (Dividend Option), `5.261 (Direct Dividend Option), `6.219 (Growth Option), `6.353 (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 Nov 30, 2015: ` AUM (`In Crores) AUM as on Nov 30, 2015: ` 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 November 30, 2015: ` Tracking Error: 0.06 NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) 0.10 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 Nov 30, 2015: ` AUM (`In Crores) AUM as on Nov 30, 2015: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 66.82% 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 7.67 HDFC Bank Ltd. Banks 7.52 ITC Ltd. Consumer Non Durables 6.79 HDFC Ltd. Finance 6.75 ICICI Bank Ltd. Banks 5.63 Reliance Industries Ltd. Petroleum Products 5.63 Tata Consultancy Services Ltd. Software 4.30 Larsen And Toubro Ltd. Construction Project 3.97 Tata Motors Ltd. Auto 2.89 Sun Pharmaceuticals Industries Pharmaceuticals 2.81 Axis Bank Ltd Banks 2.78 State Bank Of India Banks 2.73 Kotak Mahindra Bank Ltd. Banks 2.52 Mahindra & Mahindra Ltd. Auto 2.23 Maruti Suzuki India Limited Auto 2.15 Hindustan Unilever Ltd. Consumer Non Durables 2.03 HCL Technologies Ltd. Software 1.71 Bharti Airtel Ltd. Telecom - Services 1.63 IndusInd Bank Ltd. Banks 1.61 Lupin Ltd. Pharmaceuticals 1.52 Coal India Ltd. Minerals/Mining 1.50 Oil & Natural Gas Corp Ltd. Oil 1.48 Dr Reddys Laboratories Ltd Pharmaceuticals 1.39 Asian Paints Ltd. Consumer Non Durables 1.34 Wipro Ltd. Software 1.30 Bajaj Auto Ltd. Auto 1.19 Hero MotoCorp Ltd. Auto 1.16 Cipla Ltd. Pharmaceuticals 1.15 Tech Mahindra Ltd. Software 1.15 NAV Issuer / Instrument Industry/ % to Net Rating Power Grid Corp Of India Ltd Power 1.06 Ultratech Cement Ltd. Cement 1.01 National Thermal Power Corporation Limited Power 0.95 Yes Bank Ltd Banks 0.89 Adani Port and Special Economic Zone Limited Transportation 0.86 Grasim Industries Ltd. Cement 0.84 Bharat Petroleum Corp Ltd. Petroleum Products 0.82 Zee Entertainment Enterprises Media and Entertainment 0.79 Bank Of Baroda Banks 0.60 Bosch Limited Auto Ancillaries 0.60 GAIL (India) Ltd. Gas 0.60 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.56 Idea Cellular Ltd. Telecom - Services 0.56 Ambuja Cements Ltd Cement 0.54 Tata Steel Limited. Ferrous Metals 0.54 ACC Ltd. Cement 0.44 Tata Power Co. Ltd. Power 0.43 Punjab National Bank Banks 0.38 Hindalco Industries Ltd Non - Ferrous Metals 0.35 Vedanta Ltd. Minerals/Mining 0.35 Cairn India Limited Oil 0.27 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.03 Kotak Nifty ETF NAV as on November 30, 2015 : ` 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 Nov 30, 2015: ` 9.04 AUM (`In Crores) AUM as on Nov 30, 2015: ` 9.08 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 12.08% Tracking Error: 0.13% 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 9.41 HDFC Bank Ltd. Banks 9.12 ITC Ltd. Consumer Non Durables 8.33 HDFC Ltd. Finance 8.30 Reliance Industries Ltd. Petroleum Products 6.91 ICICI Bank Ltd. Banks 6.88 Tata Consultancy Services Ltd. Software 5.21 Larsen And Toubro Ltd. Construction Project 4.87 Tata Motors Ltd. Auto 3.49 Axis Bank Ltd Banks 3.42 Sun Pharmaceuticals Industries Pharmaceuticals 3.42 State Bank Of India Banks 3.36 Mahindra & Mahindra Ltd. Auto 2.72 Maruti Suzuki India Limited Auto 2.63 Hindustan Unilever Ltd. Consumer Non Durables 2.50 Bharti Airtel Ltd. Telecom - Services 2.02 Lupin Ltd. Pharmaceuticals 1.85 Oil & Natural Gas Corporation Ltd. Oil 1.82 Coal India Ltd. Minerals/Mining 1.81 NAV Issuer / Instrument Industry/ % to Net Rating Dr Reddys Laboratories Ltd Pharmaceuticals 1.72 Wipro Ltd. Software 1.59 Bajaj Auto Ltd. Auto 1.46 Hero MotoCorp Ltd. Auto 1.43 Cipla Ltd. Pharmaceuticals 1.41 National Thermal Power Corporation Limited Power 1.17 GAIL (India) Ltd. Gas 0.74 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.69 Tata Steel Limited. Ferrous Metals 0.67 Hindalco Industries Ltd Non - Ferrous Metals 0.43 Vedanta Ltd. Minerals/Mining 0.43 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.19 Kotak Sensex ETF NAV as on November 30, 2015 : ` Sector Allocation (%) Banks Software Auto Consumer Non Durables Pharmaceuticals Finance Petroleum Products Construction Project Telecom - Services Others Minerals/Mining 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 Nov 30, 2015: ` AUM (`In Crores) AUM as on Nov 30, 2015: `1, Option - Dividend Payout Ratios Portfolio Turnover: 14.44% 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: 0.20% 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 State Bank Of India Banks Kotak Mahindra Bank Ltd. Banks 9.97 IndusInd Bank Ltd. Banks 6.36 Yes Bank Ltd Banks 3.51 Bank Of Baroda Banks 2.36 Kotak Banking ETF NAV as on November 30, 2015: ` NAV Issuer / Instrument Industry/ % to Net Rating Punjab National Bank Banks 1.51 Federal Bank Ltd. Banks 1.41 Canara Bank Banks 0.54 Bank of India Banks 0.39 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.02 Sector Allocation (%) Investors understand that their principal will be at moderate risk Banks Others 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 Nov 30, 2015: `21.57 AUM (`In Crores) AUM as on Nov 30, 2015: `22.34 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 78.81% Tracking Error: 0.27% 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 8.43 Union Bank Of India Banks 3.40 Canara Bank Banks 3.05 Industrial Development Bank of India Ltd. Banks 2.76 Bank of India Banks 2.19 Kotak PSU Bank ETF NAV as on November 30, 2015: ` NAV Issuer / Instrument Industry/ % to Net Rating Syndicate Bank Banks 1.53 Oriental Bank of Commerce Banks 1.50 Allahabad Bank. Banks 1.35 Andhra Bank Banks 1.27 Indian Overseas Bank Banks 0.82 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 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