EXPERT SPEAK. Mr. Nilesh Shah. May 31, Dear Friends,

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2 EXPERT SPEAK Mr. Nilesh Shah May 31, 2017 Dear Friends, The market is on the upswing this time round. And what a move this has been. In the 2017 Calendar year (up until May), the Sensex has moved up by around 17%. In the previous swing cycle, lasting from Sept-16 peak to December-16 bottom, the Sensex had declined by around 10%. Going ahead market will be volatile due to various local as well as global factors. The current rally may be driven by combination of hope of earnings upgrade, liquidity and improving fundamental factors, despite the 6.1% GDP growth in Q4-FY17. The market has seen strong buying support of around Rs cr during the current calendar year. To add to that, there is significant capital waiting on the side-lines for market dips, which is restricting the downslide. Mutual funds have a SIP book of more than Rs 4000 cr which they need to deploy each month. This will continue to provide depth and base to the market. Moreover, the market is also buoyed by the fact that inflation rate has reached 2.99% (Apr-17) and many of the estimates suggest that it is likely to remain below the 3% level for most of H1-FY18. This effectively puts the real interest rates at around % (10 yr-cpi). As a result, an average Indian investor will find investing in financial assets more likely. In fact the 12-15% yoy return in the last 3 years has created a satisfied investor class, who have become convinced on the wealth creating potential of equities. We therefore believe that increasingly higher number of investors would participate in the financial market over a period of time. Thus, there is a palpable liquidity surplus that is driving the market to newer heights. Domestic liquidity inflows are also being supplemented by FIIs who have invested around US 10 bn in the Indian debt market and around US 7.8 bn in the equities market in the Jan-May period. With a normal monsoon outlook, the strengthening Rupee, and US Fed related risks moderating, the world increasingly sees Indian financial markets as a lucrative investment destination. RBI may be increasingly inclined to change its position to benign and may augur rate cuts in the coming few quarters depending on continuity of softer inflation. This view takes even stronger ground when we notice that Rupee has been rising against most of the international currencies; and RBI may need to cut the interest rates to reduce the carry trade arbitrage. Having said that, the policy course would be majorly data dependent for next couple of months. From the distributors view point, the 20 bps rally in 10 year gilt within a single month may have surprised many. We had recently given a call for increasing allocation to duration as we anticipated the rally to continue on the back of softer inflation. We remain of the view that a portion of allocation in duration is advisable throughout the rate cycle. The spread between the 10 and 30 year gilt has widened; and an adept fund manager may be able to generate alpha based on the rate outlook, curve movement and carry. We also believe that currently credit accrual funds provide better opportunity on a risk adjusted basis. From equities view point, the distributors have a work cut out ahead. Many retail investors may get discouraged when the volatility hits the market due to local & global factors. So it is our responsibility to instil regular & disciplined investing to capture this volatility to help investors utilise long term market opportunities to generate wealth. Thanks and Regards, Nilesh Shah Managing Director 1

3 DEBT VIEW Items May-17 Apr-17 Change Reverse Repo 6.00% 6.00% Nil Repo 6.25% 6.25% Nil CRR 4.00% 4.00% Nil SLR 20.50% 20.50% Nil Mibor Overnight 6.25% 6.18% 7 bps Call(O/N) 6.02% 6.03% -1 bps CBLO 6.10% 5.73% 37 bps 1 yr T Bill 6.44% 6.41% 3 bps 10 G Sec 6.66% 6.96% -30 bps 5 Year AAA 7.44% 7.48% - 4bps USD/INR paise Source: RBI; Bloomberg. Key Events: India's GDP or gross domestic product grew 6.1% year-on-year during the January-March period, suggesting that the effects of November's note swap were rippling through the economy. The GDP growth rate for the full year ( ) came in at 7.1 % in line with official estimate compared to a revised growth figure of 8 % in FY16. The IMD announced the year monsoon could be 'normal' and bring 100 % rainfall instead of 96 % as predicted earlier, raising prospects of higher farm and economic growth. The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- declined from 52.5 in April to a threemonth low of 51.6 in May, with softer demand causing slower expansions in output and the amount of new work received by firms. Core sector industrial production in the country expanded at a slower pace of 2.5% in April against the 5% growth recorded in March amidst a decline in the production key inputs including coal crude oil and cement. CPI inflation recorded a higher-than-expected overall slip of 2.99% from last month's recorded overall CPI of 3.89 %, on the back of drop in both food and manufactured inflation. India's wholesale price inflation (under new series=base year ) have increased 3.85% in April, lower than the 5.3% rise in March. India's trade deficit widened to levels not seen since November 2014, on account of sharp jump in gold and crude oil imports during the month. The trade deficit in April widened to 13.2 billion. The deficit stood at 10.4 billion a month ago and at 4.8 billion in April China's credit rating has been downgraded by Moody's by one notch to A1 from Aa3, first time in almost 30 years over fears that slowing growth and rising debts will weaken the world's second largest economy. Long Term Outlook The concerns from the US debt market have reduced. The June month US Fed hike seems to be discounted in their T-bill prices. We expect that the US 10 year may trade in the 2-2.5% band in the coming days. The downward price movement in the crude prices has significantly addressed the inflation fears in the Indian debt market. Despite the production cuts, the crude seems to have a limited upside trajectory. We believe that the crude is likely to trade in the per barrel. The 2.99% CPI inflation for April month gave a major shift to the sentiments in the Indian debt market. Latest available data indicates a continued softening of pulses and vegetable prices in May This is likely to form the basis of continued sub-3% inflation prints in the next few months, possibly till September Thus, in H1FY18, our calculations indicate Headline CPI inflation averaging at 2.5%, ~200 bps lower than the RBI's expectations of 4.5%. As per some, Even as headline CPI inflation is expected to rise in H2FY18, the average is likely at 3.8%, ~120 bps lower than RBI's expectation of 5.0% The Q4 FY17 GDP growth of 6.1% suggests that demonetisation did have a moderating effect on growth. The construction and the financial services seem to have been impacted the most by this event. As a consequence, growth may become an imperative for RBI and may vaunt a more accommodative stance RBI kept the Policy rates unchanged while waiting to be more sure that inflation will stay subdued. We believe that lower inflation and moderating growth would provide the space for RBI to reduce policy rate by 50 bps over the course of next 1 year. In the near term, we expect the new 10 year gilt to trade in the % band till any policy action is delivered We believe that while RBI is watchful and data dependent, but it may deliver a cut sooner than later Short Term Outlook We expect short term rate curve up to 2 year to flatten given the renewed possibility of rate cuts going ahead. Short Term rates would move down further in case RBI cut rates or would remain at similar levels in absence of rate cuts. Key Variables & their Impact On Interest Rates Key Variables Inflation Rupee Credit Demand Government Borrowing Short term (3 6 month) Medium term (6month 2 years) RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Liquidity Denotes fall in interest rates 3 2

4 EQUITY VIEW 3 Markets in the month of May remained buoyant on the back of global cues, outlook for a normal monsoon and strong macro economic data. The large cap Nifty Index gained 3.0% in the month even while the Nifty Midcap index fell 3.5% (both in USD terms). The flows into the market remained strong with FIIs being net buyers to the tune of USD1.36Bn during the month while DIIs were net buyers to the tune of USD0.66Bn. CYTD 2017 net FII investment into equity markets in India stood at USD 7Bn. The month also saw the completion of 3 years of the NDA (National Democratic Alliance) Government under Prime Minister Narendra Modi. Clearly the standout feature of the past 3 years has been the achievement of macro economic stability in the country be it in terms of lower inflation, lower Current Account Deficit, reign on fiscal deficit and a largely stable currency. The macro economic stability of the country is an outcome of both significantly lower commodity prices, especially crude oil and constructive government policies including those that kept food inflation in check despite poor monsoons. The government has implemented several important reforms, including formalization of the economy led by the Goods & Services Tax (GST- target roll out by July 1, 2017), roll out of the Direct Benefit Transfer and the spread of UID (Unique Identification) through Aadhar cards and relaxation of FDI limits in several sectors. Over the next two years, the government has its task cut out and we believe that the key areas of focus would be: a) Revival of the private capex cycle which continues to remain muted b) Resolution of the stressed assets of the Indian banking system especially in the case of the state owned banks some of whom are starved for capital and reeling under losses. Q4FY17 earning season: a mixed bag; sets the tone for FY18 outlook The Q4FY17 earnings season has been a mixed bag with private sector retail banks, autos and cement companies reporting good numbers along expected lines while sectors such as technology, pharmaceuticals and telecom reported muted trends. The Indian corporate banking system continues to see stress in the term of NPL (Non Performing Loans) creation and the requirement of higher provisions on the large existing pool of stressed assets. In this context, the recent steps taken by the government giving RBI greater power to resolve these assets takes importance and we hope that the regulator and the government work together to find some resolution as soon as possible. The full impact of demonetisation was felt in the quarter and is now likely a thing of the past. The GDP growth numbers reported by CSO (Central Statistical Organisation) also reflect the impact of the same in Q4FY17 even while the full year real growth on GVA (Gross Value Added) basis was close to our estimates at 6.6%. We expect a gradual improvement in GDP growth from here on even while GST implementation could result in near term hiccups. With the result season now over, the focus clearly shifts into FY18 and the earnings outlook for the same. We expect earnings growth in FY18E to be driven by growth in domestic consumption oriented sectors. Some of the key themes that we expect would play out over FY18 include (a) the shift from the unorganised to the organised space (b) shift in savings from physical assets to financial assets and (c) some revival in demand in the rural economy on the back of better monsoons, higher allocations to rural development and a significant improvement in the mechanism for subsidy distribution. We are hopeful of some revival in investment demand though most of it would still be driven by public capex as private sector capex revival is likely to be muted. GST Implementation: some near term disruption; huge long term benefits expected Tax rates for majority of items, under the new Goods and Service Tax (GST) regime have been announced, with both goods and services being classified under five brackets of 5%, 10%, 12%, 18% and 28%. The Government is targeting implementation from July 1, 2017 onwards. Our estimates suggest that the Government in line with its guidance has succeeded to a large extent in keeping the changes in tax rates inflation neutral from a Consumer Price Index (CPI) standpoint. The impact of GST could be marginally disruptive in the near term as inventory destocking and restocking takes place, and GDP growth is likely to be adversely impacted to that extent in 1HFY18, albeit temporarily. Overall we believe, that any adverse impact of GST implementation would be temporary in nature. Over time, the implementation of GST would add to GDP growth, lead to better tax compliance and accelerate the shift from the unorganised to the organised sector. We expect real GDP growth (on a GVA basis) to be in ~7% in FY18E. Impact of GST implementation on inflation In the near term with some increase in costs on account of the formalisation of the GST regime, CPI inflation could see some increase but we believe that it would be within manageable levels. We expect CPI inflation to average ~4.5% in FY18 (notwithstanding a one-time impact on account of higher HRA (house rent allowances) under the 7th Pay Commission) Real GDP growth- Impact of demonetisation felt in Q4FY17; growth revival likely in FY18 The Central Statistical Organisation reported FY17 real growth on a Gross Value Added basis (GVA) at 6.6% (as compared to the Advanced Estimate of 6.7%) largely in line with our estimates. FY16 real GVA has been revised up by to 7.9%. In terms of real GDP FY17 reported a growth of 7.1% unchanged from the advanced estimates. 2HFY17 real GVA growth has seen a deceleration at 6.1% as against a growth of 7.2% in 1HFY17. Part of this slowdown probably reflects the demonetization-led hit on growth in 2HFY17. Expenditure side data showed that FY17 growth was largely supported by government consumption, which grew 17%. Private consumption growth also picked up to 7.2%. However gross fixed capital formation (GFCF) slowed to 0.6% from 6.5% in FY16, reflecting a weak investment environment. As the economy likely remonetizes from HIFY18 onwards we expect to see slow but steady improvement in growth levels. Improvement in rural demand on the back of higher allocation of government spend to the rural sector, better monsoons and improvement in wages would provide impetus to growth. Growth in FY18 would continue to remain largely consumption led even while investment growth would be supported by public capex. The pick up in private sector investment growth on the back of highly leveraged balance sheets and low capacity utilisation would still take time. We would also have to remain mindful of some near term disruptions on account of the implementation of GST. Overall we expect real growth in India of GVA basis to be ~7% in FY18E. RBI's Monetary Policy review: Far less hawkish on inflation; Room opens for a rate cuts in FY RBI in its monetary policy announcement kept the key policy rate -the repo rate- unchanged at 6.25% and reiterated the neutral stance albeit with a far less hawkish tone and also revised down its inflation forecast for FY18. Growth forecast in terms of the Gross Value Added basis (GVA) for FY18 has also been revised marginally to 7.3% from 7.4%. The RBI cut the statutory liquidity ratio (SLR) to 20% from 20.5% of Net Demand and Time Liabilities (NDTL) from June onwards in order to provide banks with greater flexibility to meet the higher liquidity coverage ratio (LCR) of 100% (currently 80%), which will come into effect from January 2019.The RBI stated that, despite inflation moderating sharply in April, the Monetary Policy Committee (MPC) decided to leave policy rate unchanged because a premature action at this stage risks disruptive policy reversals later and the loss of credibility.

5 EQUITY VIEW (Continued) OUTLOOK: The RBI maintained its neutral policy stance, stating that it would remain watchful of incoming data as it needs to assess whether or not the unusually low momentum in the reading for April will endure. It is therefore likely that RBI would observe the inflation reading over the next couple of months before taking further action even while it stays mindful of its medium term CPI inflation target of 4% inflation. The overall tone of the policy is far less hawkish than before. Benign inflation increases the probability of policy rate cuts later in FY18. RBI in its monetary policy statement acknowledged that the inflation trajectory is much softer than the earlier estimates. While it still maintains somewhat of a cautious note, it expects inflation to glide down towards the 4% mark by March 2018 based on the current dynamics. Five members of the MPC voted for a pause while one member (Prof. Dholakia) differed. Next Monetary Policy Committee meetings are on August 1 and 2, 2017 with resolution to be announced on August 2. 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 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; step closer to implementation, can provide a significant fillip GOLD VIEW Market Bubble Stretched Fair Value Plus Fair Attractive Cheap Equity Allocaion Exit 5% 10% Under Invested 15% 25% Neutral 35% 45% Neutral 50% Neutral + 65% 75% Over Invested 80% 90% Suggested equity allocation (Assuming 50% equity allocation as neutral) 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 12x 16x Attractive 10x 12x Cheap 9x-10x Fair Value Plus 16 18x May 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 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 May 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 May, the gold prices remained largely in Rupee terms. The oil prices hovered around the 50 mark testing the technical resistance There are likely to be marginal changes in the Gold Duty post implementation of GST. 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 69.13% Beta: 1.01 ## Sharpe :0.69 Standard Deviation : 13.79% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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:2.17% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.05 ITC Ltd. Consumer Non Durables 6.64 ICICI Bank Ltd. Banks 5.92 Infosys Ltd. Software 5.14 IndusInd Bank Ltd. Banks 4.31 Reliance Industries Ltd. Petroleum Products 4.25 Maruti Suzuki India Limited Auto 3.94 Larsen And Toubro Ltd. Construction Project 3.49 Hero MotoCorp Ltd. Auto 3.13 Axis Bank Ltd Banks 2.88 Tata Motors Ltd - DVR Auto 2.36 GAIL (India) Ltd. Gas 2.30 Bharat Petroleum Corporation Ltd. Petroleum Products 2.08 Shree Cement Ltd. Cement 1.97 Britannia Industries Ltd. Consumer Non Durables 1.93 State Bank Of India Banks 1.89 Zee Entertainment Enterprises Ltd Media and Entertainment 1.76 Cadila Healthcare Ltd. Pharmaceuticals 1.62 The Ramco Cements Ltd Cement 1.50 Kajaria Ceramics Ltd. Construction 1.47 Ultratech Cement Ltd. Cement 1.44 Bayer Cropscience Ltd. Pesticides 1.33 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.32 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.28 Bank Of Baroda Banks 1.26 Fag Bearings India Ltd. Industrial Products 1.24 ICICI Prudential Life Insurance Company Ltd Finance 1.18 HCL Technologies Ltd. Software 1.16 Bharat Electronics Ltd Industrial Capital Goods 1.07 Persistent Systems Limited Software 1.06 DB Corp Limited Media and Entertainment 1.03 Indraprastha Gas Ltd. Gas 0.98 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 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 0.97 Strides Shasun Ltd. Pharmaceuticals 0.96 Arvind Ltd Textile Products 0.95 National Thermal Power Corporation Limited Power 0.93 Torrent Pharmaceuticals Ltd. Pharmaceuticals 0.92 Sanofi India Ltd. Pharmaceuticals 0.91 Motherson Sumi Systems Ltd. Auto Ancillaries 0.90 Tech Mahindra Ltd. Software 0.88 MRF Limited Auto Ancillaries 0.85 Supreme Industries Limited Industrial Products 0.85 Sun TV Limited. Media and Entertainment 0.84 Laurus Labs Ltd Pharmaceuticals 0.83 GE Power India Limited Industrial Capital Goods 0.79 Solar Industries India Limited Chemicals 0.71 Equitas Holdings Ltd Finance 0.68 DR.Lal Pathlabs Ltd Healthcare Services 0.57 HDFC Ltd. Warrants Finance 0.57 Bata India Ltd. Consumer Durables 0.40 Bharat Financial Inclusion Limited Finance 0.37 RBL Bank Ltd Banks 0.07 Listed/Awaiting Listing on Stock Exchange - Total Futures RBL Bank Ltd-JUN Sun TV Limited.-JUN Futures (Market value represents Notional Value) - Total 1.14 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.47 Collateral Borrowing & Lending obligation 2.18 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,220, , , ,895 1,393,700 2,345,159 14,912, , , ,810 1,243,573 2,053,774 8,767, , , ,960 1,215,309 2,001,033 8,772, Inception : - December 29, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak 50 NAV as on May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Auto Consumer Non Durables Software Others Pharmaceuticals Petroleum Products Finance Construction Project Cement Media and Entertainment 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) `99.06 AUM (` In Crores) AUM as on May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.98 ## Sharpe :0.52 Standard Deviation : 13.20% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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: 1.17% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 5.54 Hindalco Industries Ltd Non - Ferrous Metals 4.47 ITC Ltd. Consumer Non Durables 4.37 Reliance Industries Ltd. Petroleum Products 3.86 Power Grid Corporation Of India Ltd Power 3.77 Tata Consultancy Services Ltd. Software 3.70 Grasim Industries Ltd. Cement 3.16 GAIL (India) Ltd. Gas 3.01 Hero MotoCorp Ltd. Auto 2.98 Bharat Petroleum Corporation Ltd. Petroleum Products 2.85 Maruti Suzuki India Limited Auto 2.83 National Thermal Power Corporation Limited Power 2.76 Oil & Natural Gas Corporation Ltd. Oil 2.41 Yes Bank Ltd Banks 2.00 Tata Motors Ltd - DVR Auto 1.93 HDFC Bank Ltd. Banks 1.89 IndusInd Bank Ltd. Banks 1.54 Hindustan Petroleum Corporation Ltd Petroleum Products 1.49 State Bank Of India Banks 1.41 Tata Steel Limited. Ferrous Metals 1.41 HDFC Ltd. Warrants Finance 1.40 HDFC Ltd. Finance 1.26 Wipro Ltd. Software 1.26 Vedanta Ltd. Non - Ferrous Metals 1.25 Tech Mahindra Ltd. Software 1.24 Petronet LNG Ltd. Gas 1.21 Piramal Enterprises Limited Pharmaceuticals 1.21 Sun TV Limited. Media and Entertainment 1.21 Bajaj Finserv Ltd. Finance 1.17 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.13 Laurus Labs Ltd Pharmaceuticals 1.03 Indraprastha Gas Ltd. Gas 1.02 Biocon Ltd. Pharmaceuticals 0.89 Muthoot Finance Ltd Finance 0.88 Indian Oil Corporation Ltd Petroleum Products 0.84 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 2017 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Tata Communications Ltd Telecom - Services 0.81 The Ramco Cements Ltd Cement 0.76 S Chand And Company Ltd Media and Entertainment 0.66 JSW Steel Ltd. Ferrous Metals 0.58 Axis Bank Ltd Banks 0.57 Avenue Supermarts Ltd Retailing 0.54 Eicher Motors Ltd Auto 0.50 Bajaj Finance Limited Finance 0.48 HCL Technologies Ltd. Software 0.20 ICICI Bank Ltd. Banks % Vedanta Reedemable Preference Shares Non - Ferrous Metals 0.18 Housing & Urban Development Corporation Ltd Finance 0.18 RBL Bank Ltd Banks 0.03 Listed/Awaiting Listing on Stock Exchange - Total Futures HDFC Bank Ltd.-JUN ICICI Bank Ltd.-JUN IndusInd Bank Ltd.-JUN Bharat Petroleum Corporation Ltd.-JUN RBL Bank Ltd-JUN HCL Technologies Ltd.-JUN Axis Bank Ltd-JUN Bajaj Finance Limited-JUN Hindustan Unilever Ltd.-JUN Futures (Market value represents Notional Value) - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 3.41 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 May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Others Derivatives Petroleum Products Power Consumer Non Durables 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 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,430, , , ,901 1,374,555 2,362,552 3,148, , , ,334 1,289,851 2,156,375 2,901, , , ,810 1,243,573 2,053,774 2,760, 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 May 31, 2017: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 56.75% Beta: 1.01 ## Sharpe :0.97 Standard Deviation :14.11% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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:2.15% Direct: 0.99% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.99 ITC Ltd. Consumer Non Durables 4.97 Reliance Industries Ltd. Petroleum Products 4.70 Hero MotoCorp Ltd. Auto 4.06 State Bank Of India Banks 3.12 IndusInd Bank Ltd. Banks 3.07 Maruti Suzuki India Limited Auto 2.99 GAIL (India) Ltd. Gas 2.81 Larsen And Toubro Ltd. Construction Project 2.60 HDFC Ltd. Finance 2.50 Shree Cement Ltd. Cement 2.37 Hindustan Petroleum Corporation Ltd Petroleum Products 2.28 Infosys Ltd. Software 2.24 Dalmia Bharat Ltd. Cement 2.01 Axis Bank Ltd Banks 1.97 Coromandel International Ltd. Fertilisers 1.90 Bharat Petroleum Corporation Ltd. Petroleum Products 1.87 UPL Ltd Pesticides 1.87 Britannia Industries Ltd. Consumer Non Durables 1.76 Petronet LNG Ltd. Gas 1.75 Ultratech Cement Ltd. Cement 1.74 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.69 Max Financial Services Ltd. Finance 1.63 Indraprastha Gas Ltd. Gas 1.61 Arvind Ltd Textile Products 1.44 Bajaj Finance Limited Finance 1.44 Mahindra & Mahindra Ltd. Auto 1.43 Healthcare Global Enterprises Ltd Healthcare Services 1.42 Avenue Supermarts Ltd Retailing 1.31 Zee Entertainment Enterprises Ltd Media and Entertainment 1.31 ICICI Prudential Life Insurance Company Ltd Finance 1.30 The Ramco Cements Ltd Cement 1.23 JK Cement Ltd. Cement 1.13 Fag Bearings India Ltd. Industrial Products 1.12 SRF Ltd. Textile Products 1.04 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 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 May 31, 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 Tata Motors Ltd. Auto 1.02 Techno Electric & Engineering Co Ltd. Construction Project 1.02 DR.Lal Pathlabs Ltd Healthcare Services 1.01 Linde India Ltd. Chemicals 0.98 MRF Limited Auto Ancillaries 0.96 AIA Engineering Limited Industrial Products 0.94 Multi Commodity Exchange of India Limited Finance 0.93 Bata India Ltd. Consumer Durables 0.87 Equitas Holdings Ltd Finance 0.86 National Buildings Construction Corporation Limited Construction 0.76 Lupin Ltd. Pharmaceuticals 0.74 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.72 Va Tech Wabag Limited Engineering Services 0.71 Whirlpool of India Ltd. Consumer Durables 0.70 Bank Of Baroda Banks 0.64 Ashok Leyland Ltd. Auto 0.61 Cummins India Ltd. Industrial Products 0.55 Container Corporation of India Ltd. Transportation 0.54 Persistent Systems Limited Software 0.54 ICICI Bank Ltd. Banks 0.52 HDFC Ltd. Warrants Finance 0.41 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 Futures ICICI Bank Ltd.-JUN RBL Bank Ltd-JUN Futures (Market value represents Notional Value) - Total 3.41 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.86 Collateral Borrowing & Lending obligation 2.30 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Auto Gas Derivatives Others Petroleum Products Industrial Products Consumer Non Durables Construction Project 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,530, , ,958 1,010,260 1,590,495 2,744,315 4,742, , , ,983 1,336,357 2,209,120 3,432, , , ,810 1,243,573 2,053,733 3,258, 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 42.30% Beta: 1.02 ## Sharpe : 1.03 Standard Deviation : 14.23% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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 4.98 ITC Ltd. Consumer Non Durables 4.80 Reliance Industries Ltd. Petroleum Products 4.37 Hero MotoCorp Ltd. Auto 4.24 Maruti Suzuki India Limited Auto 3.59 State Bank Of India Banks 3.58 Ultratech Cement Ltd. Cement 3.32 GAIL (India) Ltd. Gas 3.07 IndusInd Bank Ltd. Banks 3.02 ICICI Bank Ltd. Banks 2.97 The Ramco Cements Ltd Cement 2.59 Larsen And Toubro Ltd. Construction Project 2.55 Shree Cement Ltd. Cement 2.45 Hindustan Petroleum Corporation Ltd Petroleum Products 2.26 Bharat Electronics Ltd Industrial Capital Goods 2.19 Axis Bank Ltd Banks 2.07 Mahindra & Mahindra Ltd. Auto 2.05 Indraprastha Gas Ltd. Gas 2.02 Petronet LNG Ltd. Gas 1.96 Bajaj Finance Limited Finance 1.95 Infosys Ltd. Software 1.86 Britannia Industries Ltd. Consumer Non Durables 1.76 Arvind Ltd Textile Products 1.71 HDFC Ltd. Finance 1.71 Max Financial Services Ltd. Finance 1.65 RBL Bank Ltd Banks 1.34 Bharat Petroleum Corporation Ltd. Petroleum Products 1.33 ICICI Prudential Life Insurance Company Ltd Finance 1.23 MRF Limited Auto Ancillaries 1.12 Bayer Cropscience Ltd. Pesticides 1.07 Godrej Consumer Products Ltd. Consumer Non Durables 1.03 Bajaj Finserv Ltd. Finance 1.00 Tata Motors Ltd. Auto 1.00 Federal Bank Ltd. Banks 0.89 Notes: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 2017(Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Cadila Healthcare Ltd. Pharmaceuticals 0.88 Equitas Holdings Ltd Finance 0.87 HCL Technologies Ltd. Software 0.86 Container Corporation of India Ltd. Transportation 0.72 Lupin Ltd. Pharmaceuticals 0.71 Jk Lakshmi Cement Ltd. Cement 0.70 Ashok Leyland Ltd. Auto 0.69 Laurus Labs Ltd Pharmaceuticals 0.63 Techno Electric & Engineering Co Ltd. Construction Project 0.63 Kec International Ltd. Construction Project 0.61 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.61 AIA Engineering Limited Industrial Products 0.52 Bata India Ltd. Consumer Durables 0.49 Solar Industries India Limited Chemicals 0.49 Bank Of Baroda Banks 0.41 Max India Limited Finance 0.30 Whirlpool of India Ltd. Consumer Durables 0.30 Navkar Corporation Limited Transportation 0.26 HDFC Ltd. Warrants Finance 0.24 Avenue Supermarts Ltd Retailing 0.20 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-JUN HDFC Bank Ltd.-JUN RBL Bank Ltd-JUN ICICI Bank Ltd.-JUN Futures (Market value represents Notional Value) - Total 4.80 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 1.09 Collateral Borrowing & Lending obligation 9.37 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 May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) Banks Finance Others SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month CBLO & Term Deposits & Rev.Repo Derivatives Consumer Non Durables Auto Cement Gas Construction Project Petroleum Products 1 year 3 years 5 years 7 years Since Inception 120, , , , , , ,710 1,054,095 1,698,870 1,965, , , ,120 1,303,739 1,480, , , ,810 1,243,573 1,416, 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 56.75% Beta: 1.08 ## Sharpe : 0.91 Standard Deviation : 15.25% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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: 2.39% Direct: 1.16% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.03 Reliance Industries Ltd. Petroleum Products 4.26 ITC Ltd. Consumer Non Durables 3.84 Hero MotoCorp Ltd. Auto 3.45 Shree Cement Ltd. Cement 3.32 IndusInd Bank Ltd. Banks 3.18 Infosys Ltd. Software 3.00 Hindustan Petroleum Corporation Ltd Petroleum Products 2.98 ICICI Bank Ltd. Banks 2.88 Bharat Petroleum Corporation Ltd. Petroleum Products 2.74 Mahanagar Gas Ltd Gas 2.58 Ultratech Cement Ltd. Cement 2.58 RBL Bank Ltd Banks 2.47 Dalmia Bharat Ltd. Cement 2.43 State Bank Of India Banks 2.41 GAIL (India) Ltd. Gas 2.38 Axis Bank Ltd Banks 2.33 Maruti Suzuki India Limited Auto 2.22 HDFC Ltd. Finance 2.17 Larsen And Toubro Ltd. Construction Project 1.89 Whirlpool of India Ltd. Consumer Durables 1.89 Britannia Industries Ltd. Consumer Non Durables 1.85 Techno Electric & Engineering Co Ltd. Construction Project 1.84 Cadila Healthcare Ltd. Pharmaceuticals 1.78 SKF India Ltd Industrial Products 1.72 The Ramco Cements Ltd Cement 1.67 UPL Ltd Pesticides 1.59 Tata Motors Ltd. Auto 1.54 Solar Industries India Limited Chemicals 1.43 Federal Bank Ltd. Banks 1.37 Bajaj Finance Limited Finance 1.33 Max Financial Services Ltd. Finance 1.21 Arvind Ltd Textile Products 1.16 AIA Engineering Limited Industrial Products 1.13 Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 2017 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) SRF Ltd. Textile Products 1.13 S Chand And Company Ltd Media and Entertainment 1.10 HCL Technologies Ltd. Software 1.06 Laurus Labs Ltd Pharmaceuticals 1.06 Navneet Education Ltd. Media and Entertainment 1.06 Ashok Leyland Ltd. Auto 1.02 Bata India Ltd. Consumer Durables 1.01 Linde India Ltd. Chemicals 1.01 Bank Of Baroda Banks 0.96 Multi Commodity Exchange of India Limited Finance 0.93 Strides Shasun Ltd. Pharmaceuticals 0.90 Container Corporation of India Ltd. Transportation 0.89 Lupin Ltd. Pharmaceuticals 0.89 Mahindra & Mahindra Ltd. Auto 0.87 Thermax Ltd. Industrial Capital Goods 0.85 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.77 Hawkins Cooker Ltd Household Appliances 0.67 Blue Dart Express Ltd. Transportation 0.57 LIC Housing Finance Ltd. Finance 0.56 Cummins India Ltd. Industrial Products 0.43 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 1.05 Net Current /(Liabilities) 0.02 Inception : - November 23, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Tax Saver NAV as on May 31, 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 Banks Cement Petroleum Products 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,390, , , ,726 1,511,297 2,511,410 3,126, , , ,983 1,336,357 2,209,275 2,769, , , ,810 1,243,573 2,053,774 2,598, Software Auto Finance Consumer Non Durables Pharmaceuticals Gas Construction Project Others 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 49.43% Beta: 1.01 ## Sharpe : 1.17 Standard Deviation : 16.11% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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: 1.10% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Techno Electric & Engineering Co Ltd. Construction Project 2.83 ICICI Bank Ltd. Banks 2.56 Atul Ltd. Chemicals 2.45 IndusInd Bank Ltd. Banks 2.40 Fag Bearings India Ltd. Industrial Products 2.39 Federal Bank Ltd. Banks 2.36 Solar Industries India Limited Chemicals 2.36 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.34 Motherson Sumi Systems Ltd. Auto Ancillaries 2.33 Strides Shasun Ltd. Pharmaceuticals 2.31 Shriram City Union Finance Ltd. Finance 2.27 V.S.T Tillers Tractors Ltd Auto 2.16 JK Cement Ltd. Cement 2.14 Finolex Cables Ltd. Industrial Products 2.03 Laurus Labs Ltd Pharmaceuticals 1.96 S Chand And Company Ltd Media and Entertainment 1.95 Persistent Systems Limited Software 1.93 Sundaram Finance Ltd. Finance 1.87 Allcargo Global Logistics Ltd. Transportation 1.86 SRF Ltd. Textile Products 1.83 Bharat Forge Ltd. Industrial Products 1.79 Sun TV Limited. Media and Entertainment 1.79 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.77 Eveready Industries India Ltd. Consumer Non Durables 1.75 Hindustan Petroleum Corporation Ltd Petroleum Products 1.71 Hawkins Cooker Ltd Household Appliances 1.69 The Ramco Cements Ltd Cement 1.68 DB Corp Limited Media and Entertainment 1.66 Thermax Ltd. Industrial Capital Goods 1.63 Navneet Education Ltd. Media and Entertainment 1.58 Whirlpool of India Ltd. Consumer Durables 1.55 Va Tech Wabag Limited Engineering Services 1.54 BSE Ltd Finance 1.52 Cadila Healthcare Ltd. Pharmaceuticals 1.47 Avenue Supermarts Ltd Retailing 1.44 Note: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 2017 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Mcleod Russel India Ltd Consumer Non Durables 1.40 SKF India Ltd Industrial Products 1.40 Mahindra & Mahindra Financial Services Ltd. Finance 1.39 Supreme Industries Limited Industrial Products 1.37 Kajaria Ceramics Ltd. Construction 1.33 Arvind Ltd Textile Products 1.32 ICICI Prudential Life Insurance Company Ltd Finance 1.32 UPL Ltd Pesticides 1.32 Castrol (India ) Ltd. Petroleum Products 1.30 Bank Of Baroda Banks 1.26 Kewal Kiran Clothing Limited. Textile Products 1.26 Bajaj Finserv Ltd. Finance 1.24 Shriram Transport Finance Co Ltd. Finance 1.20 Axis Bank Ltd Banks 1.03 Divi s Laboratories Limited Pharmaceuticals 1.03 Voltas Ltd. Construction Project 1.00 MRF Limited Auto Ancillaries 0.97 Jk Lakshmi Cement Ltd. Cement 0.91 Bajaj Finance Limited Finance 0.89 Pennar Engineered Building Systems Limited Ferrous Metals 0.68 Zuari Agro Chemicals Ltd Fertilisers 0.67 WPIL Ltd Industrial Products 0.66 Listed/Awaiting Listing on Stock Exchange - Total Futures RBL Bank Ltd-JUN Futures (Market value represents Notional Value) - Total 2.13 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.29 Collateral Borrowing & Lending obligation 5.34 Net Current /(Liabilities) Inception : - February 24,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Mid-cap NAV as on May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Textile Products Finance Industrial Products Banks Others Cement Pharmaceuticals Media and Entertainment Chemicals Construction Project CBLO & Term Deposits & Rev.Repo Midcap and Small cap stocks as a % age of Net : 70.28% * 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 120, , , ,000 1,200,000 1,480, , ,739 1,148,944 1,854,019 3,328,243 4,698, , ,294 1,023,179 1,559,555 2,693,755 3,926, , , ,810 1,243,573 2,053,774 2,998, 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 32.28% Beta: 0.94 ## Sharpe :1.32 Standard Deviation : 15.82% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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%. Equity & Equity related (Listed/Awaiting listing on Stock Exchange) IndusInd Bank Ltd. Banks 3.49 Fag Bearings India Ltd. Industrial Products 2.96 Federal Bank Ltd. Banks 2.57 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.45 Motherson Sumi Systems Ltd. Auto Ancillaries 2.42 Atul Ltd. Chemicals 2.35 Navneet Education Ltd. Media and Entertainment 2.26 Strides Shasun Ltd. Pharmaceuticals 2.18 Solar Industries India Limited Chemicals 2.12 Finolex Cables Ltd. Industrial Products 2.10 Sundaram Finance Ltd. Finance 2.08 Kajaria Ceramics Ltd. Construction 2.06 V-Guard Industries Ltd. Industrial Capital Goods 2.05 Persistent Systems Limited Software 2.02 ICICI Bank Ltd. Banks 2.00 Kirloskar Oil Engines Ltd. Industrial Products 1.85 Whirlpool of India Ltd. Consumer Durables 1.85 Coromandel International Ltd. Fertilisers 1.81 Allcargo Global Logistics Ltd. Transportation 1.80 Shriram City Union Finance Ltd. Finance 1.79 SKF India Ltd Industrial Products 1.79 Bata India Ltd. Consumer Durables 1.77 SRF Ltd. Textile Products 1.77 Kewal Kiran Clothing Limited. Textile Products 1.73 The Ramco Cements Ltd Cement 1.73 Bank Of Baroda Banks 1.72 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.69 Hawkins Cooker Ltd Household Appliances 1.65 DB Corp Limited Media and Entertainment 1.63 Mahindra & Mahindra Financial Services Ltd. Finance 1.62 Eveready Industries India Ltd. Consumer Non Durables 1.61 Va Tech Wabag Limited Engineering Services 1.58 Britannia Industries Ltd. Consumer Non Durables 1.54 Ramkrishna Forgings Ltd. Industrial Products 1.54 Laurus Labs Ltd Pharmaceuticals 1.53 Supreme Industries Limited Industrial Products 1.45 Equitas Holdings Ltd Finance 1.44 Note: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 2017(Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Zee Entertainment Enterprises Ltd Media and Entertainment 1.42 Thermax Ltd. Industrial Capital Goods 1.36 Carborundum Universal Ltd. Industrial Products 1.31 PNC INFRATECH LIMITED Construction 1.28 Kec International Ltd. Construction Project 1.15 Oberoi Realty Ltd Construction 1.15 ICICI Prudential Life Insurance Company Ltd Finance 1.13 Shriram Transport Finance Co Ltd. Finance 1.08 Castrol (India ) Ltd. Petroleum Products 1.06 Jk Lakshmi Cement Ltd. Cement 0.97 Divi s Laboratories Limited Pharmaceuticals 0.91 Finolex Industries Ltd. Industrial Products 0.90 Bajaj Finance Limited Finance 0.87 Indraprastha Gas Ltd. Gas 0.85 Zuari Agro Chemicals Ltd Fertilisers 0.84 D-Link (India) Ltd Hardware 0.76 Kirloskar Brothers Ltd. Industrial Products 0.76 Maharashtra Seamless Ltd. Ferrous Metals 0.71 Pennar Engineered Building Systems Limited Ferrous Metals 0.68 Sheela Foam Ltd Consumer Durables 0.61 WPIL Ltd Industrial Products 0.52 Listed/Awaiting Listing on Stock Exchange - Total Futures RBL Bank Ltd-JUN Jubilant Foodworks Limited-JUN Futures (Market value represents Notional Value) - Total 2.84 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.64 Collateral Borrowing & Lending obligation 7.32 Net Current /(Liabilities) Inception : - March 30, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Emerging Equity NAV as on May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the SECTOR ALLOCATION (%) amount of investment: Nil Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load Regular:2.11% Direct: 0.90% Industrial Products Finance Banks Others CBLO & Term Deposits & Rev.Repo Pharmaceuticals Construction Chemicals Consumer Durables Textile Products Media and Entertainment Midcap and Small cap stocks as a % age of Net : 88.79% 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 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,230, , ,097 1,213,084 1,977,570 3,429,217 3,536, , ,635 1,027,197 1,555,964 2,607,170 2,700, , , ,810 1,243,573 2,053,774 2,128, 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 38.89% Beta: 0.95 ## Sharpe :0.88 Standard Deviation : 15.71% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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: 2.54% Direct: 1.11% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 7.04 Indraprastha Gas Ltd. Gas 5.35 Larsen And Toubro Ltd. Construction Project 5.32 Container Corporation of India Ltd. Transportation 4.74 SKF India Ltd Industrial Products 4.54 Kirloskar Oil Engines Ltd. Industrial Products 4.09 National Thermal Power Corporation Limited Power 3.99 GAIL (India) Ltd. Gas 3.97 Kajaria Ceramics Ltd. Construction 3.44 Ultratech Cement Ltd. Cement 3.43 AIA Engineering Limited Industrial Products 3.41 Thermax Ltd. Industrial Capital Goods 3.38 Cummins India Ltd. Industrial Products 3.35 Fag Bearings India Ltd. Industrial Products 3.26 Bharti Airtel Ltd. Telecom - Services 3.10 Solar Industries India Limited Chemicals 2.95 KSB Pump Ltd Industrial Products 2.55 Allcargo Global Logistics Ltd. Transportation 2.38 Somany Ceramics Ltd. Construction 2.21 Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 2017 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Bharat Earth Movers Ltd. Industrial Capital Goods 2.17 Mahanagar Gas Ltd Gas 2.15 Linde India Ltd. Chemicals 2.01 Shriram Transport Finance Co Ltd. Finance 1.99 Bharat Electronics Ltd Industrial Capital Goods 1.84 The Ramco Cements Ltd Cement 1.80 Gujarat Gas Company Ltd Gas 1.76 Jk Lakshmi Cement Ltd. Cement 1.74 IDFC Limited Finance 1.68 MRF Limited Auto Ancillaries 1.63 Supreme Industries Limited Industrial Products 1.56 GE Power India Limited Industrial Capital Goods 1.44 Gateway Distriparks Ltd. Transportation 1.32 PNC INFRATECH LIMITED Construction 1.05 GP Petroleums Limited Petroleum Products 0.90 Dalmia Bharat Ltd. Cement 0.69 PSP Projects Ltd Construction 0.14 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 2.00 Net Current /(Liabilities) Inception : - February 25, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Infrastructure & Economic Reform Fund NAV as on May 31, 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 Industrial Products Gas Power Finance Industrial Capital Goods Transportation Construction Construction Project Chemicals Others Cement 1 year 3 years 5 years 7 years Since Inception 120, , , ,000 1,120, , ,009 1,058,029 1,595,729 2,440, , , ,731 1,269,791 1,943, , , ,810 1,243,573 1,898, 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 20.31% Beta: 1.17 ## Sharpe : 0.66 Standard Deviation : 10.91% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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 Tata Consultancy Services Ltd. Software 0.66 Exchange) Va Tech Wabag Limited Engineering Services 0.64 ICICI Bank Ltd. Banks 2.50 Equitas Holdings Ltd Finance 0.57 HDFC Bank Ltd. Banks 2.39 Finolex Cables Ltd. Industrial Products 0.56 State Bank Of India Banks 2.06 The Ramco Cements Ltd Cement 0.56 GAIL (India) Ltd. Gas 1.78 Ramkrishna Forgings Ltd. Industrial Products 0.52 Infosys Ltd. Software 1.73 Arvind Ltd Textile Products 0.51 Larsen And Toubro Ltd. Construction Project 1.73 Divi s Laboratories Limited Pharmaceuticals 0.50 Fag Bearings India Ltd. Industrial Products 1.68 PSP Projects Ltd Construction 0.42 Motherson Sumi Systems Ltd. Auto Ancillaries 1.67 Navkar Corporation Limited Transportation 0.41 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.66 Carborundum Universal Ltd. Industrial Products 0.40 Maruti Suzuki India Limited Auto 1.64 Kirloskar Oil Engines Ltd. Industrial Products 0.39 Tata Motors Ltd. Auto 1.64 HDFC Ltd. Warrants Finance 0.19 V.S.T Tillers Tractors Ltd Auto 1.62 RBL Bank Ltd Banks 0.01 IndusInd Bank Ltd. Banks 1.55 Listed/Awaiting Listing on Stock Exchange - Total Bank Of Baroda Banks 1.48 Futures Kajaria Ceramics Ltd. Construction 1.45 RBL Bank Ltd-JUN Zee Entertainment Futures (Market value represents Notional Value) - Total 1.08 Enterprises Ltd Media and Entertainment 1.45 Debt Instruments ITC Ltd. Consumer Non Durables 1.44 Debentures and Bonds GlaxoSmithkline Consumer Corporate Debt/Financial Institutions Healthcare Ltd Consumer Non Durables 1.39 LIC Housing Finance Ltd. CRISIL AAA 0.03 Strides Shasun Ltd. Pharmaceuticals 1.39 Tata Sons Ltd. CRISIL AAA 0.01 JK Cement Ltd. Cement 1.35 Corporate Debt/Financial Institutions - Total 0.04 S Chand And Company Ltd Media and Entertainment 1.35 Public Sector Undertakings Atul Ltd. Chemicals 1.30 U P Power Corporation Ltd Techno Electric & ( Guaranteed By UP State Engineering Co Ltd. Construction Project 1.28 Government ) FITCH IND AA(SO) 6.08 Thermax Ltd. Industrial Capital Goods 1.17 National ways Laurus Labs Ltd Pharmaceuticals 1.16 Authority Of India CRISIL AAA 3.30 Axis Bank Ltd Banks 1.13 Punjab & Sind Bank ICRA A HDFC Ltd. Finance 1.11 Bank of India CRISIL A Sun TV Limited. Media and Entertainment 1.09 Vijaya Bank ICRA AA Gujarat Gas Company Ltd Gas 1.00 Syndicate Bank CARE AA HCL Technologies Ltd. Software 0.98 Power Finance Corporation Ltd. CRISIL AAA 1.16 Mcleod Russel India Ltd Consumer Non Durables 0.97 Allahabad Bank FITCH IND A 0.66 Reliance Industries Ltd. Petroleum Products 0.95 Konkan Railway Corporation Ltd. ICRA AAA 0.34 Bharat Forge Ltd. Industrial Products 0.91 Public Sector Undertakings - Total DB Corp Limited Media and Entertainment 0.90 Government Dated Securities Whirlpool of India Ltd. Consumer Durables % Central Government SOV 7.10 BSE Ltd Finance % Central Government SOV 3.08 Solar Industries India Limited Chemicals % Central Government SOV 0.72 Cipla Ltd. Pharmaceuticals % State Government SOV 0.34 SRF Ltd. Textile Products % State Government SOV 0.14 ICICI Prudential Life Insurance 8.27% State Government SOV 0.07 Company Ltd Finance % State Government SOV 0.05 Mahindra & Mahindra Ltd. Auto % State Government SOV 0.02 Federal Bank Ltd. Banks % Central Government SOV 0.01 Shriram Transport Government Dated Securities - Total Finance Co Ltd. Finance 0.78 TERM DEPOSITS Lupin Ltd. Pharmaceuticals 0.76 AXIS Bank Ltd Music Broadcast Limited Media and Entertainment 0.75 Term Deposits - Total 0.29 Mahindra & Mahindra Collateral Borrowing & Lending obligation 1.48 Financial Services Ltd. Finance 0.73 Net Current /(Liabilities) Persistent Systems Limited Software 0.70 Note: Term Deposit as provided above is towards margin for derivatives transactions Monthly SIP of Rs Total amount invested (Rs) Total Value as on May 31, 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 3.80 for all plans) Regular: 2.16% Direct: 0.95% Banks Software 5.09 Finance 5.71 Debentures and Bonds 5.54 Government Dated Securities Auto Media and Entertainment Industrial Products Pharmaceuticals Others Consumer Non Durables 13 * 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) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,110, , , ,054 1,346,799 2,259,128 9,593, , , ,495 1,230,542 2,030,217 NA NA 133, , ,810 1,243,573 2,053,774 7,789, Inception : - November 25,1999. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Balance NAV as on May 31, 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 May 31, 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: 0.48 ## Sharpe : 1.18 Standard Deviation : 0.49% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% ( FBIL Overnight MIBOR rate as on 31st May 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: 0.95% Direct: 0.45% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged Infosys Ltd. Software Hindustan Zinc Ltd. Non - Ferrous Metals HDFC Ltd. Finance Federal Bank Ltd. Banks JSW Steel Ltd. Ferrous Metals Tata Steel Limited. Ferrous Metals Oil & Natural Gas Corporation Ltd. Oil Indiabulls Housing Finance Ltd. Finance Bajaj Finance Limited Finance Zee Entertainment Enterprises Ltd Media and Entertainment Tata Motors Ltd - DVR Auto Glenmark Pharmaceuticals Ltd Pharmaceuticals Yes Bank Ltd Banks Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Aditya Birla Nuvo Limited Services Castrol (India ) Ltd. Petroleum Products Dewan Housing Finance Corporation Ltd. Finance UPL Ltd Pesticides IDFC Bank Limited Banks Reliance Capital Ltd. Finance Sun TV Limited. Media and Entertainment Vedanta Ltd. Non - Ferrous Metals Bajaj Finserv Ltd. Finance Shriram Transport Finance Co Ltd. Finance Max Financial Services Ltd. Finance Bajaj Auto Ltd. Auto DLF Limited Construction Hindustan Petroleum Corporation Ltd Petroleum Products Tata Global Beverages Limited Consumer Non Durables Century Textiles & Industries Ltd. Cement Aurobindo Pharma Ltd. Pharmaceuticals Bharat Electronics Ltd Industrial Capital Goods MindTree Ltd. Software Fortis Healthcare India Ltd Healthcare Services Power Finance Corporation Ltd. Finance Apollo Hospitals Enterprises Ltd. Healthcare Services Adani Port and Special Economic Zone Limited Transportation Asian Paints Ltd. Consumer Non Durables State Bank Of India Banks India Cements Ltd. Cement Tata Communications Ltd Telecom - Services Bosch Limited Auto Ancillaries Bharat Heavy Electricals Ltd. Industrial Capital Goods ITC Ltd. Consumer Non Durables Piramal Enterprises Limited Pharmaceuticals The South Indian Bank Ltd. Banks Petronet LNG Ltd. Gas Hindalco Industries Ltd Non - Ferrous Metals Muthoot Finance Ltd Finance Escorts Ltd. Auto Can Fin Homes Ltd. Finance IRB Infrastructure Developers Ltd Construction MRF Limited Auto Ancillaries Divi s Laboratories Limited Pharmaceuticals NMDC Ltd. Minerals/Mining Gujarat State Fertilizers & Chemicals Ltd. Fertilisers IDFC Limited Finance Havells India Ltd. Consumer Durables Mahindra & Mahindra Ltd. Auto NCC Limited Construction Project Mahindra & Mahindra Financial Services Ltd. Finance Eicher Motors Ltd Auto Exide Industries Ltd Auto Ancillaries Inter Globe Aviation Ltd Transportation Strides Shasun Ltd. Pharmaceuticals Jain Irrigation Systems Ltd. Industrial Products Karnataka Bank Ltd Banks CESC Ltd. Power Ashok Leyland Ltd. Auto Bata India Ltd. Consumer Durables Bharat Forge Ltd. Industrial Products Tata Chemicals Ltd. Chemicals Dalmia Bharat Ltd. Cement Indian Bank Banks PVR Ltd Media and Entertainment Reliance Infrastructure Ltd Power Bharat Earth Movers Ltd. Industrial Capital Goods Jindal Steel & Power Ltd. Ferrous Metals JSW Energy Ltd. Power * 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 Titan Company Ltd. Consumer Durables Balrampur Chini Mills Ltd Consumer Non Durables Reliance Power Ltd Power PTC India Ltd. Power V-Guard Industries Ltd. Industrial Capital Goods Voltas Ltd. Construction Project Dr Reddys Laboratories Ltd Pharmaceuticals Torrent Power Ltd Power TV18 Broadcast Ltd Media and Entertainment Ultratech Cement Ltd. Cement Bank Of Baroda Banks GMR Infrastructure Ltd. Construction Project Reliance Defence & Engineering Ltd Industrial Capital Goods Britannia Industries Ltd. Consumer Non Durables Ambuja Cements Ltd Cement Tata Elxsi Ltd. Software Apollo Tyres Ltd. Auto Ancillaries IFCI Ltd. Finance Indiabulls Real Estate Ltd Construction National Thermal Power Corporation Limited Power Granules India Ltd. Pharmaceuticals Shree Cement Ltd. Cement Biocon Ltd. Pharmaceuticals Coal India Ltd. Minerals/Mining Godfrey Phillips India Ltd. Consumer Non Durables Hindustan Unilever Ltd. Consumer Non Durables National Buildings Construction Corporation Limited Construction Wockhardt Ltd. Pharmaceuticals Raymond Limited Textile Products ACC Ltd. Cement Container Corporation of India Ltd. Transportation L&T Finance Holdings Ltd Finance United Spirits Ltd. Consumer Non Durables CG Power and Industrial Solutions Limited Industrial Capital Goods HCL Technologies Ltd. Software Adani Power Ltd Power Bharti Infratel Ltd. Telecom - Equipment & Accessories Hindustan Construction Co.Ltd Construction Project Mangalore Refinery And Petrochemicals Ltd. Petroleum Products Tech Mahindra Ltd. Software Berger Paints (I) Ltd. Consumer Non Durables GAIL (India) Ltd. Gas Nestle India Ltd. Consumer Non Durables Power Grid Corporation Of India Ltd Power Godrej Industries Ltd Consumer Non Durables KPIT Technologies LImited Software Oracle Financial Services Software Ltd Software Cadila Healthcare Ltd. Pharmaceuticals Capital First Ltd Finance Grasim Industries Ltd. Cement Housing Development and Infrastructure Limited Construction Oil India Limited Oil Pidilite Industries Ltd. Chemicals Sintex Industries Ltd. Industrial Products Tata Consultancy Services Ltd. Software Andhra Bank Banks Indo Count Industries Ltd. Textiles - Cotton Reliance Industries Ltd. Petroleum Products Balkrishna Industries Ltd Auto Ancillaries Bharat Financial Inclusion Limited Finance Development Credit Bank Ltd. Banks Engineers India Ltd. Construction Project Marico Ltd. Consumer Non Durables United Breweries Ltd. Consumer Non Durables Jaiprakash Associates Ltd Cement Siemens Ltd. Industrial Capital Goods Syndicate Bank Banks NIIT Technologies Ltd Software Tata Motors Ltd. Auto Cipla Ltd. Pharmaceuticals Hero MotoCorp Ltd. Auto Indraprastha Gas Ltd. Gas National Aluminium Company Ltd Non - Ferrous Metals SRF Ltd. Textile Products Steel Authority of India Ltd. Ferrous Metals Tata Power Co. Ltd. Power Ujjivan Financial Services Ltd Finance Cholamandalam Investment and Finance Company Ltd Finance Ajanta Pharma Ltd. Pharmaceuticals Hexaware Technologies Ltd. Software Jet Airways (India) Ltd. Transportation NHPC Limited Power Allahabad Bank. Banks

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives Godrej Consumer Products Ltd. Consumer Non Durables Indian Oil Corporation Ltd Petroleum Products Industrial Development Bank of India Ltd. Banks Lupin Ltd. Pharmaceuticals Mahanagar Gas Ltd Gas Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Kotak Corporate Bond Fund Mutual Fund Units 0.72 Mutual Fund Units - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 2.85 Kotak Mahindra Prime Ltd. CRISIL AAA 2.64 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 2.15 Corporate Debt/Financial Institutions - Total 7.64 TERM DEPOSITS AXIS Bank Ltd IndusInd Bank Ltd HDFC Bank Ltd Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 0.69 Term Deposits - Total Collateral Borrowing & Lending obligation 0.52 Net Current /(Liabilities) Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option),` (Fortnightly Dividend,` (Direct Fortnightly Dividend) SECTOR ALLOCATION (%) Software Auto CBLO & Term Deposits & Rev.Repo Pharmaceuticals Mutual Fund Units Debentures and Bonds Finance Banks Ferrous Metals Non - Ferrous Metals 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 May 31, 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: 1.98% Direct: 1.35% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge HDFC Ltd. Warrants Finance 1.35 ITC Ltd. Consumer Non Durables 1.35 Bharat Petroleum Corporation Ltd. Petroleum Products 1.28 IndusInd Bank Ltd. Banks 1.15 Power Grid Corporation Of India Ltd Power 1.10 Varun Beverages Ltd Consumer Non Durables 0.99 Reliance Industries Ltd. Petroleum Products 0.92 Infosys Ltd. Software 0.90 Yes Bank Ltd Banks 0.90 CNX NIFTY-JUN National Thermal Power Corporation Limited Power 0.83 Tata Motors Ltd - DVR Auto 0.71 Bajaj Finance Limited Finance 0.65 Maruti Suzuki India Limited Auto 0.64 Laurus Labs Ltd Pharmaceuticals 0.57 Tata Steel Limited. Ferrous Metals 0.54 Zee Entertainment Enterprises Ltd Media and Entertainment 0.53 Biocon Ltd. Pharmaceuticals 0.52 Hero MotoCorp Ltd. Auto Petronet LNG Ltd. Gas 0.48 Grasim Industries Ltd. Cement 0.46 HDFC Ltd. Finance 0.44 The Ramco Cements Ltd Cement 0.41 Tata Consultancy Services Ltd. Software 0.37 Aditya Birla Nuvo Limited Services 0.36 Indraprastha Gas Ltd. Gas GAIL (India) Ltd. Gas 0.31 Piramal Enterprises Limited Pharmaceuticals 0.30 Hindustan Unilever Ltd. Consumer Non Durables 0.28 Muthoot Finance Ltd Finance 0.28 Indian Oil Corporation Ltd Petroleum Products 0.27 Vedanta Ltd. Non - Ferrous Metals 0.27 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.26 JSW Steel Ltd. Ferrous Metals 0.26 HCL Technologies Ltd. Software 0.25 ICICI Bank Ltd. Banks 0.24 Bajaj Finserv Ltd. Finance 0.23 Housing & Urban Development Corporation Ltd Finance 0.19 Oil & Natural Gas Corporation Ltd. Oil 0.17 Wipro Ltd. Software 0.17 Hindustan Petroleum Corporation Ltd Petroleum Products 0.13 State Bank Of India Banks Tata Communications Ltd Telecom - Services 0.09 Tata Motors Ltd. Auto 0.09 Tech Mahindra Ltd. Software 0.08 HDFC Bank Ltd. Banks S Chand And Company Ltd Media and Entertainment 0.05 Axis Bank Ltd Banks Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 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 3.39 CNX NIFTY-JUN Jain Irrigation Systems Ltd. Industrial Products Reliance Capital Ltd. Finance Infosys Ltd. Software Tata Communications Ltd Telecom - Services The South Indian Bank Ltd. Banks Century Textiles & Industries Ltd. Cement Dewan Housing Finance Corporation Ltd. Finance India Cements Ltd. Cement Aditya Birla Nuvo Limited Services Ashok Leyland Ltd. Auto Bata India Ltd. Consumer Durables JSW Energy Ltd. Power Sun Pharmaceuticals Industries Ltd. Pharmaceuticals HDFC Ltd. Finance Indiabulls Real Estate Ltd Construction Jaiprakash Associates Ltd Cement Petronet LNG Ltd. Gas Apollo Hospitals Enterprises Ltd. Healthcare Services Mcleod Russel India Ltd Consumer Non Durables 0.46 CNX NIFTY-JUN Dalmia Bharat Ltd. Cement Castrol (India ) Ltd. Petroleum Products Glenmark Pharmaceuticals Ltd Pharmaceuticals Aurobindo Pharma Ltd. Pharmaceuticals NCC Limited Construction Project Tata Steel Limited. Ferrous Metals Wockhardt Ltd. Pharmaceuticals * 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 IDFC Bank Limited Banks Oil & Natural Gas Corporation Ltd. Oil Capital First Ltd Finance CESC Ltd. Power Apollo Tyres Ltd. Auto Ancillaries Tata Elxsi Ltd. Software Yes Bank Ltd Banks Ambuja Cements Ltd Cement Exide Industries Ltd Auto Ancillaries IRB Infrastructure Developers Ltd Construction Bharat Electronics Ltd Industrial Capital Goods Hindustan Petroleum Corporation Ltd Petroleum Products Hindustan Zinc Ltd. Non - Ferrous Metals Housing Development and Infrastructure Limited Construction Tata Global Beverages Limited Consumer Non Durables Bajaj Finance Limited Finance Indian Bank Banks Bharat Heavy Electricals Ltd. Industrial Capital Goods Hindalco Industries Ltd Non - Ferrous Metals Sun TV Limited. Media and Entertainment UPL Ltd Pesticides Adani Power Ltd Power Development Credit Bank Ltd. Banks IFCI Ltd. Finance Tata Motors Ltd - DVR Auto Britannia Industries Ltd. Consumer Non Durables Engineers India Ltd. Construction Project Pidilite Industries Ltd. Chemicals Reliance Power Ltd Power Andhra Bank Banks Bajaj Auto Ltd. Auto Granules India Ltd. Pharmaceuticals IDFC Limited Finance Bajaj Finserv Ltd. Finance Bosch Limited Auto Ancillaries Jindal Steel & Power Ltd. Ferrous Metals KPIT Technologies LImited Software Oracle Financial Services Software Ltd Software TV18 Broadcast Ltd Media and Entertainment Gujarat State Fertilizers & Chemicals Ltd. Fertilisers ITC Ltd. Consumer Non Durables Balrampur Chini Mills Ltd Consumer Non Durables JSW Steel Ltd. Ferrous Metals PVR Ltd Media and Entertainment Tata Consultancy Services Ltd. Software Fortis Healthcare India Ltd Healthcare Services Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Options Infosys Ltd Call Option - June Options - Total 0.02 Preference Shares (Listed/Awaiting listing on Stock Exchange) 3DPLM Software Solutions Ltd Software % Vedanta Reedemable Preference Shares Non - Ferrous Metals 0.64 Preference Shares - Total 2.77 Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Mutual Fund Units - Total Government Dated Securities 8.53% State Government SOV 0.70 Government Dated Securities - Total 0.70 TERM DEPOSITS AXIS Bank Ltd HDFC Bank Ltd IndusInd Bank Ltd Kotak Mahindra Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 2.10 Net Current /(Liabilities) 2.97 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Savings Fund NAV as on May 31, 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 May 31, 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) 120, , , , , , , , 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 (%) Finance Software Others Mutual Fund Units CBLO & Term Deposits & Rev.Repo Non - Ferrous Metals Construction Project Banks Consumer Non Durables Pharmaceuticals Cement 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 May 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.09 ICICI Bank Ltd. Banks 8.36 IndusInd Bank Ltd. Banks 6.54 Maruti Suzuki India Limited Auto 6.54 Reliance Industries Ltd. Petroleum Products 5.93 Larsen And Toubro Ltd. Construction Project 5.39 Hero MotoCorp Ltd. Auto 5.09 Infosys Ltd. Software 4.81 Britannia Industries Ltd. Consumer Non Durables 4.80 Shree Cement Ltd. Cement 4.57 Axis Bank Ltd Banks 4.09 Kajaria Ceramics Ltd. Construction 3.50 Tata Motors Ltd - DVR Auto 3.50 GAIL (India) Ltd. Gas 3.31 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.31 Sun TV Limited. Media and Entertainment 3.07 Persistent Systems Limited Software 2.75 Laurus Labs Ltd Pharmaceuticals 2.62 Note: Term Deposit as provided above is towards margin for derivatives transactions Equitas Holdings Ltd Finance 2.07 Motherson Sumi Systems Ltd. Auto Ancillaries 2.04 Ultratech Cement Ltd. Cement 1.90 Entertainment Network (India) Ltd. Media and Entertainment 1.37 Avenue Supermarts Ltd Retailing 1.06 BSE Ltd Finance 0.84 S Chand And Company Ltd Media and Entertainment 0.39 Listed/Awaiting Listing on Stock Exchange - Total Options ITC Ltd Call Option -June Options - Total 0.08 Futures Sun Pharmaceuticals Industries Ltd.-JUN Futures (Market value represents Notional Value) - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.45 Collateral Borrowing & Lending obligation 2.15 Net Current /(Liabilities) 1.42 Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 28.40% 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: 2.49% Direct: 1.99% Kotak India Growth Fund Series I NAV as on May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Others Auto Construction Software Petroleum Products Pharmaceuticals Cement Media and Entertainment Construction Project Consumer Non Durables 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 May 31, 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: 0.14%, Modified Duration: 0.11yrs, Portfolio Yield: 6.42% 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: 0.07% Direct: 0.02% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Indiabulls Housing Finance Limited BRICKWORK BWR AAA 0.59 Corporate Debt/Financial Institutions - Total 0.59 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Bank Ltd. CRISIL A IDFC Bank Limited CRISIL A Hindustan Zinc Ltd CRISIL A HDFC Ltd. ICRA A AXIS Bank Ltd. CRISIL A Reliance Industries Ltd. ICRA A Piramal Finance Limited ICRA A FAMILY CREDIT LTD CARE A Gruh Finance Ltd ICRA A Shriram Transport Finance Co Ltd. CRISIL A Bajaj Finance Limited CRISIL A Edelweiss Commodities Services Ltd. ICRA A RBL Bank Ltd. CRISIL A India Infoline Finance Limited ICRA A Reliance Jio Infocomm Limited CARE A IIFL Wealth Finance Ltd. ICRA A Bharti Airtel Ltd. ICRA A Reliance Capital Ltd. ICRA A Indiabulls Housing Finance Limited CRISIL A ICICI Bank Ltd. ICRA A Standard Chartered Investment & Loan India Ltd. CRISIL A Birla TMT Holding Private Limited CRISIL A IndusInd Bank Ltd. CRISIL 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 Small Industries Development Bank Of India. CRISIL A Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total Reverse Repo 4.57 Treasury Bills 91 Days Treasury Bill 24/08/2017 SOV Days Cash Management Treasury Bill 16/08/2017 SOV 3.63 Treasury Bills - Total 8.07 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.83 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.11 years Kotak Liquid Fund NAV as on May 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE Net Current Treasury Bills Commercial Paper (CP)/Certificate of Deposits (CD) A1+, BWR AAA, SOV CBLO & Term Deposits & Rev.Repo Debentures and Bonds 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 May 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout (w.e.f May 15, 2017, Under Monthly Dividned option only), Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.14%, Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Shriram Transport Finance Co Ltd. CRISIL AA Fullerton India Credit Co. Ltd. CARE AAA 0.79 Kotak Mahindra Prime Ltd. CRISIL AAA 0.72 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) FITCH IND AA LIC Housing Finance Ltd. CARE AAA 0.30 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 3.45 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CARE A HDFC Bank Ltd. CRISIL A Piramal Finance Limited ICRA A Reliance Industries Ltd. ICRA A HDFC Ltd. ICRA A IDFC Bank Limited CRISIL A IndusInd Bank Ltd. CRISIL A Tata Steel Limited FITCH IND A Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 2.99 Gruh Finance Ltd ICRA A Indiabulls Housing Finance Limited CRISIL A ECL Finance Limited CRISIL A Tata Capital Housing Finance Ltd; CRISIL A AXIS Bank Ltd. CRISIL A India Infoline Finance Limited ICRA A Dewan Housing Finance Corporation Ltd. CRISIL A Muthoot Finance Ltd CRISIL A Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CRISIL A1+(SO) 1.95 Manappuram Finance Ltd CRISIL A Aditya Birla Finance Ltd. ICRA A Piramal Enterprises Limited ICRA A Hindustan Zinc Ltd CRISIL A Shriram City Union Finance Ltd. CARE A IDFC Bank Limited ICRA A Nirma Ltd. CRISIL A Tata Motors Finance Solutions Private Limited CRISIL A Standard Chartered Investment & Loan India Ltd. CRISIL A TATA Cummins Pvt. Ltd. ICRA A Indostar Capital Finance Private Limited CRISIL A Hero Cycles Ltd. CRISIL A Bajaj Finance Limited CRISIL A Oswal Woollen Mills Ltd. ICRA A Aditya Birla Finance Ltd. CRISIL 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. CRISIL A Small Industries Development Bank Of India. CARE A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 24/08/2017 SOV Days Cash Management Treasury Bill 16/08/2017 SOV Days Treasury Bill 10/08/2017 SOV 1.91 Treasury Bills - Total 9.32 Collateral Borrowing & Lending obligation 7.47 Net Current /(Liabilities) 0.45 Modified Duration:0.12 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: 0.08% Direct: 0.03% Note: Inter-scheme investment % in scheme is 6.09 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.12 years Kotak Floater Short Term Fund NAV as on May 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Investors understand that their principal will be at low risk RATING PROFILE (%) AA+, IND AA- Net Current Treasury Bills Commercial Paper (CP)/Certificate of Deposits (CD) A1+, A1+(SO), AAA, IND A1+, SOV CBLO & Term Deposits & Rev.Repo Debentures and Bonds 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. * 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 May 31, 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:0.61 yrs, Portfolio Yield: 7.06% 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 9.05 HDFC Ltd.(^) CRISIL AAA 4.98 Kotak Mahindra Prime Ltd. CRISIL AAA 4.37 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) (^) ICRA AAA 4.25 Shriram Transport Finance Co Ltd. FITCH IND AA Indiabulls Housing Finance Limited CARE AAA 2.68 ICICI Home Finance Company Limited(^) ICRA AAA 2.37 LIC Housing Finance Ltd. CRISIL AAA 2.05 Vedanta Ltd. CRISIL AA 1.76 AXIS Bank Ltd.(^) CRISIL AA Tata Motors Finance Ltd CRISIL AA 1.37 Tata Motors Finance Ltd CARE AA Kotak Mahindra Investments Ltd. CRISIL AAA 1.24 Tata Motors Ltd.(^) CARE AA IDFC Bank Limited ICRA AAA 0.92 LIC Housing Finance Ltd. CARE AAA 0.65 Family Credit Ltd. CARE AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.42 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.31 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.06 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 Power Finance Corporation Ltd. CRISIL AAA 2.13 Rural Electrification Corporation Ltd. CRISIL AAA 1.85 National ways Authority Of India(^) CRISIL AAA 1.38 Canara Bank CRISIL AAA 0.75 Export-Import Bank of India. CRISIL AAA 0.38 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.07 Power Grid Corporation of India Ltd. CRISIL AAA 0.06 Public Sector Undertakings - Total Government Dated Securities 7.61% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.01 Government Dated Securities - Total 3.18 Debt Future 7.61% GS 09/05/2030-JUN Debt Future - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IndusInd Bank Ltd. CRISIL A Tata Capital Financial Services Limited CRISIL A Tata Motors Ltd. ICRA A HDFC Ltd. ICRA A Tata Motors Ltd. CRISIL A ICICI Bank Ltd. ICRA A FAMILY CREDIT LTD CRISIL A BMW India Financial Services Private Limited CRISIL A HDFC Bank Ltd. CARE A Canfin Homes Ltd ICRA A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Indian Railway Finance Corporation Ltd. CRISIL A PNB Housing Finance Ltd. CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 5.83 Collateral Borrowing & Lending obligation 0.77 Net Current /(Liabilities) 5.34 Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 31 May 2017 is 12.43% of the net assets.. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.70 years. Kotak Treasury Advantage Fund NAV as on May 31, 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 A1+, AAA, AAA(SO), IND AAA, SOV Commercial Paper (CP)/Certificate of Deposits (CD) Derivatives CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Net Current 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 May 31, 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: 2.34 yrs, Portfolio Yield: 8.04% 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 Corporate Debt/Financial Institutions - Total 3.89 Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) Bank Of Baroda CARE AA 8.93 Power Grid Corporation of India Ltd. CRISIL AAA 8.70 Power Finance Corporation Ltd. CRISIL AAA 5.72 State Bank Of India. CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 3.85 Union Bank of India CRISIL AAA 3.48 State Bank of Travancore CRISIL AAA 3.44 State Bank Of India. CRISIL AAA 3.02 Canara Bank CRISIL AAA 2.98 Punjab National Bank CARE AA 2.96 Union Bank of India CARE AA 2.51 Andhra Bank CRISIL AA Oriental Bank of Commerce ICRA A 2.41 Bank Of Baroda CARE AA Power Finance Corporation Ltd. ICRA AAA 2.02 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.32 National Housing Bank CRISIL AAA 0.79 National Bank for Agriculture & Rural Development CRISIL AAA 0.50 Small Industries Development Bank Of India. CARE AAA 0.49 Steel Authority of India Ltd. FITCH IND AA 0.40 Public Sector Undertakings - Total Government Dated Securities 8.53% State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.49 Government Dated Securities - Total 7.26 Collateral Borrowing & Lending obligation 1.41 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 2.98 years. Kotak Banking And PSU Debt Fund NAV as on May 31, 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 AAA, AAA(SO), SOV Net Current CBLO & Term Deposits & Rev.Repo AA+, AA, IND AA, IND AA(SO), AA- 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 May 31, 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: 0.68yrs, 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 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 8.82 S D Corporation Private Limited ( DSRA Guarantee from Shapoorji Pallonji and Company Private Limited) CARE AA+(SO) 5.01 Manappuram Finance Ltd(^) ICRA AA Piramal Finance Limited(^) ICRA AA 4.02 Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA-(SO) 3.58 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 3.06 Muthoot Finance Ltd CRISIL AA 3.01 Varun Beverages Limited CRISIL AA Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA-(SO) 2.38 Nirma Ltd. CRISIL AA 2.01 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR AA-(SO) 1.84 HDFC Ltd. CRISIL AAA 1.79 Tata Motors Ltd.(^) CARE AA Trends In Vogue Pvt Ltd. ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA(SO) 1.66 Nuvoco Vistas Corporation Ltd.(^) CRISIL AA 1.52 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 1.46 Reliance Jio Infocomm Limited(^) CRISIL AAA 1.44 ECL Finance Limited CARE AA 1.37 AXIS Bank Ltd.(^) CRISIL AA Altico Capital India Pvt Ltd FITCH (IND) AA Intime Properties Ltd. FITCH IND AAA 0.99 Peninsula Land Limited BRICKWORK BWR A 0.83 HPCL Mittal Energy Ltd. ICRA AA 0.73 India Infoline Housing Finance Ltd. ICRA AA 0.67 Indiabulls Housing Finance Limited CARE AAA 0.59 Altico Capital India Pvt Ltd FITCH IND AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.57 Muthoot Fincorp Ltd. CRISIL A Vedanta Ltd. CRISIL AA Indostar Capital Finance Private Limited CARE AA LIC Housing Finance Ltd.(^) CRISIL AAA 0.35 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 0.32 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.21 HDB Financial Services Ltd. CRISIL AAA 0.08 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.08 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 Grand View Estates Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture & Rural Development CRISIL AAA 2.92 Bank Of Baroda(^) CARE AA 1.77 Oriental Bank of Commerce(^) ICRA A 1.75 Andhra Bank(^) CRISIL AA Allahabad Bank CRISIL AA Public Sector Undertakings - Total 8.43 Government Dated Securities 8.39% State Government SOV 0.12 Government Dated Securities - Total 0.12 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IndusInd Bank Ltd. CRISIL A HDFC Ltd. ICRA A S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 2.50 Shapoorji Pallonji and Company Private Limited ICRA A JM Financial Products Limited CRISIL A Canfin Homes Ltd ICRA A Adani Transmission Ltd FITCH IND A1+(SO) 1.63 Reliance Infrastructure Ltd ( Backed by SBLC of ICICI Bank) FITCH IND A1+(SO) 0.48 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Indian Railway Finance Corporation Ltd. CRISIL A PNB Housing Finance Ltd. CARE A Public Sector Undertakings - Total 7.57 Collateral Borrowing & Lending obligation 2.15 Net Current /(Liabilities) 2.10 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 31 May 2017 is 14.97% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.79 years Kotak Duration Fund NAV as on May 31, 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 Government Dated Securities Debentures and Bonds RATING PROFILE A, BWR A, BWR A(SO), A- Net Current A1+, A1+(SO), AAA, AAA(SO), IND A1+(SO), IND AAA, SOV AA+, AA+(SO), 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 May 31, 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: 2.08%, Modified Duration: 1.96 yrs, Portfolio Yield: 7.44% 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 Mahindra & Mahindra Financial Services Ltd.(^) FITCH IND AAA 7.21 Kotak Mahindra Prime Ltd. CRISIL AAA 7.18 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) (^) ICRA AAA 6.78 HDFC Ltd.(^) CRISIL AAA 6.38 LIC Housing Finance Ltd. CRISIL AAA 6.02 Reliance Jio Infocomm Limited CRISIL AAA 4.94 Indiabulls Housing Finance Limited CARE AAA 2.09 Bajaj Finance Limited FITCH IND AAA 2.02 Fullerton India Credit Co. Ltd.(^) CARE AAA 1.29 BMW India Financial Services Private Limited CRISIL AAA 1.27 HDB Financial Services Ltd. CRISIL AAA 1.20 Kotak Mahindra Investments Ltd. CRISIL AAA 0.64 Tata Sons Ltd. CRISIL AAA 0.64 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.48 Dewan Housing Finance Corporation Ltd. CARE AAA 0.06 East-North Interconnection Company Limited CRISIL AAA(SO) 0.06 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd.(^) CRISIL AAA ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 4.91 Small Industries Development Bank Of India. CARE AAA 4.15 Rural Electrification Corporation Ltd.(^) CRISIL AAA 2.43 Export-Import Bank of India. CRISIL AAA 1.89 National Bank for Agriculture & Rural Development CRISIL AAA 1.82 PNB Housing Finance Ltd. CARE AAA 1.56 Bharat Petroleum Corporation Ltd. CRISIL AAA 0.64 Indian Railway Finance Issuer/Instrument Industry/ % to Net Rating Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS), Hedging Position through Interest Rate Swaps as on 31 May 2017 is 14.03% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.45 years. Kotak Bond Short Term Fund NAV as on May 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend),` (Half Yearly Dividend), ` (Direct Half Yearly Dividend) SECTOR ALLOCATION (%) Net Current Debentures and Bonds CBLO & Term Deposits & Rev.Repo Commercial Paper (CP)/Certi cate of Deposits (CD) Government Dated Securities Corporation Ltd. CRISIL AAA 0.16 Steel Authority of India Ltd. FITCH IND AA 0.04 Public Sector Undertakings - Total Government Dated Securities 6.79% Central 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 % State Government SOV % Central Government SOV % Central Government SOV 0.07 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Public Sector Undertakings PNB Housing Finance Ltd. CARE A Public Sector Undertakings - Total 0.36 Collateral Borrowing & Lending obligation 0.28 Net Current /(Liabilities) Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), 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 May 31, 2017: ` a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Monthly Dividend Payout and Reinvestment (12th of every Month) (w.e.f June 1, 2017), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 4.52%, Modified Duration: 4.65yrs, Portfolio Yield: 7.82% 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 7.67 Reliance Ports And Terminals Limited CRISIL AAA 3.21 AXIS Bank Ltd. CRISIL AA Reliance Jio Infocomm Limited(^) CRISIL AAA 1.95 Indiabulls Housing Finance Limited CARE AAA 0.47 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.15 Shriram Transport Finance Co Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings Bank Of Baroda CARE AA 7.04 Power Grid Corporation of India Ltd. CRISIL AAA 1.44 Export-Import Bank of India. CRISIL AAA 0.87 PNB Housing Finance Ltd. CARE AAA 0.48 Power Finance Corporation Ltd. CRISIL AAA 0.05 Rural Electrification Corporation Ltd. CRISIL AAA 0.04 Public Sector Undertakings - Total 9.92 Government Dated Securities 6.79% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central 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 Net Current /(Liabilities) 1.47 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 31 May 2017 is 9.25% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 6.76 years Kotak Flexi Debt Fund NAV as on May 31, 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 Government Dated Securities Debentures and Bonds Net Current AAA, SOV RATING PROFILE AA+, 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 May 31, 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: 2.01%, Modified Duration:1.88yrs, Portfolio Yield: 8.42% 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 8.51 Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA-(SO) 4.90 HPCL Mittal Pipelines Ltd. ICRA AA 4.75 Nirma Ltd.(^) CRISIL AA 4.43 Reliance Jio Infocomm Limited(^) CRISIL AAA 4.09 HPCL Mittal Energy Ltd. ICRA AA 3.96 Janalakshami Financial Services Ltd.(^) ICRA A DLF Emporio Ltd CRISIL AA 2.53 AU Small Finance Bank Ltd. FITCH IND A India Infoline Housing Finance Ltd. ICRA AA 2.46 K Raheja IT Park (Hyderabad) Ltd. FITCH IND AAA(SO) 2.45 Dewan Housing Finance Corporation Ltd. CARE AAA 2.23 Vizag General Cargo Berth Private Limited ( backed by unconditional and irrevocable guarantee of Vedanta Ltd ) CRISIL AA-(SO) 2.21 Nuvoco Vistas Corporation Ltd. CRISIL AA 2.13 ECL Finance Limited(^) ICRA AA 2 Tata Power Company Ltd. CRISIL AA Prestige Estates Projects Limited ICRA A Indiabulls Housing Finance Limited CARE AAA 1.77 Reliance Ports And Terminals Limited(^) CRISIL AAA 1.46 Muthoot Finance Ltd CRISIL AA 1.42 ECL Finance Limited BRICKWORK BWR AA 1.35 Ananta Landmarks Pvt Ltd. UNRATED 1.24 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.24 Tata Steel Limited(^) BRICKWORK BWR AA 1.21 AXIS Bank Ltd. CRISIL AA Tata Power Renewable Energy Ltd. ( Guaranteed by Tata Power Company Ltd) CARE AA(SO) 1.01 Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Dalmia Cement (Bharat) Ltd ICRA AA 0.84 Piramal Finance Limited(^) ICRA AA 0.65 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 0.62 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 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 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.37 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.35 HDFC Ltd. CRISIL AAA 0.28 Family Credit Ltd. CARE AA HDFC Bank Ltd. CRISIL AA Piramal Enterprises Limited ICRA AA 0.25 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.20 Indostar Capital Finance Private Limited CARE AA Shriram Transport Finance Co Ltd. CRISIL AA 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) 2.49 Union Bank of India CARE AA 1.60 Oriental Bank of Commerce ICRA A 1.35 Corporation Bank CRISIL A 1.32 PNB Housing Finance Ltd. CARE AAA 1.25 National Bank for Agriculture & Rural Development CRISIL AAA 1.23 Punjab & Sind Bank ICRA A Bank of India CRISIL A Power Grid Corporation of India Ltd. CRISIL AAA 0.89 Bank Of Baroda CARE AA 0.62 Syndicate Bank CARE AA Allahabad Bank CRISIL AA Power Finance Corporation Ltd. CRISIL AAA 0.25 Bank of India BRICKWORK BWR AA Konkan Railway Corporation Ltd. ICRA AAA 0.13 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 HDFC Ltd. ICRA A JM Financial Products Limited CRISIL A S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 1.07 Reliance Industries Ltd. ICRA A Corporate Debt/Financial Institutions - Total 6.36 Public Sector Undertakings PNB Housing Finance Ltd. CARE A Public Sector Undertakings - Total 0.58 Collateral Borrowing & Lending obligation 1.02 Net Current /(Liabilities) 2.52 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 31 May 2017 is 17.13% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.40 years. Kotak Income Opportunities Fund NAV as on May 31, 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 (%) 6.94 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- Unrated Net Current A1+, A1+(SO), AAA, IND AAA(SO) CBLO & Term Deposits & Rev.Repo A+, BWR A+, IND A+, 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 May 31, 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%, Modified Duration: 1.07yrs, Portfolio Yield: 7.35% 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% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited(^) CRISIL AAA 9.18 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 8.80 Mahindra & Mahindra Financial Services Ltd.(^) FITCH IND AAA 8.60 Indiabulls Housing Finance Limited CARE AAA 7.73 Dewan Housing Finance Corporation Ltd. CARE AAA 5.18 ICICI Home Finance Company Limited ICRA AAA 4.79 LIC Housing Finance Ltd. CRISIL AAA 1.83 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 Bajaj Finance Limited FITCH IND AAA 0.44 Ultratech Cement Ltd. CRISIL AAA 0.31 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.17 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd.(^) CRISIL AAA 8.89 National ways Authority Of India CRISIL AAA 8.62 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 7.30 National Bank for Agriculture & Rural Development CRISIL AAA 6.01 Canara Bank CRISIL AAA 2.59 Export-Import Bank of India. CRISIL AAA 2 Rural Electrification Corporation Ltd. CRISIL AAA 1.81 National Housing Bank CRISIL AAA 1.38 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.24 Airports Authority of India CRISIL AAA 0.17 Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 4.70 Net Current /(Liabilities) 5.07 Note: (^) Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 31 May 2017 is 17.07% of the net assets, Inter-scheme investment %age in scheme is Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.28 years Kotak Corporate Bond Fund NAV as on May 31, 2017: ` (Standard Plan-Growth Option), ` (Standard Plan- Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend) 5.07 Debentures and Bonds Net Current CBLO & Term Deposits & Rev.Repo AAA, AAA(SO), IND AAA 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 May 31, 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) 1, , , , , , Mcap (%) 74.93% Large Cap 22.33% Mid Cap 0.79% Small Cap 1.95% Cash 87.77% Large Cap 8.74% Mid Cap 0.66% Small Cap 2.83% Cash 71.22% Large Cap 22.06% Mid Cap 4.48% Small Cap 2.25% Cash 76.97% Large Cap 16.65% Mid Cap 1.20% Small Cap 5.18% Cash 67.23% Large Cap 25.52% Mid Cap 6.08% Small Cap 1.18% Cash 24.70% Large Cap 57.49% Mid Cap 13.77% Small Cap 4.03% Cash 14.59% Large Cap 62.81% Mid Cap 17.70% Small Cap 4.89% Cash N/A 33.29% Large Cap 25.47% Mid Cap 7.98% Small Cap 33.45% Debt and Cash N/A N/A Overweight 1. Industrial Manufacturing 2. Media & Entertainment 3. Cement & Cement Products 1. Energy 2. Metals 3. IT 1. Cement & Cement Products 2. Energy 3. Fer lisers & Pes cides 1. Cement & Cement Products 2. Energy 3. Automobile 1. Cement & Cement Products 2. Energy 3. Chemicals 1. Media & Entertainment 2. Industrial Manufacturing 3. Chemicals 1. Industrial Manufacturing 2. Media & Entertainment 3. Chemicals N/A N/A N/A N/A Underweight 1. Financial Services 2. Metals 3. IT 1. Consumer Goods 2. Financial Services 3. Construc ons 1. Informa on technology 2. Consumer Goods 3. Metals 1. Informa on technology 2. Consumer Goods 3. Metals 1. Informa on technology 2. Consumer Goods 3. Metals 1. Energy 2. Consumer Goods 3. Informa on technology 1.Energy 2. Automobile 3. Consumer Goods N/A N/A N/A N/A Beta Sharpe Standard Devia on 13.79% 13.20% 14.11% 14.23% 15.25% Details provided are as on May 31, Ratio Source: ICRA MFI Explorer. Risk rate assumed to be 6.25%. *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. 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 (>23094 crs)* Mid cap (23094 to 1847 crs)* Small cap (<1847 crs)* 16.11% 15.82% 15.71% 10.91% 0.49% 3.42%

32 DEBT SCHEMES Debt Fund Ready Reckoner (as on May 31, 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) 12, , , , , , , , , Current Por olio Quality** 100% AAA 98.43% AAA 1.57%AA 88.95% AAA 11.05% AA 41.24% AAA 51.15% AA 100% AAA 50.36% AAA, 7.26% Gilt 39.97% AA 82.04% AAA, 17.92% Gilt 0.04% AA 32.47% AAA 57.72% Gilt 9.81% AA 28.11% AAA 56.34% AA 31.16% AAA, 56.72% AA, 0.37% Gilt 13.27% AAA 62.64% Gilt 19.30% 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: Nil Within 1 year : 1%, A er 1 year : Nil Withdrawal up to 15% of investment amt within 1 yr: Nil Within 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: 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 May 31, 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: 2.53%, Modified Duration: 2.43yrs, Portfolio Yield: 8.57% 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 Reliance Jio Infocomm Limited(^) CRISIL AAA 8.62 Vedanta Ltd.(^) CRISIL AA 5.27 Nuvoco Vistas Corporation Ltd.(^) CRISIL AA 4.67 HPCL Mittal Energy Ltd. ICRA AA 3.39 Piramal Finance Limited(^) ICRA AA 3.39 Vizag General Cargo Berth Private Limited ( backed by unconditional and irrevocable guarantee of Vedanta Ltd ) CRISIL AA-(SO) 3.17 Dalmia Cement (Bharat) Ltd ICRA AA 3.16 Tata Power Company Ltd.(^) CRISIL AA HDFC Ltd. CRISIL AAA 2.35 K Raheja IT Park (Hyderabad) Ltd. FITCH IND AAA(SO) 2.35 Indiabulls Housing Finance Limited CARE AAA 2.29 HPCL Mittal Pipelines Ltd. ICRA AA 2.23 Birla Corporation Ltd. CARE AA 2.12 AXIS Bank Ltd. CRISIL AA Nirma Ltd.(^) CRISIL AA 2 ECL Finance Limited ICRA AA 1.91 Prestige Estates Projects Limited ICRA A Reliance Utilities And Power Private Limited CRISIL AAA 1.71 Janalakshami Financial Services Ltd. ICRA A Tata Steel Limited CARE AA 1.57 The Indian Hotels Company Ltd. CARE AA Ananta Landmarks Pvt Ltd. UNRATED 1.19 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.16 Tata Steel Limited BRICKWORK BWR AA 1.04 Muthoot Finance Ltd CRISIL AA 0.94 Bajaj Finance Limited CARE AAA 0.83 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.83 Tata Power Renewable Energy Ltd. ( Guaranteed by Tata Power Company Ltd) CARE AA(SO) 0.81 SBK Properties Pvt Ltd. (Guaranteed by a Kalyani Group company ) ICRA AA AU Small Finance Bank Ltd. FITCH IND A East-North Interconnection Company Limited CRISIL AAA(SO) 0.60 Dewan Housing Finance Corporation Ltd. CARE AAA 0.59 Reliance Ports And Terminals Limited(^) CRISIL AAA 0.58 ECL Finance Limited BRICKWORK BWR AA 0.47 HDFC Bank Ltd. CRISIL AA India Infoline Housing Finance Ltd. ICRA AA 0.47 Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Intime Properties Ltd. FITCH IND AAA 0.34 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.24 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.23 Edelweiss Housing Finance Limited ICRA AA 0.21 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.15 LIC Housing Finance Ltd. CRISIL AAA 0.12 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.12 Corporate Debt/Financial Institutions - Total Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 5.69 PNB Housing Finance Ltd.(^) CARE AAA 4.20 Andhra Bank(^) CRISIL AA Union Bank of India CARE AA 1.44 Oriental Bank of Commerce ICRA A 1.43 Bank of India CRISIL A Punjab & Sind Bank ICRA A IDBI Bank Ltd ICRA BBB Corporation Bank CRISIL A 1.04 Bank Of Baroda CARE AA 0.83 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA Bank of Maharashtra CRISIL A Small Industries Development Bank Of India. CARE AAA 0.36 State Bank of Travancore CRISIL AAA 0.27 Allahabad Bank CRISIL AA Konkan Railway Corporation Ltd. ICRA AAA 0.12 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 0.37 Government Dated Securities - Total 0.37 Collateral Borrowing & Lending obligation 0.16 Net Current /(Liabilities) 4.06 Note: ^ Fully or Party blocked against Interest Rate Swap (IRS),Hedging Position through Interest Rate Swaps as on 31 May 2017 is 17.59% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.17 years Kotak Medium Term Fund NAV as on May 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) Government Dated Securities Debentures and Bonds 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 Net Current CBLO & Term Deposits & Rev.Repo RATING PROFILE A+, IND A+, A, A- BBB- AA+, AA, AA(SO), BWR AA, IND AA(SO), AA-, AA-(SO), BWR AA- 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 May 31, 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: 7.26% Modified Duration: 6.76 yrs Portfolio Yield: 7.75% 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: 1.80% Direct: 0.90% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions ICICI Bank Ltd. CARE AA Reliance Ports And Terminals Limited CRISIL AAA 1.13 East-North Interconnection Company Limited CRISIL AAA(SO) 0.76 HDFC Ltd. CRISIL AAA 0.03 Vedanta Ltd. CRISIL AA 0.03 Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 4.09 Public Sector Undertakings U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 9.70 National Bank for Agriculture & Rural Development CRISIL AAA 5.98 Union Bank of India FITCH IND AA 3.25 Andhra Bank CRISIL AA Bank of India CRISIL A Allahabad Bank FITCH IND A 1.68 Power Finance Corporation Ltd. CRISIL AAA 1.59 Syndicate Bank CARE AA IDBI Bank Ltd ICRA BBB State Bank Of India. CRISIL AA Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 2.21 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Fund NAV as on May 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) SECTOR ALLOCATION (%) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Issuer/Instrument Industry/ % to Net Rating 7.87% 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 % State Government SOV % Central Government SOV 0.04 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.07 Net Current /(Liabilities) CBLO & Term Deposits & Rev.Repo Net Current A+, IND A AAA, AAA(SO), SOV AA+, AA, IND AA, IND AA(SO), AA- BBB- 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 May 31, 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: 8.21%, B) PF & Trust Plan: 8.20%, Modified Duration: 7.72 yrs, Portfolio Yield:7.16% 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 % 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 % State Government SOV 0.39 Issuer/Instrument Industry/ % to Net Rating 7.87% State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.08 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.33 Net Current /(Liabilities) 2.43 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Gilt Investment Fund NAV as on May 31, 2017: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Quarterly-Dividend), ` (Quarterly-Dividend Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Quarterly 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 May 31, 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:4.56% Modified Duration: 3.74yrs Portfolio Yield: 7.70% 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: 2.29% Direct: 1.61% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 2.09 ICICI Bank Ltd. Banks 1.11 Tata Motors Ltd. Auto 1.06 Phillips Carbon Black Ltd. Chemicals 0.94 Hero MotoCorp Ltd. Auto 0.91 State Bank Of India Banks 0.90 Bata India Ltd. Consumer Durables 0.87 Sun TV Limited. Media and Entertainment 0.85 Jubilant Foodworks Limited Consumer Non Durables 0.78 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.76 Whirlpool of India Ltd. Consumer Durables 0.74 Manpasand Beverages Ltd. Consumer Non Durables 0.66 Bombay Burmah Trading Corporation Ltd. Consumer Non Durables 0.65 Maruti Suzuki India Limited Auto 0.64 Godfrey Phillips India Ltd. Consumer Non Durables 0.59 Infosys Ltd. Software 0.52 Bank Of Baroda Banks 0.38 GAIL (India) Ltd. Gas 0.37 MindTree Ltd. Software 0.37 Motherson Sumi Systems Ltd. Auto Ancillaries 0.35 Castrol (India ) Ltd. Petroleum Products 0.34 HDFC Ltd. Warrants Finance 0.34 Hindalco Industries Ltd Non - Ferrous Metals 0.34 GP Petroleums Limited Petroleum Products 0.33 S Chand And Company Ltd Media and Entertainment 0.33 TV18 Broadcast Ltd Media and Entertainment 0.31 ICICI Prudential Life Insurance Company Ltd Finance 0.29 Mcleod Russel India Ltd Consumer Non Durables 0.29 The Ramco Cements Ltd Cement 0.28 Granules India Ltd. Pharmaceuticals 0.20 HDFC Bank Ltd. Banks 0.19 Bharat Electronics Ltd Industrial Capital Goods 0.17 Equitas Holdings Ltd Finance 0.17 Bharat Earth Movers Ltd. Industrial Capital Goods 0.16 IndusInd Bank Ltd. Banks 0.16 Tech Mahindra Ltd. Software 0.15 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Bharat Petroleum Corporation Ltd. Petroleum Products 0.14 Tata Motors Ltd - DVR Auto 0.13 JK Cement Ltd. Cement 0.01 Listed/Awaiting Listing on Stock Exchange - Total Options Jubilant Foodworks Limited Call Option - June Infosys Ltd Call Option - June Options - Total 0.03 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions ICICI Bank Ltd. CARE AA Corporate Debt/Financial Institutions - Total 3.56 Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 6.91 Punjab & Sind Bank ICRA A Vijaya Bank ICRA AA Syndicate Bank CARE AA Canara Bank CRISIL AAA 1.80 U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 1.45 Rural Electrification Corporation Ltd. CRISIL AAA 0.04 Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV 3.05 Government Dated Securities - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.21 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.83 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 5.52 years. Kotak Monthly Income Plan Fund NAV as on May 31, 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(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 May 31, 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: 2.87yrs, Portfolio Yield: 7.31% 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:2.41% Direct: 0.52% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Bharat Petroleum Corporation Ltd. Petroleum Products 0.99 ITC Ltd. Consumer Non Durables 0.87 Power Grid Corporation Of India Ltd Power 0.85 IndusInd Bank Ltd. Banks 0.76 Hindalco Industries Ltd Non - Ferrous Metals 0.75 Grasim Industries Ltd. Cement 0.73 Tata Steel Limited. Ferrous Metals 0.71 Infosys Ltd. Software 0.68 Yes Bank Ltd Banks 0.68 National Thermal Power Corporation Limited Power 0.67 Reliance Industries Ltd. Petroleum Products 0.65 Hero MotoCorp Ltd. Auto 0.55 Bajaj Finance Limited Finance 0.51 Laurus Labs Ltd Pharmaceuticals 0.49 Hindustan Unilever Ltd. Consumer Non Durables 0.44 Maruti Suzuki India Limited Auto 0.40 Biocon Ltd. Pharmaceuticals 0.39 Petronet LNG Ltd. Gas 0.36 HDFC Ltd. Finance 0.34 Tata Motors Ltd. Auto 0.34 The Ramco Cements Ltd Cement 0.31 ICICI Bank Ltd. Banks 0.29 Zee Entertainment Enterprises Ltd Media and Entertainment 0.29 Tata Consultancy Services Ltd. Software 0.28 Axis Bank Ltd Banks 0.26 Eicher Motors Ltd Auto 0.26 Piramal Enterprises Limited Pharmaceuticals 0.25 JSW Steel Ltd. Ferrous Metals 0.21 Housing & Urban Development Corporation Ltd Finance 0.19 Larsen And Toubro Ltd. Construction Project 0.19 Bajaj Finserv Ltd. Finance 0.18 Vedanta Ltd. Non - Ferrous Metals 0.18 State Bank Of India Banks 0.17 Tata Motors Ltd - DVR Auto 0.17 Muthoot Finance Ltd Finance 0.16 HCL Technologies Ltd. Software 0.15 Indian Oil Corporation Ltd Petroleum Products 0.15 S Chand And Company Ltd Media and Entertainment 0.15 Wipro Ltd. Software 0.12 Oil & Natural Gas Corporation Ltd. Oil 0.11 HDFC Bank Ltd. Banks 0.09 Indraprastha Gas Ltd. Gas 0.09 Hindustan Petroleum Corporation Ltd Petroleum Products 0.08 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Tata Communications Ltd Telecom - Services 0.07 Tech Mahindra Ltd. Software 0.06 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 9.50 Mutual Fund Units - Total 9.50 Futures HDFC Bank Ltd.-JUN CNX NIFTY-JUN Futures (Market value represents Notional Value) - Total 0.16 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 5.16 Government Dated Securities 8.53% State Government SOV % State Government SOV % State Government SOV % Central Government SOV 9.08 Government Dated Securities - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 1.52 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.02 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 3.86 years. Kotak Multi Asset Allocation Fund NAV as on May 31, 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 May 31, 2017 Issuer Name %age of Exposure to Debt AUM AU Small Finance Bank Ltd AXIS Bank Ltd Aasan Corporate Solutions Private Limited ( Guaranteed by a Piramal Group Company ) 0.10 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) 0.29 Adani Transmission Ltd 0.14 Aditya Birla Finance Ltd Airports Authority of India 0.04 Allahabad Bank 0.14 Altico Capital India Pvt Ltd 0.14 Ananta Landmarks Pvt Ltd Andhra Bank 0.41 Asirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.08 Aspire Home Finance Corporation Ltd 0.10 BMW India Financial Services Private Limited 0.21 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.11 Bajaj Finance Limited 1.35 Bank Of Baroda 0.50 Bank of India 0.33 Bank of Maharashtra 0.03 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.07 Bharat Petroleum Corporation Ltd Bharti Airtel Ltd Birla Corporation Ltd Birla TMT Holding Private Limited 0.03 CBLO/REVERSE REPO 5.89 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.07 Canara Bank 0.15 Canfin Homes Ltd 0.20 Central Government 8.20 Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.32 Corporation Bank 0.14 DLF Emporio Ltd 0.13 Dalmia Cement (Bharat) Ltd 0.28 Dewan Housing Finance Corporation Ltd ECL Finance Limited 1.05 East-North Interconnection Company Limited 0.08 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) 0.40 Edelweiss Commodities Services Ltd Edelweiss Housing Finance Limited 0.28 Edisons Utility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.16 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 0.74 Fullerton India Credit Co. Ltd Grand View Estates Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.26 Gruh Finance Ltd 1.04 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Hero Cycles Ltd Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.12 Hindalco Industries Ltd Hinduja Leyland Finance Ltd Hindustan Zinc Ltd 1.38 ICICI Bank Ltd ICICI Home Finance Company Limited 0.43 IDBI Bank Ltd 0.09 IDFC Bank Limited 2.34 IIFL Wealth Finance Ltd IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.10 IOT Utkal Energy Services Ltd India Infoline Finance Limited 0.75 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.69 Indian Oil Corporation Ltd Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.21 IndusInd Bank Ltd Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) 0.58 Intime Properties Ltd JM Financial Products Limited 0.33 Janalakshami Financial Services Ltd 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 ) 0.20 Industry / Sector Issuer Name %age of Exposure to Debt AUM 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 0.91 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.19 Muthoot Finance Ltd 0.81 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.70 National Bank for Agriculture & Rural Development 5.11 National ways Authority Of India 0.29 National Housing Bank 0.17 Nirma Ltd Nuvoco Vistas Corporation Ltd ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.34 Oswal Woollen Mills Ltd PNB Housing Finance Ltd Peninsula Land Limited 0.07 Piramal Enterprises Limited 0.25 Piramal Finance Limited 2.08 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 0.28 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.12 Punjab & Sind Bank 0.21 Punjab National Bank 0.04 RBL Bank Ltd Reliance Capital Ltd Reliance Industries Ltd Reliance Infrastructure Ltd ( Backed by SBLC of ICICI Bank) 0.04 Reliance Jio Infocomm Limited 4.09 Reliance Ports And Terminals Limited 0.21 Reliance Utilities And Power Private Limited 0.10 Rural Electrification Corporation Ltd S D Corporation Private Limited ( DSRA Guarantee from Shapoorji Pallonji and Company Private Limited) 0.69 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 ) 0.25 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.08 Shapoorji Pallonji and Company Private Limited 0.20 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 ) 0.05 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.03 Standard Chartered Investment & Loan India Ltd State Bank Of India State Bank of Travancore 0.06 State Government 3.04 Steel Authority of India Ltd Sundaram BNP Paribas Home Finance Ltd 0.07 Sundaram Finance Ltd Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.03 Syndicate Bank 0.18 TATA Cummins Pvt. Ltd Tata Capital Financial Services Limited 0.46 Tata Capital Housing Finance Ltd; 0.63 Tata Motors Finance Ltd 0.29 Tata Motors Finance Solutions Private Limited 0.14 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 0.92 The Indian Hotels Company Ltd Trends In Vogue Pvt Ltd. ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.24 U P Power Corporation Ltd ( Guaranteed By UP State Government ) 1.19 Ultratech Cement Ltd Union Bank of India 0.40 Varun Beverages Limited 0.21 Vedanta Ltd Vijaya Bank 0.06 Vizag General Cargo Berth Private Limited ( backed by unconditional and irrevocable guarantee of Vedanta Ltd ) 0.31 Total %age of Exposure to Debt AUM BANK CASH(CBLO/REVERSE REPO) 5.90 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.90 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) `31.55 AUM (` In Crores) AUM as on May 31, 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: 1.12% 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 Plan Debt Kotak Liquid Direct Growth Debt 8.56 Mutual Fund Units - Total Net Current /(Liabilities) 1.45 Kotak Asset Allocator Fund NAV as on May 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), `73.651(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) ` 4.89 AUM (` In Crores) AUM as on May 31, 2017: ` 4.93 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: 0.62% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 3.34 Kotak US Equity Fund NAV as on May 31, 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) `27.42 AUM (` In Crores) AUM as on May 31, 2017: `27.33 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: 1.82% Direct: 0.62% 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 1.13 Net Current /(Liabilities) 1.06 Kotak Global Emerging Market Fund NAV as on May 31, 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) ` AUM (` In Crores) AUM as on May 31, 2017:`42.49 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: 1.90% Direct: 1.14% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 1.81 Net Current /(Liabilities) Kotak World Gold Fund NAV as on May 31, 2017: `7.406 (Dividend Option), `7.663 (Direct Dividend Option), `8.935 (Growth Option), `9.224 (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at high risk Long term capital growth 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 May 31, 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 0.35 Kotak Gold ETF NAV as on May 31, 2017: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) 0.05 Sector Allocation (%) 0.05 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 May 31, 2017: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover:78.35% 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:0.19% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.14 ITC Ltd. Consumer Non Durables 7.31 HDFC Ltd. Finance 6.88 Reliance Industries Ltd. Petroleum Products 6.13 Infosys Ltd. Software 5.38 ICICI Bank Ltd. Banks 5.25 Larsen And Toubro Ltd. Construction Project 3.99 Tata Consultancy Services Ltd. Software 3.74 Kotak Mahindra Bank Ltd. Banks 3.24 Maruti Suzuki India Limited Auto 2.64 State Bank Of India Banks 2.51 Tata Motors Ltd. Auto 2.46 Axis Bank Ltd Banks 2.41 Hindustan Unilever Ltd. Consumer Non Durables 2.10 IndusInd Bank Ltd. Banks 2.05 Mahindra & Mahindra Ltd. Auto 1.82 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.53 Yes Bank Ltd Banks 1.44 Asian Paints Ltd. Consumer Non Durables 1.43 Oil & Natural Gas Corporation Ltd. Oil 1.38 HCL Technologies Ltd. Software 1.36 Bharti Airtel Ltd. Telecom - Services 1.35 Hero MotoCorp Ltd. Auto 1.34 Power Grid Corporation Of India Ltd Power 1.26 Vedanta Ltd. Non - Ferrous Metals 1.22 Indian Oil Corporation Ltd Petroleum Products 1.21 Ultratech Cement Ltd. Cement 1.21 National Thermal Power Kotak Nifty ETF NAV as on May 31, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Corporation Limited Power 1.09 Bajaj Auto Ltd. Auto 1.07 Bharat Petroleum Corporation Ltd. Petroleum Products 1.07 Eicher Motors Ltd Auto 1.05 Indiabulls Housing Finance Ltd. Finance 1.03 Coal India Ltd. Minerals/Mining 0.94 Tata Steel Limited. Ferrous Metals 0.93 Wipro Ltd. Software 0.93 Dr Reddys Laboratories Ltd Pharmaceuticals 0.84 Hindalco Industries Ltd Non - Ferrous Metals 0.81 Zee Entertainment Enterprises Ltd Media and Entertainment 0.78 Lupin Ltd. Pharmaceuticals 0.77 Adani Port and Special Economic Zone Limited Transportation 0.76 GAIL (India) Ltd. Gas 0.73 Cipla Ltd. Pharmaceuticals 0.72 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.71 Tech Mahindra Ltd. Software 0.67 Bosch Limited Auto Ancillaries 0.59 Ambuja Cements Ltd Cement 0.49 Bank Of Baroda Banks 0.46 Aurobindo Pharma Ltd. Pharmaceuticals 0.45 Tata Motors Ltd - DVR Auto 0.40 Tata Power Co. Ltd. Power 0.40 ACC Ltd. Cement 0.38 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) Sector Allocation (%) Finance Banks Software Consumer Non Durables Auto Petroleum Products Power Cement Pharmaceuticals Construction Project 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. 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) `11.95 AUM (`In Crores) AUM as on May 31, 2017: `12.25 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 19.48% 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: 0.29% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks ITC Ltd. Consumer Non Durables 9.26 HDFC Ltd. Finance 8.71 Reliance Industries Ltd. Petroleum Products 7.76 Infosys Ltd. Software 6.83 ICICI Bank Ltd. Banks 6.64 Larsen And Toubro Ltd. Construction Project 4.94 Tata Consultancy Services Ltd. Software 4.73 Maruti Suzuki India Limited Auto 3.35 State Bank Of India Banks 3.22 Tata Motors Ltd. Auto 3.22 Axis Bank Ltd Banks 3.01 Hindustan Unilever Ltd. Consumer Non Durables 2.66 Mahindra & Mahindra Ltd. Auto 2.31 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.89 Asian Paints Ltd. Consumer Non Durables 1.82 Bharti Airtel Ltd. Telecom - Services 1.72 Hero MotoCorp Ltd. Auto 1.67 Oil & Natural Gas Kotak Sensex ETF NAV as on May 31, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Corporation Ltd. Oil 1.67 Power Grid Corporation Of India Ltd Power 1.60 National Thermal Power Corporation Limited Power 1.38 Bajaj Auto Ltd. Auto 1.35 Wipro Ltd. Software 1.19 Tata Steel Limited. Ferrous Metals 1.18 Coal India Ltd. Minerals/Mining 1.14 Dr Reddys Laboratories Ltd Pharmaceuticals 1.08 Adani Port and Special Economic Zone Limited Transportation 1.06 Lupin Ltd. Pharmaceuticals 0.97 Cipla Ltd. Pharmaceuticals 0.91 GAIL (India) Ltd. Gas 0.91 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.27 Sector Allocation (%) Banks Consumer Non Durables Software Power Auto Finance Pharmaceuticals Construction Project Telecom - Services Others Petroleum Products 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 May 31, 2017: ` Option - Dividend Payout Ratios Portfolio Turnover: 44.53% 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 9.04 Axis Bank Ltd Banks 8.68 IndusInd Bank Ltd. Banks 7.38 Yes Bank Ltd Banks 5.19 Federal Bank Ltd. Banks 1.91 Bank Of Baroda Banks 1.67 Kotak Banking ETF NAV as on May 31, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Punjab National Bank Banks 1.11 IDFC Bank Limited Banks 0.76 Canara Bank Banks 0.71 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.15 Sector Allocation (%) 0.15 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 May 31, 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 Bank Of Baroda Banks Punjab National Bank Banks 7.82 Canara Bank Banks 4.97 Union Bank Of India Banks 2.76 Bank of India Banks 2.50 Industrial Development Bank of India Ltd. Banks 1.55 Kotak PSU Bank ETF NAV as on May 31, 2017: ` NAV Issuer / Instrument Industry/ % to Net Rating Oriental Bank of Commerce Banks 1.26 Syndicate Bank Banks 1.12 Allahabad Bank. Banks 1.09 Andhra Bank Banks 0.95 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.60 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