EXPERT SPEAK. Mr. Nilesh Shah. April 30, Dear Friends,

Transcription

1 April 30, 2017

2 EXPERT SPEAK Mr. Nilesh Shah April 30, 2017 Dear Friends, In equity investing, we can frequently categorise investors into two categories. The longtermers and the Pole-vaulters. Don't make a value judgement. I am only classifying the investing behaviour here. For the purpose of wealth creation, the Longtermers do their investing (preferably through a mutual fund) and then withdraw from the outcome for the longest period of time. Such investors are tend to be indifferent to their investment and then after a long period of years, they resize their investment amount. Within that period, their investment would have grown to a sizeable proportion. Usually much higher than anticipated. The pole-vaulters on the other hand want to have an active play. For such investors, it is advised that they have a long term approach and follow the asset allocation strategy. This may be based on their view of the market; and on their perspective on the equities as an asset class as a whole. Ideally, such an investor who is hard-pressed for time and information, is betteroff by investing through equity mutual funds. Depending on the risk profile, either systematic transfer or systematic investment plan should be made for investment in equity mutual funds. Since there are multiple equity mutual funds, advice from a good mutual fund distributor will come handy. There are three kinds of pole-vaulters here. Investors who have an underweight view on equities; investors who maintain a neutral view equities; and investors who are overweight on equities. For these different class of investors, there are different investing strategies based on the nature and valuation of the market that is available. For investors who are underweight on equities(iuwe), their investment strategy can be based on the valuations available in the market. If the market is trading well below the fair value zone, then such investors can look at investing lumpsum capital amount in the equities market. On the other hand, if the market is in the fair value zone, such investors can look to allocate into equities through SIP/STP medium. Finally, if the market is in the above fair value zone, then IUWEs can allocate out of equities by means of SWP; or can book profits. Investors who are equal weight on equities (IEWE), too can look at investing lumpsum into equities market when it is trading below fairvalue zone. On the other hand, if the market is in the fairvalue zone, then such investors can allocate by means of SIP/STP. Finally, if the markets are above the fairvalue zone, then such investors can look at partially booking the profits at highs. Investors who are overweight on equities can adopt a different strategy based on their assessment. If the market is below fairvalue, then such investors can look at obtaining leveraged position in the market; or can look at increasing their allocation further. On the other hand, if the market is at the fair value, then such investors can allocate through SIP over a course of time. Finally, when the market reaches above the fairvalue zone, then such investors can either book profits, or can choose to hold their position. Finally, I cannot emphasise more how important it is for investors to realise their actual appetite for risk. Because the mis-assessment of risk capacity will lead to wrong strategy and a very different financial and emotional outcome. So please do you due diligence first. Ideally, be a long term investor through a mutual fund. Thanks and Regards, Nilesh Shah Managing Director 1

3 DEBT VIEW Items Apr-17 Mar-17 Change Reverse Repo 6.00% 5.75% 0.25bps Repo 6.25% 6.25% Nil CRR 4.00% 4.00% Nil SLR 20.50% 20.50% Nil Mibor Overnight 6.18% 7.37% Call(O/N) 6.03% 6.04% -0.01bps CBLO 5.73% 5.47% 0.26bps 1 yr T Bill 6.41% 6.10% 0.31bps 10 G Sec 6.96% 6.68% 0.28bps 5 Year AAA 7.48% 7.38% 0.10bps USD/INR paise Source: RBI; Bloomberg. Key Events: The Reserve Bank of India kept its repo rate at 6.25% (unchanged) while it raised the reverse repo rate to 6%. The Central banker continues to guard against any potential flare-up in inflation and an uncertain global economic environment. India's manufacturing sector expanded at the quickest pace in five months in March, driven by stronger rises in output and new business. Nikkei manufacturing Purchasing Managers' Index climbed to 52.5 in March from 50.7 in the previous month. India's wholesale prices rose by lower-than-expected 5.70% year-on-year in March, compared with a 0.45 fall a year ago, dragged down by easing fuel prices. India's retail inflation rate rose to 3.81 percent in March from February's 3.65%, mirroring a revival in household spending after months of waning demand triggered by a demonetisation-induced cash crunch. India's trade deficit widened to a four-month high of billion in March following a surge in merchandise imports. Merchandise exports last month grew 28% to billion while Imports surged 45.25% on year to billion in March. India's industrial output slipped to a four-month low, contracting 1.2% in February, mainly on account of decline in the manufacturing sector and lower offtake of capital as well as consumer goods. Keeping its extravagant electoral promise, Uttar Pradesh's government approved a Rs 36,359-crore farm loan waiver for 2.15 crore farmers in the state. Petrol, diesel prices set to change daily from May 1. State-owned fuel retailers will launch a pilot for daily price revision in five select cities (Puducherry, Vizag in Andhra Pradesh, Udaipur in Rajasthan, Jamshedpur in Jharkhand and Chandigarh) and gradually extend it to other parts of the country. IMF said India will be the fastest growing economy in the world in and will be a key driver for global growth, retaining its growth forecast of 7.2% for India for the fiscal year 2018 On the monsoon front, the India Meteorological Department said monsoon seasonal rainfall is likely to be 96% of the long period average with an error of 5%. Forecast assessment suggests 38% of probability for near normal monsoon rainfall RERA or The Real Estate (Regulation Development) Act, 2016 has come into effect from 1st May The Act would regulate the real estate sector that involves over 76,000 companies and is expected to trigger a new era of transparency and efficiency for both the buyers and developers. Debt Outlook The month of April witnessed hardening of the sovereign yield curve. The key reason behind the same was the RBI announcing Rs 1 lakh cr 364 day Tbill under MSS; and talk of a pre-emptive 25 bps rate hike by one of the MPC member in the minutes of the meeting to contain inflation IMD has predicted a normal monsoon and if the prediction goes right it will subside the fear of spike in headline inflation. Near term headline CPI is likely to fall due to base effect and is likely to remain low for next 2-3 readings. In medium term, the timing of HRA revision will play an important role as this alone may spike the headline inflation by bps, however this volatility will be overlooked by the RBI The RBI has pushed the easing rates cycle by at least 6 months as the RBI wants to see the headline inflation at 4% in H2 FY 2018 before they move ahead The 10yr benchmark yield rose to ~6.96%. We are expecting that a new benchmark paper may be announced any time during May-June. The 10 yr gilt is likely to remain at around 7% mark in near term The 10yr US treasury saw a low of 2.16% during the month of April as the market is not convinced on the reflation trade and the clarity on the tax reform is yet to be seen. The US 10 yr closed at 2.29% and is expected to trade in the narrow range in the near term The BJP government continued to perform well in the local municipal election in new Delhi which augurs well and indicates a stable and long mandate for the central government The chase of carry has squeezed the credit spread and made sovereign cheap and therefore duration should not be completely ignored despite being volatile Long terms yields will be volatile in the near term but this spike should be taken as an opportunity by the long term investors Short term rates have spiked by about 15-25bps as the surplus liquidity was mopped by MSS and long term LAF. This spike should be used as a buying opportunity as the liquidity overhang is likely to remain in the medium term overnight rates will pull down liquid fund returns towards % by end of this quarter. This may make the ultra and short term funds more attractive since they have a portfolio yield of % The curve is likely to remain steep till we have clarity on monetary policy stance/sdf. Therefore long term investors will be rewarded suitably on a risk adjusted basis. Key Variables & their Impact On Interest Rates Key Variables Inflation Rupee Credit Demand Government Borrowing RBI Policy Global Event Risk Corporate bond Spread Short term (3 6 month) Medium term (6month 2 years) Debt FII flow Liquidity Denotes fall in interest rates 3 2

4 EQUITY VIEW The Indian equity markets continued their up-move in April 2017 with the large cap Nifty Index moving up 2.4% and the midcap index rising 6.1% (both in USD terms) during the month. Post the rise that we have seen in the equity markets in CY17, the focus is clearly now on the outlook for earnings growth for FY18 and FY19 and core fundamentals for companies. However, given the structural shift towards financial savings, domestic mutual funds and life insurance companies could continue to see sizeable inflows which in turn would provide a strong support to the markets. FII (Foreign Institutional Investor) flows into emerging markets have been strong in CY17 and India has been no exception to the trend. While FIIs were net sellers in the Indian equity markets during the month of April '17, they were net buyers to the tune of USD3bn in the debt markets. One must also note that despite the net selling in equities in April '17, FIIs have been net buyers to the tune of USD5.7bn CYTD. The net FII outflows in the equity markets in the month were offset by strong support by the Domestic Institutions. Domestic Institutional Investors (DIIs) were net buyers to the tune of USD1.4Bn in April We are now in the middle of the Q4FY17 result season. The start of the earnings seasons has been mixed. IT companies reported largely muted numbers, but these were in line with expectations. The outlook for the sector depends on the revival of demand especially in North America and also the outcome of any further visa related regulations in the US. Private sector banks have by and large reported healthy operating numbers. Asset quality stress remains an issue for corporate lenders and some resolution to large stressed accounts needs to be arrived at soon. In this context RBI has asked banks to recognize as NPLs (non performing loans) those accounts wherein there is a divergence in classification between the bank and RBI. Sectors such as cement and some stocks in the automobiles space reported healthy numbers as well. We would focus on the pace of earnings upgrades to downgrades during the result season and that would provide the basis for the outlook going into Fy18. Apart from domestic drivers, global events also need close monitoring. These include geo-political events such as the outcome of the French Presidential elections, any escalation of conflict in middle- east or aggression in North Korea as well as the decisions made by the US Federal Reserve on interest rates. Post the sharp rally in stock prices, we would continue to focus on stocks with strong fundamentals and earnings growth trajectory and would certainly exercise caution in the case of companies/sectors which have seen a run up despite no improvement in fundamentals or a visible change in cash flows or balance sheet parameters. The Nifty is currently trading at 18.5xFY18E EPS and 15.6xFY19E EPS (on a free float basis). FRBM Committee report: charting out the path to fiscal consolidation The detailed report of the five-member Fiscal Responsibility and Budget Management (FRBM) review panel constituted to recommend a new fiscal consolidation path was made public. The key recommendations of the report are as under: General government debt/gdp target of 60% by FY23 with 40% for the centre and 20% for states Gross Fiscal Deficit (GFD) will be the key operational target with central GFD/GDP reducing to 2.5% by Fy2023 Revenue deficit/gdp reduced to 0.8% by FY23 (based on assumption of 11.5% of nominal GDP growth). The report puts in an escape clause to fiscal deficit (within (+/-) 0.5% of GDP). This is to counter any exogenous disruptions. The report recommends the setting up of a fiscal council which would ensure an independent assessment of various aspects of fiscal policy While the report does talk of the path to fiscal prudence for both the centre and the state, the report does not explicitly recommend a path of consolidation (in terms of fiscal deficit) for state governments. However, it notes that if state governments' debt/gdp is to be maintained at current levels, aggregate states' GFD/GDP would have to reduce to 1.7% by Fy2025. In case, states have to reduce to the recommended 20% debt- GDP target, the states' GFD/GDP would have to reduce to 1.4% of GDP. Given the recent performance of the states and the added pressure on state finances due to the issuance of bonds under the UDAY scheme and farm loan waivers, it is difficult to expect this pace of consolidation. If India does reduce its consolidated fiscal deficit/gdp and debt/gdp to recommended targets and the benefits with the implementation of GST (Goods and Services Tax) flow in, there could be a likely case for a ratings upgrade for the country. Much of the success of FRBM recommendations would depend on the strength of the Fiscal Council and efficient checks and balances with regards to any fiscal slippages. Monsoons: Early forecasts point to a normal year The IMD (Indian Meteorological Department) has put out their forecast for the June-September monsoon. They expect that monsoons would be at 96% of LPA or Long Period Average (with a model error of +/-5%), which qualifies as 'normal' southwest monsoons. The IMD noted that weak El Niño conditions could likely develop in the latter half of the season. The spatial and temporal distribution of monsoons will be available in the second update in June and would be a key determinant in the overall impact of the monsoons on agricultural output during the year. Skymet, an independent agency, has forecast monsoon at 95% of LPA with 10% probability of above-normal rainfall, 50% of normal rainfall, 0% of excess rainfall, 25% of below-normal rainfall, and 15% of drought. However, the Australian Meteorological Bureau sees a 50% chance of El Niño conditions developing in 2HCY17. Arriving at implications from the early monsoon estimates on growth or inflation will be premature at this juncture. Government action in the event of below normal monsoon (if it so occurs) would also need to be monitored. Monetary policy: rates likely to remain on hold; upside risks to inflation needs close monitoring The Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.25% largely in line with expectations at the April 2017 meeting. It has, however, narrowed the policy corridor from 50bps either side of the repo rate to 25bps. Accordingly, the reverse repo rate stands at 6% (5.75% before) and the rate under the marginal standing facility stands at 6.5% (6.75% before). RBI continues to state that the MPC (Monetary Policy Committee) remains committed to bringing headline inflation closer to 4% on a durable basis and in a calibrated manner. In this regard, the policy stance of the central bank remains neutral and the future course of monetary policy action would be data dependent. 3

5 EQUITY VIEW (Continued) We believe, that given the macro economic outlook at present, RBI would keep rates on hold in the medium term. The overall tone of the policy statement especially with regard to the outlook on inflation remains cautious with the many upside risks to the inflation projection of RBI being enumerated in the document. Inflationary concerns could emerge from 7th Pay Commission and the HRA (House Rent Allowance) hike, implementation of the Goods and Services Tax (GST), any possibility of a weak monsoon, and higher commodity prices. Sticky core inflation also leaves limited room for further easing. For , as per RBI inflation is projected to average 4.5% in the first half of the year and 5% in the second half. MPC minutes reiterate RBI's concerns on upside risks to inflation The April 2017 RBI policy meeting minutes reiterated the MPC's concerns on upside risk to inflation. While the sticky behaviour of core inflation and possible mean reversion of food inflation remain key concerns, most committee members remain watchful of second round impact of 7th Pay Commission and in particular the impact of the hike in House Rent Allowance (HRA). There were two contrasting views on inflation. On one hand, Dr Patra called for a pre-emptive 25 bps rate hike to avoid the need for back-loaded policy action later (though he finally voted to keep the repo rate unchanged). On the other hand, Dr Dholakia was dovish and noted comfortable inflation dynamics (including core) through FY18. All the other MPC members were neutral to Dovish in their outlook on rates and inflation. Key Variables & Their Impact On Equities Key Variables Short term Economy Corporate Earnings FII Flow DII Flow Supply of paper Medium term Remarks Demonitisation to impact near-term growth but by March 17 normalcy to return. Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY18). Key is improvement in capacity utilisation India stands out among global asset classes with prospects of strong long term growth. Our tax policy has spooked FII couple off times. Budget FY 18 should reassure them. Focus on improving financial savings of households er disinvestment target and repair of leveraged balance sheet to create supply in markets. Interest Rates Transmission Policy/Reform Initiative Fall in interest rates to help revive demand and reduce stress for companies with significant debt. Market expecting better transmission of rates. GST is key reform for government to focus on; if it gets passed, can provide a significant fillip Market Bubble Stretched Fair Value Plus Equity Allocaion Exit 5% 10% Under Invested 15% 25% Neutral 35% 45% Asset Allocation Graph This asset allocation guide helps you to determine the suggested equity exposure at different valuations levels based on the Sensex. Stretched 18x 20x Fair Value Plus 16 18x Fair Neutral 50% Fair 12x 16x Attractive Neutral + 65% 75% Cheap Over Invested 80% 90% Attractive 10x 12x Suggested equity allocation (Assuming 50% equity allocation as neutral) GOLD VIEW Cheap 9x-10x Apr 14 May 14 Jun 14 Jul 14 Jul 14 Aug 14 Sep 14 Oct 14 Dec 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 Valuation levels of the Sensex based on rolling 12month fwd EPS estimate of 1650 Gold has been traditionally perceived to be a safe haven currency at the time of geo political risk or Dollar weakening or fed rate cut.. In the month of Mar, the gold prices declined by almost 3%. This time, the Rupee also rose by about 2.8%. Oil prices hovered around the 52 mark testing the technical resistance INR has appreciated to almost 2.8% MoM. The gold as an asset is becoming increasingly unattractive for domestic investors There are likely to be changes in the Gold Duty post implementation of GST, which may take away significant gains for the yellow metal over a period of time. To sum it up, we expect the gold prices to remain range bound or fall as fed may hike rates and therefore other assets particularly equities may do well, followed by bonds We believe that India story is unfolding and it has a long way to go. Therefore, for long term growth seekers, equities are likely to be a better play followed by bonds and then gold bonds for domestic investors. 4

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Fund Manager Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 66.28% Beta: 1.01 ## Sharpe :0.81 Standard Deviation : 14.35% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.18% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.78 ITC Ltd. Consumer Non Durables 5.66 ICICI Bank Ltd. Banks 4.96 IndusInd Bank Ltd. Banks 4.69 Infosys Ltd. Software 4.65 Reliance Industries Ltd. Petroleum Products 4.64 Maruti Suzuki India Limited Auto 3.85 Larsen And Toubro Ltd. Construction Project 3.27 Hero MotoCorp Ltd. Auto 3.22 Axis Bank Ltd Banks 2.93 Sun Pharmaceuticals I ndustries Ltd. Pharmaceuticals 2.56 GAIL (India) Ltd. Gas 2.39 Tata Motors Ltd - DVR Auto 2.35 Britannia Industries Ltd. Consumer Non Durables 2.11 Bharat Petroleum Corporation Ltd. Petroleum Products 2.07 Ultratech Cement Ltd. Cement 2 Shree Cement Ltd. Cement 1.71 The Ramco Cements Ltd Cement 1.56 Kajaria Ceramics Ltd. Construction 1.48 State Bank Of India Banks 1.38 Fag Bearings India Ltd. Industrial Products 1.37 Bank Of Baroda Banks 1.36 HCL Technologies Ltd. Software 1.34 Supreme Industries Limited Industrial Products 1.24 Bayer Cropscience Ltd. Pesticides 1.20 ICICI Prudential Life Insurance Company Ltd Finance 1.20 Bharat Electronics Ltd Industrial Capital Goods 1.16 Equitas Holdings Ltd Finance 1.11 DB Corp Limited Media and Entertainment 1.06 Nestle India Ltd. Consumer Non Durables 1.06 Persistent Systems Limited Software 1.05 Arvind Ltd Textile Products 1.03 Tata Consultancy Services Ltd. Software 1.02 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Shriram Transport Finance Co Ltd. Finance 1.01 Apollo Hospitals Enterprises Ltd. Healthcare Services 0.99 Cadila Healthcare Ltd. Pharmaceuticals 0.99 Indraprastha Gas Ltd. Gas 0.99 National Thermal Power Corporation Limited Power 0.98 Tech Mahindra Ltd. Software 0.97 Sanofi India Ltd. Pharmaceuticals 0.96 Strides Shasun Ltd. Pharmaceuticals 0.96 Sun TV Limited. Media and Entertainment 0.94 MRF Limited Auto Ancillaries 0.90 Lupin Ltd. Pharmaceuticals 0.89 GE Power India Limited Industrial Capital Goods 0.86 Motherson Sumi Systems Ltd. Auto Ancillaries 0.82 RBL Bank Ltd Banks 0.82 Laurus Labs Ltd Pharmaceuticals 0.78 Zee Entertainment Enterprises Ltd Media and Entertainment 0.74 Solar Industries India Limited Chemicals 0.70 DR.Lal Pathlabs Ltd Healthcare Services 0.54 HDFC Ltd. Warrants Finance 0.54 Asian Paints Ltd. Consumer Non Durables 0.21 HDFC Ltd. Finance 0.15 Listed/Awaiting Listing on Stock Exchange - Total Futures Sun TV Limited.-MAY Futures (Market value represents Notional Value) - Total 0.35 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.49 Collateral Borrowing & Lending obligation 1.53 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 22,10,000 1,32,371 4,33,637 8,88,842 13,75,200 23,14,274 1,45,84, ,31,152 4,10,437 7,97,650 12,10,399 19,98,489 84,78, ,29,989 4,01,011 7,75,728 11,74,625 19,33,428 84,16, 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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Auto Consumer Non Durables Software Others Pharmaceuticals Petroleum Products Finance Gas Construction Project Cement 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. * For Fund Manager experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Fund Manager Mr. Deepak Gupta* Nifty 100 AAUM (` In Crores) `97.62 AUM (` In Crores) AUM as on April 30, 2017: `99.28 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.97 ## Sharpe :0.65 Standard Deviation : 13.85% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.70% Direct: 1.30% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 5.39 Hindalco Industries Ltd Non - Ferrous Metals 4.59 Reliance Industries Ltd. Petroleum Products 4.16 ITC Ltd. Consumer Non Durables 4.03 Power Grid Corporation Of India Ltd Power 3.90 Tata Consultancy Services Ltd. Software 3.41 Grasim Industries Ltd. Cement 3.27 GAIL (India) Ltd. Gas 3.19 National Thermal Power Corporation Limited Power 2.94 Bharat Petroleum Corporation Ltd. Petroleum Products 2.86 Hero MotoCorp Ltd. Auto 2.73 Maruti Suzuki India Limited Auto 2.65 Oil & Natural Gas Corporation Ltd. Oil 2.62 Yes Bank Ltd Banks 2.36 Tata Motors Ltd - DVR Auto 1.94 HDFC Bank Ltd. Banks 1.85 Biocon Ltd. Pharmaceuticals 1.61 IndusInd Bank Ltd. Banks 1.55 Hindustan Petroleum Corporation Ltd Petroleum Products 1.49 State Bank Of India Banks 1.46 Sun TV Limited. Media and Entertainment 1.44 RBL Bank Ltd Banks 1.40 Piramal Enterprises Limited Pharmaceuticals 1.37 Tech Mahindra Ltd. Software 1.37 HDFC Ltd. Warrants Finance 1.33 Bajaj Finserv Ltd. Finance 1.32 Vedanta Ltd. Non - Ferrous Metals 1.32 Tata Steel Limited. Ferrous Metals 1.30 HDFC Ltd. Finance 1.28 Petronet LNG Ltd. Gas 1.21 Wipro Ltd. Software 1.20 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.19 Indraprastha Gas Ltd. Gas 1.03 Laurus Labs Ltd Pharmaceuticals 0.97 Indian Oil Corporation Ltd Petroleum Products 0.90 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Muthoot Finance Ltd Finance 0.87 Tata Communications Ltd Telecom - Services 0.83 BSE Ltd Finance 0.81 S Chand And Company Ltd Media and Entertainment 0.80 The Ramco Cements Ltd Cement 0.75 JSW Steel Ltd. Ferrous Metals 0.62 Axis Bank Ltd Banks 0.59 Avenue Supermarts Ltd Retailing 0.55 Bajaj Finance Limited Finance 0.48 Eicher Motors Ltd Auto 0.48 HCL Technologies Ltd. Software % Vedanta Reedemable Preference Shares Non - Ferrous Metals 0.18 ICICI Bank Ltd. Banks 0.18 Listed/Awaiting Listing on Stock Exchange - Total Futures HDFC Bank Ltd.-MAY IndusInd Bank Ltd.-MAY Bharat Petroleum Corporation Ltd.-MAY ICICI Bank Ltd.-MAY HCL Technologies Ltd.-MAY Axis Bank Ltd-MAY Bajaj Finance Limited-MAY Futures (Market value represents Notional Value) - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 3.53 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Gas Others Petroleum Products Power Derivatives CBLO & Term Deposits & Rev.Repo Non - Ferrous Metals * For Fund Manager 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,20,000 1,34,056 4,31,844 8,68,930 13,54,502 23,28,751 30,69, ,32,732 4,21,248 8,30,264 12,65,001 21,14,365 28,16, ,31,152 4,10,437 7,97,650 12,10,399 19,98,489 26,59, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Fund Manager Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 54.35% Beta: 1.01 ## Sharpe :1.12 Standard Deviation :15.03% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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:2.16% Direct: 1.01% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.66 Reliance Industries Ltd. Petroleum Products 4.41 Hero MotoCorp Ltd. Auto 3.76 ITC Ltd. Consumer Non Durables 3.70 IndusInd Bank Ltd. Banks 3.13 GAIL (India) Ltd. Gas 3.01 Maruti Suzuki India Limited Auto 2.82 Larsen And Toubro Ltd. Construction Project 2.70 Shree Cement Ltd. Cement 2.64 State Bank Of India Banks 2.58 ICICI Bank Ltd. Banks 2.55 Hindustan Petroleum Corporation Ltd Petroleum Products 2.30 Infosys Ltd. Software 2.20 HDFC Ltd. Finance 2.05 Max Financial Services Ltd. Finance 1.91 Axis Bank Ltd Banks 1.90 Bharat Petroleum Corporation Ltd. Petroleum Products 1.89 Britannia Industries Ltd. Consumer Non Durables 1.88 Dalmia Bharat Ltd. Cement 1.88 Ultratech Cement Ltd. Cement 1.84 UPL Ltd Pesticides 1.82 Petronet LNG Ltd. Gas 1.76 Indraprastha Gas Ltd. Gas 1.65 Coromandel International Ltd. Fertilisers 1.63 Arvind Ltd Textile Products 1.60 Healthcare Global Enterprises Ltd Healthcare Services 1.58 Bajaj Finance Limited Finance 1.44 Mahindra & Mahindra Ltd. Auto 1.41 ICICI Prudential Life Insurance Company Ltd Finance 1.35 Avenue Supermarts Ltd Retailing 1.25 The Ramco Cements Ltd Cement 1.22 Multi Commodity Exchange of India Limited Finance 1.18 SRF Ltd. Textile Products 1.06 Zee Entertainment Enterprises Ltd Media and Entertainment 1.05 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) Banks Finance Cement SECTOR ALLOCATION (%) * For Fund Manager 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 MRF Limited Auto Ancillaries 1.04 Techno Electric & Engineering Co Ltd. Construction Project 1.04 Tata Motors Ltd. Auto 1.02 Linde India Ltd. Chemicals 1 JK Cement Ltd. Cement 0.99 Torrent Pharmaceuticals Ltd. Pharmaceuticals 0.99 Bata India Ltd. Consumer Durables 0.97 DR.Lal Pathlabs Ltd Healthcare Services 0.96 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.96 Equitas Holdings Ltd Finance 0.95 AIA Engineering Limited Industrial Products 0.94 Lupin Ltd. Pharmaceuticals 0.89 National Buildings Construction Corporation Limited Construction 0.82 HCL Technologies Ltd. Software 0.81 Va Tech Wabag Limited Engineering Services 0.76 Whirlpool of India Ltd. Consumer Durables 0.75 Bank Of Baroda Banks 0.71 Fag Bearings India Ltd. Industrial Products 0.62 Cummins India Ltd. Industrial Products 0.61 Container Corporation of India Ltd. Transportation 0.59 Ashok Leyland Ltd. Auto 0.58 Persistent Systems Limited Software 0.55 HDFC Ltd. Warrants Finance 0.39 Swaraj Engines Ltd Industrial Products 0.36 SKF India Ltd Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.08 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.90 Collateral Borrowing & Lending obligation 4.61 Net Current /(Liabilities) year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 15,20,000 1,40,179 4,76,706 10,11,319 15,83,414 27,33,196 46,68, ,35,388 4,35,714 8,72,346 13,23,432 21,86,945 33,66, ,31,152 4,10,437 7,97,650 12,10,399 19,98,450 31,41, Auto Gas CBLO & Term Deposits & Rev.Repo Petroleum Products Software Others Consumer Non Durables Construction Project Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Fund Manager Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 40.66% Beta: 1.04 ## Sharpe : 1.17 Standard Deviation : 15.33% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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: 1.98% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 4.76 Reliance Industries Ltd. Petroleum Products 4.62 Hero MotoCorp Ltd. Auto 4.04 ITC Ltd. Consumer Non Durables 3.98 Ultratech Cement Ltd. Cement 3.62 Maruti Suzuki India Limited Auto 3.49 GAIL (India) Ltd. Gas 3.14 IndusInd Bank Ltd. Banks 3.10 State Bank Of India Banks 2.92 Larsen And Toubro Ltd. Construction Project 2.73 Shree Cement Ltd. Cement 2.73 ICICI Bank Ltd. Banks 2.64 The Ramco Cements Ltd Cement 2.64 Bharat Electronics Ltd Industrial Capital Goods 2.46 Hindustan Petroleum Corporation Ltd Petroleum Products 2.35 Axis Bank Ltd Banks 2.21 Indraprastha Gas Ltd. Gas 2.06 Petronet LNG Ltd. Gas 2.03 Max Financial Services Ltd. Finance 1.99 Bajaj Finance Limited Finance 1.98 Arvind Ltd Textile Products 1.94 Britannia Industries Ltd. Consumer Non Durables 1.94 Infosys Ltd. Software 1.88 Mahindra & Mahindra Ltd. Auto 1.77 RBL Bank Ltd Banks 1.54 Bharat Petroleum Corporation Ltd. Petroleum Products 1.38 ICICI Prudential Life Insurance Company Ltd Finance 1.32 MRF Limited Auto Ancillaries 1.24 Bajaj Finserv Ltd. Finance 1.17 Godrej Consumer Products Ltd. Consumer Non Durables 1.07 Bayer Cropscience Ltd. Pesticides 1.06 Tata Motors Ltd. Auto 1.03 Equitas Holdings Ltd Finance 0.95 Notes:# Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Federal Bank Ltd. Banks 0.90 Cadila Healthcare Ltd. Pharmaceuticals 0.89 Lupin Ltd. Pharmaceuticals 0.88 HCL Technologies Ltd. Software 0.87 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.84 Jk Lakshmi Cement Ltd. Cement 0.71 Container Corporation of India Ltd. Transportation 0.70 Ashok Leyland Ltd. Auto 0.67 Techno Electric & Engineering Co Ltd. Construction Project 0.67 Laurus Labs Ltd Pharmaceuticals 0.62 AIA Engineering Limited Industrial Products 0.57 Kec International Ltd. Construction Project 0.56 Solar Industries India Limited Chemicals 0.51 HDFC Ltd. Finance 0.49 Bank Of Baroda Banks 0.46 Bata India Ltd. Consumer Durables 0.43 Max India Limited Finance 0.35 Whirlpool of India Ltd. Consumer Durables 0.33 Navkar Corporation Limited Transportation 0.26 HDFC Ltd. Warrants Finance 0.23 Avenue Supermarts Ltd Retailing 0.17 Kirloskar Oil Engines Ltd. Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.01 Listed/Awaiting Listing on Stock Exchange - Total Futures CNX NIFTY-MAY HDFC Bank Ltd.-MAY Futures (Market value represents Notional Value) - Total 3.89 Reverse Repo 5.27 TERM DEPOSITS AXIS Bank Ltd.# 1.27 Standard Chartered Bank Ltd 0.90 Term Deposits - Total 2.17 Collateral Borrowing & Lending obligation 2.26 Net Current /(Liabilities) 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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Banks Auto CBLO & Term Deposits & Rev.Repo Others Cement Petroleum Products Consumer Non Durables Finance Gas Construction Project Derivatives year 3 years 5 years 7 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 9,20,000 1,39,838 4,80,172 10,52,638 16,87,017 19,20, ,34,110 4,27,999 8,48,380 12,86,563 14,41, ,31,152 4,10,437 7,97,650 12,10,399 13,59, 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 Fund Manager experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Fund Manager Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 59.37% Beta: 1.07 ## Sharpe : 1.08 Standard Deviation : 16.17% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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: 2.40% Direct: 1.20% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.79 Reliance Industries Ltd. Petroleum Products 4.50 Shree Cement Ltd. Cement 3.59 ITC Ltd. Consumer Non Durables 3.48 IndusInd Bank Ltd. Banks 3.15 Hero MotoCorp Ltd. Auto 3.10 Hindustan Petroleum Corporation Ltd Petroleum Products 2.93 Infosys Ltd. Software 2.87 Mahanagar Gas Ltd Gas 2.79 Bharat Petroleum Corporation Ltd. Petroleum Products 2.69 RBL Bank Ltd Banks 2.68 Ultratech Cement Ltd. Cement 2.65 ICICI Bank Ltd. Banks 2.50 GAIL (India) Ltd. Gas 2.48 State Bank Of India Banks 2.46 Axis Bank Ltd Banks 2.34 Dalmia Bharat Ltd. Cement 2.20 HDFC Ltd. Finance 2.16 Maruti Suzuki India Limited Auto 2.03 Whirlpool of India Ltd. Consumer Durables 1.98 Britannia Industries Ltd. Consumer Non Durables 1.92 Larsen And Toubro Ltd. Construction Project 1.91 SKF India Ltd Industrial Products 1.87 Techno Electric & Engineering Co Ltd. Construction Project 1.83 Cadila Healthcare Ltd. Pharmaceuticals 1.72 The Ramco Cements Ltd Cement 1.61 Tata Motors Ltd. Auto 1.51 UPL Ltd Pesticides 1.51 Solar Industries India Limited Chemicals 1.40 Max Financial Services Ltd. Finance 1.38 Federal Bank Ltd. Banks 1.34 Bajaj Finance Limited Finance 1.29 Arvind Ltd Textile Products 1.25 SRF Ltd. Textile Products 1.24 Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) AIA Engineering Limited Industrial Products 1.17 Multi Commodity Exchange of India Limited Finance 1.14 Bata India Ltd. Consumer Durables 1.09 Linde India Ltd. Chemicals 1.07 Navneet Education Ltd. Media and Entertainment 1.05 Lupin Ltd. Pharmaceuticals 1.04 Bank Of Baroda Banks 1.02 HCL Technologies Ltd. Software 1.02 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1 Laurus Labs Ltd Pharmaceuticals 0.97 Container Corporation of India Ltd. Transportation 0.95 Ashok Leyland Ltd. Auto 0.93 Strides Shasun Ltd. Pharmaceuticals 0.92 Thermax Ltd. Industrial Capital Goods 0.89 S Chand And Company Ltd Media and Entertainment 0.87 Mahindra & Mahindra Ltd. Auto 0.83 Hawkins Cooker Ltd Household Appliances 0.73 Blue Dart Express Ltd. Transportation 0.64 LIC Housing Finance Ltd. Finance 0.52 Cummins India Ltd. Industrial Products 0.47 KSB Pump Ltd Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.12 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.02 Corporate Debt/Financial Institutions - Total 0.02 Collateral Borrowing & Lending obligation 1.13 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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) * For Fund Manager 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 13,80,000 1,40,225 4,72,255 9,85,869 15,13,609 25,10,824 30,95, ,35,388 4,35,714 8,72,346 13,23,432 21,87,098 27,14, ,31,152 4,10,437 7,97,650 12,10,399 19,98,489 25,02, Banks Petroleum Products Cement Finance Auto Consumer Non Durables Gas Others Software Industrial Products Pharmaceuticals Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Fund Manager Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 48.00% Beta: 0.98 ## Sharpe : 1.36 Standard Deviation : 17.24% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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: 2.39% Direct: 1.14% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Techno Electric & Engineering Co Ltd. Construction Project 2.74 Fag Bearings India Ltd. Industrial Products 2.59 Atul Ltd. Chemicals 2.42 Strides Shasun Ltd. Pharmaceuticals 2.42 IndusInd Bank Ltd. Banks 2.38 Federal Bank Ltd. Banks 2.31 Solar Industries India Limited Chemicals 2.30 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.23 Sun TV Limited. Media and Entertainment 2.23 ICICI Bank Ltd. Banks 2.22 V.S.T Tillers Tractors Ltd Auto 2.15 Finolex Cables Ltd. Industrial Products 2.12 Motherson Sumi Systems Ltd. Auto Ancillaries 2.10 Allcargo Global Logistics Ltd. Transportation 2.05 JK Cement Ltd. Cement 1.95 Persistent Systems Limited Software 1.89 SRF Ltd. Textile Products 1.88 Hawkins Cooker Ltd Household Appliances 1.84 Shriram City Union Finance Ltd. Finance 1.83 Laurus Labs Ltd Pharmaceuticals 1.80 Bharat Forge Ltd. Industrial Products 1.77 RBL Bank Ltd Banks 1.75 Eveready Industries India Ltd. Consumer Non Durables 1.71 Thermax Ltd. Industrial Capital Goods 1.69 Hindustan Petroleum Corporation Ltd Petroleum Products 1.68 Sundaram Finance Ltd. Finance 1.68 The Ramco Cements Ltd Cement 1.62 Va Tech Wabag Limited Engineering Services 1.61 DB Corp Limited Media and Entertainment 1.55 Avenue Supermarts Ltd Retailing 1.52 Mcleod Russel India Ltd Consumer Non Durables 1.52 Supreme Industries Limited Industrial Products 1.52 Navneet Education Ltd. Media and Entertainment 1.47 BSE Ltd Finance 1.42 Cadila Healthcare Ltd. Pharmaceuticals 1.42 Note: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) SKF India Ltd Industrial Products 1.42 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.42 Arvind Ltd Textile Products 1.41 Whirlpool of India Ltd. Consumer Durables 1.40 Bajaj Finserv Ltd. Finance 1.37 Castrol (India ) Ltd. Petroleum Products 1.36 Bank Of Baroda Banks 1.34 ICICI Prudential Life Insurance Company Ltd Finance 1.34 Kewal Kiran Clothing Limited. Textile Products 1.32 Mahindra & Mahindra Financial Services Ltd. Finance 1.32 Kajaria Ceramics Ltd. Construction 1.28 UPL Ltd Pesticides 1.25 NIIT Technologies Ltd Software 1.24 Shriram Transport Finance Co Ltd. Finance 1.24 Britannia Industries Ltd. Consumer Non Durables 1.22 Divi s Laboratories Limited Pharmaceuticals 1.13 Axis Bank Ltd Banks 1.04 MRF Limited Auto Ancillaries 1.02 Jk Lakshmi Cement Ltd. Cement 0.87 Bajaj Finance Limited Finance 0.86 Voltas Ltd. Construction Project 0.86 S Chand And Company Ltd Media and Entertainment 0.84 Pennar Engineered Building Systems Limited Ferrous Metals 0.74 Zuari Agro Chemicals Ltd Fertilisers 0.70 WPIL Ltd Industrial Products 0.67 Listed/Awaiting Listing on Stock Exchange - Total Options CNX NIFTY Put Option - May Options - Total 0.06 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.30 Collateral Borrowing & Lending obligation 2.94 Net Current /(Liabilities) 0.66 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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Textile Products Banks Cement 4.72 Construction Project Industrial Products Pharmaceuticals Finance Chemicals Media and Entertainment Consumer Non Durables Others Midcap and Small cap stocks as a % age of Net : 72.00% * For Fund Manager 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,70,000 1,42,917 5,12,130 11,73,743 18,83,472 33,68,834 47,10, ,44,570 4,99,428 10,71,222 16,23,434 28,06,391 40,46, ,31,152 4,10,437 7,97,650 12,10,399 19,98,489 28,89, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Fund Manager Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 31.26% Beta: 0.93 ## Sharpe :1.52 Standard Deviation : 17.09% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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. Equity & Equity related (Listed/Awaiting listing on Stock Exchange) IndusInd Bank Ltd. Banks 3.25 Fag Bearings India Ltd. Industrial Products 2.89 Federal Bank Ltd. Banks 2.53 Atul Ltd. Chemicals 2.36 Strides Shasun Ltd. Pharmaceuticals 2.34 V-Guard Industries Ltd. Industrial Capital Goods 2.33 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.23 Motherson Sumi Systems Ltd. Auto Ancillaries 2.23 Finolex Cables Ltd. Industrial Products 2.19 Navneet Education Ltd. Media and Entertainment 2.11 Solar Industries India Limited Chemicals 2.11 Kajaria Ceramics Ltd. Construction 2.02 Persistent Systems Limited Software 1.98 Whirlpool of India Ltd. Consumer Durables 1.97 Sundaram Finance Ltd. Finance 1.93 SRF Ltd. Textile Products 1.84 Hawkins Cooker Ltd Household Appliances 1.82 ICICI Bank Ltd. Banks 1.77 SKF India Ltd Industrial Products 1.77 Bank Of Baroda Banks 1.74 The Ramco Cements Ltd Cement 1.70 Kewal Kiran Clothing Limited. Textile Products 1.67 Allcargo Global Logistics Ltd. Transportation 1.66 Va Tech Wabag Limited Engineering Services 1.66 Britannia Industries Ltd. Consumer Non Durables 1.63 Coromandel International Ltd. Fertilisers 1.58 Equitas Holdings Ltd Finance 1.58 Kirloskar Oil Engines Ltd. Industrial Products 1.58 Mahindra & Mahindra Financial Services Ltd. Finance 1.57 Supreme Industries Limited Industrial Products 1.52 DB Corp Limited Media and Entertainment 1.48 Shriram City Union Finance Ltd. Finance 1.46 Laurus Labs Ltd Pharmaceuticals 1.44 PNC INFRATECH LIMITED Construction 1.42 Ramkrishna Forgings Ltd. Industrial Products 1.42 Thermax Ltd. Industrial Capital Goods 1.39 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.37 Note: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Finolex Industries Ltd. Industrial Products 1.33 Carborundum Universal Ltd. Industrial Products 1.31 Oberoi Realty Ltd Construction 1.25 Bata India Ltd. Consumer Durables 1.23 Zee Entertainment Enterprises Ltd Media and Entertainment 1.23 PVR Ltd Media and Entertainment 1.19 ICICI Prudential Life Insurance Company Ltd Finance 1.17 Shriram Transport Finance Co Ltd. Finance 1.14 Castrol (India ) Ltd. Petroleum Products 1.13 D-Link (India) Ltd Hardware 1.11 Eveready Industries India Ltd. Consumer Non Durables 1.07 Alkem Laboratories Ltd Pharmaceuticals 1.06 Divi s Laboratories Limited Pharmaceuticals 1.01 Kec International Ltd. Construction Project 1.01 Jk Lakshmi Cement Ltd. Cement 0.95 Maharashtra Seamless Ltd. Ferrous Metals 0.88 Zuari Agro Chemicals Ltd Fertilisers 0.88 Bajaj Finance Limited Finance 0.87 Indraprastha Gas Ltd. Gas 0.87 Kirloskar Brothers Ltd. Industrial Products 0.73 Sheela Foam Ltd Consumer Durables 0.73 Pennar Engineered Building Systems Limited Ferrous Metals 0.65 WPIL Ltd Industrial Products 0.53 Listed/Awaiting Listing on Stock Exchange - Total Options CNX NIFTY Put Option - May Options - Total 0.06 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.13 Collateral Borrowing & Lending obligation 7.33 Net Current /(Liabilities) Inception : - March 30, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Emerging Equity NAV as on April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Regular:2.12% Direct: 0.92% Banks Industrial Products Media and Entertainment Pharmaceuticals CBLO & Term Deposits & Rev.Repo Industrial Capital Goods Finance Construction Consumer Durables Chemicals Others Midcap and Small cap stocks as a % age of Net : 86.98% 11 * For Fund Manager 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 12,20,000 1,42,383 5,20,662 12,46,408 20,18,253 34,87,358 35,60, ,44,037 4,95,564 10,57,921 15,92,244 26,68,921 27,33, ,31,152 4,10,437 7,97,650 12,10,399 19,98,489 20,48, 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.however, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Fund Manager Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 38.53% Beta: 1.11 ## Sharpe :1.15 Standard Deviation : 18.61% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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: 2.55% Direct: 1.15% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 7.22 Container Corporation of India Ltd. Transportation 5.04 Larsen And Toubro Ltd. Construction Project 4.95 SKF India Ltd Industrial Products 4.92 Indraprastha Gas Ltd. Gas 4.72 Kirloskar Oil Engines Ltd. Industrial Products 4.34 National Thermal Power Corporation Limited Power 4.28 GAIL (India) Ltd. Gas 4.02 Ultratech Cement Ltd. Cement 3.63 Thermax Ltd. Industrial Capital Goods 3.61 Cummins India Ltd. Industrial Products 3.52 Fag Bearings India Ltd. Industrial Products 3.38 Bharti Airtel Ltd. Telecom - Services 3.31 Kajaria Ceramics Ltd. Construction 3.21 Solar Industries India Limited Chemicals 2.98 AIA Engineering Limited Industrial Products 2.80 KSB Pump Ltd Industrial Products 2.73 Allcargo Global Logistics Ltd. Transportation 2.71 Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017(Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Mahanagar Gas Ltd Gas 2.40 Somany Ceramics Ltd. Construction 2.15 Linde India Ltd. Chemicals 2.13 Bharat Electronics Ltd Industrial Capital Goods 2.04 Supreme Industries Limited Industrial Products 2.03 Shriram Transport Finance Co Ltd. Finance 1.93 Gujarat Gas Company Ltd Gas 1.83 Jk Lakshmi Cement Ltd. Cement 1.79 MRF Limited Auto Ancillaries 1.77 The Ramco Cements Ltd Cement 1.53 Gateway Distriparks Ltd. Transportation 1.49 GE Power India Limited Industrial Capital Goods 1.33 PNC INFRATECH LIMITED Construction 1.17 GP Petroleums Limited Petroleum Products 1.08 Rural Electrification Corporation Ltd Finance 0.98 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 2.66 Net Current /(Liabilities) 0.32 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 April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month 8.74 Industrial Products 9.24 Transportation Industrial Capital Goods Construction Telecom - Services Construction Project Cement Power Others Chemicals Gas 1 year 3 years 5 years 7 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 11,10,000 1,45,143 4,95,471 11,02,322 16,51,564 24,96, ,32,758 4,19,306 8,21,393 12,44,648 18,82, ,31,152 4,10,437 7,97,650 12,10,399 18,25, Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Fund Managers Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 18.62% Beta: 1.16 ## Sharpe : 0.80 Standard Deviation : 11.24% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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 redemption/switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or alter 1 year from the date of allotment: Nil. Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 2.55 ICICI Bank Ltd. Banks 2.31 GAIL (India) Ltd. Gas 1.90 Infosys Ltd. Software 1.84 Larsen And Toubro Ltd. Construction Project 1.84 Maruti Suzuki India Limited Auto 1.68 Motherson Sumi Systems Ltd. Auto Ancillaries 1.68 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.67 Fag Bearings India Ltd. Industrial Products 1.67 V.S.T Tillers Tractors Ltd Auto 1.65 State Bank Of India Banks 1.63 IndusInd Bank Ltd. Banks 1.55 Kajaria Ceramics Ltd. Construction 1.55 Sun TV Limited. Media and Entertainment 1.53 Strides Shasun Ltd. Pharmaceuticals 1.45 Tata Motors Ltd. Auto 1.45 Techno Electric & Engineering Co Ltd. Construction Project 1.36 JK Cement Ltd. Cement 1.34 Zee Entertainment Enterprises Ltd Media and Entertainment 1.30 Axis Bank Ltd Banks 1.27 GlaxoSmithkline Consumer Healthcare Ltd Consumer Non Durables 1.27 HDFC Ltd. Finance 1.23 Thermax Ltd. Industrial Capital Goods 1.22 Laurus Labs Ltd Pharmaceuticals 1.19 Atul Ltd. Chemicals 1.18 Bank Of Baroda Banks 1.15 Mcleod Russel India Ltd Consumer Non Durables 1.13 Reliance Industries Ltd. Petroleum Products 1.11 HCL Technologies Ltd. Software 1.05 Bharat Forge Ltd. Industrial Products 1.01 Lupin Ltd. Pharmaceuticals 0.99 SRF Ltd. Textile Products 0.98 ITC Ltd. Consumer Non Durables 0.94 ICICI Prudential Life Insurance Company Ltd Finance 0.93 BSE Ltd Finance 0.92 Solar Industries India Limited Chemicals 0.87 Federal Bank Ltd. Banks 0.86 Mahindra & Mahindra Ltd. Auto 0.86 DB Corp Limited Media and Entertainment 0.84 Cipla Ltd. Pharmaceuticals 0.81 Mahindra & Mahindra Financial Services Ltd. Finance 0.77 RBL Bank Ltd Banks 0.73 Shriram Transport Finance Co Ltd. Finance 0.71 Va Tech Wabag Limited Engineering Services 0.71 Equitas Holdings Ltd Finance 0.69 Tata Consultancy Services Ltd. Software 0.68 Note:# Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on April 28, 2017 (Rs) Returns (%) CRISIL Balanced Fund (Rs)# CRISIL Balanced Fund Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective v) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.19% 6.73 Direct: 0.99% Banks 5.06 Debentures and Bonds Government Dated Securities CBLO & Term Deposits & Rev.Repo Pharmaceuticals Others Media and Entertainment Industrial Products Finance Software Auto * For Fund Manager experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no SYSTEMATIC INVESTMENT PLAN (SIP) Persistent Systems Limited Software 0.67 Whirlpool of India Ltd. Consumer Durables 0.64 Divi s Laboratories Limited Pharmaceuticals 0.62 Finolex Cables Ltd. Industrial Products 0.62 Arvind Ltd Textile Products 0.61 Music Broadcast Limited Media and Entertainment 0.60 The Ramco Cements Ltd Cement 0.60 Bajaj Finserv Ltd. Finance 0.58 Navkar Corporation Limited Transportation 0.56 Hindustan Petroleum Corporation Ltd Petroleum Products 0.55 Ramkrishna Forgings Ltd. Industrial Products 0.47 Carborundum Universal Ltd. Industrial Products 0.44 Kirloskar Oil Engines Ltd. Industrial Products 0.43 HDFC Ltd. Warrants Finance 0.20 Pennar Engineered Building. Systems Limited Ferrous Metals 0.15 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.04 Tata Sons Ltd. CRISIL AAA 0.01 Corporate Debt/Financial Institutions - Total 0.05 Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government) FITCH IND AA(SO) 6.87 Bank of India CRISIL A Syndicate Bank CARE AA Power Finance Corporation Ltd. CRISIL AAA 1.89 Allahabad Bank FITCH IND A 0.75 Konkan Railway Corporation Ltd. ICRA AAA 0.38 Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.01 Government Dated Securities - Total TERM DEPOSITS Standard Chartered Bank Ltd 5.91 AXIS Bank Ltd.# 0.04 Term Deposits - Total 5.95 Collateral Borrowing & Lending obligation 5.55 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 21,00,000 1,33,819 4,45,518 8,69,964 13,48,995 22,62,782 95,22, ,28,865 4,13,767 7,90,597 12,06,433 19,90,705 NA NA 1,31,152 4,10,437 7,97,650 12,10,399 19,98,489 75,22, 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 April 28, 2017: ` (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.

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Fund Manager Mr. Deepak Gupta* Nifty 50 Arbitrage AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Fortnightly (Every alternate Monday from the 1st record date), 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: 0.52 ## Sharpe : 1.43 Standard Deviation : 0.51% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.18% ( FBIL Overnight MIBOR rate as on 28th April 2017) 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 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 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) Regular: 0.91% Direct: 0.41% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged UPL Ltd Pesticides Hindustan Zinc Ltd. Non - Ferrous Metals Indiabulls Housing Finance Ltd. Finance Federal Bank Ltd. Banks Infosys Ltd. Software Oil & Natural Gas Corporation Ltd. Oil Max Financial Services Ltd. Finance Bharat Financial Inclusion Limited Finance Hindustan Petroleum Corporation Ltd Petroleum Products Tata Steel Limited. Ferrous Metals JSW Steel Ltd. Ferrous Metals Zee Entertainment Enterprises Ltd Media and Entertainment Tata Motors Ltd - DVR Auto Aditya Birla Nuvo Limited Services Dewan Housing Finance Corporation Ltd. Finance Reliance Capital Ltd. Finance Bajaj Finance Limited Finance Voltas Ltd. Construction Project IDFC Limited Finance Reliance Infrastructure Ltd Power IDFC Bank Limited Banks Petronet LNG Ltd. Gas Apollo Hospitals Enterprises Ltd. Healthcare Services Dalmia Bharat Ltd. Cement United Spirits Ltd. Consumer Non Durables Aurobindo Pharma Ltd. Pharmaceuticals Power Finance Corporation Ltd. Finance CESC Ltd. Power Mahindra & Mahindra Financial Services Ltd. Finance Tata Global Beverages Limited Consumer Non Durables Adani Port and Special Economic Zone Limited Transportation Reliance Industries Ltd. Petroleum Products Titan Company Ltd. Consumer Durables Tata Communications Ltd Telecom - Services Shriram Transport Finance Co Ltd. Finance Asian Paints Ltd. Consumer Non Durables Century Textiles & Industries Ltd. Cement Bosch Limited Auto Ancillaries Karnataka Bank Ltd Banks HDFC Ltd. Finance Tata Chemicals Ltd. Chemicals Ambuja Cements Ltd Cement Exide Industries Ltd Auto Ancillaries Ashok Leyland Ltd. Auto The South Indian Bank Ltd. Banks Amara Raja Batteries Ltd. Auto Ancillaries ITC Ltd. Consumer Non Durables Sun TV Limited. Media and Entertainment Muthoot Finance Ltd Finance Castrol (India ) Ltd. Petroleum Products Lupin Ltd. Pharmaceuticals State Bank Of India Banks Bharat Electronics Ltd Industrial Capital Goods Bharat Forge Ltd. Industrial Products Indraprastha Gas Ltd. Gas NCC Limited Construction Project Pidilite Industries Ltd. Chemicals IRB Infrastructure Developers Ltd Construction Apollo Tyres Ltd. Auto Ancillaries Reliance Power Ltd Power Strides Shasun Ltd. Pharmaceuticals Oracle Financial Services Software Ltd Software Tata Power Co. Ltd. Power Bharat Earth Movers Ltd. Industrial Capital Goods Equitas Holdings Ltd Finance Rural Electrification Corporation Ltd Finance Power Grid Corporation Of India Ltd Power Fortis Healthcare India Ltd Healthcare Services Inter Globe Aviation Ltd Transportation NMDC Ltd. Minerals/Mining PVR Ltd Media and Entertainment JSW Energy Ltd. Power Torrent Power Ltd Power Bata India Ltd. Consumer Durables GMR Infrastructure Ltd. Construction Project India Cements Ltd. Cement Reliance Defence & Engineering Ltd Industrial Capital Goods Mahindra & Mahindra Ltd. Auto MindTree Ltd. Software * For Fund Manager experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

16 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth 15 % to Net Derivatives Coal India Ltd. Minerals/Mining Escorts Ltd. Auto L&T Finance Holdings Ltd Finance Dr Reddys Laboratories Ltd Pharmaceuticals Jain Irrigation Systems Ltd. Industrial Products Indian Bank Banks Jet Airways (India) Ltd. Transportation PTC India Ltd. Power Tata Motors Ltd. Auto Gujarat State Fertilizers & Chemicals Ltd. Fertilisers Bharat Heavy Electricals Ltd. Industrial Capital Goods Engineers India Ltd. Construction Project IFCI Ltd. Finance Godrej Industries Ltd Consumer Non Durables TV18 Broadcast Ltd Media and Entertainment Ajanta Pharma Ltd. Pharmaceuticals Wockhardt Ltd. Pharmaceuticals Shree Cement Ltd. Cement Capital First Ltd Finance Jindal Steel & Power Ltd. Ferrous Metals ACC Ltd. Cement Granules India Ltd. Pharmaceuticals Tata Elxsi Ltd. Software Tech Mahindra Ltd. Software Piramal Enterprises Limited Pharmaceuticals Adani Enterprises Ltd Trading Bharat Petroleum Corporation Ltd. Petroleum Products Development Credit Bank Ltd. Banks Adani Power Ltd Power Dish TV India Ltd. Media and Entertainment Indiabulls Real Estate Ltd Construction Indo Count Industries Ltd. Textiles - Cotton Multi Commodity Exchange of India Limited Finance Bharti Infratel Ltd. Telecom - Equipment & Accessories Sintex Industries Ltd. Industrial Products Maruti Suzuki India Limited Auto Siemens Ltd. Industrial Capital Goods Bajaj Finserv Ltd. Finance Glenmark Pharmaceuticals Ltd Pharmaceuticals Hindalco Industries Ltd Non - Ferrous Metals CG Power and Industrial Solutions Limited Industrial Capital Goods National Buildings Construction Corporation Limited Construction Cadila Healthcare Ltd. Pharmaceuticals Divi s Laboratories Limited Pharmaceuticals Eicher Motors Ltd Auto Andhra Bank Banks DLF Limited Construction Idea Cellular Ltd. Telecom - Services Mangalore Refinery And Petrochemicals Ltd. Petroleum Products SRF Ltd. Textile Products Axis Bank Ltd Banks Bajaj Auto Ltd. Auto Balrampur Chini Mills Ltd Consumer Non Durables Can Fin Homes Ltd. Finance Dabur India Ltd Consumer Non Durables IndusInd Bank Ltd. Banks Industrial Development Bank of India Ltd. Banks Larsen And Toubro Ltd. Construction Project Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Cummins India Ltd. Industrial Products Jaiprakash Associates Ltd Cement Syndicate Bank Banks Britannia Industries Ltd. Consumer Non Durables Housing Development and Infrastructure Limited Construction ICICI Bank Ltd. Banks KPIT Technologies LImited Software PC Jeweller Ltd Consumer Durables Torrent Pharmaceuticals Ltd. Pharmaceuticals V-Guard Industries Ltd. Industrial Capital Goods Berger Paints (I) Ltd. Consumer Non Durables Biocon Ltd. Pharmaceuticals Hexaware Technologies Ltd. Software LIC Housing Finance Ltd. Finance Nestle India Ltd. Consumer Non Durables Page Industries Ltd Textile Products Balkrishna Industries Ltd Auto Ancillaries Cholamandalam Investment and Finance Company Ltd Finance Kaveri Seed Company Ltd. Consumer Non Durables National Thermal Power Corporation Limited Power NHPC Limited Power NIIT Technologies Ltd Software Steel Authority of India Ltd. Ferrous Metals Yes Bank Ltd Banks

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives Grasim Industries Ltd. Cement Mahanagar Gas Ltd Gas United Breweries Ltd. Consumer Non Durables Allahabad Bank. Banks GAIL (India) Ltd. Gas Godfrey Phillips India Ltd. Consumer Non Durables Godrej Consumer Products Ltd. Consumer Non Durables Hero MotoCorp Ltd. Auto Hindustan Unilever Ltd. Consumer Non Durables Oil India Limited Oil Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units 3.29 Kotak Corporate Bond Fund Mutual Fund Units 0.78 Mutual Fund Units - Total 4.07 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 3.15 Kotak Mahindra Prime Ltd. CRISIL AAA 2.91 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 2.37 LIC Housing Finance Ltd. CARE AAA 0.71 Corporate Debt/Financial Institutions - Total 9.14 TERM DEPOSITS AXIS Bank Ltd IndusInd Bank Ltd HDFC Bank Ltd Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 0.77 Term Deposits - Total Collateral Borrowing & Lending obligation 0.22 Net Current /(Liabilities) Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option),` (Fortnightly Dividend,` (Direct Fortnightly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Finance Banks Debentures and Bonds Unrated Consumer Non Durables Power Cement Auto Pharmaceuticals 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. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 Fund Managers Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Nifty 50 Arbitrage index and 25% in Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.00% Direct: 1.40% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge CNX NIFTY-MAY Bharat Petroleum Corporation Ltd. Petroleum Products 1.26 HDFC Ltd. Warrants Finance 1.26 ITC Ltd. Consumer Non Durables 1.22 IndusInd Bank Ltd. Banks 1.14 Power Grid Corporation Of India Ltd Power 1.11 Yes Bank Ltd Banks 1.03 Reliance Industries Ltd. Petroleum Products 0.97 Varun Beverages Ltd Consumer Non Durables 0.95 National Thermal Power Corporation Limited Power 0.86 Grasim Industries Ltd. Cement 0.84 Infosys Ltd. Software 0.84 Tata Steel Limited. Ferrous Metals 0.73 Tata Motors Ltd - DVR Auto 0.70 Bajaj Finance Limited Finance 0.64 Biocon Ltd. Pharmaceuticals 0.61 ICICI Bank Ltd. Banks 0.61 Maruti Suzuki India Limited Auto 0.59 Zee Entertainment Enterprises Ltd Media and Entertainment 0.55 Laurus Labs Ltd Pharmaceuticals 0.53 Petronet LNG Ltd. Gas 0.47 Hero MotoCorp Ltd. Auto BSE Ltd Finance 0.45 HDFC Ltd. Finance 0.44 The Ramco Cements Ltd Cement 0.39 Indraprastha Gas Ltd. Gas Tata Consultancy Services Ltd. Software 0.34 GAIL (India) Ltd. Gas 0.32 Indian Oil Corporation Ltd Petroleum Products 0.28 JSW Steel Ltd. Ferrous Metals 0.28 Piramal Enterprises Limited Pharmaceuticals 0.28 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.27 Muthoot Finance Ltd Finance 0.27 Bajaj Finserv Ltd. Finance 0.26 Hindustan Unilever Ltd. Consumer Non Durables 0.25 HCL Technologies Ltd. Software 0.24 State Bank Of India Banks 0.23 RBL Bank Ltd Banks 0.20 Larsen And Toubro Ltd. Construction Project 0.19 Oil & Natural Gas Corporation Ltd. Oil 0.18 Mahindra & Mahindra Ltd. Auto 0.15 Wipro Ltd. Software 0.15 Apollo Hospitals Enterprises Ltd. Healthcare Services 0.13 Hindustan Petroleum Corporation Ltd Petroleum Products 0.12 Eicher Motors Ltd Auto 0.09 Tata Motors Ltd. Auto 0.09 Tech Mahindra Ltd. Software 0.09 Tata Communications Ltd Telecom - Services 0.08 HDFC Bank Ltd. Banks Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.06 Axis Bank Ltd Banks 0.04 Hindustan Zinc Ltd. Non - Ferrous Metals 0.04 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Non-Hedged- Total Hedged GMR Infrastructure Ltd. Construction Project Vedanta Ltd. Non - Ferrous Metals Hindalco Industries Ltd Non - Ferrous Metals 3.42 CNX NIFTY-MAY Jain Irrigation Systems Ltd. Industrial Products Reliance Capital Ltd. Finance Tata Communications Ltd Telecom - Services Dalmia Bharat Ltd. Cement The South Indian Bank Ltd. Banks IDFC Limited Finance IRB Infrastructure Developers Ltd Construction Century Textiles & Industries Ltd. Cement State Bank Of India Banks Dewan Housing Finance Corporation Ltd. Finance Aurobindo Pharma Ltd. Pharmaceuticals Wockhardt Ltd. Pharmaceuticals Aditya Birla Nuvo Limited Services Bata India Ltd. Consumer Durables Bharat Financial Inclusion Limited Finance Housing Development and Infrastructure Limited Construction Ashok Leyland Ltd. Auto Infosys Ltd. Software Glenmark Pharmaceuticals Ltd Pharmaceuticals Jaiprakash Associates Ltd Cement JSW Energy Ltd. Power Mcleod Russel India Ltd Consumer Non Durables 0.53 CNX NIFTY-MAY UPL Ltd Pesticides * For Fund Manager experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives Indiabulls Real Estate Ltd Construction Castrol (India ) Ltd. Petroleum Products CESC Ltd. Power India Cements Ltd. Cement NCC Limited Construction Project Petronet LNG Ltd. Gas Rural Electrification Corporation Ltd Finance Oil & Natural Gas Corporation Ltd. Oil IDFC Bank Limited Banks Tata Elxsi Ltd. Software Reliance Infrastructure Ltd Power Zee Entertainment Enterprises Ltd Media and Entertainment Tata Motors Ltd - DVR Auto Exide Industries Ltd Auto Ancillaries HDFC Ltd. Finance IFCI Ltd. Finance Tata Global Beverages Limited Consumer Non Durables Divi s Laboratories Limited Pharmaceuticals Sun TV Limited. Media and Entertainment Adani Power Ltd Power Adani Port and Special Economic Zone Limited Transportation Hindalco Industries Ltd Non - Ferrous Metals Reliance Power Ltd Power Andhra Bank Banks Engineers India Ltd. Construction Project Oracle Financial Services Software Ltd Software NIIT Technologies Ltd Software Pidilite Industries Ltd. Chemicals Reliance Industries Ltd. Petroleum Products Granules India Ltd. Pharmaceuticals Mahindra & Mahindra Ltd. Auto TV18 Broadcast Ltd Media and Entertainment ITC Ltd. Consumer Non Durables Jindal Steel & Power Ltd. Ferrous Metals KPIT Technologies LImited Software Tata Power Co. Ltd. Power Gujarat State Fertilizers & Chemicals Ltd. Fertilisers Hindustan Petroleum Corporation Ltd Petroleum Products PVR Ltd Media and Entertainment Britannia Industries Ltd. Consumer Non Durables Hindustan Zinc Ltd. Non - Ferrous Metals Titan Company Ltd. Consumer Durables Axis Bank Ltd Banks Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Preference Shares (Listed/Awaiting listing on Stock Exchange) 3DPLM Software Solutions Ltd(Preference Shares) Software % Vedanta Reedemable Preference Shares Non - Ferrous Metals 0.64 Preference Shares - Total 2.62 Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Mutual Fund Units - Total Government Dated Securities 8.53% State Government SOV 0.71 Government Dated Securities - Total 0.71 TERM DEPOSITS AXIS Bank Ltd.# 4.75 HDFC Bank Ltd.# 3.37 Kotak Mahindra Bank Ltd.# 2.96 IndusInd Bank Ltd.# 2.44 Standard Chartered Bank Ltd 2.09 Term Deposits - Total Collateral Borrowing & Lending obligation 1.25 Net Current /(Liabilities) 3.85 Notes: # Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Savings Fund NAV as on April 28, 2017: ` (Growth Option), ` (Monthly Dividend Option), ` Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) 18

20 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Systematic Investment Plan (SIP) If you had invested `10,000 every month SYSTEMATIC INVESTMENT PLAN Monthly SIP of Rs year Since Inception Total amount invested (Rs) Total Value as on April 28, 2017 (Rs) Returns (%) 75% NIFTY 50 ARBITRAGE + 25% Nifty 50 (Rs)# 75% NIFTY 50 ARBITRAGE + 25% Nifty 50 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) 1,20,000 3,10,000 1,26,815 3,46, ,25,149 3,39, ,31,152 3,47, Inception : - October 13, 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. # ; ^ SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Mutual Fund Units Finance Non - Ferrous Metals Banks Construction Project Pharmaceuticals Software Cement Power 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. 19

21 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. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Fund Manager Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.97 ICICI Bank Ltd. Banks 6.94 IndusInd Bank Ltd. Banks 6.70 Maruti Suzuki India Limited Auto 6.51 Reliance Industries Ltd. Petroleum Products 6.31 Larsen And Toubro Ltd. Construction Project 5.28 Britannia Industries Ltd. Consumer Non Durables 5.04 Hero MotoCorp Ltd. Auto 4.77 Infosys Ltd. Software 4.63 Shree Cement Ltd. Cement 4.40 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 4.33 Axis Bank Ltd Banks 4.15 Sun TV Limited. Media and Entertainment 3.53 Kajaria Ceramics Ltd. Construction 3.39 GAIL (India) Ltd. Gas 3.37 Tata Motors Ltd - DVR Auto 2.92 Persistent Systems Limited Software 2.72 Note: # Term Deposit as provided above is towards margin for derivatives transactions Equitas Holdings Ltd Finance 2.58 Laurus Labs Ltd Pharmaceuticals 2.42 Ultratech Cement Ltd. Cement 2.27 Motherson Sumi Systems Ltd. Auto Ancillaries 1.86 Entertainment Network (India) Ltd. Media and Entertainment 1.41 Avenue Supermarts Ltd Retailing 1.16 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Standard Chartered Bank Ltd 1.71 AXIS Bank Ltd.# 0.46 Term Deposits - Total 2.17 Collateral Borrowing & Lending obligation 2.32 Net Current /(Liabilities) Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 25.04% 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: 2.50% Direct: 2.00% Kotak India Growth Fund Series I NAV as on April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Cement Petroleum Products Construction Project Pharmaceuticals Consumer Non Durables Auto Media and Entertainment CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity and equity related securities across market capitalisation and sectors * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 20

22 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. November 4, 2003 Fund Managers Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` Plans: a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.19%, Modified Duration: 0.08yrs, Portfolio Yield: 6.43% 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 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: 0.09% Direct: 0.03% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Indiabulls Housing Finance Limited BRICKWORK BWR AAA 0.72 Corporate Debt/Financial Institutions - Total 0.72 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Hindustan Zinc Ltd CRISIL A Gruh Finance Ltd ICRA A HDFC Bank Ltd. CRISIL A ICICI Bank Ltd. ICRA A IDFC Bank Limited CRISIL A Piramal Finance Limited ICRA A Family Credit Ltd CARE A Edelweiss Commodities Services Ltd. ICRA A India Infoline Finance Limited ICRA A Aditya Birla Finance Ltd. ICRA A Tata Motors Finance Ltd ICRA A1+ 2 ECL Finance Limited CRISIL A Muthoot Finance Ltd CRISIL A LIC Housing Finance Ltd. CRISIL A Vedanta Ltd. CRISIL A Bharti Airtel Ltd. ICRA A Reliance Capital Ltd. ICRA A IIFL Wealth Finance Ltd. ICRA A Indiabulls Housing Finance Limited CRISIL A Standard Chartered Investment & Loan India Ltd. CRISIL A Birla TMT Holding Private Limited CRISIL A Sun Pharma Laboratories Limited ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture & Rural Development CRISIL A Small Industries Development Bank Of India. CARE A Steel Authority of India Ltd. CARE A Hindustan Petroleum Corporation Ltd. CRISIL A Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total Reverse Repo Treasury Bills 91 Days Treasury Bill 25/05/2017 SOV 0.02 Treasury Bills - Total 0.02 Collateral Borrowing & Lending obligation 0.29 Net Current /(Liabilities) 0.18 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.08 years Kotak Liquid Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Net Current Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Debentures and Bonds RATING PROFILE A1+, BWR AAA, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk 21 * For Fund Manager experience, please refer page For scheme performance, please refer page no

23 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 Fund Managers Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.19%, Modified Duration:0.09 yrs, Portfolio Yield: 6.49% 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: 0.06% Direct: 0.02% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Shriram Transport Finance Co Ltd. CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.07 Corporate Debt/Financial Institutions - Total 1.15 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A HDFC Bank Ltd. CRISIL A Piramal Finance Limited ICRA A Reliance Jio Infocomm Limited CARE A ECL Finance Limited CRISIL A ICICI Bank Ltd. ICRA A IDFC Bank Limited CRISIL A Tata Capital Financial Services Limited ICRA A IndusInd Bank Ltd. CRISIL A Muthoot Finance Ltd CRISIL A Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 3.03 Indiabulls Housing Finance Limited CRISIL A Tata Capital Housing Finance Ltd; CRISIL A S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 2.05 LIC Housing Finance Ltd. CRISIL A Dewan Housing Finance Corporation Ltd. CRISIL A Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CRISIL A1+(SO) 1.99 India Infoline Finance Limited ICRA A Note: Inter-scheme investment %age in scheme is 2.06 Sun Pharma Laboratories Limited ICRA A Tata Motors Finance Ltd ICRA A Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) ICRA A1+(SO) 1.29 Tata Power Company Ltd. ICRA A Aditya Birla Finance Ltd. ICRA A Reliance Capital Ltd. ICRA A Piramal Enterprises Limited ICRA A Manappuram Finance Ltd ICRA A Bahadur Chand Investments Private Limited ICRA A Nirma Ltd. CRISIL A Talwandi Sabo Power Limited ( Guarnteed by Vedanta Ltd. ) CRISIL A1+(SO) 0.68 Tata Motors Finance Solutions Private Limited CRISIL A Standard Chartered Investment & Loan India Ltd. CRISIL A IIFL Wealth Finance Ltd. ICRA A TATA Cummins Pvt. Ltd. ICRA A Ford Credit India Pvt. Ltd. FITCH IND A Oswal Woollen Mills Ltd. ICRA A Bajaj Finance Limited CRISIL A RBL Bank Ltd. CRISIL A Adani Ports and Special Economic Zone Limited ICRA A IDFC Bank Limited ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture & Rural Development CRISIL A Steel Authority of India Ltd. CARE A PNB Housing Finance Ltd. CARE A Small Industries Development Bank Of India. CARE A Public Sector Undertakings - Total Reverse Repo Collateral Borrowing & Lending obligation 0.29 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.09 years Kotak Floater Short Term Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Net Current Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Debentures and Bonds AA+ RATING PROFILE (%) A1+, A1+(SO), AAA, IND A1+ CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

24 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 Fund Manager Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation:0.46%, Modified Duration:0.39 yrs, Portfolio Yield: 6.86% 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 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited(^) CRISIL AAA 7.34 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) (^) ICRA AAA 5.14 Shriram Transport Finance Co Ltd. FITCH IND AA Kotak Mahindra Prime Ltd.(^) CRISIL AAA 3.64 Indiabulls Housing Finance Limited(^) CARE AAA 3.01 ICICI Home Finance Company Limited(^) ICRA AAA 2.67 Fullerton India Credit Co. Ltd.(^) CARE AAA 1.68 AXIS Bank Ltd.(^) CRISIL AA 1.59 Tata Motors Finance Ltd CRISIL AA 1.53 Kotak Mahindra Investments Ltd.(^) CRISIL AAA 1.40 Tata Motors Finance Ltd CARE AA Tata Motors Ltd.(^) CARE AA LIC Housing Finance Ltd. CRISIL AAA 0.88 Family Credit Ltd. CARE AA Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.35 HDFC Ltd. CRISIL AAA 0.14 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.13 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.07 East-North Interconnection Company Limited CRISIL AAA(SO) 0.04 Tata Sons Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture & Rural Development CRISIL AAA 3.11 Power Finance Corporation Ltd.(^) CRISIL AAA 2.91 Rural Electrification Corporation Ltd.(^) CRISIL AAA 1.94 Canara Bank CRISIL AAA 1.06 Export-Import Bank of India. CRISIL AAA 0.43 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.08 Power Grid Corporation of India Ltd. CRISIL AAA 0.07 Public Sector Undertakings - Total 9.60 Government Dated Securities 7.61% Central Government SOV % State Government SOV % State Government SOV % State Government SOV 0.11 Government Dated Securities - Total 3.53 Futures 7.61% GS 09/05/2030-MAY Futures (Market value represents Notional Value) - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IndusInd Bank Ltd. CRISIL A HDFC Bank Ltd. CRISIL A HDFC Ltd. ICRA A Aditya Birla Finance Ltd. ICRA A Bajaj Finance Limited CRISIL A ICICI Bank Ltd. ICRA A HDFC Ltd. CRISIL A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 2.44 Reverse Repo Collateral Borrowing & Lending obligation 1.36 Net Current /(Liabilities) 6.13 Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 30 Apr 2017 is 17.48% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.45 years. Kotak Treasury Advantage Fund NAV as on April 28, 2017: ` (Daily Dividend Option), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) SECTOR ALLOCATION (%) RATING PROFILE Regular: 0.60% Direct: 0.25% CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds A1+, AAA, AAA(SO), IND AAA, SOV CBLO & Term Deposits & Rev.Repo Net Current 72.2 AA+, IND AA+, AA Derivatives 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. 23 Investors understand that their principal will be at moderately low risk * For Fund Manager 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 BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Fund Manager Mr. Deepak Agrawal* CRISIL Short Term Bond Fund Index(w.e.f February 1, 2017 ) AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 2.15%, Modified Duration: 2.31 yrs, Portfolio Yield: 7.93% 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: 0.15% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL AA 4.07 Corporate Debt/Financial Institutions - Total 4.07 Public Sector Undertakings Bank Of Baroda CARE AA 9.38 U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 6.86 Power Finance Corporation Ltd. CRISIL AAA 6.11 U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 5.30 State Bank Of India. CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 4.04 Union Bank of India CRISIL AAA 3.66 State Bank of Travancore CRISIL AAA 3.59 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 3.46 State Bank Of India. CRISIL AAA 3.17 Canara Bank CRISIL AAA 3.14 Punjab National Bank CARE AA 3.11 Union Bank of India CARE AA 2.63 Andhra Bank CRISIL AA Oriental Bank of Commerce ICRA A Bank Of Baroda CARE AA Power Finance Corporation Ltd. ICRA AAA 2.12 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.38 National Housing Bank CRISIL AAA 0.83 National Bank for Agriculture & Rural Development CRISIL AAA 0.52 Small Industries Development Bank Of India. CARE AAA 0.52 Steel Authority of India Ltd. FITCH IND AA 0.42 Power Grid Corporation of India Ltd. CRISIL AAA 0.21 Export-Import Bank of India. CRISIL AAA 0.16 Public Sector Undertakings - Total Government Dated Securities 8.53% State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.52 Government Dated Securities - Total 8.65 Reverse Repo Collateral Borrowing & Lending obligation 0.25 Net Current /(Liabilities) 2.66 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 2.97 years. Kotak Banking And PSU Debt Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual Dividend) Debentures and Bonds Net Current Government Dated Securities CBLO & Term Deposits & Rev.Repo AA+, AA, IND AA, IND AA(SO), AA- Net Current CBLO & Term Deposits & Rev.Repo AAA, AAA(SO), IND AAA, SOV A+ 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 * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Fund Manager Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` 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: 0.77%, Modified Duration: 0.59 yrs, Portfolio Yield: 7.90% 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 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.00% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Vedanta Ltd.(^) CRISIL AA Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA-(SO) 9.25 HDFC Ltd. CRISIL AAA 5.47 Manappuram Finance Ltd(^) ICRA AA Piramal Finance Limited(^) ICRA AA 4.29 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 3.24 Muthoot Finance Ltd CRISIL AA 3.06 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR AA-(SO) 2.34 Nirma Ltd. CRISIL AA 1.96 Trends In Vogue Pvt Ltd. ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA(SO) 1.77 Nirchem Cement Ltd.(^) CRISIL AA 1.62 ECL Finance Limited CARE AA 1.61 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) ICRA A 1.56 Tata Motors Ltd. CARE AA AXIS Bank Ltd. CRISIL AA 1.23 Altico Capital India Pvt Ltd FITCH AA-(IND) 1.16 Peninsula Land Limited BRICKWORK BWR A 0.89 HPCL Mittal Energy Ltd. ICRA AA 0.78 India Infoline Housing Finance Ltd. ICRA AA 0.71 Indiabulls Housing Finance Limited CARE AAA 0.64 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.60 Muthoot Fincorp Ltd. CRISIL A Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) FITCH IND AA Indostar Capital Finance Private Limited CARE AA Intime Properties Ltd. FITCH IND AAA 0.40 LIC Housing Finance Ltd. CRISIL AAA 0.36 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 0.34 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.24 HDB Financial Services Ltd. CRISIL AAA 0.09 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.09 Aspire Home Finance Corporation Ltd ICRA AA Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA(SO) 0.05 Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture & Rural Development(^) CRISIL AAA 4.44 Bank Of Baroda(^) CARE AA 1.89 Andhra Bank CRISIL AA Oriental Bank of Commerce(^) ICRA A Allahabad Bank CRISIL AA Public Sector Undertakings - Total Government Dated Securities 8.39% State Government SOV 0.13 Government Dated Securities - Total 0.13 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 2.65 Canfin Homes Ltd ICRA A Shapoorji Pallonji and Company Private Limited ICRA A IndusInd Bank Ltd. CRISIL A Adani Transmission Ltd FITCH IND A1+(SO) 1.73 Reliance Infrastructure Ltd FITCH IND A1+(SO) 0.51 Manappuram Finance Ltd CRISIL A Shriram City Union Finance Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CARE A Public Sector Undertakings - Total 1.67 Reverse Repo 5.33 Collateral Borrowing & Lending obligation 1.04 Net Current /(Liabilities) 2.10 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 30 Apr 2017 is 15.99% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.69 years Kotak Duration Fund NAV as on April 28, 2017: ` (Normal Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) Net Current Debentures and Bonds RATING PROFILE A+, A, BWR A, BWR A(SO), A- A1+, A1+(SO), AAA, AAA(SO), IND A1+(SO), IND, AAA, SOV AA+, AA, AA(SO), AA-, AA-(IND), AA-(SO), BWR AA- (SO), IND AA- CBLO & Term Deposits & Rev.Repo 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 25 * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

27 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Fund Manager Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` 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: 2.09%, Modified Duration: 1.57 yrs, Portfolio Yield: 7.47% 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: Nil Total Expense Ratio Regular: 1.10%; Direct: 0.25% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Prime Ltd. CRISIL AAA 8.24 Mahindra & Mahindra Financial Services Ltd.(^) FITCH IND AAA 8.00 Reliance Jio Infocomm Limited CRISIL AAA 7.77 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) (^) ICRA AAA 6.91 LIC Housing Finance Ltd. CRISIL AAA 6.11 HDFC Ltd.(^) CRISIL AAA 4.10 Indiabulls Housing Finance Limited CARE AAA 2.13 Bajaj Finance Limited FITCH IND AAA 2.06 Fullerton India Credit Co. Ltd.(^) CARE AAA 1.31 BMW India Financial Services Private Limited CRISIL AAA 1.30 HDB Financial Services Ltd. CRISIL AAA 1.23 Tata Sons Ltd. CRISIL AAA 0.65 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.49 Dewan Housing Finance Corporation Ltd. CARE AAA 0.07 East-North Interconnection Company Limited CRISIL AAA(SO) 0.07 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd.(^) CRISIL AAA ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 5.01 Small Industries Development Bank Of India. CARE AAA 4.24 Rural Electrification Corporation Ltd.(^) CRISIL AAA 2.45 National Bank for Agriculture & Rural Development CRISIL AAA 1.86 Export-Import Bank of India. CRISIL AAA 1.73 PNB Housing Finance Ltd. CARE AAA 1.58 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.17 Steel Authority of India Ltd. FITCH IND AA 0.04 Public Sector Undertakings - Total Issuer/Instrument Industry/ % to Net Rating Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS), Hedging Position through Interest Rate Swaps as on 30 Apr 2017 is 14.35% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.87 years. Kotak Bond Short Term Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend),` (Half Yearly Dividend), ` (Direct Half Yearly Dividend) SECTOR ALLOCATION (%) Net Current Commercial Paper (CP)/Certi cate of Deposits (CD) Debentures and Bonds Government Dated Securities Government Dated Securities 8.21% State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.13 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Finance Ltd. FITCH IND A Bajaj Finance Limited CRISIL A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 3.98 Public Sector Undertakings PNB Housing Finance Ltd. CARE A Public Sector Undertakings - Total 1.23 Reverse Repo 0.44 Collateral Borrowing & Lending obligation 0.18 Net Current /(Liabilities) Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), IND A1+, IND AAA, SOV IND AA Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. May 26, 2008 Fund Manager Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth 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: 4.54%, Modified Duration: 3.35yrs, Portfolio Yield:7.96% 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 Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Regular:0.90% Direct: 0.35% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited(^) CARE AAA Mahindra & Mahindra Financial Services Ltd. CARE AAA 7.40 Reliance Ports And Terminals Limited CRISIL AAA 3.08 AXIS Bank Ltd. CRISIL AA 2.66 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 2.21 Reliance Jio Infocomm Limited CRISIL AAA 1.88 Indiabulls Housing Finance Limited CARE AAA 0.45 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.14 Shriram Transport Finance Co Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India(^) CRISIL AA Bank Of Baroda CARE AA 6.81 U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 1.38 Export-Import Bank of India. CRISIL AAA 0.85 PNB Housing Finance Ltd. CARE AAA 0.46 Power Finance Corporation Ltd. CRISIL AAA 0.05 Rural Electrification Corporation Ltd. CRISIL AAA 0.04 Public Sector Undertakings - Total Government Dated Securities 8.53% State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.14 Government Dated Securities - Total Reverse Repo 9.79 Collateral Borrowing & Lending obligation 0.36 Net Current /(Liabilities) 3.15 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 30 Apr 2017 is 17.96% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 4.79 years Kotak Flexi Debt Fund NAV as on April 28, 2017: ` (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 Net Current AAA, SOV RATING PROFILE CBLO & Term Deposits & Rev.Repo AA+, AA, IND AA Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 27 * For Fund Manager 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 INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 Fund Managers Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annual (12th of March). Ratios Standard Deviation: 2.02%, Modified Duration:1.90yrs, Portfolio Yield: 8.58% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. II) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Vedanta Ltd.(^) CRISIL AA HPCL Mittal Pipelines Ltd. ICRA AA 5.21 Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA-(SO) 5.21 Nirma Ltd.(^) CRISIL AA 4.70 Reliance Jio Infocomm Limited(^) CRISIL AAA 4.32 HPCL Mittal Energy Ltd. ICRA AA 4.18 Janalakshami Financial Services Ltd.(^) ICRA A Indiabulls Housing Finance Limited CARE AAA 3.06 DLF Emporio Ltd CRISIL AA 2.69 Au Financiers (India) Limited FITCH IND A India Infoline Housing Finance Ltd.(^) ICRA AA 2.62 K Raheja IT Park (Hyderabad) Ltd. FITCH IND AAA(SO) 2.61 Nirchem Cement Ltd. CRISIL AA 2.39 Dewan Housing Finance Corporation Ltd.(^) CARE AAA 2.37 Piramal Finance Limited(^) ICRA AA 2.25 ECL Finance Limited ICRA AA 2.12 Tata Power Company Ltd. CRISIL AA Prestige Estates Projects Limited ICRA A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Reliance Ports And Terminals Limited(^) CRISIL AAA 1.54 Muthoot Finance Ltd CRISIL AA 1.51 Ananta Landmarks Pvt Ltd. Unrated 1.32 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.31 Tata Steel Limited(^) BRICKWORK BWR AA 1.29 AXIS Bank Ltd. CRISIL AA 1.16 Tata Power Renewable Energy Ltd. ( Guaranteed by Tata Power Company Ltd) CARE AA(SO) 1.08 ECL Finance Limited CARE AA 0.95 Asirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) CRISIL A Dalmia Cement (Bharat) Ltd ICRA AA 0.88 Shriram Transport Finance Co Ltd. CRISIL AA Kolte-Patil Developers Limited CRISIL A Manappuram Finance Ltd CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.66 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Regular: 1.60% Direct: 0.90% Investors understand that their principal will be at moderately low risk * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no Issuer/Instrument Industry/ % to Net Rating Emami Ltd ) FITCH IND AA SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) BRICKWORK BWR A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.39 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.37 FAMILY CREDIT LTD CARE AA Piramal Enterprises Limited ICRA AA 0.26 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.22 Indostar Capital Finance Private Limited CARE AA HDFC Ltd. CRISIL AAA 0.03 LIC Housing Finance Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 1.97 Union Bank of India CARE AA 1.70 PNB Housing Finance Ltd. CARE AAA 1.32 Corporation Bank CRISIL AA Bank of India CRISIL A Oriental Bank of Commerce ICRA A Oriental Bank of Commerce CARE A U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA 0.67 Bank Of Baroda CARE AA 0.66 Syndicate Bank CARE AA Allahabad Bank CRISIL AA Power Finance Corporation Ltd. CRISIL AAA 0.26 Bank of India BRICKWORK BWR AA Konkan Railway Corporation Ltd. ICRA AAA 0.14 Steel Authority of India Ltd. FITCH IND AA 0.02 Public Sector Undertakings - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 1.13 HDFC Ltd. ICRA A Corporate Debt/Financial Institutions - Total 1.39 Public Sector Undertakings PNB Housing Finance Ltd. CARE A Public Sector Undertakings - Total 0.61 Collateral Borrowing & Lending obligation 0.67 Net Current /(Liabilities) 2.92 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 30 Apr 2017 is 18.26% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.38 years. Kotak Income Opportunities Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). SECTOR ALLOCATION (%) Debentures and Bonds CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certi cate of Deposits (CD) AA+, AA, AA(SO), BWR AA, IND AA, IND AA(SO), AA-, AA-(SO), BWR AA-, IND AA- Unrated Net Current A1+, A1+(SO), AAA, IND AAA(SO) CBLO & Term Deposits & Rev.Repo A+, BWR A+, IND A+ 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. 28

30 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 Fund seeks to generate income and capital appreciation largely through a focus on investments in corporate debt securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. September 21, 2007 Fund Manager Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` 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 and Dec of every Year) Ratios Standard Deviation: 1.33%, Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Dewan Housing Finance Corporation Ltd. CARE AAA 5.15 Kotak Mahindra Prime Ltd. CRISIL AAA 5.15 Reliance Jio Infocomm Limited CRISIL AAA 4.83 ICICI Home Finance Company Limited ICRA AAA 4.76 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 4.47 LIC Housing Finance Ltd. CRISIL AAA 1.85 Bajaj Finance Limited FITCH IND AAA 1.57 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 1.20 HDFC Ltd. CRISIL AAA 1.02 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.97 Ultratech Cement Ltd. CRISIL AAA 0.31 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.17 Corporate Debt/Financial Institutions - Total Note: Inter-scheme investment %age in scheme is 9.29 Public Sector Undertakings National Bank for Agriculture & Rural Development CRISIL AAA 5.98 Power Finance Corporation Ltd. CRISIL AAA 4.71 Rural Electrification Corporation Ltd. CRISIL AAA 3.51 Export-Import Bank of India. CRISIL AAA 1.99 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 1.56 National Housing Bank CRISIL AAA 1.37 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.23 Airports Authority of India CRISIL AAA 0.17 Public Sector Undertakings - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Bajaj Finance Limited CRISIL A Corporate Debt/Financial Institutions - Total 2.52 Reverse Repo Collateral Borrowing & Lending obligation 0.75 Net Current /(Liabilities) 1.95 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.71 years Kotak Corporate Bond Fund NAV as on April 28, 2017: ` (Standard Plan-Growth Option), ` (Standard Plan- Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend) Modified Duration: 0.61yrs, Portfolio Yield: 6.73% 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: Nil Regular: 0.50% Direct: 0.30% Debentures and Bonds Commercial Paper (CP)/Certi cate of Deposits (CD) A1+, AAA, AAA(SO), IND AAA Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Net Current 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 29 * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 EQUITY SCHEMES Equity Fund Ready Reckoner (as on April 30, 2017) Kotak 50 Kotak Classic Equity Kotak Opportuni es Kotak Select Focus Fund Kotak Tax Saver Kotak Midcap Kotak Emerging Equity Kotak Infrastructure & Economic Reform Fund Kotak Balance Fund Kotak Equity Arbitrage Fund Kotak Equity Savings Fund Investment Theme Large cap Large cap Diversified Mul Cap ELSS Mid cap Mid and Small Cap Thema c: Infrastructure Balanced Equity Arbitrage Equity Savings Product Posi oning Invest with industry leaders Long term wealth creators Spo ng the hidden gems Focus on few selected sectors Tax advantage with poten al equity growth Spot them young, watch them grow Emerging leaders True to label Best of both worlds: equity & debt Arbitrage opportuni es MIP with equity tax efficiency Key Features a. Favours industry leaders in cost, innova on, brand, competence, etc. with a proven execu on track record across cycles b. convic on and long term calls taken a. Focus on sustainable large cap stories which can withstand market shocks b. These are companies with pricing power for their compe ve advantage or entry barriers Iden fies investment opportuni es across market capitalisa on and sectors a. Invests in a few sectors as the various sectors of the economy tend to perform differently at different points of me b. Flexibility to move across market caps depending on their a rac veness during the economic phase a. Por olio is diversified across sectors and market capitaliza on segments b. Offers dual benefits of growth and tax savings a.iden fies the hidden growth poten al of mid cap sized companies b. Por olio exhibits higher vola lity than large caps however tends to have a larger return base c. Buy and hold strategy a. Stands for winning investment ideas across the mid & small cap range offering decent growth trajectory over the medium to long term horizon b. Buy and hold strategy c. Riskier than a large cap fund but offers faster growth rate since it has a smaller base d. 15% 20% alloca on to large cap opportuni es as tac cal plays a. Iden fies "flow related" companies These benefit from spending from government, private and household (in terms of proper es). They are not asset owners. b. Focus on high quality companies exhibi ng superior ROE, posi ve cash flow, low leverage in an otherwise challenging environment a. Equity por on: Mul cap strategy to iden fy outstanding companies having well managed and durable businesses with predictable earnings power b. Debt por on: Ac vely managed with medium to long term maturity c. er vola lity than a pure equity or debt fund a. Discovers arbitrage opportuni es by simultaneously entering transac ons of long posi on in cash and exactly off se ng short posi on in futures b. Equity posi on is completely hedged Conserva ve por olio with a blend of: a. Income genera on through arbitrage opportuni es & debt investment b. Growth poten al through moderate par cipa on in equity markets c. Tax efficiency through equity orienta on Incep on Date 29 Dec Jul Sep Sep Nov Feb Mar Feb Nov Sep Oct 14 Fund Manager Mr. Harish Krishnan Mr. Deepak Gupta Mr. Harsha Upadhyaya Mr. Harsha Upadhyaya Mr. Harsha Upadhyaya Mr. Pankaj Tibrewal Mr. Pankaj Tibrewal Mr. Harish Krishnan Mr. Pankaj Tibrewal & Mr. Abhishek Bisen Mr. Deepak Gupta Mr. Deepak Gupta & Mr. Abhishek Bisen Ni y 50 Ni y 100 Ni y 500 Ni y 200 Ni y 500 Ni y Midcap 100 S&P BSE Mid Small Cap S&P BSE 100 Crisil Balanced Fund Ni y 50 Arbitrage Index 75% of Ni y 50 Arbitrage Index + 25% of Ni y 50 Monthly AAUM (Rs. Crs) Mcap (%) 78.80% Large Cap 19.69% Mid Cap 0.00% Small Cap 1.51% Cash 87.50% Large Cap 11.06% Mid Cap 0.00% Small Cap 1.44% Cash 69.00% Large Cap 22.14% Mid Cap 3.72% Small Cap 5.14% Cash 76.48% Large Cap 17.84% Mid Cap 0.62% Small Cap 5.05% Cash 66.38% Large Cap 29.28% Mid Cap 3.28% Small Cap 1.07% Cash 3.26% Large Cap 79.45% Mid Cap 13.52% Small Cap 3.78% Cash 6.26% Large Cap 81.00% Mid Cap 6.30% Small Cap 6.44% Cash N/A 53.77% Large Cap 40.20% Mid Cap 8.18% Small Cap 2.15% Cash N/A N/A Overweight 1. FMCG 2. Media 3. Cement & Cement Products 1. Oil & Gas 2. Metal & Metal Products 3. U li es 1. Oil & Gas 2. Cement & Cement Products 3. Auto & Auto Ancillary 1. Cement & Cement Products 2. Oil & Gas 3. Capital Goods & Engineering 1. Cement & Cement Products 2. Oil & Gas 3. Capital Goods & Engineering 1. Media 2. Capital Goods & Engineering 3. Chemicals 1. Capital Goods & Engineering 2. Media 3. Durables N/A N/A N/A N/A Underweight 1. Banking & Finance 2. Informa on technology 3. Oil & Gas 1. FMCG 2. Banking & Finance 3. Pharmaceu cal 1. Informa on technology 2. FMCG 3. Banking & Finance 1. Informa on technology 2. Pharmaceu cal 3. FMCG 1. Informa on technology 2. FMCG 3. Banking & Finance 1. Pharmaceu cal 2. Informa on technology 3. Oil & Gas 1. Pharmaceu cal 2. Informa on technology 3. Banking & Finance N/A N/A N/A N/A Beta Sharpe Standard Devia on 14.35% 13.85% 15.03% 15.33% 16.17% Details provided are as on April 28, Ratio Source: ICRA MFI Explorer. Risk rate assumed to be 6.18%.*For Kotak Midcap Fund & Kotak Emerging Equity Fund the stocks falling within the mcap range in Nifty Midcap 100 & S&P BSE Mid Small Cap, respectively, would be considered as midcap stocks. Any stock which would have mcap above the highest mcap of these benchmarks would be considered as largecap, and any stock would have mcap below the lowest mcap would be considered as smallcap. Mcap breakup of Kotak Balance portfolio is for the equity component only. N/A: Field not applicable to the scheme owing to its investment theme. Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Continuous offer of units of all schemes available at NAV based prices. Large cap (>23565 crs)* Mid cap (23565 to crs)* Small cap (< crs)* 17.24% 17.09% 18.61% 11.24% 0.51% 3.46%

32 DEBT SCHEMES Debt Fund Ready Reckoner (as on April 30, 2017) Kotak Liquid Kotak Floater Short Term Kotak Treasury Advantage # Kotak Dura on Fund Kotak Corporate Bond Fund Kotak Banking & PSU Debt Fund Kotak Bond Short Term Kotak Flexi Debt Kotak Income Opportuni es Fund Kotak Medium Term Kotak Bond Fund Kotak Gilt Investment Current Posi oning Liquid Conserva ve Liquid Aggressive UST^ Conserva ve UST^ Aggressive UST^ Aggressive Banking and PSU STP^^ Conserva ve Dynamic STP Accrual Accrual Income Aggressive Gilt Aggressive Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index CRISIL Liquid Fund CRISIL Composite Bond Fund Crisil Short Term Bond Fund Index Crisil Short Term Bond Fund CRISIL Composite Bond Crisil Short Term Bond Fund CRISIL Composite Bond Fund Crisil Composite Bond Fund ISEC Composite Monthly Avg. AUM (Rs crores) 11, , , , , , , , , , Current Por olio Quality** 100% AAA 98.92% AAA 1.08%AA 89.53% AAA 10.47% AA 40.78% AAA 51.23% AA 100% AAA 46.87% AAA, 8.66% Gilt 41.93% AA 87.70% AAA, 12.26% Gilt 0.04% AA 44.56% AAA 35.52% Gilt 19.93% AA 22.92% AAA 63.23% AA 28.64% AAA, 60.27% AA, 0.39% Gilt 13.07% AAA 58.31% Gilt 23.56% AA 100% Gilt Ideal Investment Horizon 1 15 days 1 15 days 1 3 Months 1 3 Months 6 Months and above 6 Months and above 6 Months and above 6 Months and above 1 Year and above 2.5 Years and above 1 Year and above 1 Year and above Key Differen ator Maturity < 91 days Maturity < 91 days Modified dura on < 6 months Modified dura on between 6 12 months % corporate bond exposure quality Banking & PSU assets Avg Mat between 1 3 years Dynamic strategy, dura on has never gone above 5 years. Upto 65% in > 1 yr papers, try to capitalize on mispriced credits Avg Mat between 3 7 years Dynamic strategy, no cap on dura on Dynamic strategy, no cap on dura on YTM % Average Maturity (years) Modified Dura on (years) Exit Load Nil Nil Nil Nil Nil Nil Nil Nil Withdrawal up to 10% of investment amt within 1 yr: NilWithin 1 year : 1%, A er 1 year : Nil Withdrawal up to 15% of investment amt within 1 yr: NilWithin 18 months : 2%,A er 18 months : Nil Nil Nil Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Con nuous Offer of units of all schemes available at NAV based prices. Note: ^UST = Ultra Short Term plan, ^^STP= Short Term plan. **AAA also includes A1+,A1+(SO), AAA(SO), IND AAA, Net current, CBLO, Term Deposit and Rev repo. For Kotak Gilt Fund: Cash and Cash Equivalent is included under Gilt. For Liquid schemes ( Kotak Liquid and Kotak Floater Short Term ) and Liquid plus schemes (Kotak Treasury Advantage and Kotak Dura on) T bill is included in AAA. AA includes AA,AA+,AA.

33 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Fund Manager Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 2.54%, Modified Duration: 2.46yrs, Portfolio Yield: 8.63% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%. iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.70% Direct: 0.90% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Vedanta Ltd.(^) CRISIL AA Nirchem Cement Ltd.(^) CRISIL AA 5.02 Reliance Jio Infocomm Limited(^) CRISIL AAA 3.93 Piramal Finance Limited(^) ICRA AA 3.64 HPCL Mittal Energy Ltd. ICRA AA 3.62 Dalmia Cement (Bharat) Ltd(^) ICRA AA 3.33 Tata Power Company Ltd. CRISIL AA K Raheja IT Park (Hyderabad) Ltd. FITCH IND AAA(SO) 2.53 Indiabulls Housing Finance Limited CARE AAA 2.46 HPCL Mittal Pipelines Ltd. ICRA AA 2.37 Birla Corporation Ltd. CARE AA 2.27 AXIS Bank Ltd. CRISIL AA 2.25 Nirma Ltd.(^) CRISIL AA 2.15 ECL Finance Limited ICRA AA 2.06 Prestige Estates Projects Limited ICRA A Reliance Utilities And Power Private Limited CRISIL AAA 1.83 Reliance Ports And Terminals Limited(^) CRISIL AAA 1.74 Janalakshami Financial Services Ltd. ICRA A Tata Steel Limited CARE AA 1.67 The Indian Hotels Company Ltd. CARE AA Muthoot Finance Ltd CRISIL AA 1.39 Ananta Landmarks Pvt Ltd. Unrated 1.28 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.25 Tata Steel Limited BRICKWORK BWR AA 1.12 Intime Properties Ltd. FITCH IND AAA 0.94 Bajaj Finance Limited CARE AAA 0.88 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.88 Tata Power Renewable Energy Ltd. ( Guaranteed by Tata Power Company Ltd) CARE AA(SO) 0.87 Au Financiers (India) Limited FITCH IND A SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA East-North Interconnection Company Limited CRISIL AAA(SO) 0.65 Dewan Housing Finance Corporation Ltd. CARE AAA 0.64 India Infoline Housing Finance Ltd. ICRA AA 0.51 Asirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) CRISIL A LIC Housing Finance Ltd. CRISIL AAA 0.40 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.27 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.26 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.24 Edelweiss Housing Finance Limited ICRA AA 0.23 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.16 HDB Financial Services Ltd. CRISIL AAA 0.08 Corporate Debt/Financial Institutions - Total Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 5.70 PNB Housing Finance Ltd.(^) CARE AAA 4.51 Andhra Bank(^) CRISIL AA Oriental Bank of Commerce ICRA A Union Bank of India CARE AA 1.54 Bank of India CRISIL A IDBI Bank Ltd ICRA A 1.24 Bank Of Baroda CARE AA 0.89 Small Industries Development Bank Of India. CARE AAA 0.81 Corporation Bank CRISIL AA Syndicate Bank CARE AA Canara Bank CRISIL AAA 0.65 Bank of India BRICKWORK BWR AA Bank of Maharashtra CRISIL A State Bank of Travancore CRISIL AAA 0.28 Allahabad Bank CRISIL AA Konkan Railway Corporation Ltd. ICRA AAA 0.13 Bank Of Baroda CARE AA Power Finance Corporation Ltd. CRISIL AAA 0.05 Public Sector Undertakings - Total Government Dated Securities 1.44% Central Government SOV 0.39 Government Dated Securities - Total 0.39 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Muthoot Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total 0.13 Collateral Borrowing & Lending obligation 1.14 Net Current /(Liabilities) 3.05 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 30 Apr 2017 is 18.96% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.21 years Kotak Medium Term Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). Government Dated Securities Net Current Debentures and Bonds CBLO & Term Deposits & Rev.Repo Commercial Paper (CP)/Certi cate of Deposits (CD) Investors understand that their principal will be at moderate risk * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no RATING PROFILE A+, IND A+, A, A- AA+, AA, AA(SO), BWR AA, IND AA, IND AA(SO), AA-, BWR AA- A1+, AAA, AAA(SO), IND AAA, IND AAA(SO), SOV Unrated 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. 30

34 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Fund Manager Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) 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: 7.21% Modified Duration: 6.18 yrs Portfolio Yield: 7.91% 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: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.77% Direct: 0.87% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions ICICI Bank Ltd. CARE AA AXIS Bank Ltd. CRISIL AA 1.68 Reliance Ports And Terminals Limited CRISIL AAA 1.17 East-North Interconnection Company Limited CRISIL AAA(SO) 0.96 Reliance Capital Ltd. CARE AA HDFC Ltd. CRISIL AAA 0.04 Vedanta Ltd. CRISIL AA Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 7.82 Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 9.22 National Bank for Agriculture & Rural Development CRISIL AAA 6.23 Union Bank of India FITCH IND AA 3.40 Andhra Bank CRISIL AA Bank of India CRISIL A Allahabad Bank FITCH IND A 1.75 Power Finance Corporation Ltd. CRISIL AAA 1.65 Syndicate Bank CARE AA U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 0.91 IDBI Bank Ltd ICRA A 0.70 State Bank Of India. CRISIL AA Public Sector Undertakings - Total Government Dated Securities Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 9.32 years. Kotak Bond Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certi cate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Issuer/Instrument Industry/ % to Net Rating 6.79% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV 0.09 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Reliance Capital Ltd. ICRA A Corporate Debt/Financial Institutions - Total 3.23 Collateral Borrowing & Lending obligation 0.27 Net Current /(Liabilities) CBLO & Term Deposits & Rev.Repo Net Current A+, A, IND A A1+, AAA, AAA(SO), SOV AA+, AA, IND AA, IND AA(SO), AA- 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 31 * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Fund Manager Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` 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: 8.12%, B) PF & Trust Plan: 8.12%, Modified Duration: 6.77 yrs, Portfolio Yield:7.02% 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 6.79% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.61 Issuer/Instrument Industry/ % to Net Rating 8.05% State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.08 Government Dated Securities - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) -13 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Gilt Investment Fund NAV as on April 28, 2017: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) Investors understand that their principal will be at moderate risk CBLO & Term Deposits & Rev.Repo SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

36 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 Fund Managers Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` 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:4.57% Modified Duration: 4.20 yrs Portfolio Yield: 7.38% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.30% Direct: 1.80% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.81 State Bank Of India Banks 1.15 Sun TV Limited. Media and Entertainment 1.06 Bata India Ltd. Consumer Durables 1 India Cements Ltd. Cement 1 Tata Motors Ltd. Auto 0.91 IFB Industries Ltd. Consumer Durables 0.87 Tata Communications Ltd Telecom - Services 0.85 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.83 Phillips Carbon Black Ltd. Chemicals 0.83 Bombay Burmah Trading Corporation Ltd. Consumer Non Durables 0.75 ICICI Bank Ltd. Banks 0.70 Godfrey Phillips India Ltd. Consumer Non Durables 0.62 Maruti Suzuki India Limited Auto 0.62 Infosys Ltd. Software 0.53 Bank Of Baroda Banks 0.43 GP Petroleums Limited Petroleum Products 0.41 GAIL (India) Ltd. Gas 0.40 TV18 Broadcast Ltd Media and Entertainment 0.40 Hero MotoCorp Ltd. Auto 0.39 Mcleod Russel India Ltd Consumer Non Durables 0.37 Yes Bank Ltd Banks 0.37 Motherson Sumi Systems Ltd. Auto Ancillaries 0.34 ICICI Prudential Life Insurance Company Ltd Finance 0.31 Manpasand Beverages Ltd. Consumer Non Durables 0.29 The Ramco Cements Ltd Cement 0.29 MindTree Ltd. Software 0.28 Coromandel International Ltd. Fertilisers 0.27 TATA Metaliks Ltd. Ferrous Metals 0.26 Granules India Ltd. Pharmaceuticals 0.23 Equitas Holdings Ltd Finance 0.19 HDFC Bank Ltd. Banks 0.19 HDFC Ltd. Warrants Finance 0.17 IndusInd Bank Ltd. Banks 0.17 Tech Mahindra Ltd. Software 0.17 Bharat Petroleum Corporation Ltd. Petroleum Products 0.15 Notes: #Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Tata Motors Ltd - DVR Auto 0.14 Avenue Supermarts Ltd Retailing 0.09 Whirlpool of India Ltd. Consumer Durables 0.04 Listed/Awaiting Listing on Stock Exchange - Total Options HDFC Bank Ltd Call Option - May Options - Total 0.02 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions ICICI Bank Ltd. CARE AA Corporate Debt/Financial Institutions - Total 3.84 Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 7.86 Power Finance Corporation Ltd. CRISIL AAA 7.41 Syndicate Bank CARE AA Canara Bank CRISIL AAA 1.94 U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 1.56 Rural Electrification Corporation Ltd. CRISIL AAA 0.04 Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV 3.29 Government Dated Securities - Total TERM DEPOSITS Standard Chartered Bank Ltd 5.15 AXIS Bank Ltd.# 0.23 Term Deposits - Total 5.38 Collateral Borrowing & Lending obligation 9.26 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 6.10 years. Kotak Monthly Income Plan Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Derivatives Investors understand that their principal will be at moderate risk RATING PROFILE AA+, IND AA, IND AA(SO), AA- Equities AAA, SOV Net Current CBLO & Term Deposits & Rev.Repo Derivatives 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. 33 * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Hybrid Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 Fund Managers Mr. Deepak Gupta & Mr. Abhishek Bisen* 65% CRISIL Short Term Bond Fund, 25% Nifty 50 and 10% Price of Gold. (w.e.f April 12, 2017) AAUM (` In Crores) ` AUM (` In Crores) AUM as on April 30, 2017: ` 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: 3.57%, Modified Duration: 3.00yrs, Portfolio Yield: 7.38% 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: 2.05% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Bharat Petroleum Corporation Ltd. Petroleum Products 0.92 Power Grid Corporation.Of India Ltd Power 0.81 ITC Ltd. Consumer Non Durables 0.75 Yes Bank Ltd Banks 0.75 Hindalco Industries Ltd Non - Ferrous Metals 0.72 IndusInd Bank Ltd. Banks 0.71 Grasim Industries Ltd. Cement 0.70 National Thermal Power Corporation Limited Power 0.66 Reliance Industries Ltd. Petroleum Products 0.65 Infosys Ltd. Software 0.61 Tata Steel Limited. Ferrous Metals 0.60 Bajaj Finance Limited Finance 0.47 Hero MotoCorp Ltd. Auto 0.47 Biocon Ltd. Pharmaceuticals 0.44 Laurus Labs Ltd Pharmaceuticals 0.42 Hindustan Unilever Ltd. Consumer Non Durables 0.37 Maruti Suzuki India Limited Auto 0.35 Petronet LNG Ltd. Gas 0.33 HDFC Ltd. Finance 0.32 Tata Motors Ltd. Auto 0.31 The Ramco Cements Ltd Cement 0.28 Zee Entertainment Enterprises Ltd Media and Entertainment 0.28 Axis Bank Ltd Banks 0.25 Tata Consultancy Services Ltd. Software 0.24 Eicher Motors Ltd Auto 0.23 ICICI Bank Ltd. Banks 0.23 Piramal Enterprises Limited Pharmaceuticals 0.22 JSW Steel Ltd. Ferrous Metals 0.21 Bajaj Finserv Ltd. Finance 0.18 Larsen And Toubro Ltd. Construction Project 0.18 Vedanta Ltd. Non - Ferrous Metals 0.18 State Bank Of India Banks 0.16 Tata Motors Ltd - DVR Auto 0.16 Indian Oil Corporation Ltd Petroleum Products 0.15 Muthoot Finance Ltd Finance 0.15 HCL Technologies Ltd. Software 0.14 Oil & Natural Gas Corporation Ltd. Oil 0.11 Wipro Ltd. Software 0.11 HDFC Bank Ltd. Banks 0.09 Indraprastha Gas Ltd. Gas 0.09 Hindustan Petroleum Corporation Ltd Petroleum Products 0.08 Tata Communications Ltd Telecom - Services 0.07 Tech Mahindra Ltd. Software 0.06 Notes: #Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Hindustan Zinc Ltd. Non - Ferrous Metals 0.02 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.02 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 9.53 Mutual Fund Units - Total 9.53 Futures HDFC Bank Ltd.-MAY CNX NIFTY-MAY Futures (Market value represents Notional Value) - Total 0.12 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 4.91 Government Dated Securities 8.53% State Government SOV % State Government SOV % Central Government SOV % State Government SOV 9.18 Government Dated Securities - Total TERM DEPOSITS Standard Chartered Bank Ltd 5.37 AXIS Bank Ltd. # 1.46 Term Deposits - Total 6.83 Net Current /(Liabilities) 6.43 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 4.08 years. Kotak Multi Asset Allocation Fund NAV as on April 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) Government Dated Securities Mutual Fund Units Debentures and Bonds Net Current Derivatives Investors understand that their principal will be at moderate risk Derivatives AA SOV Mutual Fund Units Income & capital growth over a long term horizon Investment in a portfolio of diversified asset classes of debt, equity & gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

38 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on April 30, 2017 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd AXIS Finance Ltd Aasan Corporate Solutions Private Limited ( Guaranteed by a Piramal Group Company ) 0.10 Adani Ports and Special Economic Zone Limited 0.01 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) 0.30 Adani Transmission Ltd 0.14 Aditya Birla Finance Ltd Airports Authority of India 0.04 Allahabad Bank 0.14 Altico Capital India Pvt Ltd 0.10 Ananta Landmarks Pvt Ltd Andhra Bank 0.44 Asirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.08 Aspire Home Finance Corporation Ltd 0.10 Au Financiers (India) Limited 0.19 BMW India Financial Services Private Limited 0.15 Bahadur Chand Investments Private Limited 0.19 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.11 Bajaj Finance Limited 1.42 Bank Of Baroda 0.53 Bank of India 0.34 Bank of Maharashtra 0.03 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.07 Bharti Airtel Ltd Birla Corporation Ltd Birla TMT Holding Private Limited 0.04 CBLO/REVERSE REPO Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.07 Canara Bank 0.20 Canfin Homes Ltd 0.21 Central Government 3.59 Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.33 Corporation Bank 0.11 DLF Emporio Ltd 0.15 Dalmia Cement (Bharat) Ltd 0.29 Dewan Housing Finance Corporation Ltd ECL Finance Limited 1.52 East-North Interconnection Company Limited 0.09 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) 0.42 Edelweiss Commodities Services Ltd Edelweiss Housing Finance Limited 0.29 Edisons Utility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.17 Emami Enclave Makers Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.07 Essel Lucknow Raebareli Toll Roads Limited 0.07 Export-Import Bank of India FAMILY CREDIT LTD 0.69 Ford Credit India Pvt. Ltd Fullerton India Credit Co. Ltd Grand View Estates Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.28 Gruh Finance Ltd 1.09 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.13 Hindalco Industries Ltd Hinduja Leyland Finance Ltd Hindustan Petroleum Corporation Ltd Hindustan Zinc Ltd 1.46 ICICI Bank Ltd ICICI Home Finance Company Limited 0.45 IDBI Bank Ltd 0.10 IDFC Bank Limited 1.50 IIFL Wealth Finance Ltd IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.11 IOT Utkal Energy Services Ltd India Infoline Finance Limited 0.81 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.78 Indian Oil Corporation Ltd Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.15 IndusInd Bank Ltd Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) 1.06 Intime Properties Ltd Janalakshami Financial Services Ltd Industry / Sector Issuer Name %age of Exposure to Debt AUM K Raheja IT Park (Hyderabad) Ltd Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.54 Kolte-Patil Developers Limited 0.06 Konkan Railway Corporation Ltd Kotak Mahindra Investments Ltd Kotak Mahindra Prime Ltd LIC Housing Finance Ltd MA MULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.11 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 0.95 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.20 Muthoot Finance Ltd 1.40 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.80 National Bank for Agriculture & Rural Development 3.69 National Housing Bank 0.19 Nirchem Cement Ltd Nirma Ltd ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.35 Oswal Woollen Mills Ltd PNB Housing Finance Ltd Peninsula Land Limited 0.07 Piramal Enterprises Limited 0.26 Piramal Finance Limited 2.19 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.03 Prestige Estates Projects Limited 0.30 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.13 Punjab National Bank 0.04 RBL Bank Ltd Reliance Capital Ltd Reliance Infrastructure Ltd 0.04 Reliance Jio Infocomm Limited 3.15 Reliance Ports And Terminals Limited 0.29 Reliance Utilities And Power Private Limited 0.11 Rural Electrification Corporation Ltd S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.72 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.07 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.12 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.27 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.09 Shapoorji Pallonji and Company Private Limited 0.21 Shriram City Union Finance Ltd Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.06 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.03 Standard Chartered Bank Ltd 0.14 Standard Chartered Investment & Loan India Ltd State Bank Of India State Bank of Travancore 0.07 State Government 3.14 Steel Authority of India Ltd Sun Pharma Laboratories Limited 0.44 Sundaram BNP Paribas Home Finance Ltd 0.07 Sundaram Finance Ltd Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.37 Syndicate Bank 0.19 TATA Cummins Pvt. Ltd Talwandi Sabo Power Limited ( Guarnteed by Vedanta Ltd. ) 0.16 Tata Capital Financial Services Limited 0.80 Tata Capital Housing Finance Ltd; 0.73 Tata Motors Finance Ltd 0.95 Tata Motors Finance Solutions Private Limited 0.15 Tata Motors Ltd Tata Power Company Ltd Tata Power Renewable Energy Ltd. ( Guaranteed by Tata Power Company Ltd) 0.11 Tata Sons Ltd Tata Steel Limited 0.26 The Indian Hotels Company Ltd Trends In Vogue Pvt Ltd. ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.26 U P Power Corporation Ltd ( GUARANTEED BY UP STATE GOVERNMENT ) 1.29 Ultratech Cement Ltd Union Bank of India 0.42 Vedanta Ltd Total %age of Exposure to Debt AUM BANK CASH(CBLO/REVERSE REPO) CORPORATES FINANCIAL SERVICES GOI/TBILLS 6.73 NBFC REAL ESTATE 0.95 Total Includes Hybrid schemes - debt schemes having equity exposure 35

39 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 Fund Manager Mr. Deepak Gupta* Crisil Balanced Fund AAUM (` In Crores) `31.27 AUM (` In Crores) AUM as on April 30, 2017: ` 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: 1.70% Direct: 1.42% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Select Focus Fund Direct Growth Equity Kotak Treasury Advantage Fund Direct Growth Debt Kotak Mahindra Bond Direct Growth Debt Kotak Liquid Direct Growth Debt 8.60 Mutual Fund Units - Total Net Current /(Liabilities) 1.77 Kotak Asset Allocator Fund NAV as on April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

40 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 Fund Manager 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) ` 4.91 AUM (` In Crores) AUM as on April 30, 2017: ` 4.88 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) 2.03 Kotak US Equity Fund NAV as on April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (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. 37 * For Fund Manager experience, please refer page For scheme performance, please refer page no

41 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. However, there is no assurance that the objective of the scheme will be realized. September 26, 2007 Fund Managers Mr. Deepak Gupta (Dedicated fund manager for Fund Managers overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) `27.50 AUM (` In Crores) AUM as on April 30, 2017: `27.37 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: 1.86% Direct: 1.36% 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 3.11 Net Current /(Liabilities) 0.64 Kotak Global Emerging Market Fund NAV as on April 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) * For Fund Manager experience, please refer page For scheme performance, please refer page no Others Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo 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. 38

42 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 Fund Manager 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) `44.39 AUM (` In Crores) AUM as on April 30, 2017:`40.99 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.89% Direct: 1.30% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 2.37 Kotak World Gold Fund NAV as on April 28, 2017: `7.132 (Dividend Option), `7.375 (Direct Dividend Option), `8.604 (Growth Option), `8.878 (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 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. 39 * For Fund Manager experience, please refer page For scheme performance, please refer page no

43 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. However, there is no assurance that the investment objective of the will be realized July 27, 2007 Fund Manager Mr. Abhishek Bisen* Price of Gold AAUM (`In Crores) ` AUM (`In Crores) AUM as on April 30, 2017: ` 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 Note : Inter-scheme investment %age in scheme is 0.36 Kotak Gold ETF NAV as on April 28, 2017: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) 0.1 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. * For Fund Manager experience, please refer page For scheme performance, please refer page no

44 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. However, there is no assurance that the investment objective of the will be realized. February 2, 2010 Fund Manager Mr. Deepak Gupta* Nifty 50 AAUM (`In Crores) ` AUM (`In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover:77.33% Tracking Error: 0.08% 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) HDFC Bank Ltd. Banks 8.97 HDFC Ltd. Finance 7 ITC Ltd. Consumer Non Durables 6.77 Reliance Industries Ltd. Petroleum Products 6.63 Infosys Ltd. Software 5.27 ICICI Bank Ltd. Banks 4.66 Larsen And Toubro Ltd. Construction Project 4.12 Tata Consultancy Services Ltd. Software 3.47 Kotak Mahindra Bank Ltd. Banks 3.10 State Bank Of India Banks 2.65 Maruti Suzuki India Limited Auto 2.49 Axis Bank Ltd Banks 2.48 Tata Motors Ltd. Auto 2.47 IndusInd Bank Ltd. Banks 2.08 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.03 Hindustan Unilever Ltd. Consumer Non Durables 1.92 Mahindra & Mahindra Ltd. Auto 1.79 Yes Bank Ltd Banks 1.71 Oil & Natural Gas Corporation Ltd. Oil 1.51 Asian Paints Ltd. Consumer Non Durables 1.45 Bharti Airtel Ltd. Telecom - Services 1.35 HCL Technologies Ltd. Software 1.32 Power Grid Corporation Of India Ltd Power 1.31 Indian Oil Corporation Ltd Petroleum Products 1.29 Ultratech Cement Ltd. Cement 1.27 Hero MotoCorp Ltd. Auto 1.22 National Thermal Power Corporation Limited Power 1.17 Kotak Nifty ETF NAV as on April 28, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Bajaj Auto Ltd. Auto 1.12 Bharat Petroleum Corporation Ltd. Petroleum Products 1.08 Grasim Industries Ltd. Cement 1.07 Coal India Ltd. Minerals/Mining 1.04 Eicher Motors Ltd Auto 1 Indiabulls Housing Finance Ltd. Finance 0.94 Lupin Ltd. Pharmaceuticals 0.92 Dr Reddys Laboratories Ltd Pharmaceuticals 0.90 Wipro Ltd. Software 0.90 Tata Steel Limited. Ferrous Metals 0.86 Hindalco Industries Ltd Non - Ferrous Metals 0.83 Zee Entertainment Enterprises Ltd Media and Entertainment 0.83 Cipla Ltd. Pharmaceuticals 0.81 GAIL (India) Ltd. Gas 0.78 Adani Port and Special Economic Zone Limited Transportation 0.76 Tech Mahindra Ltd. Software 0.75 Bosch Limited Auto Ancillaries 0.60 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.53 Ambuja Cements Ltd Cement 0.52 Bank Of Baroda Banks 0.51 Aurobindo Pharma Ltd. Pharmaceuticals 0.49 Tata Power Co. Ltd. Power 0.44 Tata Motors Ltd - DVR Auto 0.41 ACC Ltd. Cement 0.39 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.02 Sector Allocation (%) Banks Software Consumer Non Durables Others Auto Petroleum Products Finance Power Pharmaceuticals Construction Project Cement 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 Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

45 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. However, there is no assurance that the investment objective of the will be realized. June 6, 2008 Fund Manager Mr. Deepak Gupta* S&P BSE SENSEX AAUM (`In Crores) `11.67 AUM (`In Crores) AUM as on April 30, 2017: `11.77 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 19.76% Tracking Error: 0.12% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.25% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks HDFC Ltd. Finance 8.89 ITC Ltd. Consumer Non Durables 8.63 Reliance Industries Ltd. Petroleum Products 8.41 Infosys Ltd. Software 6.70 ICICI Bank Ltd. Banks 5.91 Larsen And Toubro Ltd. Construction Project 5.11 Tata Consultancy Services Ltd. Software 4.41 State Bank Of India Banks 3.37 Tata Motors Ltd. Auto 3.23 Maruti Suzuki India Limited Auto 3.17 Axis Bank Ltd Banks 3.11 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.53 Hindustan Unilever Ltd. Consumer Non Durables 2.43 Mahindra & Mahindra Ltd. Auto 2.27 Asian Paints Ltd. Consumer Non Durables 1.84 Oil & Natural Gas Corporation Ltd. Oil 1.83 Bharti Airtel Ltd. Telecom - Services 1.71 Kotak Sensex ETF NAV as on April 28, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Power Grid Corporation Of India Ltd Power 1.66 Hero MotoCorp Ltd. Auto 1.54 National Thermal Power Corporation Limited Power 1.48 Bajaj Auto Ltd. Auto 1.42 Coal India Ltd. Minerals/Mining 1.25 Lupin Ltd. Pharmaceuticals 1.17 Dr Reddys Laboratories Ltd Pharmaceuticals 1.16 Wipro Ltd. Software 1.14 Tata Steel Limited. Ferrous Metals 1.10 Adani Port and Special Economic Zone Limited Transportation 1.06 Cipla Ltd. Pharmaceuticals 1.03 GAIL (India) Ltd. Gas 0.97 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.10 Sector Allocation (%) Banks Consumer Non Durables Software Oil Auto Petroleum Products Finance Pharmaceuticals Construction Project 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 Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

46 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 scheme will be achieved. December 04, 2014 Fund Manager Mr. Deepak Gupta* Nifty Bank AAUM (`In Crores) ` AUM (`In Crores) AUM as on April 30, 2017: ` Option - Dividend Payout Ratios Portfolio Turnover: 48.54% Tracking Error: 0.08% 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 Kotak Mahindra Bank Ltd. Banks State Bank Of India Banks 9.64 Axis Bank Ltd Banks 9.03 IndusInd Bank Ltd. Banks 7.57 Yes Bank Ltd Banks 6.21 Federal Bank Ltd. Banks 1.93 Bank Of Baroda Banks 1.85 Kotak Banking ETF NAV as on April 28, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Punjab National Bank Banks 1.31 IDFC Bank Limited Banks 0.91 Canara Bank Banks 0.76 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.03 Sector Allocation (%) 0.03 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 Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

47 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. However, there is no assurance that the investment objective of the will be realized. November 8, 2007 Fund Manager Mr. Deepak Gupta* Nifty PSU Bank AAUM (`In Crores) ` AUM (`In Crores) AUM as on April 30, 2017: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: % Tracking Error: 0.25% 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 62.08% Bank Of Baroda Banks 11.90% Punjab National Bank Banks 8.45% Canara Bank Banks 4.88% Union Bank Of India Banks 2.93% Bank of India Banks 2.91% Industrial Development Bank of India Ltd. Banks 1.94% Kotak PSU Bank ETF NAV as on April 28, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Oriental Bank of Commerce Banks 1.38% Allahabad Bank. Banks 1.23% Syndicate Bank Banks 1.16% Andhra Bank Banks 1.07% Listed/Awaiting Listing on Stock Exchange - Total 99.93% Net Current /(Liabilities) 0.07% % Sector Allocation (%) Banks Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For Fund Manager experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no