at BSE Auditorium, Mumbai

Transcription

1 April July 30, 31, 2016 Join us on 26th August, 2016 at BSE Auditorium, Mumbai

2 EXPERT SPEAK Mr. Nilesh Shah July 31, 2016 Dear Friends, Mutual Funds in India have seen tremendous growth over the past couple of decades. But still, mutual fund's penetration levels, and its share within the financial assets kitty owned by the Indian households (and even firms, for that matter) remain low. With only around 4-5% of the Indian households having invested in the mutual funds, the potential to expand remains very large. The comparison is especially numbing when we see it in contrast to markets such as the US. In the US, around 44% of the households hold mutual funds. If we consider mutual fund holdings through advisors, the US household holding percentage may go up as high as 80% of the households. The trend is similar globally where mutual funds are the dominant medium through which the retail investor invests in the financial markets. So it is natural that we study their recent market trends to understand the new behavioural trends, investor preferences and market directions to study, anticipate and prepare ourselves better. For instance, in the US, the aum flow tide seems to be turning. Overall assets last year dipped 1.4%, to 15.7 trillion, after rising at a 13% average annual pace since An assessment suggests that in the past 12 month around US 308bn have been redeemed from the active funds while around US 375 bn has been invested into ETFs and passively managed funds. Vanguard, the pioneer of low cost Index and ETF investments is today managing assets in excess of US 3 trillion, which is bigger than the GDP of India. There is a theory here to explain this behaviour. Data suggests that the US investors are tending towards ETFs and for a particular reason: the inability of the most of the active fund managers to consistently beat the benchmark. As per an FT report, less than one in five (19%) U.S. large-cap mutual funds beat the benchmark S&P 500 index in the first quarter of 2016, the lowest rate in a series that goes back to The average margin of underperformance percentage points -- also set a new low. According to another report, this time by S&P Global, fewer than one in five (17.9%) actively managed large-cap U.S. equity funds in the U.S. managed to beat the S&P 500 over the 10-year period through With regard to small-cap funds, the beat rate was little above 1 in 10 (11.6%). There is a school of thought that suggests the maturation of the US market, size of the mutual fund industry, the application of hyper-technology and proliferation of quant based products has reduced the inefficiencies in their market and made outperformance by active fund management difficult. Could there be another reason for underperformance by active fund managers? Clearly the compensation in hedge funds, private equity funds and alternate investment manager is far superior to mutual funds. In mutual fund industry, the owners have become billionaires and fund managers have become famous. In hedge fund & private equity funds, the fund managers have become famous as well as rich. Probably the talent migrated to hedge fund, private equity and alternate investment funds compared to mutual funds. Apart from size and efficiency of market, inability to attract right skill set has contributed to active funds underperforming the benchmark. Let us remember the experience of an Ivy league University Endowment fund where they allowed a star fund management team to go which generated about 16 % return from 1990 to 2005 through superior fund management on issues related to compensation. Post their departure certainly their cost have come down but the return has halved. In India most equity fund managers have outperformed benchmark indices by a big margin creating tremendous value for unit holders. Apart from small size, changing composition of Indian economy and inefficiency of market, the sheer talent pool of equity fund managers have contributed to this outstanding performance. We must ensure that we retain talent and continue to attract outstanding talent in the mutual fund industry, which can continue to generate alpha on a larger size and efficient market. Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW Indian equities reported a strong performance in the month of July 2016 on the back of strong inflows. The large cap Nifty index rose 4.23% while the Nifty Midcap index rose 6.92% (both in INR terms). The market sentiment was boosted by the strong progress of monsoons in India, steady corporate earnings season, expectations of reforms boost with the hope of the passage of the GST (Goods and Services Tax) Bill in the Upper House of the Parliament (Rajya Sabha) during the monsoon session (ending on August 12, 2016) and the continuation of a global risk-on trade. There is also a growing belief that global central banks and governments may explore 'non-monetary' means to revive demand as the policies of low interest rates and QE programmes (Quantitative Easing) have yielded limited success. FIIs (Foreign Institutional Investors) were net buyers to the tune of USD 1.8Bn in the Indian equity markets in July '16, taking the CY16 YTD tally to USD 4.8Bn. Domestic Institutional Investors or DIIs were net buyers in the equity markets to the tune of USD 3Mn. Currently the Nifty is trading at 19xFY17E EPS and 16x FY18E EPS which is at the higher end of the historic valuation band. The question therefore remains as to how sustainable is the current market rally? The key drivers of the market according to us would be (i) improvement in the corporate earnings trajectory (ii) India's superior growth outlook especially over the medium term (iii) structural shift in domestic savings from physical to financial sectors aided by positive real interest rates. In this regard, a number of notable macro economic events are lined up over the next few months, the outcome of which would have a bearing on the direction that the market would take. These include decisions related to monetary policy (next RBI meeting scheduled on August 09, 2016), the appointment of the new RBI (Reserve Bank of India) Governor, the selection of the Monetary Policy Committee (MPC) and the determination of the five year CPI inflation target, the passage of the GST Bill, FCNR (Foreign Currency Non Resident -B) redemptions and the US Federal Reserve action amongst others. Corporate earnings: Driver of markets; domestic consumption the key While all eyes are on the macro developments, the key driver for the Indian markets from hereon will be corporate earnings trajectory. The Q1FY17 earnings season has been fairly stable so far, with earnings upgrades and downgrades being balanced. Retail private sector banks have continued to report strong numbers with healthy asset quality trends and strong loan growth above industry average. Corporate banks however remain under pressure and face stress on their exposures with Non Performing Loans (NPLs) staying elevated. Many of the larger PSBs (Public Sector Banks) are yet to report numbers, but the profitability and asset quality trends remain subdued for the ones which have already reported. Domestic sectors such as automobiles, cement (on the back of higher prices and lower costs) and media companies (strong advertising revenue growth) have seen positive numbers. Rural demand revival remains slow and the volume growth for most consumer companies has been muted. A normal monsoon season should however, help revive rural demand supporting our view that GDP growth in FY17 would be led by consumption. Technology has been a sector which has borne the brunt of the global slowdown with discretionary spending growth being muted. Concerns on margins emanating from pricing pressures, salary hikes, higher visa costs have also had a negative impact. IndAS (the new Indian Accounting Standard which largely follows IFRS reporting) has been implemented from the June 2016 quarter (ex banks and financial services) onwards and several companies have already seen an impact of the same. GST implementation: a huge step forward Provision of enhanced liquidity to the banking system, including reopening of cross-border swap lines and stand-by emergency liquidity. With the Central Government approving key changes to the GST constitutional amendment bill to be presented in the Rajya Sabha Upper House), hopes have increased regarding its passage in the current monsoon session of Parliament. The changes incorporate a) 100% compensation to states for loss on their tax revenues due to GST and b) doing away with a 1% tax on inter-state supply of goods. The GST Bill being a constitutional amendment requires that it be passed by both Houses of Parliament by 2/3 majority and be ratified by half of the states. The Government has been able to build up a broad consensus among the states and the recent event of the cabinet agreeing to most of the key demands will go a long way in ensuring their support. While the present Government has majority in the er House of the Parliament (Lok Sabha), it is in minority in the Upper House and hence needs support of other political parties. At present, the Rajya Sabha has 243 members and 82 votes would be needed to oppose the GST bill. The parties such as Congress, Left (CPI + CPI(M)) and AIADMK together reach the mark of 82. However, if the Left parties or AIADMK votes for GST or even abstains, the government will be able to pass the legislation. The benefits of GST includes that of an unified national market, simpler tax rules and relative advantage of the formal sector over the informal sector. While the benefits of GST may not flow through in the near term, over time we do anticipate a positive impact on GDP growth. The impact both on growth and inflation would depend on the actual rate of GST and the tax brackets for each of the product categories. Currently we expect that sectors such as automobiles, consumer staples and consumer durables, along with media and entertainment could be positively impacted. Monetary policy: RBI likely to stay on hold ; 25-50bps cut in FY17 still a possibility We expect Reserve Bank of India (RBI) to maintain status quo on policy rates in the monetary policy review on August 09, Currently, the repo rate is at 6.5% and the reverse repo rate is at 6%. Headline CPI (Consumer Price Index) inflation has stayed elevated over the past 3 months and, in fact, is anticipated to remain so for the next couple of months on the back of higher prices of vegetables and pulses. With near term inflation remaining high, we believe that RBI would refrain from immediately cutting rates. Towards the second half of the year, with monsoons having been normal thus far, the pressure on food inflation would ease. Pulses output is expected to be bumper this year (going by sowing data so far) causing sharp disinflation in the commodity. Also, international food prices which had spiked March onwards, have reversed course. Crude oil, too, has corrected in July With this backdrop, we continue to expect 25-50bps easing in FY17. The appointment of the new RBI Governor, members of the Monetary Policy Committee (MPC) and the course of action of the US Federal Reserve would be the key in determining the timing of the same. Monsoon progress : rural demand revival hopes improve Monsoons in India have been progressing well after a slow start in the month of June As per the data till July 27, 2016, cumulative rainfall was 1% surplus as compared to the Long Period Average. On a regional basis, most of India received normal to excess rainfall with some parts of western India and north-east India remaining deficient. Out of the 36 sub-divisions across India, till date, 11 have received excess rainfall, 17 have received normal rainfall, and eight have received deficient rainfall. With rainfall being good, Kharif (autumn/winter crop) acreage as of July 29, 2016 was 6.3% higher than the same period last year.. With better sowing trends, the spike in food inflation is likely to abate and this would be favourable for overall CPI inflation. Fiscal deficit in April-June at 61% of FY17 budget; Government needs to keep a tight leash on expenditure; disinvestment could be the key The fiscal deficit in April-June 2016 was 61% of the FY17 budget estimate. The growth in tax collections remained robust with gross tax collections growing 30.6% YoY, higher than the 11.9% growth budgeted in FY17. Indirect tax collections grew 34.5% and direct taxes grew 26%. Total expenditure rose 18.8% and capital expenditure growth lagged revenue expenditure. On the positive note, plan expenditure growth stood at 28.2% YoY on the back of the rise in rural and agricultural spending. Since the last couple of months, we have been witnessing a renewed thrust on rural spending in an effort to revive consumption therein. The government has set itself a target of 3.5% fiscal deficit in FY17. While meeting this level would be certainly challenging, we believe that the government would definitely try not to breach the same, given that credit rating agencies are keeping a close watch. The Government would be banking on robust tax revenue collections and higher disinvestment receipts in order to keep the overall government finance under check. Key Variables Short - term Economy Medium - term Remarks Improving growth, falling inflation Corporate Earnings FII Flow Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY17) India stands out among global asset classes with improving macro-economic variables and prospects of strong long term growth DII Flow Supply of paper Focus on improving financial savings of households er disinvestment target and repair of leveraged balance sheet to create supply in markets Interest Rates Policy/Reform Initiative Fall in interest rates to help revive demand and reduce stress for companies with significant debt. Market expecting better transmission of rates. GST is key reform for government to focus on; if it gets passed, can provide a significant fillip 2

4 DEBT VIEW Items Jul-16 Jun-16 Change Reverse Repo 6.00% 6.00% Nil Repo 6.50% 6.50% Nil CRR 4% 4% Nil SLR 21.25% 21.25% Nil Mibor Overnight 6.59% 6.43% 16 bps Call(O/N) 6.35% 6.38% - 3 bps CBLO 6.28% 6.37% - 9 bps 1 yr T Bill 6.73% 6.88% - 15 bps 10 G Sec 7.17% 7.45% - 28 bps 5 Year AAA 7.64% 8.05% - 41 bps USD/INR paise Source: RBI; ICRAonline. Key Events: Headline CPI inflation remained unchanged in the June month at 5.8% YoY, Vs 5.76% in May-16. Crude Oil prices plunged to 42.46/barrel (15% MoM) during the month. FOMC : The Fed's policy-setting committee left its benchmark overnight interest rate in a range of 0.25 % to 0.50% Near-term risks to the economic outlook have diminished," The Fed noted, however, that inflation expectations were on balance little changed in recent months, and gave no firm indication of whether it would raise rates at its next policy meeting in September. India: Exports rise for the first time in 18 months. Exports rose 1.3% y-o-y in June, the first expansion in 18 months, beating expectations. Non-oil exports grew 3.1% y-o-y, rising for the second consecutive month after 16 months of contraction (May: 1% y-o-y). The contraction in imports also eased to 7.3% y-o-y vs 13.2% in May. Oil imports picked up sequentially, while core imports (ex-oil, gold) contracted at a slower pace as volumes improved. With import contraction easing, the trade deficit widened to US 8.1 bn in June from US 6.3bn in May Japanese Prime Minister Shinzo Abe's plan for 265 billion stimulus puts pressure on BOJ to ease further - Japan's PM unveiled a surprisingly large 265 billion stimulus package on Wednesday to reflate the world's 3rd-largest economy, adding pressure on the central bank to match the measures with monetary stimulus later this week Debt Outlook Long Term Curve: Bond yields rallied by close to 25 bps during the month of July year gilt yield was down from 7.41% to 7.16% levels. We have become more confident of a 50 bps rate cut over the course of next 1 year, based on positive domestic (good monsoon and good pulses harvest may lead to sharply lower headline CPI inflation reading, easy liquidity and low credit off take) and global factors (global growth concern leading to lower bond yields and lower commodity prices ) In case Liquidity become tight post FCNR deposit maturity, then we expect RBI to resume OMO, which would be positive for Gilts For above stated reasons, we revise our 10 year trading range and believe that the 10 year gilt would trend downward in the % band over the course of next 6 months Short-Term Curve (3m -24 m): Short term rates up to 3 months are trading in the range of bps above CBLO rates NBFC spread has also compressed by bps given the excess liquidity in the market Rates in the 6m-24m segments have moved down by bps during last month and we expect further drop in these segment on rate cuts or post the FCNR deposit maturity Key variables & their impact on interest rates: Key Variables Inflation Rupee Credit Demand Government Borrowing RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Short - term (3-6 month) Medium term (6month 2 years) Liquidity Denotes fall in interest rates 3 3

5 GOLD VIEW The commodities space was a mix bag in the July month. While the crude oil was falling the Gold price rose. The difference was huge. Crude oil fell by approximately 15% while the gold rose by 2%. As we have highlighted in the previous note, Gold has always been perceived to be a safe haven currency in the time of geo political risk or excessive easing in MPR (Monitory Policy Review) particularly by FED. We gave a call on gold purely on technical basis and now we believe that a large move may be behind us and now on it may have limited upside from hereon in the short to medium term. However, Gold can always be taken as insurance for an unforeseen eventuality. Our domestic fundamentals have been changing as we have got better product - the gold bond. This will change the demand supply dynamics of the gold market. The govt has just pushed the pedal on reforms and the mile stone of GST will be a big positive for India. This, coupled with good monsoon will support INR in medium to long term. Therefore a large part of the Gold return which used to come from currency depreciation will be capped and probably can act otherwise. The currency wars will keep Gold supportive in dollar terms. The impending expectation of the US Fed rate hike will keep it range bound. India Story is unfolding and it has a long way to go therefore equities can be a better play followed by bonds then gold bonds and then gold for the 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 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) AAUM as on July 31, 2016: `1, AUM (` In Crores) AUM as on July 31, 2016: `1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 46.15% Beta: 1.04 ## Sharpe :0.87 Standard Deviation : 16.21% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.21% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.60 Infosys Ltd. Software 6.11 ITC Ltd. Consumer Non Durables 5.34 ICICI Bank Ltd. Banks 4.40 Reliance Industries Ltd. Petroleum Products 4.29 IndusInd Bank Ltd. Banks 4.18 Axis Bank Ltd Banks 3.94 Larsen And Toubro Ltd. Construction Project 3.62 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.54 Maruti Suzuki India Limited Auto 3.38 HDFC Ltd. Finance 2.56 Tata Motors Ltd - DVR Auto 2.44 Mahindra & Mahindra Ltd. Auto 2.30 Tata Consultancy Services Ltd. Software 2.26 Ultratech Cement Ltd. Cement 2.19 Bharat Petroleum Corporation Ltd. Petroleum Products 1.98 Hero MotoCorp Ltd. Auto 1.93 HCL Technologies Ltd. Software 1.87 Lupin Ltd. Pharmaceuticals 1.63 Britannia Industries Ltd. Consumer Non Durables 1.58 Power Grid Corporation Of India Ltd Power 1.52 Shree Cement Ltd. Cement 1.52 Asian Paints Ltd. Consumer Non Durables 1.40 Grasim Industries Ltd. Cement 1.39 The Ramco Cements Ltd Cement 1.33 Kajaria Ceramics Ltd. Construction 1.31 DB Corp Limited Media and Entertainment 1.24 State Bank Of India Banks 1.23 Nestle India Ltd. Consumer Non Durables 1.20 Equitas Holdings Ltd Finance 1.15 MRF Limited Auto Ancillaries 1.13 Cadila Healthcare Ltd. Pharmaceuticals 1.09 Persistent Systems Limited Software 1.03 Jubilant Foodworks Limited Consumer Non Durables 1.02 Indraprastha Gas Ltd. Gas 1.01 Siemens Ltd. Industrial Capital Goods 0.99 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Sanofi India Ltd. Pharmaceuticals 0.98 Alstom India Limited Industrial Capital Goods 0.90 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.90 Supreme Industries Limited Industrial Products 0.89 Bharat Electronics Ltd Industrial Capital Goods 0.88 Bayer Cropscience Ltd. Pesticides 0.84 Tech Mahindra Ltd. Software 0.82 Fag Bearings India Ltd. Industrial Products 0.79 Bank Of Baroda Banks 0.76 Adani Port and Special Economic Zone Limited Transportation 0.58 Bharat Forge Ltd. Industrial Products 0.49 Strides Shasun Ltd. Pharmaceuticals 0.49 HDFC Ltd. Warrants Finance 0.45 DR.Lal Pathlabs Ltd Healthcare Services 0.35 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.42 Collateral Borrowing & Lending obligation 1.91 Net Current /(Liabilities) Inception : - December 29, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak 50 NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Construction Project Petroleum Products Finance Industrial Capital Goods Others 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,110, , , ,695 1,265,509 2,141,327 12,248, , , ,087 1,152,292 1,912,086 7,456, , , ,999 1,128,427 1,864,043 7,499, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 5 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.86 ## Sharpe :0.84 Standard Deviation : 13.88% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.47% Direct: 1.09% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.06 Infosys Ltd. Software 5.78 ITC Ltd. Consumer Non Durables 5.66 Reliance Industries Ltd. Petroleum Products 5.28 Grasim Industries Ltd. Cement 4.71 Bharat Petroleum Corporation Ltd. Petroleum Products 4.47 Asian Paints Ltd. Consumer Non Durables 3.68 Hero MotoCorp Ltd. Auto 3.65 Zee Entertainment Enterprises Ltd Media and Entertainment 3.44 Ultratech Cement Ltd. Cement 3.07 Tata Motors Ltd. Auto 2.83 Bajaj Finance Limited Finance 2.44 Hindustan Unilever Ltd. Consumer Non Durables 2.30 Bajaj Auto Ltd. Auto 1.87 Eicher Motors Ltd Auto 1.73 Larsen And Toubro Ltd. Construction Project 1.59 Petronet LNG Ltd. Gas 1.57 Axis Bank Ltd Banks 1.52 Lupin Ltd. Pharmaceuticals 1.45 HDFC Ltd. Finance 1.43 Power Grid Corporation Of India Ltd Power 1.41 Wipro Ltd. Software 1.28 IndusInd Bank Ltd. Banks 1.20 National Thermal Power Corporation Limited Power 1.17 Tata Consultancy Services Ltd. Software 1.10 Tata Steel Limited. Ferrous Metals 1.05 HDFC Ltd. Warrants Finance 0.96 GAIL (India) Ltd. Gas 0.89 Tech Mahindra Ltd. Software 0.84 Mahindra & Mahindra Ltd. Auto 0.77 ICICI Bank Ltd. Banks 0.70 Bharti Airtel Ltd. Telecom - Services 0.66 JSW Steel Ltd. Ferrous Metals 0.63 Britannia Industries Ltd. Consumer Non Durables 0.59 Ashok Leyland Ltd. Auto 0.56 Marico Ltd. Consumer Non Durables 0.54 Ambuja Cements Ltd Cement 0.52 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) HCL Technologies Ltd. Software 0.50 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.49 Divi s Laboratories Limited Pharmaceuticals 0.48 Yes Bank Ltd Banks 0.47 Aurobindo Pharma Ltd. Pharmaceuticals 0.44 ACC Ltd. Cement 0.43 Alkem Laboratories Ltd Pharmaceuticals 0.43 Pidilite Industries Ltd. Chemicals 0.41 Equitas Holdings Ltd Finance 0.39 Dr Reddys Laboratories Ltd Pharmaceuticals 0.34 Hindalco Industries Ltd Non - Ferrous Metals 0.34 Bosch Limited Auto Ancillaries 0.33 Shriram Transport Finance Co Ltd. Finance 0.22 Advanced Enzyme Technologies Ltd Healthcare Services 0.11 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.02 Maruti Suzuki India Limited Auto 0.01 Listed/Awaiting Listing on Stock Exchange - Total Futures CNX NIFTY-AUG IndusInd Bank Ltd.-AUG Maruti Suzuki India Limited-AUG Bajaj Auto Ltd.-AUG Axis Bank Ltd-AUG ICICI Bank Ltd.-AUG Yes Bank Ltd-AUG Futures (Market value represents Notional Value) - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 5.19 Collateral Borrowing & Lending obligation 9.43 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,320, , , ,495 1,257,738 2,162,687 2,528, , , ,658 1,184,471 1,988,276 2,360, , , ,087 1,152,292 1,912,086 2,272, 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 July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Cement Consumer Non Durables Pharmaceuticals Derivatives Petroleum Products Others CBLO&Term Deposits&Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 22.43% Beta: 0.98 ## Sharpe :1.04 Standard Deviation :15.88% Source: ICRA MFI Explorer. ##Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.33% Direct: 1.16% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.12 Infosys Ltd. Software 4.78 Bajaj Finance Limited Finance 4.11 ITC Ltd. Consumer Non Durables 3.59 Shree Cement Ltd. Cement 3.54 Hindustan Petroleum Corporation Ltd Petroleum Products 3.36 Hero MotoCorp Ltd. Auto 3.17 Axis Bank Ltd Banks 2.87 Bharat Petroleum Corporation Ltd. Petroleum Products 2.79 ICICI Bank Ltd. Banks 2.77 Maruti Suzuki India Limited Auto 2.65 Ultratech Cement Ltd. Cement 2.53 Larsen And Toubro Ltd. Construction Project 2.41 IndusInd Bank Ltd. Banks 2.40 UPL Ltd Pesticides 2.32 State Bank Of India Banks 2.27 Dalmia Bharat Ltd Cement 2.23 Reliance Industries Ltd. Petroleum Products 2.20 Tata Motors Ltd. Auto 1.97 Britannia Industries Ltd. Consumer Non Durables 1.91 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.90 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.87 Max Financial Services Ltd. Finance 1.82 Mahindra & Mahindra Ltd. Auto 1.81 The Ramco Cements Ltd Cement 1.70 Indraprastha Gas Ltd. Gas 1.68 Tech Mahindra Ltd. Software 1.64 Petronet LNG Ltd. Gas 1.57 Lupin Ltd. Pharmaceuticals 1.41 HCL Technologies Ltd. Software 1.40 National Buildings Construction Corporation Limited Construction 1.22 Multi Commodity Exchange of India Limited Finance 1.17 Healthcare Global Enterprises Ltd Healthcare Services 1.16 Va Tech Wabag Limited Engineering Services 1.07 Arvind Ltd Textile Products 1.06 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - September 09, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Opportunities NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement Gas Construction Project * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,420, , , ,290 1,391,839 2,420,898 3,641, , , ,288 1,204,466 1,996,825 2,766, , , ,087 1,152,257 1,912,051 2,702, Ashok Leyland Ltd. Auto 1.06 Persistent Systems Limited Software 1.02 JK Cement Ltd. Cement 0.97 Whirlpool of India Ltd. Consumer Durables 0.97 Fag Bearings India Ltd. Industrial Products 0.96 MRF Limited Auto Ancillaries 0.96 AIA Engineering Limited Industrial Capital Goods 0.95 Bank Of Baroda Banks 0.94 Container Corporation of I ndia Ltd. Transportation 0.93 DR.Lal Pathlabs Ltd Healthcare Services 0.90 Techno Electric & Engineering Co Ltd. Construction Project 0.85 Federal Bank Ltd. Banks 0.80 Equitas Holdings Ltd Finance 0.73 Cummins India Ltd. Industrial Products 0.65 MBL Infrastructures Ltd. Construction 0.59 Prestige Estates Projects Limited Construction 0.57 HDFC Ltd. Warrants Finance 0.54 SKF India Ltd Industrial Products 0.51 CESC Ltd. Power 0.49 D-Link (India) Ltd Hardware 0.46 Swaraj Engines Ltd Industrial Products 0.43 Max India Limited Healthcare Services Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.14 Listed/Awaiting Listing on Stock Exchange - Total Futures Cummins India Ltd.-AUG Futures (Market value represents Notional Value) - Total 0.21 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.43 Collateral Borrowing & Lending obligation 1.52 Net Current /(Liabilities) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) AAUM as on July 31, 2016: ` 5, AUM (` In Crores) AUM as on July 31, 2016: ` 5, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 19.80% Beta: 1.00 ## Sharpe : 1.17 Standard Deviation : 16.19% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.01% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.91 Reliance Industries Ltd. Petroleum Products 4.63 Ultratech Cement Ltd. Cement 4.24 Infosys Ltd. Software 4.11 ITC Ltd. Consumer Non Durables 3.91 The Ramco Cements Ltd Cement 3.64 Hero MotoCorp Ltd. Auto 3.51 Shree Cement Ltd. Cement 3.38 Axis Bank Ltd Banks 3.19 IndusInd Bank Ltd. Banks 3.11 Hindustan Petroleum Corporation Ltd Petroleum Products 3.05 Mahindra & Mahindra Ltd. Auto 2.94 Max Financial Services Ltd. Finance 2.81 Bajaj Finance Limited Finance 2.74 Larsen And Toubro Ltd. Construction Project 2.73 Maruti Suzuki India Limited Auto 2.71 Britannia Industries Ltd. Consumer Non Durables 2.27 Indraprastha Gas Ltd. Gas 2.09 Petronet LNG Ltd. Gas 2.07 ICICI Bank Ltd. Banks 1.98 Bharat Electronics Ltd Industrial Capital Goods 1.97 Bharat Petroleum Corporation Ltd. Petroleum Products 1.95 Tata Motors Ltd. Auto 1.92 State Bank Of India Banks 1.74 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.59 Equitas Holdings Ltd Finance 1.54 HCL Technologies Ltd. Software 1.51 Lupin Ltd. Pharmaceuticals 1.51 Godrej Consumer Products Ltd. Consumer Non Durables 1.45 Arvind Ltd Textile Products 1.33 Ashok Leyland Ltd. Auto 1.30 Bajaj Finserv Ltd. Finance 1.24 Container Corporation of India Ltd. Transportation 1.18 MRF Limited Auto Ancillaries 1.10 Jk Lakshmi Cement Ltd. Cement 1.03 Bayer Cropscience Ltd. Pesticides 0.99 Federal Bank Ltd. Banks 0.94 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) SYSTEMATIC INVESTMENT PLAN (SIP) Cadila Healthcare Ltd. Pharmaceuticals 0.91 Tech Mahindra Ltd. Software 0.91 Techno Electric & Engineering Co Ltd. Construction Project 0.89 Solar Industries India Limited Chemicals 0.75 Bank Of Baroda Banks 0.70 AIA Engineering Limited Industrial Capital Goods 0.66 Kec International Ltd. Power 0.59 Max India Limited Healthcare Services 0.55 Navkar Corporation Limited Transportation 0.51 Whirlpool of India Ltd. Consumer Durables 0.43 HDFC Ltd. Warrants Finance 0.33 CESC Ltd. Power 0.31 Kirloskar Oil Engines Ltd. Industrial Products 0.22 IFB Industries Ltd. Consumer Durables Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.02 Advanced Enzyme Technologies Ltd Healthcare Services 0.01 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.45 Collateral Borrowing & Lending obligation 2.77 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) Inception : - September 11, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Select Focus Fund NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Gas Auto Pharmaceuticals Finance Consumer Non Durables Cement Construction Project Others year 3 years 5 years Since Inception 120, , , , , , ,598 1,466, , , ,361 1,143, , , ,087 1,114, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 19.62% Beta: 1.05 ## Sharpe : 1.01 Standard Deviation : 17.06% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `500 and in multiple of `500 Investment: `500 & in multiples of `500 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Exit Load is not applicable for Kotak Tax Saver. (applicable for all plans) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.46% Direct: 1.21% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.56 Infosys Ltd. Software 5.19 Reliance Industries Ltd. Petroleum Products 4.23 ITC Ltd. Consumer Non Durables 4.08 Shree Cement Ltd. Cement 3.90 IndusInd Bank Ltd. Banks 3.32 Axis Bank Ltd Banks 3.25 Hindustan Petroleum Corporation Ltd Petroleum Products 3.05 ICICI Bank Ltd. Banks 3.05 Bajaj Finance Limited Finance 3.03 Ultratech Cement Ltd. Cement 3 Bharat Petroleum Corporation Ltd. Petroleum Products 2.99 Hero MotoCorp Ltd. Auto 2.90 Whirlpool of India Ltd. Consumer Durables 2.60 State Bank Of India Banks 2.52 Larsen And Toubro Ltd. Construction Project 2.20 Tata Motors Ltd. Auto 2.14 Techno Electric & Engineering Co Ltd. Construction Project 2.08 Britannia Industries Ltd. Consumer Non Durables 2.01 SKF India Ltd Industrial Products 1.93 Dalmia Bharat Ltd Cement 1.89 Mahanagar Gas Ltd Gas 1.78 SRF Ltd. Textile Products 1.77 Lupin Ltd. Pharmaceuticals 1.75 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.67 The Ramco Cements Ltd Cement 1.66 Max Financial Services Ltd. Finance 1.58 Tech Mahindra Ltd. Software 1.57 UPL Ltd Pesticides 1.51 Solar Industries India Limited Chemicals 1.49 Cadila Healthcare Ltd. Pharmaceuticals 1.48 Ashok Leyland Ltd. Auto 1.34 Federal Bank Ltd. Banks 1.30 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Multi Commodity Exchange of India Limited Finance 1.27 Arvind Ltd Textile Products 1.23 Container Corporation of India Ltd. Transportation 1.21 HCL Technologies Ltd. Software 1.21 Bank Of Baroda Banks 1.15 AIA Engineering Limited Industrial Capital Goods 1.04 Blue Dart Express Ltd. Transportation 1 Thermax Ltd. Industrial Capital Goods 0.98 Hawkins Cooker Ltd Household Appliances 0.84 Navneet Education Ltd. Media and Entertainment 0.84 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 0.69 MBL Infrastructures Ltd. Construction 0.63 Cummins India Ltd. Industrial Products 0.53 KSB Pump Ltd Industrial Products 0.53 Maruti Suzuki India Limited Auto 0.38 Max India Limited Healthcare Services Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Advanced Enzyme Technologies Ltd Healthcare Services 0.01 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.03 Corporate Debt/Financial Institutions - Total 0.03 Collateral Borrowing & Lending obligation 2.10 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 July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Pharmaceuticals Consumer Non Durables Petroleum Products Cement Finance Construction Project Industrial Products Others * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,280, , , ,961 1,322,372 2,169,298 2,387, , , ,288 1,204,596 1,996,956 2,212, , , ,087 1,152,292 1,912,086 2,133, Auto Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover:47.58% Beta: 1.01 ## Sharpe : 1.45 Standard Deviation : 18.53% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.50% Direct: 1.24% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Finolex Cables Ltd. Industrial Products 3.41 Atul Ltd. Chemicals 2.90 DB Corp Limited Media and Entertainment 2.85 Techno Electric & Engineering Co Ltd. Construction Project 2.84 Federal Bank Ltd. Banks 2.59 The Ramco Cements Ltd Cement 2.52 Whirlpool of India Ltd. Consumer Durables 2.52 Fag Bearings India Ltd. Industrial Products 2.46 IndusInd Bank Ltd. Banks 2.45 Persistent Systems Limited Software 2.39 Hindustan Petroleum Corporation Ltd Petroleum Products 2.37 Solar Industries India Limited Chemicals 2.35 ICICI Bank Ltd. Banks 2.27 Kewal Kiran Clothing Limited. Textile Products 2.26 Hawkins Cooker Ltd Household Appliances 2.04 Shriram City Union Finance Ltd. Finance 2.04 SRF Ltd. Textile Products 2.02 JK Cement Ltd. Cement 2.01 Strides Shasun Ltd. Pharmaceuticals 1.98 Alkem Laboratories Ltd Pharmaceuticals 1.91 Divi s Laboratories Limited Pharmaceuticals 1.83 Motherson Sumi Systems Ltd. Auto Ancillaries 1.79 Va Tech Wabag Limited Engineering Services 1.76 Thermax Ltd. Industrial Capital Goods 1.72 Shriram Transport Finance Co Ltd. Finance 1.70 Mahindra & Mahindra Financial Services Ltd. Finance 1.64 Bajaj Finserv Ltd. Finance 1.61 MRF Limited Auto Ancillaries 1.54 Voltas Ltd. Construction Project 1.54 Britannia Industries Ltd. Consumer Non Durables 1.53 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.53 HSIL Ltd. Consumer Durables 1.48 Bajaj Finance Limited Finance 1.47 Arvind Ltd Textile Products 1.46 Pennar Engineered Building Systems Limited Ferrous Metals 1.46 Sundaram Finance Ltd. Finance 1.43 Axis Bank Ltd Banks 1.40 Bharat Forge Ltd. Industrial Products 1.38 Jubilant Foodworks Limited Consumer Non Durables 1.33 PVR Ltd. Media and Entertainment 1.31 Havells India Ltd. Consumer Durables 1.30 Cadila Healthcare Ltd. Pharmaceuticals 1.27 Adani Port and Special Economic Zone Limited Transportation 1.22 Jk Lakshmi Cement Ltd. Cement 1.16 NIIT Technologies Ltd Software 1.16 Navneet Education Ltd. Media and Entertainment 1.12 Kansai Nerolac Paints Ltd Consumer Non Durables 1.10 UPL Ltd Pesticides 1 Zuari Agro Chemicals Ltd Fertilisers 0.95 SKF India Ltd Industrial Products 0.92 Balrampur Chini Mills Ltd Consumer Non Durables 0.89 Bharat Petroleum Corporation Ltd. Petroleum Products 0.89 Bank Of Baroda Banks 0.84 WPIL Ltd Industrial Products 0.82 Power Mech Projects Ltd Power 0.74 Tech Mahindra Ltd. Software 0.73 Supreme Industries Limited Industrial Products 0.50 Union Bank Of India Banks 0.18 CNX NIFTY Put Option - September Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 3.61 Net Current /(Liabilities) 0.41 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 July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks 5.30 Consumer Durables Chemicals Others Cement Textile Products Pharmaceuticals Consumer Non Durables Media & Entertainment Industrial Products Finance Midcap and Small cap stocks as a % age of Net : 81.34% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,370, , ,754 1,073,157 1,677,872 2,870,661 3,603, , , ,332 1,356,476 2,351,899 3,001, , , ,087 1,152,292 1,912,086 2,477, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: `1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 39.55% Beta: 0.97 ## Sharpe :1.67 Standard Deviation : 18.12% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.25% Direct: 1.05% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) V-Guard Industries Ltd. Industrial Capital Goods 3.98 Finolex Cables Ltd. Industrial Products 3.50 Whirlpool of India Ltd. Consumer Durables 3.27 The Ramco Cements Ltd Cement 3.03 Fag Bearings India Ltd. Industrial Products 2.93 Solar Industries India Limited Chemicals 2.79 DB Corp Limited Media and Entertainment 2.73 IndusInd Bank Ltd. Banks 2.59 Persistent Systems Limited Software 2.55 Federal Bank Ltd. Banks 2.46 Atul Ltd. Chemicals 2.43 Hawkins Cooker Ltd Household Appliances 2.34 SRF Ltd. Textile Products 2.31 Strides Shasun Ltd. Pharmaceuticals 2.29 Carborundum Universal Ltd. Industrial Products 2.07 PVR Ltd. Media and Entertainment 2.04 ICICI Bank Ltd. Banks 2.02 Kewal Kiran Clothing Limited. Textile Products 1.97 Alkem Laboratories Ltd Pharmaceuticals 1.96 Motherson Sumi Systems Ltd. Auto Ancillaries 1.92 Shriram City Union Finance Ltd. Finance 1.87 Mahindra & Mahindra Financial Services Ltd. Finance 1.69 Navneet Education Ltd. Media and Entertainment 1.66 Indraprastha Gas Ltd. Gas 1.60 Va Tech Wabag Limited Engineering Services 1.59 Finolex Industries Ltd. Industrial Products 1.57 Pennar Engineered Building Systems Limited Ferrous Metals 1.51 Jk Lakshmi Cement Ltd. Cement 1.50 Bajaj Finance Limited Finance 1.49 Divi s Laboratories Limited Pharmaceuticals 1.41 SKF India Ltd Industrial Products 1.41 Sundaram Finance Ltd. Finance 1.41 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.33 Ramkrishna Forgings Ltd. Industrial Products 1.31 PNC INFRATECH LIMITED Construction Project 1.29 Britannia Industries Ltd. Consumer Non Durables 1.23 Jubilant Foodworks Limited Consumer Non Durables 1.20 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Max Financial Services Ltd. Finance 1.19 Axis Bank Ltd Banks 1.17 Equitas Holdings Ltd Finance 1.16 Greaves Cotton Ltd. Industrial Products 1.11 Coromandel International Ltd. Fertilisers 1.10 D-Link (India) Ltd Hardware 1.07 Oberoi Realty Ltd Construction 0.92 GMM Pfaudler Ltd. Engineering 0.90 Power Mech Projects Ltd Power 0.88 Zuari Agro Chemicals Ltd Fertilisers 0.86 Maharashtra Seamless Ltd. Ferrous Metals 0.85 WPIL Ltd Industrial Products 0.83 Kirloskar Brothers Ltd. Industrial Products 0.69 Engineers India Ltd. Construction Project 0.68 IDFC Bank Limited Banks 0.66 Supreme Industries Limited Industrial Products 0.64 Kec International Ltd. Power 0.61 Multi Commodity Exchange of India Limited Finance 0.58 Bank Of Baroda Banks 0.55 IFB Industries Ltd. Consumer Durables 0.50 Blue Dart Express Ltd. Transportation 0.40 KPIT Technologies LImited Software 0.37 Max India Limited Healthcare Services 0.30 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.25 Collateral Borrowing & Lending obligation 5.90 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 July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Pharmaceuticals Banks Industrial Capital Goods Finance Cement Media and Entertainment CBLO & Term Deposits & Rev.Repo Chemicals Textile Products Others Midcap and Small cap stocks as a % age of Net : 86.99% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years Since Inception 120, , , ,000 1,120, , ,788 1,169,933 1,811,581 2,733, , , ,974 1,341,323 2,034, , , ,087 1,152,292 1,728, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. There is no assurance that the investment objective of the will be achieved. However, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover:34.09% Beta: 1.11 ## Sharpe :1.16 Standard Deviation : 20.55% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.61% Direct: 1.15% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 8.47 Ultratech Cement Ltd. Cement 7.38 Larsen And Toubro Ltd. Construction Project 6.64 SKF India Ltd Industrial Products 5.82 Indraprastha Gas Ltd. Gas 5.28 Thermax Ltd. Industrial Capital Goods 5.23 Kirloskar Oil Engines Ltd. Industrial Products 5.12 Bharti Airtel Ltd. Telecom - Services 4.99 KSB Pump Ltd Industrial Products 3.96 Fag Bearings India Ltd. Industrial Products 3.90 Power Grid Corporation Of India Ltd Power 3.31 Container Corporation of India Ltd. Transportation 3 Cummins India Ltd. Industrial Products 3 Siemens Ltd. Industrial Capital Goods 2.89 AIA Engineering Limited Industrial Capital Goods 2.77 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Supreme Industries Limited Industrial Products 2.61 Mahanagar Gas Ltd Gas 2.55 Adani Port and Special Economic Zone Limited Transportation 2.40 Gateway Distriparks Ltd. Transportation 2.31 Kajaria Ceramics Ltd. Construction 2.22 MRF Limited Auto Ancillaries 2.01 Solar Industries India Limited Chemicals 1.98 Mahindra & Mahindra Financial Services Ltd. Finance 1.90 Gujarat Gas Company Ltd Gas 1.72 CESC Ltd. Power 1.15 Grasim Industries Ltd. Cement 1.10 Bharat Electronics Ltd Industrial Capital Goods 1.03 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 5.44 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 July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), `16.869(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project CBLO & Term Deposits & Rev.Repo Construction Others 1 year 3 years 5 years 7 years Since Inception 120, , , ,000 1,010, , , ,301 1,418,620 1,887, , , ,744 1,158,704 1,546, , , ,087 1,152,292 1,530, Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 48.43% Beta: 1.05 ## Sharpe : 0.84 Standard Deviation : 11.44% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.53% Direct: 1.27% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 3.81 ICICI Bank Ltd. Banks 3.42 Infosys Ltd. Software 2.93 IndusInd Bank Ltd. Banks 2.36 Maruti Suzuki India Limited Auto 2.32 Larsen And Toubro Ltd. Construction Project 2.26 Reliance Industries Ltd. Petroleum Products 2.11 Tata Motors Ltd. Auto 1.88 Axis Bank Ltd Banks 1.73 State Bank Of India Banks 1.67 DB Corp Limited Media and Entertainment 1.66 ITC Ltd. Consumer Non Durables 1.65 Fag Bearings India Ltd. Industrial Products 1.54 Finolex Cables Ltd. Industrial Products 1.53 Whirlpool of India Ltd. Consumer Durables 1.52 SRF Ltd. Textile Products 1.42 JK Cement Ltd. Cement 1.37 Mahindra & Mahindra Ltd. Auto 1.33 HDFC Ltd. Finance 1.32 Solar Industries India Limited Chemicals 1.32 Hindustan Petroleum Corporation Ltd Petroleum Products 1.28 Ultratech Cement Ltd. Cement 1.24 The Ramco Cements Ltd Cement 1.22 Tata Consultancy Services Ltd. Software 1.08 Va Tech Wabag Limited Engineering Services 1.05 Atul Ltd. Chemicals 1.02 Engineers India Ltd. Construction Project 1 Motherson Sumi Systems Ltd. Auto Ancillaries 0.97 Zee Entertainment Enterprises Ltd Media and Entertainment 0.95 Carborundum Universal Ltd. Industrial Products 0.94 HCL Technologies Ltd. Software 0.94 Cipla Ltd. Pharmaceuticals 0.93 Thermax Ltd. Industrial Capital Goods 0.84 Ramkrishna Forgings Ltd. Industrial Products 0.79 Strides Shasun Ltd. Pharmaceuticals 0.76 Adani Port and Special Economic Zone Limited Transportation 0.75 Jubilant Foodworks Limited Consumer Non Durables 0.72 Equitas Holdings Ltd Finance 0.71 UPL Ltd Pesticides 0.68 Oil & Natural Gas Corporation Ltd. Oil 0.66 Havells India Ltd. Consumer Durables 0.63 Navkar Corporation Limited Transportation 0.63 Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Banks Cement Software Construction Project CBLO & Term Deposits & Rev.Repo Petroleum Products Auto Consumer Non Durables Government Dated Securities Others Industrial Products SYSTEMATIC INVESTMENT PLAN (SIP) Pennar Engineered Building Systems Limited Ferrous Metals 0.62 HDFC Ltd. Warrants Finance 0.58 Voltas Ltd. Construction Project 0.58 Bharat Forge Ltd. Industrial Products 0.54 Coal India Ltd. Minerals/Mining 0.53 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.50 Kirloskar Oil Engines Ltd. Industrial Products 0.50 Bank Of Baroda Banks 0.49 Federal Bank Ltd. Banks 0.48 Balrampur Chini Mills Ltd Consumer Non Durables 0.45 Lupin Ltd. Pharmaceuticals 0.41 Mahindra & Mahindra Financial Services Ltd. Finance 0.39 Arvind Ltd Textile Products 0.36 IDFC Bank Limited Banks 0.34 Larsen & Toubro Infotech Ltd Software 0.24 Persistent Systems Limited Software 0.20 Divi s Laboratories Limited Pharmaceuticals 0.17 Mahanagar Gas Ltd Gas 0.15 Advanced Enzyme Technologies Ltd Healthcare Services 0.13 The Indian Hotels Company Ltd. Hotels 0.05 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.15 Tata Sons Ltd. CRISIL AAA 0.06 Corporate Debt/Financial Institutions - Total 0.21 Public Sector Undertakings Bank of India CRISIL A Public Sector Undertakings - Total 2.99 Government Dated Securities 7.61% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.03 Government Dated Securities - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.39 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 July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) 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 2,000, , , ,930 1,166,840 1,952,577 7,480, , , ,899 1,163,296 1,930,371 NA NA 125, , ,087 1,152,292 1,912,086 6,604, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 4, AUM (` In Crores) AUM as on July 31, 2016: ` 4, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.71 ## Sharpe : 2.29 Standard Deviation : 0.57% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.59% (FBIL Overnight MIBOR rate as on 29th July 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including STP/SWP) within 60 days from the date of allotment of units, irrespective of the amount of investment: 0.25% II) For redemptions/switch outs (including STP/SWP) after 60 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans), (w.e.f. April 8, 2013) Regular: 1.07% Direct:0.56% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged Shriram Transport Finance Co Ltd. Finance HDFC Bank Ltd. Banks Ashok Leyland Ltd. Auto Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Britannia Industries Ltd. Consumer Non Durables Reliance Industries Ltd. Petroleum Products United Spirits Ltd. Consumer Non Durables Infosys Ltd. Software Aurobindo Pharma Ltd. Pharmaceuticals IDFC Limited Finance Indiabulls Housing Finance Ltd. Finance Bharat Financial Inclusion Limited Finance Rural Electrification Corporation Ltd Finance Indian Oil Corporation Ltd Petroleum Products Mahindra & Mahindra Ltd. Auto Eicher Motors Ltd Auto L&T Finance Holdings Ltd Finance Adani Port and Special Economic Zone Limited Transportation Grasim Industries Ltd. Cement Tata Motors Ltd - DVR Auto Hindustan Petroleum Corporation Ltd Petroleum Products Reliance Communications Ltd. Telecom - Services Tata Global Beverages Limited Consumer Non Durables Tata Steel Limited. Ferrous Metals Sun TV Limited. Media and Entertainment Pidilite Industries Ltd. Chemicals Reliance Power Ltd Power HDFC Ltd. Finance MRF Limited Auto Ancillaries Asian Paints Ltd. Consumer Non Durables Tata Elxsi Ltd. Software Castrol (India ) Ltd. Petroleum Products Havells India Ltd. Consumer Durables Coal India Ltd. Minerals/Mining NCC Limited Construction Project Housing Development and Infrastructure Limited Construction Karnataka Bank Ltd Banks Aditya Birla Nuvo Limited Services Glenmark Pharmaceuticals Ltd Pharmaceuticals Dish TV India Ltd. Media and Entertainment Adani Power Ltd Power Tata Power Co. Ltd. Power IRB Infrastructure Developers Ltd Construction Oil & Natural Gas Corporation Ltd. Oil India Cements Ltd. Cement ITC Ltd. Consumer Non Durables Dewan Housing Finance Corporation Ltd. Finance Exide Industries Ltd Auto Ancillaries IndusInd Bank Ltd. Banks Reliance Capital Ltd. Finance Ultratech Cement Ltd. Cement Bharat Earth Movers Ltd. Industrial Capital Goods * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

16 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth 15 % to Net Derivatives Century Textiles & Industries Ltd. Cement Cipla Ltd. Pharmaceuticals Tech Mahindra Ltd. Software Bank Of Baroda Banks Jain Irrigation Systems Ltd. Industrial Products TV18 Broadcast Ltd Media and Entertainment Jet Airways (India) Ltd. Transportation Hindalco Industries Ltd Non - Ferrous Metals Tata Chemicals Ltd. Chemicals Tata Communications Ltd Telecom - Services UPL Ltd Pesticides GMR Infrastructure Ltd. Construction Project Jindal Steel & Power Ltd. Ferrous Metals Torrent Pharmaceuticals Ltd. Pharmaceuticals CEAT Ltd. Auto Ancillaries Granules India Ltd. Pharmaceuticals NHPC Limited Power Sintex Industries Ltd. Industrial Products DLF Limited Construction IFCI Ltd. Finance Kaveri Seed Company Ltd. Consumer Non Durables Axis Bank Ltd Banks Vedanta Ltd. Minerals/Mining Apollo Hospitals Enterprises Ltd. Healthcare Services Hexaware Technologies Ltd. Software Biocon Ltd. Pharmaceuticals The South Indian Bank Ltd. Banks Cairn India Limited Oil Indiabulls Real Estate Ltd Construction Larsen And Toubro Ltd. Construction Project Oracle Financial Services Software Ltd Software LIC Housing Finance Ltd. Finance Bharti Infratel Ltd. Telecom - Equipment & Accessories Cadila Healthcare Ltd. Pharmaceuticals Hindustan Zinc Ltd. Non - Ferrous Metals Strides Shasun Ltd. Pharmaceuticals Mcleod Russel India Ltd Consumer Non Durables NMDC Ltd. Minerals/Mining Andhra Bank Banks Dr Reddys Laboratories Ltd Pharmaceuticals Indraprastha Gas Ltd. Gas Bharat Electronics Ltd Industrial Capital Goods JSW Steel Ltd. Ferrous Metals Reliance Infrastructure Ltd Power Wockhardt Ltd. Pharmaceuticals Zee Entertainment Enterprises Ltd Media and Entertainment ACC Ltd. Cement Bajaj Finance Limited Finance Bosch Limited Auto Ancillaries JSW Energy Ltd. Power Oriental Bank of Commerce Banks Power Grid Corporation Of India Ltd Power Adani Enterprises Ltd Trading Apollo Tyres Ltd. Auto Ancillaries Indo Count Industries Ltd. Textiles - Cotton

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives KPIT Technologies LImited Software MindTree Ltd. Software Ajanta Pharma Ltd. Pharmaceuticals Siemens Ltd. Industrial Capital Goods Jaiprakash Associates Ltd Construction Mahindra & Mahindra Financial Services Ltd. Finance National Thermal Power Corporation Limited Power Crompton Greaves Ltd. Industrial Capital Goods GAIL (India) Ltd. Gas Hindustan Unilever Ltd. Consumer Non Durables ICICI Bank Ltd. Banks Tata Motors Ltd. Auto United Breweries Ltd. Consumer Non Durables Godrej Industries Ltd Consumer Non Durables Kotak Mahindra Bank Ltd. Banks NIIT Technologies Ltd Software Oil India Limited Oil Union Bank Of India Banks Bajaj Auto Ltd. Auto PTC India Ltd. Power Amara Raja Batteries Ltd. Auto Ancillaries CESC Ltd. Power Container Corporation of India Ltd. Transportation Dabur India Ltd Consumer Non Durables Godrej Consumer Products Ltd. Consumer Non Durables HCL Technologies Ltd. Software Lupin Ltd. Pharmaceuticals Marico Ltd. Consumer Non Durables SRF Ltd. Textile Products Voltas Ltd. Construction Project Wipro Ltd. Software Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units 9.61 Kotak Liquid Plan A Mutual Fund Units 1.67 Mutual Fund Units - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 3.55 Kotak Mahindra Prime Ltd Corporate Debt/Financial Institutions - Total 4.14 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Gruh Finance Ltd ICRA A Corporate Debt/Financial Institutions - Total 4.67 TERM DEPOSITS Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.41 IndusInd Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 2.53 Net Current /(Liabilities) 3.00 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Auto Others Banks Pharmaceuticals Finance Petroleum Products Mutual Fund Units Consumer Non Durables Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Crisil Liquid Fund & 25% in Nifty 50 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.55% Direct: 0.91% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge HCL Technologies Ltd. Software HDFC Bank Ltd. Banks 1.58 Infosys Ltd. Software 1.49 Reliance Industries Ltd. Petroleum Products 1.30 ITC Ltd. Consumer Non Durables 1.19 Bharat Petroleum Corporation Ltd. Petroleum Products 1.16 Grasim Industries Ltd. Cement 1.16 IndusInd Bank Ltd. Banks 1.01 HDFC Ltd. Warrants Finance 0.95 Asian Paints Ltd. Consumer Non Durables 0.94 Hero MotoCorp Ltd. Auto 0.94 Zee Entertainment Enterprises Ltd Media and Entertainment 0.87 Bajaj Auto Ltd. Auto 0.82 Ultratech Cement Ltd. Cement 0.76 Bajaj Finance Limited Finance 0.69 Tata Motors Ltd. Auto 0.66 Hindustan Unilever Ltd. Consumer Non Durables 0.61 Maruti Suzuki India Limited Auto 0.52 Lupin Ltd. Pharmaceuticals 0.51 Yes Bank Ltd Banks 0.51 Eicher Motors Ltd Auto 0.44 Petronet LNG Ltd. Gas 0.41 ICICI Bank Ltd. Banks 0.40 Power Grid Corporation Of India Ltd Power 0.40 Axis Bank Ltd Banks 0.39 Larsen And Toubro Ltd. Construction Project 0.39 Wipro Ltd. Software 0.33 Equitas Holdings Ltd Finance 0.32 National Thermal Power Corporation Limited Power 0.31 Tata Steel Limited. Ferrous Metals 0.27 Geometric Software Solutions Co Ltd Software 0.24 GAIL (India) Ltd. Gas 0.23 Tata Consultancy Services Ltd. Software 0.22 Tech Mahindra Ltd. Software 0.22 HDFC Ltd. Finance 0.20 Britannia Industries Ltd. Consumer Non Durables 0.19 Mahindra & Mahindra Ltd. Auto 0.19 Bharti Airtel Ltd. Telecom - Services 0.18 Alkem Laboratories Ltd Pharmaceuticals 0.16 JSW Steel Ltd. Ferrous Metals 0.16 Ashok Leyland Ltd. Auto 0.15 Advanced Enzyme Technologies Ltd Healthcare Services 0.14 Ambuja Cements Ltd Cement 0.14 Aurobindo Pharma Ltd. Pharmaceuticals 0.14 Marico Ltd. Consumer Non Durables 0.14 Bosch Limited Auto Ancillaries 0.13 Divi s Laboratories Limited Pharmaceuticals 0.12 ACC Ltd. Cement 0.11 CNX NIFTY Call Option - December Pidilite Industries Ltd. Chemicals 0.10 Hindalco Industries Ltd Non - Ferrous Metals 0.08 Shriram Transport Finance Co Ltd. Finance 0.06 Ujjivan Financial Services Ltd Finance 0.06 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.01 Non-Hedged- Total Hedged GMR Infrastructure Ltd. Construction Project Karnataka Bank Ltd Banks Infosys Ltd. Software Aurobindo Pharma Ltd. Pharmaceuticals Axis Bank Ltd Banks HDFC Bank Ltd. Banks IDFC Limited Finance Dish TV India Ltd. Media and Entertainment Housing Development and Infrastructure Limited Construction Wockhardt Ltd. Pharmaceuticals Jet Airways (India) Ltd. Transportation Indiabulls Housing Finance Ltd. Finance Reliance Communications Ltd. Telecom - Services Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Tata Communications Ltd Telecom - Services Ashok Leyland Ltd. Auto Bharat Financial Inclusion Limited Finance India Cements Ltd. Cement L&T Finance Holdings Ltd Finance Jain Irrigation Systems Ltd. Industrial Products Century Textiles & Industries Ltd. Cement Havells India Ltd. Consumer Durables HDFC Ltd. Finance IRB Infrastructure Developers Ltd Construction Tata Steel Limited. Ferrous Metals NCC Limited Construction Project Reliance Power Ltd Power MRF Limited Auto Ancillaries Maruti Suzuki India Limited Auto Rural Electrification Corporation Ltd Finance Shriram Transport Finance Co Ltd. Finance Glenmark Pharmaceuticals Ltd Pharmaceuticals Sun TV Limited. Media and Entertainment IFCI Ltd. Finance Mahindra & Mahindra Ltd. Auto Indian Oil Corporation Ltd Petroleum Products UPL Ltd Pesticides Dewan Housing Finance Corporation Ltd. Finance Adani Port and Special Economic Zone Limited Transportation Pidilite Industries Ltd. Chemicals Tech Mahindra Ltd. Software * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives Asian Paints Ltd. Consumer Non Durables Reliance Industries Ltd. Petroleum Products DLF Limited Construction Larsen And Toubro Ltd. Construction Project Indiabulls Real Estate Ltd Construction Reliance Capital Ltd. Finance Aditya Birla Nuvo Limited Services IndusInd Bank Ltd. Banks United Spirits Ltd. Consumer Non Durables Adani Power Ltd Power Tata Motors Ltd - DVR Auto LIC Housing Finance Ltd. Finance Tata Chemicals Ltd. Chemicals Bank Of Baroda Banks Cairn India Limited Oil Divi s Laboratories Limited Pharmaceuticals Hindustan Unilever Ltd. Consumer Non Durables Cipla Ltd. Pharmaceuticals JSW Energy Ltd. Power Biocon Ltd. Pharmaceuticals Grasim Industries Ltd. Cement Tata Global Beverages Limited Consumer Non Durables Tata Motors Ltd. Auto Coal India Ltd. Minerals/Mining Wipro Ltd. Software Castrol (India ) Ltd. Petroleum Products Tata Elxsi Ltd. Software Torrent Pharmaceuticals Ltd. Pharmaceuticals Power Grid Corporation Of India Ltd Power NIIT Technologies Ltd Software Oracle Financial Services Software Ltd Software SRF Ltd. Textile Products Vedanta Ltd. Minerals/Mining Hindalco Industries Ltd Non - Ferrous Metals Hindustan Petroleum Corporation Ltd Petroleum Products HCL Technologies Ltd. Software ITC Ltd. Consumer Non Durables Mahindra & Mahindra Financial Services Ltd. Finance TV18 Broadcast Ltd Media and Entertainment Union Bank Of India Banks Indraprastha Gas Ltd. Gas Kotak Mahindra Bank Ltd. Banks Tata Power Co. Ltd. Power Bharat Earth Movers Ltd. Industrial Capital Goods CESC Ltd. Power Jaiprakash Associates Ltd Construction National Thermal Power Corporation Limited Power JSW Steel Ltd. Ferrous Metals NMDC Ltd. Minerals/Mining Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Kotak Liquid Plan A 0.59 Mutual Fund Units - Total Government Dated Securities 7.59% Central Government SOV % State Government SOV 0.61 Government Dated Securities - Total 1.82 TERM DEPOSITS Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.65 Term Deposits - Total 8.29 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.60 Kotak Equity Savings Fund NAV as on July 29, 2016: ` (Growth Option), ` (Monthly Dividend Option), ` (Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month SYSTEMATIC INVESTMENT PLAN (SIP) 1 year Since Inception Total amount invested (Rs) Total Value as on Jun 30, 2016 (Rs) Returns (%) 75% Crisil Liquid Fund Index + 25% Nifty 50 (Rs)# 75% Crisil Liquid Fund Index + 25% Nifty 50 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) # ; ^ 120, , , , , , , , CBLO & Term Deposits & Rev.Repo Banks Finance Software Auto Unrated Consumer Non Durables Cement Construction Project Pharmaceuticals Others Investors understand that their principal will be at moderately high risk Income from arbitrage opportunities in the equity market & long term capital growth Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 18

20 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.38 ICICI Bank Ltd. Banks 6.93 Infosys Ltd. Software 6.60 IndusInd Bank Ltd. Banks 6.27 Maruti Suzuki India Limited Auto 5.73 Axis Bank Ltd Banks 5.48 Larsen And Toubro Ltd. Construction Project 5.24 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 5.21 Reliance Industries Ltd. Petroleum Products 4.84 Ultratech Cement Ltd. Cement 4.49 Tata Motors Ltd - DVR Auto 4.30 Britannia Industries Ltd. Consumer Non Durables 4.20 Hero MotoCorp Ltd. Auto 4.02 Shree Cement Ltd. Cement 3.69 Equitas Holdings Ltd Finance 3.22 Power Grid Corporation Of India Ltd Power 3.01 Oracle Financial Services Software Ltd Software 2.93 Persistent Systems Limited Software 2.93 Kajaria Ceramics Ltd. Construction 2.81 Jubilant Foodworks Limited Consumer Non Durables 2.67 Advanced Enzyme Technologies Ltd Healthcare Services 0.04 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.75 Collateral Borrowing & Lending obligation 5.44 Net Current /(Liabilities) Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 18.01% 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: 2.51% Direct:2.01% Kotak India Growth Fund Series I NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project CBLO & Term Deposits & Rev.Repo Finance Others Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity and equity related securities across market capitalisation and sectors * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 19

21 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003; Plan A - November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 9, AUM (` In Crores) AUM as on July 31, 2016: ` 8, Plans: a) Regular & b) Institutional (discontinued for further subscriptions w.e.f. October 1, 2012) c) Plan A (Previously known as Institutional Premium Plan) d) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.19%, Modified Duration: 0.11 yrs, Portfolio Yield: 7.03 Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.08% Direct: 0.03% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 3.64 Corporate Debt/Financial Institutions - Total 3.64 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Ultratech Cement Ltd. CRISIL A ECL Finance Limited CRISIL A India Infoline Finance Limited ICRA A Tata Motors Ltd. ICRA A Indiabulls Housing Finance Limited CRISIL A Edelweiss Commodities Services Ltd. CRISIL A IndusInd Bank Ltd. CRISIL A Edelweiss Housing Finanance Limited CRISIL A Aditya Birla Finance Ltd. CRISIL A Dewan Housing Finance Corporation Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A National Bank for Agriculture and Rural Developmen CRISIL A IDBI Bank Ltd. CRISIL A Export-Import Bank of India. CRISIL A Rural Electrification Corporation Ltd. CARE A Vijaya Bank CRISIL A Corporation Bank CRISIL A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 15/09/2016 SOV Treasury Bill SOV Days Treasury Bill 01/09/2016 SOV Days Treasury Bill 11/08/2016 SOV Days Treasury Bill 29/09/2016 SOV Days Treasury Bill 20/10/2016 SOV 1.16 Treasury Bills - Total Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.11 years Kotak Liquid Plan A Fund NAV as on July 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Treasury Bills Net Current A1+, AAA, SOV 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 * For experience, please refer page For scheme performance, please refer page no

22 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 9, AUM (` In Crores) AUM as on July 31, 2016: ` 8, A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.15%, Modified Duration:0.14 yrs, Portfolio Yield: 7.12% 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: 0.27% Direct: 0.21% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Muthoot Finance Ltd CRISIL A Adani Port and Special Economic Zone Limited ICRA A Gruh Finance Ltd ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 4.66 Aditya Birla Nuvo Limited ICRA A Reliance Jio Infocomm Limited CARE A Au Financiers (India) Limited FITCH IND A IIFL Wealth Finance Ltd. ICRA A Reliance Capital Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Tata Motors Ltd. ICRA A Essel Mining & Industries Ltd. ICRA A Piramal Enterprises Limited ICRA A Mahindra & Mahindra Financial Services Ltd. CRISIL A Vedanta Ltd. CRISIL A Adani Transmission Ltd FITCH IND A AXIS Bank Ltd. CRISIL A Grasim Industries Ltd. CARE A Piramal Enterprises Limited CRISIL A Sadbhav Engineering Ltd. CARE A Phoenix ARC Pvt Ltd CRISIL A ECL Finance Limited CRISIL A HDFC Ltd. CRISIL A Tata Capital Financial Services Limited CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A IDBI Bank Ltd. CRISIL A Small Industries Development Bank Of India. CARE A1+ 3 Power Finance Corporation Ltd. CRISIL A Export-Import Bank of India. CRISIL A Corporation Bank CRISIL A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 29/09/2016 SOV Days Treasury Bill 01/09/2016 SOV Days Treasury Bill 15/09/2016 SOV 6 91 Treasury Bill SOV Days Treasury Bill 11/08/2016 SOV Treasury Bill SOV Days Treasury Bill 06/10/2016 SOV Days Treasury Bill 20/10/2016 SOV 1.19 Treasury Bills - Total Collateral Borrowing & Lending obligation 0.04 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.14 years Kotak Floater Short Term Fund NAV as on July 31, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Treasury Bills Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo 0.04 RATING PROFILE (%) A1+, A1+(SO), IND A1+, SOV 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. 21 Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

23 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 4, AUM (` In Crores) AUM as on July 31, 2016: ` 4, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation:0.47%, Modified Duration: 0.52yrs, Portfolio Yield: 7.60% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth- `5000 & above (ii) Dividend Payout (Weekly) - `1,00,00,000 & above Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.60% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bharti enterprises (Holding) Pvt. Ltd.^ CRISIL A Kotak Mahindra Prime Ltd.^ CRISIL AAA 5.20 Shriram Transport Finance Co Ltd.^ CRISIL AA HDFC Ltd.^ CRISIL AAA 3.79 Tata Motors Finance Ltd CRISIL AA 3.16 Fullerton India Credit Co. Ltd. CARE AAA 2.60 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 2.48 Shriram Transport Finance Co Ltd. FITCH IND AA Kotak Mahindra Investments Ltd. CRISIL AAA 2.07 Indiabulls Housing Finance Limited CARE AAA 1.35 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA India Infoline Housing Finance Ltd. ICRA AA 1.03 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 1.03 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.48 Piramal Enterprises Limited ICRA AA 0.29 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.24 Tata Capital Housing Finance Ltd; CRISIL AA Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 0.19 East-North Interconnection Company Limited CRISIL AAA(SO) 0.14 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.10 India Infoline Finance Limited CARE AA 0.10 L & T Finance Limited CARE AA Shapoorji Pallonji Energy Gujarat Note:^ Party blocked against Interest Rate Swap (IRS). Private Limited ICRA AA(SO) 0.06 Tata Sons Ltd. CRISIL AAA 0.03 Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India.^ CRISIL AAA 2.80 Small Industries Development Bank Of India. CARE AAA 0.83 Rural Electrification Corporation Ltd. CRISIL AAA 0.82 Power Finance Corporation Ltd. CRISIL AAA 0.45 National Bank for Agriculture and Rural Developmen CRISIL AAA 0.17 Vijaya Bank CARE AA Public Sector Undertakings - Total 5.17 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Tata Power Company Ltd. ICRA A Hindustan Zinc Ltd ICRA A Larsen and Toubro Ltd. CRISIL A Piramal Enterprises Limited ICRA A Adani Transmission Ltd FITCH IND A Manappuram Finance Ltd CRISIL A AXIS Bank Ltd. CRISIL A HDFC Bank Ltd. ICRA A ICICI Bank Ltd. ICRA A Muthoot Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Corporation Bank CRISIL A Andhra Bank CARE A Export-Import Bank of India. CRISIL A IDBI Bank Ltd. CRISIL A Public Sector Undertakings - Total 0.67 Treasury Bills 91 Days Treasury Bill 27/10/2016 SOV Treasury Bill SOV Days Treasury Bill 01/09/2016 SOV Days Treasury Bill 22/09/2016 SOV 0.03 Treasury Bills - Total 9.50 Collateral Borrowing & Lending obligation 2.71 Net Current /(Liabilities) 7.14 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.57 years. K o t a k Tre a s u r y A d v a n t a g e F u n d N AV a s o n J u l y 2 9, : ` ( D a i l y D i v i d e n d O p t i o n ), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) CBLO & Term Deposits & Rev. Repo Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current Treasury Bills RATING PROFILE AA+, IND AA+, AA, AA(SO), AA- A1+, AAA, AAA(SO), IND A1+, IND AAA, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

24 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 0.96%, Debt Instruments Debentures and Bonds Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 9.31 PNB Housing Finance Ltd. CARE AAA 7.93 Power Finance Corporation Ltd. ICRA AAA 6.30 State Bank of Travancore CRISIL AAA 6.09 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 5.86 National Bank for Agriculture and Rural Developmen CRISIL AAA 5.26 Canara Bank CRISIL AAA 4.47 Export-Import Bank of India. CRISIL AAA 3.92 Punjab National Bank CARE AA 2.61 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 2.34 Indian Railway Finance C orporation Ltd. CRISIL AAA 1.79 Power Finance Corporation Ltd. CRISIL AAA 1.26 Public Sector Undertakings - Total Government Dated Securities 8.27% State Government SOV % State Government SOV % State Government SOV 4.51 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A ICICI Bank Ltd. ICRA A IndusInd Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 0.87 Collateral Borrowing & Lending obligation 0.35 Net Current /(Liabilities) 1.85 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 3.43 years. Kotak Banking And PSU Debt Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Modified Duration: 2.70 yrs, Portfolio Yield: 7.65% 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: 0.14% Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds A1+, AAA, AAA(SO), IND AAA, SOV AA Net Current Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 23 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 2, AUM (` In Crores) AUM as on July 31, 2016: ` 2, A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.47%, Modified Duration: 0.65 yrs, Portfolio Yield: 8.74% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.00% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA A1+(SO) 7.95 Shriram Transport Finance Co Ltd. FITCH IND AA Reliance Jio Infocomm Limited CRISIL AAA 4.58 Indiabulls Housing Finance Limited CARE AAA 3.83 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Muthoot Fincorp Ltd. CRISIL A 3.47 JSW Investments Pvt. Ltd. BRICKWORK BWR A 3.43 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 3.06 Muthoot Finance Ltd ICRA AA Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 2.30 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Janalakshami Financial Services Ltd. ICRA A Peninsula Land Limited BRICKWORK BWR A 1.74 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.71 Sterlite Industries (India) Ltd CRISIL AA HPCL Mittal Energy Ltd. ICRA AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.33 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 1.26 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Indostar Capital Finance Private Limited CARE AA HDFC Ltd. CRISIL AAA 1.10 Kotak Mahindra Prime Ltd Intime Properties Ltd. FITCH IND AAA 0.81 India Infoline Finance Limited CARE AA 0.80 Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 0.66 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.42 ECL Finance Limited CARE AA 0.35 Muthoot Finance Ltd CRISIL AA Aspire Home Finance Corporation Ltd ICRA AA Piramal Enterprises Limited ICRA AA 0.01 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL AAA 3.49 Rural Electrification Corporation Ltd. CRISIL AAA 0.53 Public Sector Undertakings - Total 4.02 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A ICICI Bank Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 3.78 ICICI Bank Ltd. CRISIL A AXIS Bank Ltd. CRISIL A Adani Transmission Ltd FITCH IND A Manappuram Finance Ltd CRISIL A Piramal Enterprises Limited ICRA A Mahindra & Mahindra Financial Services Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Andhra Bank CARE A Public Sector Undertakings - Total 0.12 Treasury Bills 91 Days Treasury Bill 27/10/2016 SOV 1.71 Treasury Bills - Total 1.71 Collateral Borrowing & Lending obligation 0.08 Net Current /(Liabilities) 3.14 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.77 years Kotak Duration Fund NAV as on July 29, 2016: ` (Retail Plan-Growth Option), ` (Retail plan Weekly Dividend),` (Retail Plan-Monthly Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) Debentures and Bonds Treasury Bills RATING PROFILE A1+, A1+(SO), AAA, IND A1+, IND AAA, SOV Unrated IND AA+, AA, AA(SO), AA-, BWR AA- A+, A, BWR A(SO) Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 3, AUM (` In Crores) AUM as on July 31, 2016: ` 4, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 1.26%, Modified Duration: 2.28yrs, Portfolio Yield: 7.75% 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: 1.13%; Direct: 0.25% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 9.20 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 7.71 HDFC Ltd. CRISIL AAA 7 Kotak Mahindra Prime Ltd. CRISIL AAA 6 Dewan Housing Finance Corporation Ltd. CARE AAA 3.75 ICICI Home Finance Company Limited ICRA AAA 3.11 HDB Financial Services Ltd. CRISIL AAA 2.95 LIC Housing Finance Ltd. CRISIL AAA 1.82 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.97 Indiabulls Housing Finance Limited CARE AAA 0.62 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.27 East-North Interconnection Company Limited CRISIL AAA(SO) 0.13 Bajaj Finance Limited FITCH IND AAA 0.03 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 7.53 Power Finance Corporation Ltd. CRISIL AAA 7.42 Rural Electrification Corporation Ltd. CRISIL AAA 4.62 Issuer/Instrument Industry/ % to Net Rating Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.84 years. Kotak Bond Short Term Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) Treasury Bills SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities National Bank for Agriculture and Rural Developmen CRISIL AAA 3.84 State Bank Of India. CRISIL AAA 0.89 Steel Authority of India Ltd. FITCH IND AA 0.25 Public Sector Undertakings - Total Government Dated Securities 8.53 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 0.24 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A IndusInd Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 6.28 Public Sector Undertakings National Bank for Agriculture and Rural Developmen CRISIL A Public Sector Undertakings - Total 0.12 Treasury Bills 182 Treasury Bill SOV 3.43 Treasury Bills - Total 3.43 Collateral Borrowing & Lending obligation 2.71 Net Current /(Liabilities) A1+, AAA, AAA(SO), IND AAA, SOV CBLO & Term Deposits & Rev.Repo IND AA Net Current 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. 25 Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

27 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular (discontinued for further subscriptions w.e.f. October 1, 2012) b) Plan A (Previously known as Institutional Plan) c) Direct Plan / Options: Dividend Payout, Dividend Reinvestment, Growth & Bonus Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 2.82%, Modified Duration: 4.38 yrs, Portfolio Yield: 7.93% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Regular: 0.92% Direct: 0.35% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 6.25 Reliance Utilities And Power Private Limited CRISIL AAA 6.24 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 6.03 LIC Housing Finance Ltd. CRISIL AAA 1.22 Shriram Transport Finance Co Ltd. CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.32 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 0.41 Export-Import Bank of India. CRISIL AAA 0.32 Rural Electrification Corporation Ltd. CRISIL AAA 0.09 Public Sector Undertakings - Total 0.82 Government Dated Securities 7.72% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV 0.31 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.54 Net Current /(Liabilities) 2.98 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 5.96 years Kotak Flexi Debt Plan A Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) RATING PROFILE Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds Net Current AA+ AAA, SOV Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) AAUM as on July 31, 2016: `1, AUM (` In Crores) AUM as on July 31, 2016: ` 2, 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: 1.14%, Modified Duration: 2.27yrs, Portfolio Yield: 9.67% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. II) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.60% Direct:0.60% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 9.26 HPCL Mittal Pipelines Ltd. ICRA AA HPCL Mittal Energy Ltd. ICRA AA DLF Emporio Ltd CRISIL AA 5.04 Sterlite Industries (India) Ltd CRISIL AA Janalakshami Financial Services Ltd. ICRA A Au Financiers (India) Limited FITCH IND A Piramal Enterprises Limited ICRA AA 4.42 Prestige Estates Projects Limited ICRA A Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA India Infoline Housing Finance Ltd. ICRA AA 2.44 Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 2.43 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Equitas Micro Finance Ltd. CARE A Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Dalmia Bharat Ltd ICRA AA ECL Finance Limited ICRA AA 1.46 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 1.25 Shriram Transport Finance Co Ltd. FITCH IND AA ECL Finance Limited CARE AA 0.98 Peninsula Land Limited ICRA A 0.94 Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 0.80 Issuer/Instrument Industry/ % to Net Rating Indostar Capital Finance Private Limited CARE AA Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) BRICKWORK BWR A Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.49 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Tata Capital Housing Finance Ltd; CRISIL AA HDFC Ltd. CRISIL AAA 0.06 LIC Housing Finance Ltd. CRISIL AAA 0.04 HDB Financial Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Bank of India CRISIL A Indian Overseas Bank CARE CARE BBB 1.64 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA Public Sector Undertakings - Total 5.30 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Manappuram Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total 9.48 Net Current /(Liabilities) 2.89 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.84 years. Kotak Income Opportunities Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). SECTOR ALLOCATION (%) Debentures and Bonds Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Investors understand that their principal will be at moderately low risk AA+, IND AA+, AA, AA(SO), AA-, BWR AA-, LAA-(SO) A+, BWR A+, IND A+, A A1+, AAA CARE BBB Net Current Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` Plans: a) Regular & b) Direct Plan Options: Dividend Payout, Dividend Reinvestment and Growth (applicable for all plans) Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.19%, Modified Duration: 1.72 yrs, Portfolio Yield: 7.52% 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 Bajaj Finance Limited FITCH IND AAA 6.71 HDFC Ltd. CRISIL AAA 6.34 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 5.22 Reliance Ports And Terminals Limited CRISIL AAA 5.19 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 4.50 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 4.24 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 3.72 Reliance Jio Infocomm Limited CRISIL AAA 3.72 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.35 Inox Air Products Ltd. CRISIL AA 0.74 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.74 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 8.70 Small Industries Development Bank Of India. CARE AAA 7.40 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 6.74 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 5.32 Rural Electrification Corporation Ltd. CRISIL AAA 4.53 Export-Import Bank of India. CRISIL AAA 1.31 Airports Authority of India CRISIL AAA 0.75 National Bank for Agriculture and Rural Developmen CRISIL AAA 0.73 Steel Authority of India Ltd. FITCH IND AA 0.60 Public Sector Undertakings - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 1.45 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 4.69 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.10 years Kotak Corporate Bond Fund NAV as on July 29, 2016: ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend),` (Standard Plan-Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Standard Plan-Daily Dividend), ` (Retail Plan-Growth Option), ` (Retail Plan- Weekly Dividend), ` (Retail Plan- Monthly Dividend), ` (Retail Plan-Daily Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend), ` (Institutional Plan-Growth Option) Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), IND AAA AA+, AA, IND AA 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 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

30 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on July 31, 2016: `1, AUM (` In Crores) AUM as on July 31, 2016: `1, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 1.53%, Modified Duration: 2.61yrs, Portfolio Yield: 9.68% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%. iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.70% Direct: 0.60% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 9.60 HPCL Mittal Energy Ltd. ICRA AA Piramal Enterprises Limited ICRA AA 6.79 HPCL Mittal Pipelines Ltd. ICRA AA Prestige Estates Projects Limited ICRA A ECL Finance Limited CARE AA 3.74 India Infoline Housing Finance Ltd. ICRA AA 3.72 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CARE A SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 3.02 Reliance Utilities And Power Private Limited CRISIL AAA 2.53 Janalakshami Financial Services Ltd. ICRA A Intime Properties Ltd. FITCH IND AAA 2.38 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 2.37 Equitas Micro Finance Ltd. CARE A ECL Finance Limited ICRA AA 2.17 Peninsula Land Limited ICRA A 2.11 Dalmia Bharat Ltd ICRA AA Au Financiers (India) Limited FITCH IND A Manappuram Finance Ltd CRISIL AA East-North Interconnection Company Limited CRISIL AAA(SO) 1.56 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 1.37 Shriram Transport Finance Co Ltd. FITCH IND AA Sterlite Industries (India) Ltd CRISIL AA Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Reliance Ports And Terminals Limited CRISIL AAA 0.81 Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 0.78 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.62 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.58 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.54 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.47 Tata Power Company Ltd. CRISIL AA IOT Utkal Energy Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Bank of India CRISIL A Power Finance Corporation Ltd. CRISIL AAA 2 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 0.94 State Bank of Travancore CRISIL AAA 0.70 Rural Electrification Corporation Ltd. CRISIL AAA 0.34 PNB Housing Finance Ltd. CARE AAA 0.31 Public Sector Undertakings - Total Government Dated Securities 1.44% Central Government SOV 0.90 Government Dated Securities - Total 0.90 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 0.87 Collateral Borrowing & Lending obligation 1.99 Net Current /(Liabilities) 2.55 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.36 years Kotak Medium Term Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Net Current Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Government Dated Securities Investors understand that their principal will be at moderate risk RATING PROFILE IND AA+, AA, AA(SO), AA-, BWR AA-, LAA-(SO) A1+(SO), AAA, AAA(SO), IND AAA, SOV A+, IND A+, A, A- Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` 4, AUM (` In Crores) AUM as on July 31, 2016: ` 4, A) Deposit (discontinued for further subscriptions w.e.f. October 1, 2012) B) Plan A (Previously known as Regular Plan) C) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 4.60% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited CARE AAA 2.41 East-North Interconnection Company Limited CRISIL AAA(SO) 0.81 Shriram Transport Finance Co Ltd. CRISIL AA HDFC Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total 3.72 Public Sector Undertakings Canara Bank CRISIL AAA 5.55 Bank of India BRICKWORK BWR AA Bank of India CRISIL A Syndicate Bank CARE AA Issuer/Instrument Industry/ % to Net Rating Public Sector Undertakings - Total 8.78 Government Dated Securities 7.59% 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 0.50 Government Dated Securities - Total Net Current /(Liabilities) 2.37 Modified Duration: 7.40 yrs Portfolio Yield: 7.69% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.77% Direct: 0.97% Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Plan A Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan), ` (Kotak-Bond Deposit Deposit Dividend) SECTOR ALLOCATION (%) Net Current Debentures and Bonds Government Dated Securities AA+, AA-, BWR AA- Net Current A+ AAA, AAA(SO), SOV Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

32 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 4.82%, B) PF & Trust Plan: 4.80%, Modified Duration:7.26yrs, Portfolio Yield: 7.50% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: (a) Regular Plan - Entry: Nil. (b) PF & Trust Plan - Entry: Nil. (applicable for all plans) Exit Load: (a) Regular Plan - Exit: Nil. (b) PF&Trust Plan - Exit: Nil. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.40% Direct: 0.40% Issuer/Instrument Industry/ % to Net Rating Government Dated Securities 7.59% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.12 Issuer/Instrument Industry/ % to Net Rating 8.39% State Government SOV 0.02 Government Dated Securities - Total Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 0.01 Treasury Bills - Total 0.01 Collateral Borrowing & Lending obligation 0.42 Net Current /(Liabilities) 5.50 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 July 29, 2016: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) Treasury Bills CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

33 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 6.21% Modified Duration: 2.75yrs Portfolio Yield: 7.37% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.40% Direct: 1.19% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.84 Tata Motors Ltd. Auto 1.41 ICICI Bank Ltd. Banks 1.27 Whirlpool of India Ltd. Consumer Durables 0.81 HDFC Bank Ltd. Banks 0.80 Infosys Ltd. Software 0.78 DLF Limited Construction 0.65 Larsen And Toubro Ltd. Construction Project 0.63 Maruti Suzuki India Limited Auto 0.61 Equitas Holdings Ltd Finance 0.55 IFB Industries Ltd. Consumer Durables 0.54 Godfrey Phillips India Ltd. Consumer Non Durables 0.48 Britannia Industries Ltd. Consumer Non Durables 0.47 Finolex Cables Ltd. Industrial Products 0.47 Dalmia Bharat Ltd Cement 0.46 Engineers India Ltd. Construction Project 0.46 Manpasand Beverages Ltd. Consumer Non Durables 0.44 Yes Bank Ltd Banks 0.44 Sun TV Limited. Media and Entertainment 0.43 State Bank Of India Banks 0.42 Hindustan Petroleum Corporation Ltd Petroleum Products 0.41 India Cements Ltd. Cement 0.40 Marksans Pharma Ltd Pharmaceuticals 0.38 Tata Motors Ltd - DVR Auto 0.38 Century Textiles & Industries Ltd. Cement 0.34 Jagran Prakashan Limited Media and Entertainment 0.29 IndusInd Bank Ltd. Banks 0.28 Coromandel International Ltd. Fertilisers 0.27 Motherson Sumi Systems Ltd. Auto Ancillaries 0.27 Bharat Petroleum Corporation Ltd. Petroleum Products 0.26 Hero MotoCorp Ltd. Auto 0.22 The Ramco Cements Ltd Cement 0.22 IDFC Bank Limited Banks 0.21 Grasim Industries Ltd. Cement 0.20 Ashok Leyland Ltd. Auto 0.19 Federal Bank Ltd. Banks 0.19 Pennar Engineered Building Issuer/Instrument Industry/ % to Net Rating Systems Limited Ferrous Metals 0.17 Advanced Enzyme Technologies Ltd Healthcare Services 0.14 Axis Bank Ltd Banks 0.13 HDFC Ltd. Warrants Finance 0.09 Listed/Awaiting Listing on Stock Exchange - Total 19 Debt Instruments Debentures and Bonds Public Sector Undertakings Bank of India CRISIL A Rural Electrification Corporation Ltd. CRISIL AAA 0.08 Public Sector Undertakings - Total 8.24 Government Dated Securities 7.59% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 4.11 Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.48 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.98 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 4.03 years. Kotak Monthly Income Plan Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk RATING PROFILE Net Current A+ CBLO & Term Deposits & Rev.Repo AAA, SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

34 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.61%, Modified Duration: 2.97yrs, Portfolio Yield: 7.58% 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: 2.38% Direct: 0.44% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.23 Infosys Ltd. Software 1.05 Reliance Industries Ltd. Petroleum Products 0.91 Bharat Petroleum Corporation Ltd. Petroleum Products 0.83 ITC Ltd. Consumer Non Durables 0.82 Grasim Industries Ltd. Cement 0.80 IndusInd Bank Ltd. Banks 0.77 Asian Paints Ltd. Consumer Non Durables 0.68 Zee Entertainment Enterprises Ltd Media and Entertainment 0.62 Hero MotoCorp Ltd. Auto 0.61 Bajaj Auto Ltd. Auto 0.56 Ultratech Cement Ltd. Cement 0.55 Bajaj Finance Limited Finance 0.51 Tata Motors Ltd. Auto 0.50 Eicher Motors Ltd Auto 0.43 Hindustan Unilever Ltd. Consumer Non Durables 0.43 Lupin Ltd. Pharmaceuticals 0.41 Yes Bank Ltd Banks 0.32 Larsen And Toubro Ltd. Construction Project 0.30 ICICI Bank Ltd. Banks 0.29 Axis Bank Ltd Banks 0.28 Maruti Suzuki India Limited Auto 0.28 Petronet LNG Ltd. Gas 0.28 Power Grid Corporation Of India Ltd Power 0.25 Ujjivan Financial Services Ltd Finance 0.23 Wipro Ltd. Software 0.23 National Thermal Power Corporation Limited Power 0.21 Equitas Holdings Ltd Finance 0.20 Tata Consultancy Services Ltd. Software 0.20 Tata Steel Limited. Ferrous Metals 0.19 Britannia Industries Ltd. Consumer Non Durables 0.15 GAIL (India) Ltd. Gas 0.15 Tech Mahindra Ltd. Software 0.15 HDFC Ltd. Finance 0.14 Bharti Airtel Ltd. Telecom - Services 0.13 HCL Technologies Ltd. Software 0.12 Advanced Enzyme Technologies Ltd Healthcare Services 0.11 Ashok Leyland Ltd. Auto 0.11 JSW Steel Ltd. Ferrous Metals 0.11 Mahindra & Mahindra Ltd. Auto 0.11 Marico Ltd. Consumer Non Durables 0.10 Aurobindo Pharma Ltd. Pharmaceuticals 0.09 Divi s Laboratories Limited Pharmaceuticals 0.09 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Mahanagar Gas Ltd Gas 0.09 Bosch Limited Auto Ancillaries 0.08 Dr Reddys Laboratories Ltd Pharmaceuticals 0.08 Pidilite Industries Ltd. Chemicals 0.08 ACC Ltd. Cement 0.06 Ambuja Cements Ltd Cement 0.06 Hindalco Industries Ltd Non - Ferrous Metals 0.06 Shriram Transport Finance Co Ltd. Finance 0.04 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.48 Mutual Fund Units - Total 8.48 Futures CNX NIFTY-AUG Futures (Market value represents Notional Value) - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 3.26 Government Dated Securities 8.45% State Government SOV % State Government SOV % State Government SOV % Central Government SOV 8.10 Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.99 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 3.10 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 4.13 years. Kotak Multi Asset Allocation Fund NAV as on July 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Government Dated Securities Net Current Debentures and Bonds Derivatives Mutual Fund Units Investors understand that their principal will be at moderate risk Mutual Fund Units AA Derivatives SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on 31 July 2016 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Developers and Constructions Private Limited ( Guaranteed by a Piramal Group Company ) 0.14 Adani Port and Special Economic Zone Limited 1.00 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) 0.23 Adani Transmission Ltd 0.65 Aditya Birla Finance Ltd Aditya Birla Nuvo Limited 0.60 Airports Authority of India 0.05 Andhra Bank 0.13 Ashirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.10 Aspire Home Finance Corporation Ltd 0.14 Au Financiers (India) Limited 0.66 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.15 Bajaj Finance Limited 1.01 Bank of India 0.48 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.09 Bharti enterprises (Holding) Pvt. Ltd CBLO/REVERSE REPO 2.33 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.45 Canara Bank 0.51 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.42 Corporation Bank 0.15 DLF Emporio Ltd 0.21 Dalmia Bharat Ltd 0.20 Dewan Housing Finance Corporation Ltd ECL Finance Limited 1.32 East-North Interconnection Company Limited 0.14 Edelweiss Agri Value Chain Limited (Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited ) 0.57 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.16 Edelweiss Housing Finanance Limited 0.39 Edisons Untility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.21 Emami Enclave Markets Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.09 Equitas Micro Finance Ltd Essel Mining & Industries Ltd Export-Import Bank of India Fullerton India Credit Co. Ltd Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.38 Grasim Industries Ltd Gruh Finance Ltd 0.80 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) 0.08 Hero Realty Ltd ( Guaranteed by a Hero Group company ) 0.20 Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.17 Hindalco Industries Ltd Hinduja Leyland Finance Ltd Hindustan Zinc Ltd 0.69 ICICI Bank Ltd ICICI Home Finance Company Limited 0.47 IDBI Bank Ltd IDFC Bank Limited 0.04 IIFL Wealth Finance Ltd IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.14 IOT Utkal Energy Services Ltd India Infoline Finance Limited 1.06 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.01 Indian Oil Corporation Ltd Indian Overseas Bank 0.07 Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.25 IndusInd Bank Ltd Infrastructure Leasing & Financial Services Limite 0.02 Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) 0.47 Inox Air Products Ltd Issuer Name %age of Exposure to Debt AUM Intime Properties Ltd JSW Investments Pvt. Ltd Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.07 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.74 Kotak Mahindra Bank Ltd Kotak Mahindra Investments Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.28 LIC Housing Finance Ltd Larsen and Toubro Ltd MA MAULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.15 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 0.81 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.34 Muthoot Finance Ltd 1.70 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.63 National Bank for Agriculture and Rural Developmen 2.10 National Housing Bank 0.25 ONGC Manglore Petrochemicals Ltd PNB Housing Finance Ltd Peninsula Land Limited 0.21 Phoenix ARC Pvt Ltd 0.10 Piramal Enterprises Limited 1.97 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.04 Prestige Estates Projects Limited 0.42 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.18 Punjab National Bank 0.03 Ratnakar Bank Ltd 0.04 Raymond Ltd Reliance Capital Ltd Reliance Jio Infocomm Limited 2.47 Reliance Ports And Terminals Limited 0.04 Reliance Utilities And Power Private Limited 0.14 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.18 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.19 Sadbhav Engineering Ltd Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.21 Shapoorji Pallonji Energy Gujarat Private Limited 0.08 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.04 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.10 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.07 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.04 State Bank Of India State Bank of Travancore 0.09 State Government 5.49 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.36 Sundaram BNP Paribas Home Finance Ltd 0.09 Sundaram Finance Ltd Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.99 Syndicate Bank 0.18 Tata Capital Financial Services Limited 0.29 Tata Capital Housing Finance Ltd; 0.71 Tata Motors Finance Ltd 0.33 Tata Motors Ltd Tata Power Company Ltd Tata Sons Ltd Ultratech Cement Ltd Vedanta Ltd Vijaya Bank 0.39 TOTAL 100 Industry / Sector %age of Exposure to Debt AUM BANK 6.70 CASH(CBLO/REVERSE REPO) 2.33 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.61 TOTAL Includes Hybrid schemes - debt scheme schemes having equity exposure 34

36 FUND OF FUNDS KOTAK ASSET ALLOCATOR FUND An Open Ended Fund of Funds (Earlier known as Kotak Equity FOF ) Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate long-term capital appreciation from a portfolio created by investing in specified open-ended equity, and debt schemes of Kotak Mahindra Mutual Fund. However, there is no assurance that the investment objective of the will be realized. August 9, 2004 Mr. Deepak Gupta* Crisil Balanced Fund AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: `28.28 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:1.22% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Floater Long Term Direct Growth Debt Kotak Select Focus Fund Direct Growth Equity Kotak Mahindra Bond Plan Debt Kotak Liquid Plan A Debt 9.97 Mutual Fund Units - Total Net Current /(Liabilities) 0.41 Kotak Asset Allocator Fund NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Debt Equity Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 35 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the scheme is to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity related securities of companies having assets, products or operations in the United States. However, there is no assurance that the investment objective of the will be realized. December 20, 2013 Mr. Deepak Gupta* Standard & Poor's 500 Total Return Net Index in USD is the benchmark of the underlying scheme. The same converted into INR using RBI reference rate will be the benchmark for the scheme. AAUM (` In Crores) AAUM as on July 31, 2016: `5.19 AUM (` In Crores) AUM as on July 31, 2016: ` 5.20 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.40% Direct: 0.61% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 2.78 Kotak US Equity Fund NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) 2.78 Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

38 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. However, there is no assurance that the objective of the scheme will be realized. September 26, 2007 s Mr. Deepak Gupta (Dedicated fund manager for s overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) AAUM as on July 31, 2016: `29.76 AUM (` In Crores) AUM as on July 31, 2016: `30.12 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: 1.93% Direct: 0.78% 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 1.33 Net Current /(Liabilities) 0.13 Kotak Global Emerging Market Fund NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Investment in overseas mutual fund schemes that invest in a diversified portfolio of securities in global emerging markets * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

39 FUND OF FUNDS KOTAK WORLD GOLD FUND (formerly known as PineBridge World Gold Fund ) An Open Ended Fund of Funds INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the is to provide long term capital appreciation by investing predominantly in units of Falcon Gold Equity Fund. The may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes. The may also invest a certain portion of its corpus in debt and money market securities and/or units of debt/liquid schemes of Mutual Funds, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the will be realized. June 6, 2008 Mr. Deepak Gupta* Financial Times Gold Mines Total Price Index, in USD is the benchmark of Falcon Gold Equity Fund. The above translated to INR using the RBI Reference Rate will be the benchmark of Kotak World Gold Fund. AAUM (` In Crores) AAUM as on July 31, 2016: ` AUM (` In Crores) AUM as on July 31, 2016: ` 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: 1.09% 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 3.79% Net Current /(Liabilities) Kotak World Gold Fund NAV as on July 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

40 ETF SCHEMES KOTAK GOLD ETF An Open Ended Gold Exchange Traded Fund The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error. July 27, 2007 Mr. Abhishek Bisen* Physical Gold AAUM (`In Crores) AAUM as on July 31, 2016: ` AUM (`In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on July 29, 2016: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 39 * For experience, please refer page For scheme performance, please refer page no 44-53

41 ETF SCHEMES KOTAK NIFTY ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the CNX Nifty subject to tracking errors. February 2, 2010 Mr. Deepak Gupta* Nifty 50 AAUM (`In Crores) AAUM as on July 31, 2016: ` AUM (`In Crores) AUM as on July 31, 2016: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 23.01% 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:0.13% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 7.87 HDFC Ltd. Finance 6.86 Infosys Ltd. Software 6.78 ITC Ltd. Consumer Non Durables 6.74 Reliance Industries Ltd. Petroleum Products 5.30 ICICI Bank Ltd. Banks 4.83 Tata Consultancy Services Ltd. Software 4.40 Larsen And Toubro Ltd. Construction Project 4.04 Tata Motors Ltd. Auto 3.08 Axis Bank Ltd Banks 2.88 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.84 Kotak Mahindra Bank Ltd. Banks 2.57 State Bank Of India Banks 2.25 Mahindra & Mahindra Ltd. Auto 2.16 Hindustan Unilever Ltd. Consumer Non Durables 2.08 Maruti Suzuki India Limited Auto 2 IndusInd Bank Ltd. Banks 1.81 Asian Paints Ltd. Consumer Non Durables 1.59 Bharti Airtel Ltd. Telecom - Services 1.51 HCL Technologies Ltd. Software 1.34 Coal India Ltd. Minerals/Mining 1.31 Lupin Ltd. Pharmaceuticals 1.31 Hero MotoCorp Ltd. Auto 1.27 Yes Bank Ltd Banks 1.26 Oil & Natural Gas Corporation Ltd. Oil 1.25 National Thermal Power Corporation Limited Power 1.24 Ultratech Cement Ltd. Cement 1.23 Power Grid Corporation NAV Issuer / Instrument Industry/ % to Net Rating Of India Ltd Power 1.22 Dr Reddys Laboratories Ltd Pharmaceuticals 1.17 Bajaj Auto Ltd. Auto 1.16 Wipro Ltd. Software 1.11 Grasim Industries Ltd. Cement 1 Bharat Petroleum Corporation Ltd. Petroleum Products 0.98 Tech Mahindra Ltd. Software 0.96 Eicher Motors Ltd Auto 0.87 Zee Entertainment Enterprises Ltd Media and Entertainment 0.86 Cipla Ltd. Pharmaceuticals 0.84 Tata Steel Limited. Ferrous Metals 0.75 Bosch Limited Auto Ancillaries 0.72 Adani Port and Special Economic Zone Limited Transportation 0.67 Ambuja Cements Ltd Cement 0.67 Aurobindo Pharma Ltd. Pharmaceuticals 0.67 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.66 GAIL (India) Ltd. Gas 0.57 Hindalco Industries Ltd Non - Ferrous Metals 0.54 Tata Motors Ltd - DVR Auto 0.51 ACC Ltd. Cement 0.50 Bank Of Baroda Banks 0.45 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.42 Tata Power Co. Ltd. Power 0.41 Idea Cellular Ltd. Telecom - Services 0.37 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.12 Kotak Nifty ETF NAV as on July 29, 2016 : ` Sector Allocation (%) Investors understand that their principal will be at moderate risk Banks Software Consumer Non Durables Auto Pharmaceuticals Finance Petroleum Products Construction Project Cement Power Others Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

42 ETF SCHEMES KOTAK SENSEX ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. June 6, 2008 Mr. Deepak Gupta* S&P BSE SENSEX AAUM (`In Crores) AAUM as on July 31, 2016: `11.39 AUM (`In Crores) AUM as on July 31, 2016: `11.56 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 20.33% Tracking Error: 0.12% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.25% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.62 HDFC Ltd. Finance 8.49 Infosys Ltd. Software 8.39 ITC Ltd. Consumer Non Durables 8.34 Reliance Industries Ltd. Petroleum Products 6.56 ICICI Bank Ltd. Banks 5.97 Tata Consultancy Services Ltd. Software 5.24 Larsen And Toubro Ltd. Construction Project 4.99 Tata Motors Ltd. Auto 3.75 Axis Bank Ltd Banks 3.61 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.51 State Bank Of India Banks 2.85 Mahindra & Mahindra Ltd. Auto 2.63 Hindustan Unilever Ltd. Consumer Non Durables 2.57 Maruti Suzuki India Limited Auto 2.47 Bharti Airtel Ltd. Telecom - Services 1.98 Asian Paints Ltd. Consumer Non Durables 1.96 Lupin Ltd. Pharmaceuticals 1.63 Coal India Ltd. Minerals/Mining 1.62 Kotak Sensex ETF NAV as on July 29, 2016 : ` NAV Issuer / Instrument Industry/ % to Net Rating Oil & Natural Gas Corporation Ltd. Oil 1.54 Hero MotoCorp Ltd. Auto 1.53 Power Grid Corporation Of India Ltd Power 1.51 Dr Reddys Laboratories Ltd Pharmaceuticals 1.47 Bajaj Auto Ltd. Auto 1.44 Wipro Ltd. Software 1.37 National Thermal Power Corporation Limited Power 1.28 Cipla Ltd. Pharmaceuticals 1.04 Tata Steel Limited. Ferrous Metals 0.93 Adani Port and Special Economic Zone Limited Transportation 0.83 GAIL (India) Ltd. Gas 0.70 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.18 Sector Allocation (%) Banks Software Auto Consumer Non Durables Pharmaceuticals Finance Petroleum Products Construction Project Telecom - Services Others Power Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 41 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58