FROM THE CEO S DESK. Equity Market View. Think Investments. Think Kotak.

Transcription

1

2 FROM THE CEO S DESK Dear Friends, The market performance in the march- 12 month remained largely lackluster. The key benchmark indices, Sensex and Nifty closed the month with a negative performance of -1.96% and -1.66% respectively. The performance of Sensex and Nifty during the entire FY12 was at % and -9.22%, respectively. This bearish market performance was largely on account of high interest rates, rising cost of imported fuel, moderating economy and volatile political environment. The combination of these factors weighed-in on the earning performance of India Inc and led to disruption in the investment and consumption cycle in the economy. Consequently, the investor sentiments took a hit; with FII investments in the first three quarters of FY12 estimated at US 162 mn only. The FII flows picked up in Jan-March 2012, and that too, due to global decline in the risk premium. At present, the economic growth continues to face downside risk from rising crude oil prices. The crude price has increased by 13% since last quarter; and is up by around 25% since the beginning of 2011.The continued political uncertainty in the middle-eastern region is being attributed as the primary source for this run-up in crude prices. This has cast a heavy pressure on the trading and current account, causing an outflow of capital. In consequence, the Rupee has lost more than 12% value against the dollar in the last financial year. As a result, the balance of payment position in Q3 FY12 has deteriorated over the preceding quarter and has gone into a negative. The high growth in imports and a moderation in the exports growth expanded the trade deficit by 51% over Q3 FY11. As a result of this gap, the current account deficit expanded by 95% yoy, with the moderating capital account inflows proving insufficient to address the imbalance. The negative spread between forex outflows and inflows is one of the highest in the last 10 years and would need immediate measures to curtail it. This incessant escalation in imported commodities, esp fuel prices, has the potential to regenerate the inflationary cycle. However, the rapidly moderating GDP and industrial growth, along with the acute liquidity paucity indicates that the rate reversion may be likely sooner. We believe that the central banker may reduce the repo rate by 50 bps to 100 bps in a gradual manner over the year. On the mutual funds side, the industry AUM posted a negative growth of % over the previous year, while the decline over the previous quarter was around -2.47%. The average aum of the industry stood at 6.64 lakh crore as on 30th March In the same period the average aum of Kotak Mutual Fund was at Rs 25,738 crs. The possible reason for de-growth in the mutual funds industry may be attributable to in-conducive economic environment and high inflation, which prompted the investors to allocate their investments in physical assets, namely gold. We remain hopeful that the reversion in the repo rates would revive the economy and improve the financial performance of the industries and households. The resultant rise in the accruals would provide higher stimulus for the mutual funds industry, which may grow in line with the nominal growth in the economy. Regards, Sandesh Kirkire Mutual Fund investments are subject to market risks. Please read the Information Document and Statement of Information carefully before investing. Equity Market View Indian equities market performance during the March month turned in the negative. The key benchmark indices, Sensex and Nifty, posted a performance of -1.96% and -1.66% respectively during the period. The market trend and momentum continues to be driven by liquidity play. Country Index Jakarta Composite Index Nasdaq Dow Jones Nikkei KLSE DAX Index Swiss Market Index FTSE Strait Times Kospi Ibovespa Sao Paulo Index Taiwan Weighted S&P Nifty HangSeng CAC 40 Index RTS Index Merval Buenos Aires Index SSE Composite Index Source: ICRA The performance of sectoral indices reflected the interplay of the specific factors intrinsic and peculiar to each sector; and therefore varied accordingly. The top three sectoral gainers in Mar 2012 month were FMCG (7.83%), Pharma (4.67%) and Health Care (4.57%). On the other hand, Realty (- 9.38%), Power (-8.31%), and Oil & Gas (-7.17%) remained on the lag end of the sectoral indices performance chart. (Source: NSE & ICRAonline). Other Economic News Country Indonesia USA USA Japan Malaysia Germany Switzerland UK Singapore S Korea Brazil Taiwan India Hong Kong France Russia Argentina China Mar Month Performance 3.4% 4.2% 2.0% 3.7% 1.7% 1.3% 1.8% -1.8% 0.6% -0.8% -2.0% -2.3% -1.7% -5.2% -0.8% -5.6% 1.4% -6.8% FY % 11.2% 7.2% 3.4% 3.3% -1.3% -1.9% -2.4% -3.1% -4.4% -5.9% -8.6% -9.2% -12.6% -14.2% -19.9% -20.8% -22.7% India's Overall Balance of Payments: for October- December FY12 (US Billion) Particulars Q3-FY12 Q3-FY11 A. CURRENT ACCOUNT I. MERCHANDISE II. INVISIBLES (a+b+c) Total Current Account (I+II) B. CAPITAL ACCOUNT 1. Foreign (a+b) Loans (a+b+c) Banking Capital (a+b) Rupee Debt Service Other Capital Total Capital Account (1 to 5) C. Errors & Omissions D. Overall Balance (A+B+C) Source:RBI During Q3 of FY12, India s Balance of Payment (BoP) experienced a significant stress as trade deficit widened and capital inflows fell far short of financing requirement resulting in significant drawdown of foreign exchange reserves. On a BoP basis, merchandise exports recorded a lower growth of 7.9%, yearon-year, during Q3 of FY12 as compared with 39.9% during corresponding quarter of FY11. Imports registered a growth of 22.0% during Q3 of FY12 as compared with 24.7% in the corresponding quarter of the preceding year. With export growth remaining lower than the import growth, the trade deficit widened to US 47.7 bn in Q3 of FY12 as compared with US 31.4 bn in Q3 of FY11. 2 Think s. Think Kotak.

3 Net services exports in Q3 of FY12 rose by 20.3%, led by computer services, as compared with 47.5% in Q3 of FY11. Net secondary income (private transfers) receipts rose by 30.6% (y-o-y) to US 17.5 bn in Q3 of FY12 as compared with US 13.4 bn in Q3 of FY11. Primary income account (mainly investment income) showed a net outflow of US 4.5 bn in Q3 of FY12, broadly the same as in the corresponding quarter of the previous year. Consequently, the current account deficit (CAD) widened to US 19.6 bn in Q3 of FY12 (US 10.1 bn in Q3 of FY11) which works out to be 4.3% of GDP (2.3% of GDP in Q3 of FY11). Capital and Financial account (excluding change in foreign exchange reserves), on a net basis, showed a significantly lower inflow of US 8.2 bn in Q3 of FY12 as compared with US 14.0 bn in Q3 of FY11. As a result, there was a drawdown of foreign exchange reserves of US 12.8 bn during Q3 of FY12 as against an increase of US 4.0 bn in the corresponding quarter of FY11. Feb from 6.7% in January 12. Meanwhile, the overall food inflation was at 6.33% in Feb month. Outlook : RBI on Friday, released the calendar for the auction of treasury bills for Rs.1,87,000 crore during April to June Ways and Means Advances (WMA) limits for the government for April to June period stood at Rs.50,000 crore and for July to September period stood at Rs.45,000 crore. RBI will charge an interest rate of 8.50%, its repo rate and any overdraft for the government will attract and interest of 2% above the repo rate. Around 3.73 lakh crore of the market borrowing would be front loaded in H1-FY12, which tantamounts to around 65% of the annual target. The borrowing target has been marginally higher than expected and may have dampened the trading sentiments. However, we believe that the economy moderated significantly and in the absence of apparent inflationary pressure, RBI may effect a gradual reduction of around bps over FY13. Market Outlook The long term outlook continues to remain positive for Indian equities as the economic growth momentum remains healthy with real GDP growth remaining at around 7%. The near term challenges can influence markets as it gets impacted by events / newsflows that can have near term negative implications. For instance, the unemployment data was mixed in the US. The Eurozone business and consumer confidences surprised positively. The Eurozone could be in for a mild to moderate recession this year, thereby impacting global growth. On the domestic front tax on FIIs is the major worry. The government has to be cautious on this aspect so as to avoid destabilizing capital flows and thus impacting the overall economy. Post the sharp run up, valuations are no longer compelling. Markets may take a breather before the next move. Debt Market View Gold Corner For the March month, the spot gold closed at per ounce, down or %. In the same period, the U.S. Trade-Weighted Dollar Index rose up by 0.32 %. Gold fell around 5%, to below 1690 an ounce, during the first week of the month. The fall came after U.S. Federal Reserve Chairman Ben Bernanke did not mention another round of monetary easing was imminent. During the last week, the bullion prices rose due to higher oil prices and because of the sharp fall in the US dollar (on account of disappointing U.S housing market data). One of the key factors driving price growth in gold is monetary reflation. This is the expansion of the global money supply, which provides liquidity for the markets, but also tends to devalue the currency. The U.S. debt situation hasn t been on investors radar for a while, but it s still a significant factor in gold s eventual recovery. The chart below depicts the expansion of all of the Federal Reserves total assets over the last 6 years. During 2008, total assets jumped significantly and since then, the Fed s balance sheet has maintained a largely higher level. Items 30th March nd March 2012 Reverse Repo Repo CRR SLR Mibor Overnight Call(O/N) CBLO 1 yr T Bill 10 G Sec USD/INR Source: RBI; Icraonline 7.50% 8.50% 4.75% 24% 11.99% 12.72% 12.04% 8.38% 8.54% % 8.50% 5.50% 24% 9.10% 9.00% 8.30% 8.50% 8.20% Change Nil Nil - 75 bps Nil 289 bps 372 bps 374 bps -12 bps 34 bps Federal Reserve s Bankers Total Assets Federal Reserve Bankets Total Assets (bn) US Dollar Gold USD Inflation 150 Categories Cereals and products Pulses and products Oils and fats Egg, fish and meat Milk and products Condiments and spices Vegetables Fruits Sugar etc Non-alcoholic beverages Prepared meals etc Food and beverages (1 to 11) Fuel and light Clothing, bedding and footwear General Index( All Groups) Source: Mospi CPI Inflation for February 2012 Rates 2.40% 4.17% 12.76% 10.62% 15.76% 8.68% -4.73% 9.17% 3.44% 10.36% 9.64% 6.62% 12.78% 13.22% 8.83% Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Source: Bloomberg Presently gold is trading below 200-day moving average. In fact, over the past 10 years, there have only been about 30 times (or around 3 times per year) where gold has fallen below its 200-day moving average. And each time, gold has been down averagely for only 10 days. Rising wealth in China, Europe s financial instability and high fiscal deficits in the U.S are few of the factors that have conditioned the yellow metal for a possible comeback. While the WPI inflation continues to ease, the inflation as registered by Consumer Price Index rose marginally to 8.83% in Feb112 from inflation rate of 7.65% in Jan-12. The inflation in WPI index also reversed up to 6.95% in Feb-12 from 6.55% in Jan-12. The non-food manufacturing inflation(core inflation) declined to 5.7% in Think s. Think Kotak. 3

4 Name KOTAK 50 An Open-Ended Equity EQUITY FUNDS 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. KOTAK OPPORTUNITIES An Open - Ended Equity Growth To generate capital appreciation from a diversified portfolio of equity and equity related securities. Available Options Dividend Freq. Trustee s Discretion Trustee s Discretion Fund Managers Mr. Pradeep Kumar & Mr. Krishna Sanghvi Mr. Krishna Sanghvi & Mr. Pankaj Tibrewal Inception 31st March 2012 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 Initial : Rs : Rs & in multiples of Re1 Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Turnover: % Beta*: 0.80 Sharpe*: 0.75 Alpha*: 2.42 Standard Deviation*: * Source: Value Research. Nifty 500 December 29,1998 September 9, 2004 Kotak 50 - dividend to Nifty BSE Sensex # of Rs in the #(Rs) # (Rs) Kotak 50 NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Initial : Rs : Rs & in multiples of Re.1. Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Turnover: % Beta*: 0.96 Sharpe*: 0.78 Alpha*: 4.08 Standard Deviation*: * Source: Value Research. Kotak Opportunities - growth (%) ^ to Nifty # of Rs in the #(Rs) # (Rs) Kotak Opportunities NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/ Awaiting listing on Stock Exchange) Infosys Ltd. HDFC Bank Ltd. ITC Ltd. HDFC Ltd. Hindustan Unilever Ltd. Bharti Airtel Ltd. Tata Consultancy Services Ltd. Power Grid Corporation Of India Ltd. Reliance Industries Ltd. ICICI Bank Ltd. Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo Collateral Borrowing & Lending obligation /(Liabilities) Telecom - Services Power 8.76% 7.63% 7.49% 6.17% 5.51% 4.54% 4.29% 4.23% 4.16% 3.26% 36.47% 92.51% 2.14% 5.19% 0.16% Equity & Equity related (Listed/ Awaiting listing on Stock Exchange) ITC Ltd. ICICI Bank Ltd. HDFC Bank Ltd. Reliance Industries Ltd. Infosys Ltd. IndusInd Bank Ltd. Hindustan Unilever Ltd. Yes Bank Ltd. Bharti Airtel Ltd. Dr Reddys Laboratories Ltd. Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo TERM DEPOSITS Kotak Mahindra Bank Ltd. Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) Telecom - Services 5.08% 4.99% 4.92% 4.48% 3.84% 2.97% 2.55% 2.53% 2.36% 2.31% 56.58% 92.61% 6.85% 0.68% 0.68% 0.25% -0.39% Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Term Deposit as provided above is towards margin for derivatives transactions. For the period ended 31st March, 2012 non-hedging transactions through options which have already been exercised/expired are as follows; Total number of contracts entered into were 12300, Gross Notional Value of contracts is Rs lacs and Net Profit/(Loss) on all contracts is Rs lacs. Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Term Deposit as provided above is towards margin for derivatives transactions For the period ended 31st Mar, 2012 hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 460, Total Number of contracts where futures were sold 330,Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs, and Net profit/(loss) value on all these contracts combined Rs.(29.54) lacs For the period ended 31st March, 2012 other than hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 415, Total Number of contracts where futures were sold 690,Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs, and Net profit/(loss) value on all these contracts combined Rs.(59.57) lacs Power Telecom - Services Auto 14.66% 14.16% 14.11% 7.33% 6.65% 6.3% 6.17% 5.92% 4.54% 3.05% 17.11% Cement Power Media and Entertainment 18.1% 12.4% 8.29% 8.06% 7.78% 7.31% 5.06% 3.92% 3.27% 3.14% 22.67% 4 Think s. Think Kotak.

5 Name KOTAK TAX SAVER An Open-Ended Equity Linked Saving EQUITY FUNDS 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. KOTAK MID-CAP An Open - Ended Equity Growth To generate capital appreciation from a diversified portfolio of equity and equity related securities. Available Options Dividend Freq. Trustee s Discretion Trustee s Discretion Fund Managers Mr. Pankaj Tibrewal & Mr. Krishna Sanghvi Mr. Pankaj Tibrewal & Mr. Emmanuel Elango Inception 31st March 2012 is not applicable for Kotak Tax Saver. Initial : Rs. 500 : Rs. 500 & in multiples of Rs. 500 Ideal s Horizon - 3 years AAUM as on March 31, 2012: Crores Ratios: Turnover: % Beta*: 1.01 Sharpe*: 0.73 Alpha*: 2.72 Standard Deviation*: * Source: Value Research. 500 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 Initial : Rs : Rs & in multiples of Re.1. Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Turnover: % Beta*: 0.99 Sharpe*: 0.94 Alpha*: 9.90 Standard Deviation*: * Source: Value Research. CNX Midcap November 23, 2005 February 24, 2005 Kotak Tax Saver - Growth to Nifty # (Rs) of Rs in the Kotak Tax Saver NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/ Awaiting listing on Stock Exchange) Infosys Ltd. ICICI Bank Ltd. ITC Ltd. Reliance Industries Ltd. HDFC Bank Ltd. Motherson Sumi Systems Ltd. Bharti Airtel Ltd. Telecom - Services Punjab National Bank State Bank Of India Oil & Natural Gas Corporation Ltd. Oil Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo Collateral Borrowing & Lending obligation /(Liabilities) # % 5.86% 4.94% 4.64% 4.29% 3.06% 3.02% 2.91% 2.59% 2.46% 56.89% 97.23% 1.77% 0.34% 0.66% Kotak Midcap - Growth to CNX Midcap Nifty # (Rs) of Rs in the Kotak Midcap NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/ Awaiting listing on Stock Exchange) Motherson Sumi Systems Ltd. Solar Industries India Limited Chemicals Hawkins Cooker Ltd. Household Appliances ING Vysya Bank Ltd. Gillette India Ltd. Supreme Industries Limited Industrial Products Torrent Ltd. Zuari Industries Ltd. Fertilisers Indian Bank Yes Bank Ltd. Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo Collateral Borrowing & Lending obligation /(Liabilities) # % 3.21% 2.91% 2.86% 2.71% 2.62% 2.54% 2.54% 2.47% 2.44% 67.90% 96.17% 1.77% 0.36% 1.70% Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Media and Entertainment Industrial Capital Goods Oil 20.48% 11.75% 7.59% 6.88% 5.48% 5.05% 3.68% 3.34% 3.06% 3.03% 29.66% Media and Entertainment Industrial Products Chemicals Industrial Capital Goods Fertilisers 16.77% 9.25% 8.33% 8.25% 6.03% 5.86% 5.39% 3.88% 3.46% 3.22% 29.56% Midcap stocks as a % age of Net Assets: 65.88% Think s. Think Kotak. 5

6 Name Available Options Dividend Freq. Fund Managers Inception 31st March 2012 EQUITY FUNDS To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt & money market instruments. Dividend Payout & Dividend Reinvestment Half Yearly (25th of Mar/Sep) KOTAK BALANCE An Open-Ended Balanced Mr. Emmanuel Elango & Mr. Krishna Sanghvi & Mr. Abhishek Bisen 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 Initial : Rs : Rs & in multiples of Re1 Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Turnover: % Beta*: 0.91 Sharpe*: 0.84 Alpha*: 4.56 Standard Deviation*: *Source: Value Research Balanced Fund Index November 25, 1999 Kotak Balance to Balanced Fund Index Nifty # (Rs) of Rs in the #(Rs) # Kotak Balance NAV (as on, 31st March 2012 ): Rs (Dividend Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). NA KOTAK CONTRA An Open - Ended Equity Growth To generate capital appreciation from a diversified portfolio of equity and equity related securities. Trustee s Discretion Mr. Emmanuel Elango & Mr. Krishna Sanghvi Initial : Rs : Rs & in multiples of Re1 Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Turnover: %. Beta*: 0.87 Sharpe*: 0.81 Alpha*: 4.29 Standard Deviation*: *Source: Value Research. S & P CNX 500 July 27, 2005 Kotak Contra Fund - Growth to Nifty # of Rs in the #(Rs) # (Rs) Kotak Contra NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). 6 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Ltd. Hindustan Unilever Ltd. Infosys Ltd. HDFC Bank Ltd. ITC Ltd. ICICI Bank Ltd. Tata Consultancy Services Ltd. Reliance Industries Ltd. National Thermal Power Corporation Limited Power Amara Raja Batteries Ltd. Listed/Awaiting Listing on Stock Exchange - Total Hedging Positions through Futures as on 31st March, 2012 Underlying Hindalco Industries Ltd. Tata Steel Limited. TERM DEPOSITS Kotak Mahindra Bank Ltd. Standard Chartered Bank Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) Power Cement Long/ Futures Price When purchased Current Price of the Contract % 4.87% 4.72% 4.27% 4.10% 3.24% 3.04% 2.73% 2.47% 2.32% 28.71% 65.44% Margin Maintained in Lakhs Total exposure due to futures (Hedging/ Non-Hedging Positions) as a %age of net assets % 4.88% 18.39% 13.92% 3.40% Term Deposit as provided above is towards margin for derivatives transactions For the period ended 31st March, 2012 hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 22, Gross Notional value of contracts where futures were bought Rs lacs, and Net profit/(loss) value on all these contracts combined Rs.7.61 lacs For the period ended 31st March, 2012 other than hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 16, Total Number of contracts where futures were sold 81, Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs and Net profit/(loss) value on all these contracts combined Rs.(2.97) lacs For the period ended 31st March, 2012 non-hedging transactions through options which have already been exercised/expired are as follows; Total number of contracts entered into were 271, Gross Notional Value of contracts is Rs lacs and Net Profit/(Loss) on all contracts is Rs.5.99 lacs % 10.75% 10.41% 9.02% 5.26% 5.09% 4.97% 3.93% 3.74% 2.32% 12.20% Think s. Think Kotak. Equity & Equity related (Listed/ Awaiting listing on Stock Exchange) ITC Ltd. HDFC Bank Ltd. HDFC Ltd. Infosys Ltd. Hindustan Unilever Ltd. Power Grid Corporation Of India Ltd Power Tata Consultancy Services Ltd. Madras Cements Ltd. Cement National Thermal Power Corporation Limited Power Lupin Ltd. Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo TERM DEPOSITS Standard Chartered Bank Kotak Mahindra Bank Ltd. Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Term Deposit as provided above is towards margin for derivatives transactions For the period ended 31st Mar, 2012 other than hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 28, Total number of contracts where futures were sold 28, Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs and Net profit/(loss) value on all these contracts combined Rs.0.19 lacs For the period ended 31st March, 2012 non-hedging transactions through options which have already been exercised/expired are as follows; Total number of contracts entered into were 555, Gross Notional Value of contracts is Rs lacs and Net Profit/(Loss) on all contracts is Rs lacs. Power Cement 6.26% 6.23% 6.12% 5.96% 4.33% 4.10% 3.98% 3.44% 3.38% 2.96% 38.81% 85.57% 1.54% 4.90% 3.76% 8.66% 2.40% 1.83% 14.2% 12.6% 11.49% 11.48% 8.35% 7.9% 7.01% 6.12% 5.56% 2.91% 12.38%

7 Name KOTAK SELECT FOCUS FUND An Open - Ended Equity EQUITY FUNDS 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. KOTAK EQUITY FOF An Open - Ended Equity Fund of Funds The of the is to generate long term capital appreciation from a portfolio created by investing predominantly in open-ended diversified equity schemes of Mutual Funds registered with SEBI. Available Options Dividend Freq. Trustee s Discretion Trustee s Discretion Fund Managers Mr. Krishna Sanghvi, Mr. Pradeep Kumar & Mr. Abhishek Bisen Mr. Deepak Gupta Inception 31st March 2012 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 Initial : Rs and in multiple of Re. 1 for purchase and for Re 0.01 for switches : Rs and in multiple of Re. 1 Ideal s Horizon years AAUM as on March 31, 2012: Crores Turnover: % S & P CNX Nifty Initial : Rs : Rs & in multiples of Re.1. Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Beta*: 0.90 Sharpe*: 0.72 Alpha*: 2.30 Standard Deviation*: *Source: Value Research S & P CNX Nifty September 11, 2009 August 9, 2004 Kotak Select Focus Fund to Nifty 3.68 BSE Sensex # (Rs) of Rs in the Kotak Select Focus NAV (as on, 31st March 2012 ): Rs Kotak Equity FOF NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. ICICI Bank Ltd. Infosys Ltd. ITC Ltd. HDFC Bank Ltd. IndusInd Bank Ltd. Dr Reddys Laboratories Ltd. Tata Consultancy Services Ltd. Hindustan Unilever Ltd. Yes Bank Ltd. Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo TERM DEPOSITS Kotak Mahindra Bank Ltd. Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) # % 5.76% 5.49% 5.39% 4.94% 2.80% 2.56% 2.55% 2.33% 2.29% 55.19% 95.35% 3.90% 0.54% 0.54% 0.79% -0.58% Kotak Equity FOF to Nifty BSE Sensex # (Rs) of Rs in the stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Opportunities Equity s Prudential ICICI Dynamic Plan Equity s HDFC Top 200 Fund Equity s IDFC Imperial Equity Fund Equity s HDFC Core & Satellite Fund Equity s Mutual Fund Units - Total /(Liabilities) # % 19.44% 17.91% 17.91% 17.82% 94.92% 5.08% Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Term Deposit as provided above is towards margin for derivatives transactions For the period ended 31st Mar, 2012 hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 100, Total Number of contracts where futures were sold 100,Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs, and Net profit/(loss) value on all these contracts combined Rs.(11.24) lacs For the period ended 31st March, 2012 other than hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 230, Total Number of contracts where futures were sold 390,Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs, and Net profit/(loss) value on all these contracts combined Rs lacs Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Cement Media and Entertainment Auto 21% 13.53% 13.2% 10.08% 8.59% 5.23% 4.7% 4.07% 3.88% 3.36% 12.36% Equity s 94.92% 5.08% Risk Factor: Investors shall bear the recurring expenses of the scheme, in addition to the expenses of other schemes in which the Fund of Funds makes investments. Think s. Think Kotak. 7

8 Name 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 EQUITY FUNDS KOTAK EMERGING EQUITY An Open-Ended Equity Growth The investment objective of the scheme is to generate long-term capital appreciation by investing The investment objective of the scheme is to generate long-term capital appreciation from a in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed portfolio of equity and equity related securities, by investing predominantly in mid and small cap by SEBI from time to time in global emerging markets. companies. Available Options Dividend Freq. Trustee s Discretion Trustee s Discretion Fund Managers Mr. Deepak Gupta (Dedicated fund manager for overseas investment) & Mr. Abhishek Bisen Mr. Emmanuel Elango & Mr. Pankaj Tibrewal Inception 31st March 2012 KOTAK GLOBAL EMERGING MARKET FUND An Open-Ended Equity Initial : Rs : Rs. 1000/- & in multiples of Re. 1. Ideal s Horizon: 1-3 years AAUM as on March 31, 2012: Crores Ratios: Beta*: 0.53 Sharpe*: Alpha*: 8.47 Standard Deviation*: *Source: Value Research MSCI Emerging Market Index September 26, 2007 Kotak Global Emerging Equity Market Fund to MSCI Emerging Market Index Nifty # 1.55 (Rs) of Rs in the 8815 # Kotak Global Emerging Market Fund NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). 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 Initial : Rs : Rs. 1000/- & in multiples of Re. 1. Ideal s Horizon: 1-3 years AAUM as on March 31, 2012: Crores Ratios: Turnover: %. Beta*: 0.83 Sharpe*: 0.92 Alpha*: 8.26 Standard Deviation*: *Source: Value Research BSE MID CAP March 30, 2007 Kotak Emerging Equity Fund to BSE Midcap Nifty # 6.73 (Rs) of Rs in the # Kotak Emerging Equity NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Overseas Mutual Fund Units Listed/Awaiting Listing on Stock Exchange ishares MSCI Emerging Markets ETF Listed/Awaiting Listing on Stock Exchange - Total T Rowe Global Emerging Markets Equity Class A USD MGF ASIAN SMALL EQUITY FUND CLASS I Overseas Mutual Fund Units - Total Collateral Borrowing & Lending obligation /(Liabilities) Overseas Mutual Fund Overseas Mutual Fund Overseas Mutual Fund 26.37% 63.70% 7.27% 97.34% 2.16% 0.50% Issuer/ Instrument Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Torrent Ltd. Solar Industries India Limited Gillette India Ltd. Hawkins Cooker Ltd. Motherson Sumi Systems Ltd. Supreme Industries Limited Federal Bank Ltd. Clariant Chemicals (India) Limited Graphite India Ltd. Goodyear India Ltd. Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Standard Chartered Bank Term Deposits - Total /(Liabilities) Industry/ Chemicals Household Appliances Industrial Products Chemicals Industrial Products % to Net Assets 4.86% 4.35% 4.01% 3.51% 3.43% 3.13% 3.02% 2.98% 2.90% 2.73% 58.23% 93.15% 5.87% 5.87% 0.98% Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Overseas Mutual Fund 97.34% 2.16% 0.5% Chemicals Industrial Products Media and Entertainment Cement Transportation Midcap and Small cap stocks as a % age of Net Assets: 89.90% 13.8% 11.61% 8.99% 8.06% 7.8% 7.01% 6.36% 5.87% 5.31% 3.77% 21.42% 8 Think s. Think Kotak.

9 Name Available Plans/ Options Dividend Freq. Fund Managers Inception 31st March 2012 An Open - Ended Equity Growth 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. Monthly (Monday preceding the last Thursday of the month) Mr. Deepak Gupta & Mr. Abhishek Bisen i) For redemptions/switch outs (including SIP/STP) within 90 days from the date of allotment of units, irrespective of the amount of investment: 0.50%; ii) For redemptions/ switch outs (including SIP/STP) after 90days from the date of allotment of units, irrespective of the amount of investment: Nil Liquid Fund Index September 29, 2005 EQUITY FUNDS KOTAK EQUITY ARBITRAGE Initial : Rs : Rs & in multiples of Re1 Ideal s Horizon - Above 3 Months AAUM as on March 31, 2012: Crores Ratios: Turnover: % Beta*: 0.01 Sharpe*: 1.90 Alpha*: 1.51 Standard Deviation*: 0.80 *Source: Value Research. Kotak Equity Arbitrage to Liquid Fund Index Nifty # (Rs) of Rs in the # Kotak Equity Arbitrage NAV (as on, 31st March 2012 ): Rs (Dividend Option), Rs (Growth Option) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Equity & Equity related (Listed/Awaiting listing on Stock Exchange) CORE Education & Technologies Ltd. Reliance Industries Ltd. Pantaloon Retail (india) Ltd. Welspun Corp Limited GVK Power & Infrastructure Ltd. Jindal Steel & Power Ltd. Petronet LNG Ltd. IFCI Ltd. Ruchi Soya Industries Ltd. Dena Bank Listed/Awaiting Listing on Stock Exchange - Total Retailing Ferrous Metals Power Ferrous Metals Gas Hedging Positions through Futures as on 31st March, % 6.18% 5.45% 5.38% 3.45% 3.04% 3% 2.63% 2.56% 2.12% 23.95% 65.31% Underlying Ruchi Soya Industries Ltd. Tata Motors Ltd - DVR Petronet LNG Ltd. Dena Bank Century Textiles & Industries Ltd. Jindal Steel & Power Ltd. IFCI Ltd. GVK Power & Infrastructure Ltd. Reliance Industries Ltd. CORE Education & Technologies Ltd. Welspun Corp Limited Pantaloon Retail (india) Ltd. Long/ Futures Price When purchased Current Price of the Contract Margin Maint ained in Lakhs Underlying Alok Industries Ltd. Praj Industries Ltd. Mahanagar Telephone Nigam Ltd. Max India Ltd. Oriental Bank of Commerce NMDC Ltd. Chambal Fertilisers & Chemicals Ltd Bajaj Hindusthan Limited Patel Engineering Ltd. Sterlite Industries (India) Ltd Bharti Airtel Ltd. Sintex Industries Ltd. Escorts Ltd. National Thermal Power Corporation Limited CESC Ltd. OnMobile Global Limited Hexaware Technologies Ltd. JSW ISPAT Steel Ltd Balrampur Chini Mills Ltd Grasim Industries Ltd. Hindustan Petroleum Corporation Ltd Development Credit Bank Ltd. Hindustan Construction Co.Ltd Cipla Ltd. Essar Oil Ltd. Tata Communications Ltd Sterlite Technologies Ltd NHPC Limited Apollo Tyres Ltd. Tata Teleservices Ltd Tata Global Beverages Limited UCO Bank Raymond Limited Lanco Infratech Ltd Long/ Futures Price When purchased Current Price of the Contract Margin Maint ained in Lakhs Total exposure due to futures (Hedging/ Non-Hedging Positions) as a %age of net assets Reverse Repo TERM DEPOSITS Kotak Mahindra Bank Ltd. Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) Total NPA s provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Term Deposit as provided above is towards margin for derivatives transactions 0.86% 26.77% 26.77% 0.89% 6.17% For the period ended 31st Mar, 2012 hedging transactions through futures which have been squared off/expired are as follows; Total Number of contracts where futures were bought 2968, Total number of contracts where futures were sold 75, Gross Notional value of contracts where futures were bought Rs lacs, Gross Notional value of contracts where futures were sold Rs lacs and Net profit/(loss) value on all these contracts combined Rs lacs Ferrous Metals Power Retailing Telecom - Services Gas 28.52% 8.89% 8.01% 7.57% 6.31% 5.45% 4.73% 4.14% 3.03% 3% 20.35% Think s. Think Kotak. 9

10 Name KOTAK GILT SAVINGS An Open - Ended Dedicated Gilt Unit DEBT FUNDS 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. KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit 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. Available Options Plans- (a) Regular, (b) PF & Trust Options - Dividend Freq. Monthly (12th of every Month) & Annual Quarterly (20th of Mar/Jun/Sep/Dec) Fund Managers Mr Abhishek Bisen & Mr Deepak Agrawal Mr Abhishek Bisen & Mr Deepak Agrawal Inception 31st March 2012 (a) Regular Plan - : Nil. (b) PF & Trust Plan - : Nil Initial : (i) Dividend Re-investment & Growth and Dividend Payout (Annual) - Rs & above (ii) Dividend Payout (Monthly) - Rs. 50,000 & above : Rs & in multiples of Re. 1. Ideal s Horizon - 6 Months and above AAUM as on March 31, 2012: 5.91 Crores Ratios: Beta*: 0.14 Sharpe*: 0.98 Alpha*: 0.92 Standard Deviation*: 1.14 YTM: 8.5% *Source: Value Research. Modified Duration: 0.66 yrs ISEC SIBEX December 29, 1998 Kotak Gilt - Savings Plan - Growth ISEC SIBEX 1 Year (Rs) of Rs in the # (a) Regular Plan - : (b) PF & Trust Plan - : Nil. Initial : Rs : Rs & in multiples of Re.1. Ideal s Horizon - More than 1 year. (a) Regular Plan - AAUM as on March 31, 2012: Crores Ratios: Sharpe*: 0.56 Beta*: 0.26 Alpha*: 2.66 Standard Deviation*: 3.90 (b) PF & Trust Plan - AAUM as on March 31, 2012: Crores Ratios: Sharpe*: 0.57 Beta*: 0.26 Alpha*: 2.67 Standard Deviation*: 3.90 YTM: 9.0 % * Source: Value Research. Modified Duration: 1.91 yrs ISEC Composite Index Regular Plan-December 29, 1998; PF & Trust Plan-November 11, 2003 Kotak Gilt - Regular Plan - Growth ISEC Composite Index 10 Year Gilt Index (Rs) of Rs in the # to Kotak Gilt Savings Plan NAV (as on, 31st March 2012 working day): Rs (Growth Option), Rs (Monthly Dividend), Rs (Annual Dividend) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer. Debt additional benchmark - source: Bloomberg. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate) to Kotak Gilt PF & Trust Plan - Growth to ISEC Composite Index Year Gilt Index (Rs) of Rs in the # The benchmark return corresponds only Kotak Gilt PF and Trust Plan. Kotak Gilt Regular Plan NAV (as on, 31st March 2012 working day): Rs (Growth Option), Rs (Dividend Option). Kotak Gilt PF & Trust Plan NAV (as on, 31st March 2012 working day): Rs (Growth Option), Rs. 155 (Dividend Option). stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer. Debt additional benchmark - source: Bloomberg. For (Debt s): classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of. ## Name of. ^ Past performance may or may <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). Issuer/ Instrument Industry/ % to Net Assets Government d Securities 9.49% State Government Government d Securities - Total Treasury Bills 91 Days Treasury Bill 15/06/2012 Treasury Bills - Total Collateral Borrowing & Lending obligation /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.96 years Valuation of Goverment Securities are as per the Securities and Exchange Board of India (SEBI) circular No. MFD/CIR/No 14/442/2002 dated February 20, Total NPA provided and percentage to NAV: NIL SOV SOV 8.24% 8.24% 64.03% 64.03% 16.29% 11.44% Government d Securities 9.49% State Government 9.23% State Government Government d Securities - Total Treasury Bills 91 Days Treasury Bill 15/06/2012 Treasury Bills - Total Collateral Borrowing & Lending obligation /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.97 years Total NPA provided and percentage to NAV: NIL SOV SOV SOV 21.63% 7.53% 29.16% 22.06% 22.06% 44.90% 3.88% Treasury Bills Government d Securities 64.03% 16.29% 11.44% 8.24% Government d Securities Treasury Bills 44.9% 29.16% 22.06% 3.88% Profile SOV 72.27% 16.29% 11.44% SOV 51.22% 44.9% 3.88% 10 Think s. Think Kotak. 9

11 Name To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. Available Options Dividend Freq. Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Monthly (12th of every Mth) Quarterly (20th of Mar/Jun/Sep/Dec) Fund Managers Mr. Pankaj Tibrewal and Mr. Abhishek Bisen. Mr Pankaj Tibrewal, Mr Krishna Sanghvi & Mr Abhishek Bisen Inception 31st March 2012 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 DEBT FUNDS KOTAK MULTI ASSET ALLOCATION FUND 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. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.44 years Total NPA provided and percentage to NAV: NIL An Open-Ended Debt Initial : Rs : Rs. 1000/- & in multiples of Re. 1. Ideal s Horizon: 1-2 years AAUM as on March 31, 2012: Crores Ratios: Modified Duration: 0.42 yrs, YTM: 10.1% 80% - MIP Blended Fund Index and 20% - price of gold. January 21, 2011 Kotak Multi Asset Allocation Fund - Growth to % - MIP Blended Fund Index and 20% - price of gold Year Gilt Index KOTAK MONTHLY INCOME PLAN (An Open Ended Income Fund. Monthly Income is not assured & is subject to availability of distributable surplus) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% Initial : (i) Dividend Re-investment & Growth and Dividend Payout (Quarterly) - Rs & above (ii) Dividend Payout (Monthly) - Rs. 50,000 & above : Rs & in multiples of Re1 Ideal s Horizon years AAUM as on March 31, 2012: Crores Ratios: Standard Deviation*: 4.36 Sharpe*: 0.88 Beta*: 0.64 Alpha*: 1.83 YTM: 10.1% *Source: Value Research. Modified Duration: 1.02 yrs MIP Blended Index December 02, 2003 Kotak Multi Asset Allocation Fund NAV (as on, 31st March 2012 ): Kotak Monthly Income Plan NAV (as on, 31st March 2012 working Rs (Growth Option), Rs (Annual Dividend), Rs (Monthly Dividend), Rs. day): Rs (Growth Option), Rs (Monthly Dividend), Rs (Quarterly (Quarterly Dividend) Dividend) stands for data not available. Past Performance may or may not be sustained in future. Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the beginning of a stands for data not available. Past Performance may or may not be sustained in future. 12 month period as at the end of that period. Source: ICRA MFI Explorer. Debt additional Note: Point to Point (PTP) in INR show the value of Rs. 10,000/- invested at the benchmark - source: Bloomberg. For (Debt s): classification of schemes in beginning of a 12 month period as at the end of that period. Source: ICRA MFI Explorer. short term & long term is based on the average maturity of the scheme. Debt additional benchmark - source: Bloomberg. For (Debt # Name of. ## Name of. ^ Past performance may or s): classification of schemes in short term & long term is based on the average maturity of may the scheme. <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Growth Rate). # Name of. ## Name of. ^ Past performance may or may Issuer/ Industry/ % to Net Instrument Assets All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. <= 1 year: Absolute; > 1 year: CAGR (Compounded Annualised Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Growth Rate). ICICI Bank Ltd. Gillette India Ltd Motherson Sumi Systems Ltd. Solar Industries India Limited Bank Of Baroda State Bank Of India HDFC Bank Ltd. Infosys Ltd. Zuari Industries Ltd. Punjab National Bank Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units - Total Debt Instruments HDFC Ltd. Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Federal Bank Ltd. Sterlite Energy Ltd Jammu & Kashmir Bank Public Sector Undertakings Vijaya Bank Oriental Bank of Commerce Punjab National Bank Andhra Bank Canara Bank Syndicate Bank Bank of India Public Sector Undertakings - Total TERM DEPOSITS Standard Chartered Bank Kotak Mahindra Bank Ltd. Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) (Rs) Chemicals Fertilisers Mutual Fund Units of Rs in the # % 0.80% 0.67% 0.67% 0.65% 0.64% 0.63% 0.62% 0.57% 0.52% 7.51% 14.19% 7.43% 7.43% 3.58% 3.58% 8.68% 8.51% 2.04% 19.23% 8.59% 8.38% 8.38% 8.37% 6.71% 3.01% 2.12% 45.56% 7.16% 0.18% 7.34% 0.68% 1.99% Kotak Monthly Income Plan - Growth to Issuer/ Instrument MIP Blended Index Year Gilt Index Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.73 years Total NPA provided and percentage to NAV: Nil Industry/ Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. HDFC Bank Ltd. ICICI Bank Ltd. Indian Oil Corporation Ltd. State Bank Of India Gillette India Ltd. Hawkins Cooker Ltd. GlaxoSmithkline Consumer Healthcare Ltd. Oil & Natural Gas Corporation Ltd. Axis Bank Ltd. Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Reliance Capital Ltd. Shriram Transport Co Ltd. Reliance Ports And Terminals Limited Tata Motors Ltd TERM DEPOSITS Standard Chartered Bank Term Deposits - Total Collateral Borrowing & Lending obligation /(Liabilities) (Rs) of Rs in the Household Appliances Oil CARE AAA FITCH AA(ind) AA- # % to Net Assets 1.08% 0.99% 0.95% 0.90% 0.90% 0.87% 0.82% 0.79% 0.70% 0.68% 11.13% 19.81% 21.11% 15.19% 12.06% 2.61% 50.97% 9.86% 9.86% 18.97% 0.39% Commercial Paper (CP)/Certificate of Deposits (CD) Equities Mutual Fund Units 64.79% 14.19% 8.02% 7.43% 3.58% 1.99% Equities 50.97% 28.83% 19.81% 0.39% Profile A1+, AAA Equities Mutual Fund Units 68.37% 14.19% 8.02% 7.43% 1.99% AAA Equities AA(ind), AA % 28.83% 19.81% 17.8% 0.39% Think s. Think Kotak. 11 9