EXPERT SPEAK. Mr. Nilesh Shah. December 31, 2015

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2 EXPERT SPEAK Mr. Nilesh Shah December 31, 2015 Dear Friends, There is a Panchtantra tale - a very famous one. The one where a father teaches his four sons the value of unity by making them break sticks separately and then making them try breaking it as a bundle. We don t appreciate this ancient wisdom much, but it s applicable at points and place where it can create wonders. Bear with me through this article and the point might come across. Very recently IIFL Wealth sold its 21% stake for Rs 1220 crs to General Atlantic (a PE firm). While many deals happen in a year, this deal underscored a particular thing - the value of the financial intermediation and distribution business. And the fact that a PE has paid for it, means that they see the business and its valuation growing far more rapidly than it is currently visible. What I am arriving at is that IFAs are sitting on a large gold mine, but are mining individually and therefore in small quantity. Some are good at finding a location, some at keeping the tools optimal, some at digging, some at refining, some at processing and some at selling. Likewise, in our IFA community, many are good at identifying potential investor communities, many at reaching out to them; many are good at understanding their needs; many at communicating with them, and many at selling and retaining them. Due to these unique skills developed over a period of time, we have IFAs who have created individual islands of excellence. But they are operating in isolation. They are utilising only one or two of their unique selling points; and still these IFAs have managed to do wonders. The time has come that these islands of excellence come together. Only when these different operating efficiencies merge will a more robust, a more enriching and a more fulfilling business enterprise rise. The point is that IFAs need to come together and corporatize their individual businesses into a corporate structure to create and sustain value. A Corporate entity of IFAs coming together will create significant value for all the contributors. Such a merged and corporatized IFA setup would have reach and access to towns, cities, villages and settlements - which no single entity can imagine doing on its own. It would be able to assimilate, learn and distribute best practises of individual IFAs and distributors. Such a setup would have best of managerial practises, selling skills and communication ability at its hold. Such a corporatized entity would help India mobilize and allocate her savings more effectively. It will give more depth to the domestic capital markets, accelerate financial integration and boost entrepreneurship. Many may see this as a dream of a perpetual dreamer. But these dreams have been made true earlier as well. In milk deficient and milk importing India it took the spark and initiative of Dr Verghese Kurien to change the situation. It was the joint enterprise of Dr Kurien and thousands of village farmers that became AMUL. This initiative made India not only a milk surplus nation but also the world s largest milk producer. The success of AMUL was because of the unity of purpose of villagers, a win-win model, the enterprising spirit even at the grassroot level and willing to come together and Corporatise - the willingness to be merged, organised and led by professionals. This fact and its benefits need to be now understood by IFAs. Unification and corporatisation is not a loss of freedom. It is gaining of reach, access, brand, organisation, and size. And with this comes strength, and opportunity and access to doors which otherwise don t open. To achieve this goal, many individual egos would need to be put aside. IFAs will have to take joint ownership and pride in the new entity. IFAs would have to show the willingness to become shareholding employees rather than be a self-employed person. Some would have to show their enterprise as salespeople, some as operations people, some as managerial people, some as communications people. It s not that it s an easy job. But it s not an impossible dream either. Manthan - the film depicting the events in formation of Amul is a lead story to show the difficulties involved. But it is also an inspiration of what can be done and what is possible. I sincerely hope and pray that IFAs of our country come together to create a corporate entity that professionalises their business and creates significant value for everyone. Wishing you a very happy and prosperous 2016 Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW With an eventful year 2015 coming to an end, at the very outset, I wish everyone a very happy and prosperous New Year Key highlights: We believe that 2016 can be a year of immense possibilities for equity markets in India. Earnings recovery: Key driver of equity market performance in Earnings downgrades for FY16 likely to abate; FY17E earnings growth of ~15-16% achievable; volume growth to provide operating leverage. Improvement in household savings led by financial savings: structural driver for Indian equity markets. GDP growth: On the path to steady recovery; FY17E real GDP growth at 7.8-8% (7.3% in FY16E). Scope remains for 25-50bps further cuts in policy rates; Inching up of CPI inflation largely on the back of fading base effect. Currency: India shines among emerging markets; depreciating bias to remain; FY16E INR/USD to average 65; in FY17E. India 2016: A year of immense possibilities 2015 was a rather eventful year for Indian equities with its fair share of ups and down. It is now time to look ahead and crystal gaze into We believe that 2016 can be a year of immense possibilities for equity markets in India. While much has been written and debated about the India story one cannot ignore the fact that today India s macro stabilisation is now on a much stronger footing. This is at a time when most of the world is grappling with slower growth and myriad other imbalances. This paves the way for the Government to increase focus on policy measures, which would translate into sustained economic recovery. A word of caution though; even as India will continue to be the fastest growing large economy in the world, given the external and some domestic headwinds, economic recovery would be slow but steady. Against this backdrop we examine what we believe would be the key themes for Earnings recovery: Driver of equity market performance While 2015 was a tepid year for the equity markets, we do believe that the benefits of on-going reforms is likely to translate into a slow but steady earnings recovery. The key to market performance in CY16 in our view is corporate earnings trajectory. Earnings expectations for FY16 have been significantly cut, leading to a de-rating of the markets. However, it now does appear that the pace of earnings downgrades is close to its peak and FY17E earnings growth should settle at around ~15-16% levels on a realistic basis. In this context, we note the following: In FY16, earnings growth when adjusted for Sun Pharma, Lupin, IDFC, Tata Motors, Metals and Oil& Gas would be around 12-13% instead of the likely headline number of 6-7%. Hence, after adjusting the one offs, the asking rate for earnings growth for FY17 does not appear very challenging. With GDP growth expected to improve in FY17, we are hopeful of a volume recovery. Further, the current global construct is favourable for India macros. commodity and oil prices together with global liquidity would help keep India s Balance of Payments (BoP) and fiscal deficit under check. With operating costs remaining benign, any growth recovery would result in significant operating leverage for Indian corporates. RBI has cut interest rates by 125bps in CY15 in an effort to boost the economy and kick start the investment cycle. As banks accelerate the process of monetary transmission (with the introduction of the new base rate regime), we believe that India s cost of capital (COC) will also progressively reduce. The consequent expansion in the ROCE-COC spread could be one of the drivers of the next leg of re-rating in Indian equities. Given these expectations, the market is currently trading at valuations which appear comfortable at ~15.5xFY17E EPS (Nifty, on a free float basis). However, we could see some downside risks from rise in credit costs in the banking sector and a further sharp fall in commodity prices could increase capital outflows and risk aversion. A reduction in corporate tax rate, which is not factored in our estimates, may boost earnings. 2. Improvement in household savings led by financial savings: Structural driver for Indian equity markets The improvement in financial savings of households would be one of the key drivers for equity markets in Gross Household financial savings rate stood at only 9.8% of GDP in FY15 and this would in our view improve over the next 10 years and would lead to not only better deposit mobilisation but also see better inflows into equity as an asset class through investment in mutual funds and life insurance. The government s thrust on financial inclusion and curbing black money and the RBI s focus on positive real interest rates are the key factors that in our view would result in a higher proportion of household savings being allocated to financial savings as opposed to physical assets. 3. GDP growth: On the path to steady recovery We expect economic activity to start picking up from H2CY16 as the government s efforts to address some of India s legacy investment issues start taking effect. While the accuracy of the GDP data as per the new series has been oft debated, the trends in the real GDP growth points towards a slow but steady recovery (H1FY16 growth at 7.2%) in FY16/FY17. Signs of nascent recovery in manufacturing and investment growth (on the back of public spend, easing interest rate cycle and proactive policies to improve investment appetite) appears encouraging and the monthly IIP (Index of Industrial Production) data supports this view. Recovery would be mainly led by urban consumption (boosted by the pay-outs under the 7th Pay Commission), government spending on infrastructure and lower bank lending rates. However, the impact of poor monsoons on agriculture output will manifest in Q3FY16 and exports weakness is persisting for longer. The good news is that the initial forecasts point towards the possibility of a normal monsoon in FY17 which bodes well for agricultural GDP growth. OUTLOOK: we estimate real GDP growth in FY16 to be at 7.3% on a Gross value added basis (GVA, FY15-7.2%) and FY17E growth at 7.8%-8%. 4. Interest rates: Scope remains for some further cuts While the US Federal Reserve has embarked on a policy tightening cycle with the first rate hike on December 16, 2015, the policy stance of most other central banks around the world remains accommodative as many of these economies grapple with deflation. We believe that even after the 50bps cut in policy rates in September 2015 (125 bps cut in policy rates cumulatively in Cy15), RBI has the head room to cut rates by another 25-50bps in CY16. The rise in CPI inflation in India as per the latest data (5.41% in November 15) should be viewed in light of the fading base effect and we expect that CPI inflation would not exceed RBI s targeted rate of 5.8% in January 2016 and would average ~5% in FY16. For FY17, our expectations is for average CPI inflation to range between 5-5.5%. Banks have started transmitting the cut in policy rates by lowering their base rates and RBI has announced the new methodology for base rate (calculated on marginal cost of funds) for incremental loans which could lead to some further lending rate cuts. This together with the persistent slack in economic activity would give the confidence to RBI to continue with cutting policy rates even as the longer term target of bringing down CPI inflation closer to 4% remains intact. 5. Currency: India shines among emerging markets; depreciating bias to remain While the Indian currency has depreciated against the USD by 4.7% in CY15 (till Dec 22, 2015), the pace of the depreciation has been gradual and has not resulted in any significant volatility in the currency markets. Despite the fall, India remains better placed than many emerging economies which have seen sharp currency depreciation. However, even with the strong showing of the INR in comparison to other emerging market currencies, we do believe that our currency would have a depreciating bias against the USD in 2016 due to: While the INR has depreciated against the USD, it has appreciated against many other currencies which is reflected in the overvaluation of the INR in REER terms (Real Effective Exchange Rate). Exports continue to de-grow: Export growth was down 18.3% YoY while imports fell 17.3% YoY for April-November Our view is that the INR/USD would average 65 in FY16 with a likelihood of another ~3.5-4% depreciation in FY17 resulting in the INR averaging ~67.5/USD in FY17E. However, like in 2015, we do not see any sharp volatility in the currency markets as RBI has managed to build a sizeable war chest in the form of forex reserves (USD 351Bn) which may hold the currency in good stead. 2

4 DEBT VIEW Items Dec-15 Nov-15 Change Reverse Repo 5.75% 5.75% Nil Repo 6.75% 6.75% Nil CRR 4% 4% Nil SLR 21.50% 21.50% Nil Mibor Overnight 7.03% 6.84% 19 bps Call(O/N) 6.68% 6.75% -7 bps CBLO 7.04% 6.69% 35 bps 1 yr T Bill 7.23% 7.20% 3 bps 10 G Sec 7.76% 7.79% -3 bps 5 Year AAA 8.30% 8.25% 5 bps USD/INR paise Source: RBI; ICRAonline. Key Events: Headline CPI for November 2015 rose to 5.41% from 5%. The core inflation was at 4.6% from 4.50%. WPI inflation for the November month came at % from -3.81% (negative for 13th month in a row). US Central bank raised interest rates by 25 bps for a first time in nearly a decade taking its target range for federal fund rate to 0.25%-0.50%. It also said the policy stance remained accommodative and pace of future hikes would be gradual. Market reaction to long-impending rate hike was relatively benign due to fine calibration of market expectations by the Fed. India's exports declined for the 12th month running in November to 20 billion from 21.4 billion a month earlier, whereas imports have also decline to 29.8 billion from 31.1 billion on October. The trade deficit for November was at 9.7 billion. Rupee has outperformed other EM currencies. Rupee has appreciated 0.51% against dollar in Dec month due to better macro-economic profile and reformoriented government ECB s Draghi announced a modest reduction in the deposit rate paid on reserves held at the central bank which is already negative but falls further from - 0.2% to -0.3% and a six-month extension of the end-date for the ECB s 60bn-a-month quantitative easing (QE) programme. Despite conciliatory noises in early December, India s legislative reforms remained stalled for the rest of the month, with both GST and Bankruptcy Bill not seeing the light of day; Government is confident of pushing through these in the Budget session. Performance of 10 Year Gilt: Source: Bloomberg Despite policy rate cut of cumulative 125 bps in CY15, 10yr yields have fallen by only bps. This is mainly because of the concerns on fiscal & inflationary pressures due to 7th pay commission recommendations, leading to G-sec supply pressure Current spread of ~100 bps between overnight rate and g-sec yields is too wide for an easing policy. We believe that the current markets are oversold and present an investment opportunity for the long term investors Debt Outlook Long Term Curve : 10 year yields are at pre-rate cut levels in Jan 2015; we believe most of the negatives are priced in While RBI is still in accommodative mode and likely to cut further when space emerges and will keep ample liquidity in the market, 100 bps spread between 10 yr and overnight rates is very attractive With muted credit growth and high positive carry of ~100 bp, we expect demand for G Sec to remain good. However it may remain volatile due to events such as budget. We expect 10 yr to trend lower around 7.40% band by March 2016 as bulk of supply is behind us With inflation expected to fall well below the targeted 5% by Jan 2017 and RBI s indicated real interest rate of 1.5-2%, we expect further rate cut of 50 bps in next 18 months. We would recommend duration funds with a 18 month view. Short-Term: Currently the yield curve is steep and we expect it to remain steep due to uncertainty on the rate cut front As rate cut expectation increase on the back of declining inflation, we expect yield curve to flatten. 3 3

5 GOLD VIEW For the month, spot gold closed at per ounce, up 6.60 per ounce or 0.63%. During the month the US Federal Reserve hiked interest rates for the first time in nearly a decade on December 16, signaling faith that the US economy had largely overcome the wounds of the financial crisis. Gold has lost value for three straight years, starting in That is the longest streak of annual losses for the metal since A rise in the dollar which has gained 9.1% in 2015, also weighed on dollar-denominated metals, making them less appealing to buyers using other monetary units. Gold had a bad year frankly. This was not a surprise as most of the commodities fell globally as dollar posted a strong performance. The likelihood of reversal in the zero interest rate policy of US Fed was the primary catapult for US Dollar s performance. As a consequence, the yellow metal is about to close the year at around US 1070 per ounce level. A decline of almost 11.2% on yoy terms. Even in Rupee terms, the metal has fallen by around 5.62% and is trading at around Rs levels. We believe that gold s understated performance is likely to continue since the possibility of further rate hike in US Fed rate in 2016 remains high. At that, the corelated commodities such as crude oil are also expected to remain subdued in the following year. For that reason, we continue to advise our investors to remain marginally invested in gold and only to the extent so as to anchor the portfolio against any systemic risk in the financial sector. 4

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) AAUM as on Dec 31, 2015: `1, AUM (` In Crores) AUM as on Dec 31, 2015: `1, A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 42.66% Beta: 1.07 ## Sharpe : 0.57 Standard Deviation : 14.96% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.19% Direct: 1.09% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 8.38 HDFC Bank Ltd. Banks 7.66 ICICI Bank Ltd. Banks 5.68 Larsen And Toubro Ltd. Construction Project 4.31 Reliance Industries Ltd. Petroleum Products 4.06 Axis Bank Ltd Banks 3.90 Maruti Suzuki India Limited Auto 3.48 Tata Consultancy Services Ltd. Software 3.18 IndusInd Bank Ltd. Banks 3.12 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.80 Ultratech Cement Ltd. Cement 2.66 State Bank Of India Banks 2.42 ITC Ltd. Consumer Non Durables 2.29 HDFC Ltd. Finance 2.26 Tata Motors Ltd - DVR Auto 2.11 Mahindra & Mahindra Ltd. Auto 1.97 Power Grid Corporation Of India Ltd Power 1.97 Tata Motors Ltd. Auto 1.96 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.86 Britannia Industries Ltd. Consumer Non Durables 1.75 HCL Technologies Ltd. Software 1.59 MRF Limited Auto Ancillaries 1.55 The Ramco Cements Ltd Cement 1.52 Jubilant Foodworks Limited Consumer Non Durables 1.50 Oil & Natural Gas Corporation Ltd. Oil 1.50 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Kajaria Ceramics Ltd. Construction 1.47 Shree Cement Ltd. Cement 1.41 Siemens Ltd. Industrial Capital Goods 1.40 Bharat Electronics Ltd Industrial Capital Goods 1.31 Hero MotoCorp Ltd. Auto 1.30 Bharat Petroleum Corporation Ltd. Petroleum Products 1.24 Asian Paints Ltd. Consumer Non Durables 1.23 Grasim Industries Ltd. Cement 1.21 Persistent Systems Limited Software 1.20 Tata Communications Ltd Telecom - Services 1.18 IDFC Bank Limited Banks 1.04 Adani Port and Special Economic Zone Limited Transportation 1.01 Lupin Ltd. Pharmaceuticals 1 Sanofi India Ltd. Pharmaceuticals 0.98 Supreme Industries Limited Industrial Products 0.95 Tech Mahindra Ltd. Software 0.91 Alstom India Limited Industrial Capital Goods 0.88 Cadila Healthcare Ltd. Pharmaceuticals 0.81 Bank Of Baroda Banks 0.73 HDFC Ltd. Warrants Finance 0.45 DR.Lal Pathlabs Ltd Healthcare Services 0.30 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.39 Collateral Borrowing & Lending obligation 2.27 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 December 31, 2015: ` (Dividend Option), `34.588(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 2,050, , , ,122 1,370,324 2,252,956 12,121, , , ,215 1,193,013 1,904,431 6,931, , , ,851 1,180,710 1,871,634 7,035, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 5 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.83 ## Sharpe : 0.50 Standard Deviation : 12.20% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.70% Direct: 1.20% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.11 Infosys Ltd. Software 7.20 Bharat Petroleum Corporation Ltd Petroleum Products 4.08 Dr Reddys Laboratories Ltd Pharmaceuticals 3.87 Zee Entertainment Enterprises Ltd Media and Entertainment 3.74 Lupin Ltd. Pharmaceuticals 3.46 Tata Motors Ltd. Auto 3.44 Hindustan Unilever Ltd. Consumer Non Durables 3.14 HCL Technologies Ltd. Software 3 IndusInd Bank Ltd. Banks 2.98 Tata Consultancy Services Ltd. Software 2.89 Bosch Limited Auto Ancillaries 2.58 Asian Paints Ltd. Consumer Non Durables 2.52 Bajaj Finance Limited Finance 2.07 Bajaj Finserv Ltd. Finance 2.01 Britannia Industries Ltd. Consumer Non Durables 1.98 Maruti Suzuki India Limited Auto 1.81 Axis Bank Ltd Banks 1.79 Dish TV India Ltd. Media and Entertainment 1.79 ITC Ltd. Consumer Non Durables 1.56 DR.Lal Pathlabs Ltd Healthcare Services 1.44 Cummins India Ltd. Industrial Products 1.39 Ultratech Cement Ltd. Cement 1.38 Ashok Leyland Ltd. Auto 1.31 HDFC Ltd. Warrants Finance 1.06 Larsen And Toubro Ltd. Construction Project 1.06 HDFC Ltd. Finance 1.00 Alkem Laboratories Ltd Pharmaceuticals 0.98 IDFC Bank Limited Banks 0.97 Cadila Healthcare Ltd. Pharmaceuticals 0.96 Reliance Industries Ltd. Petroleum Products 0.91 Bank Of Baroda Banks 0.86 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.68 Grasim Industries Ltd. Cement 0.68 Aurobindo Pharma Ltd. Pharmaceuticals 0.66 Emami Ltd. Consumer Non Durables 0.64 Yes Bank Ltd Banks 0.49 Oracle Financial Services Software Ltd Software 0.48 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Wipro Ltd. Software 0.42 Bajaj Auto Ltd. Auto 0.40 Divi s Laboratories Limited Pharmaceuticals 0.32 Aditya Birla Nuvo Limited Services 0.30 UPL Ltd Pesticides 0.30 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.29 Bharat Electronics Ltd Industrial Capital Goods 0.19 Shree Cement Ltd. Cement 0.16 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.14 Mahindra & Mahindra Ltd. Auto 0.14 The Indian Hotels Company Ltd - CCD Hotels 0.14 Adani Port and Special Economic Zone Limited Transportation 0.08 Hero MotoCorp Ltd. Auto 0.08 Indian Oil Corporation Ltd Petroleum Products 0.06 TVS Motors Company Ltd Auto 0.06 ICICI Bank Ltd. Banks 0.04 Hindustan Petroleum Corporation Ltd Petroleum Products 0.03 Listed/Awaiting Listing on Stock Exchange - Total Futures Maruti Suzuki India Limited-JAN ICICI Bank Ltd.-JAN IndusInd Bank Ltd.-JAN Bajaj Auto Ltd.-JAN Yes Bank Ltd-JAN Axis Bank Ltd-JAN Larsen And Toubro Ltd.-JAN Bank Of Baroda-JAN Rural Electrification Corporation Ltd-JAN Futures (Market value represents Notional Value) - Total TERM DEPOSITS Standard Chartered Bank Ltd 8.87 Kotak Mahindra Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 4.78 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 1,260, , , ,296 1,305,859 2,145,301 2,337, , , ,743 1,238,484 2,007,606 2,207, , , ,215 1,193,013 1,923,575 2,117, 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 December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Media & Entertainment Consumer Non Durables Pharmaceuticals Derivatives Petroleum Products Others CBLO&Term Deposits&Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 31.24% Beta: 0.94 ## Sharpe :0.71 Standard Deviation : 13.97% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.38% Direct: 1.22% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 5.19 HDFC Bank Ltd. Banks 5.11 Bajaj Finance Limited Finance 4.28 ICICI Bank Ltd. Banks 3.85 Maruti Suzuki India Limited Auto 3.62 Axis Bank Ltd Banks 3.36 State Bank Of India Banks 3.19 Shree Cement Ltd. Cement 2.88 Larsen And Toubro Ltd. Construction Project 2.72 Bharat Petroleum Corporation Ltd. Petroleum Products 2.41 IndusInd Bank Ltd. Banks 2.28 Hindustan Petroleum Corporation Ltd Petroleum Products 2.26 Britannia Industries Ltd. Consumer Non Durables 2.22 Ultratech Cement Ltd. Cement 2.18 Torrent Pharmaceuticals Ltd. Pharmaceuticals 2.17 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.16 Tech Mahindra Ltd. Software 2.02 UPL Ltd Pesticides 1.87 HCL Technologies Ltd. Software 1.83 Federal Bank Ltd. Banks 1.80 Tata Motors Ltd. Auto 1.76 Lupin Ltd. Pharmaceuticals 1.71 MRF Limited Auto Ancillaries 1.70 Indraprastha Gas Ltd. Gas 1.58 Petronet LNG Ltd. Gas 1.55 Dalmia Bharat Ltd Cement 1.54 Arvind Ltd Textile Products 1.43 ITC Ltd. Consumer Non Durables 1.40 The Ramco Cements Ltd Cement 1.38 Max India Ltd. Finance 1.21 Fag Bearings India Ltd. Industrial Products 1.19 Multi Commodity Exchange of India Limited Finance 1.19 MBL Infrastructures Ltd. Construction 1.18 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - September 09, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Opportunities NAV as on December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Ancillaries Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement 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 1,360, , , ,800 1,464,039 2,447,594 3,406, , , ,442 1,262,164 2,010,491 2,603, , , ,215 1,192,979 1,923,541 2,529, Cummins India Ltd. Industrial Products 1.17 Ashok Leyland Ltd. Auto 1.13 Bank Of Baroda Banks 1.11 Persistent Systems Limited Software 1.10 Mahindra & Mahindra Ltd. Auto 1.09 Bosch Limited Auto Ancillaries 1.06 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.04 Motherson Sumi Systems Ltd. Auto Ancillaries 1.04 Tata Consultancy Services Ltd. Software 1.04 Va Tech Wabag Limited Engineering Services 0.98 AIA Engineering Limited Industrial Capital Goods 0.95 Container Corporation of India Ltd. Transportation 0.93 JK Cement Ltd. Cement 0.90 Whirlpool of India Ltd. Consumer Durables 0.86 DR.Lal Pathlabs Ltd Healthcare Services 0.85 D-Link (India) Ltd Hardware 0.83 National Buildings Construction Corporation Limited Construction 0.83 CESC Ltd. Power 0.80 Techno Electric & Engineering Co Ltd. Construction Project 0.76 Prestige Estates Projects Limited Construction 0.69 HDFC Ltd. Warrants Finance 0.68 Bharat Forge Ltd. Industrial Products 0.63 Power Grid Corporation Of India Ltd Power 0.60 SKF India Ltd Industrial Products 0.52 Swaraj Engines Ltd Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.17 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.50 Collateral Borrowing & Lending obligation 1.39 Net Current /(Liabilities) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 33.39% Beta: 1.00 ## Sharpe : 0.83 Standard Deviation : 14.80% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.03% Direct: 1.18% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.15 Infosys Ltd. Software 5.16 Ultratech Cement Ltd. Cement 3.70 Maruti Suzuki India Limited Auto 3.62 IndusInd Bank Ltd. Banks 3.30 The Ramco Cements Ltd Cement 3.20 Larsen And Toubro Ltd. Construction Project 3.07 Shree Cement Ltd. Cement 3.06 Axis Bank Ltd Banks 2.90 Max India Ltd. Finance 2.88 Bharat Electronics Ltd Industrial Capital Goods 2.78 ICICI Bank Ltd. Banks 2.70 State Bank Of India Banks 2.39 Britannia Industries Ltd. Consumer Non Durables 2.36 Arvind Ltd Textile Products 2.09 Hindustan Petroleum Corporation Ltd Petroleum Products 2.08 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.08 Tata Motors Ltd. Auto 2.05 HCL Technologies Ltd. Software 2 Bajaj Finance Limited Finance 1.90 Bharat Petroleum Corporation Ltd. Petroleum Products 1.86 Lupin Ltd. Pharmaceuticals 1.86 MRF Limited Auto Ancillaries 1.77 Indraprastha Gas Ltd. Gas 1.66 Ashok Leyland Ltd. Auto 1.55 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.48 Petronet LNG Ltd. Gas 1.43 Container Corporation of India Ltd. Transportation 1.41 Tech Mahindra Ltd. Software 1.33 ITC Ltd. Consumer Non Durables 1.25 Federal Bank Ltd. Banks 1.23 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) SYSTEMATIC INVESTMENT PLAN (SIP) Bajaj Finserv Ltd. Finance 1.21 Bosch Limited Auto Ancillaries 1.13 Cadila Healthcare Ltd. Pharmaceuticals 1.13 Hindustan Unilever Ltd. Consumer Non Durables 1.09 Jk Lakshmi Cement Ltd. Cement 1.05 Solar Industries India Limited Chemicals 1.03 Bank Of Baroda Banks 0.99 Techno Electric & Engineering Co Ltd. Construction Project 0.95 AIA Engineering Limited Industrial Capital Goods 0.79 Navkar Corporation Limited Transportation 0.67 Godrej Consumer Products Ltd. Consumer Non Durables 0.58 IFB Industries Ltd. Consumer Durables 0.55 HDFC Ltd. Warrants Finance 0.49 Kec International Ltd. Power 0.49 Whirlpool of India Ltd. Consumer Durables 0.45 IDFC Bank Limited Banks 0.42 CESC Ltd. Power 0.36 Kirloskar Oil Engines Ltd. Industrial Products 0.28 Siemens Ltd. Industrial Capital Goods 0.27 Bayer Cropscience Ltd. Pesticides % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.03 Listed/Awaiting Listing on Stock Exchange - Total Futures CNX NIFTY-JAN Arvind Ltd-JAN Petronet LNG Ltd.-JAN Futures (Market value represents Notional Value) - Total 2.57 TERM DEPOSITS Standard Chartered Bank Ltd 3.17 Kotak Mahindra Bank Ltd Term Deposits - Total 4.08 Collateral Borrowing & Lending obligation 6.37 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month Total Value as on Dec 31, 2015 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) 1 year 3 years 5 years Since Inception 120, , , , , , ,966 1,312, , , ,059 1,040, , , ,215 1,007, 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 December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Construction Project Auto Pharmaceuticals Finance Consumer Non Durables Cement CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 13.31% Beta: 1.08 ## Sharpe : 0.47 Standard Deviation : 16.17% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `500 and in multiple of `500 Investment: `500 & in multiples of `500 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Exit Load is not applicable for Kotak Tax Saver. (applicable for all plans) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.46% Direct: 1.25% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.79 Infosys Ltd. Software 5.49 ICICI Bank Ltd. Banks 4 Maruti Suzuki India Limited Auto 3.83 Axis Bank Ltd Banks 3.58 State Bank Of India Banks 3.14 Bajaj Finance Limited Finance 3.11 Larsen And Toubro Ltd. Construction Project 2.90 Shree Cement Ltd. Cement 2.86 IndusInd Bank Ltd. Banks 2.81 Britannia Industries Ltd. Consumer Non Durables 2.76 Whirlpool of India Ltd. Consumer Durables 2.69 Bharat Petroleum Corporation Ltd. Petroleum Products 2.31 Ultratech Cement Ltd. Cement 2.30 Tech Mahindra Ltd. Software 2.29 Reliance Industries Ltd. Petroleum Products 2.10 Hindustan Petroleum Corporation Ltd Petroleum Products 2.08 ITC Ltd. Consumer Non Durables 1.93 SKF India Ltd Industrial Products 1.83 Hindustan Unilever Ltd. Consumer Non Durables 1.79 Tata Motors Ltd. Auto 1.71 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.70 Techno Electric & Engineering Co Ltd. Construction Project 1.67 MRF Limited Auto Ancillaries 1.65 Solar Industries India Limited Chemicals 1.64 Federal Bank Ltd. Banks 1.55 Lupin Ltd. Pharmaceuticals 1.52 Arvind Ltd Textile Products 1.48 HCL Technologies Ltd. Software 1.42 Max India Ltd. Finance 1.42 Cadila Healthcare Ltd. Pharmaceuticals 1.36 Ashok Leyland Ltd. Auto 1.27 Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) MBL Infrastructures Ltd. Construction 1.23 Bank Of Baroda Banks 1.22 The Ramco Cements Ltd Cement 1.21 Blue Dart Express Ltd. Transportation 1.19 Cummins India Ltd. Industrial Products 1.17 Multi Commodity Exchange of India Limited Finance 1.15 Navneet Education Ltd. Media and Entertainment 1.10 Container Corporation of India Ltd. Transportation 1.09 UPL Ltd Pesticides 1.09 Thermax Ltd. Industrial Capital Goods 1.03 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 1.02 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.01 Bosch Limited Auto Ancillaries 0.97 AIA Engineering Limited Industrial Capital Goods 0.92 Bharat Forge Ltd. Industrial Products 0.92 Dalmia Bharat Ltd Cement 0.89 Hawkins Cooker Ltd Household Appliances 0.82 Adani Port and Special Economic Zone Limited Transportation 0.81 Kewal Kiran Clothing Limited. Textile Products 0.55 KSB Pump Ltd Industrial Products 0.50 IDFC Bank Limited Banks 0.44 The Indian Hotels Company Ltd - CCD Hotels % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.03 Corporate Debt/Financial Institutions - Total 0.03 Collateral Borrowing & Lending obligation 1.65 Net Current /(Liabilities) Inception : - November 23, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Tax Saver NAV as on December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Pharmaceuticals Consumer Non Durables Petroleum Products Cement Finance Construction Project Industrial Products Others * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,220, , , ,780 1,390,793 2,171,575 2,231, , , ,442 1,262,290 2,010,616 2,069, , , ,215 1,193,013 1,923,575 1,983, Auto Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 59.56% Beta: 0.98 ## Sharpe : 0.76 Standard Deviation : 18.37% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.52% Direct: 1.27% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) The Ramco Cements Ltd Cement 3.08 IndusInd Bank Ltd. Banks 3.06 Solar Industries India Limited Chemicals 2.88 Finolex Cables Ltd. Industrial Products 2.74 Hawkins Cooker Ltd Household Appliances 2.61 Fag Bearings India Ltd. Industrial Products 2.57 Persistent Systems Limited Software 2.57 Techno Electric & Engineering Co Ltd. Construction Project 2.56 Whirlpool of India Ltd. Consumer Durables 2.54 Supreme Industries Limited Industrial Products 2.46 DB Corp Limited Media and Entertainment 2.42 Federal Bank Ltd. Banks 2.33 Kewal Kiran Clothing Limited. Textile Products 2.27 ICICI Bank Ltd. Banks 2.15 Divi s Laboratories Limited Pharmaceuticals 2.13 Britannia Industries Ltd. Consumer Non Durables 2.11 JK Cement Ltd. Cement 1.99 Arvind Ltd Textile Products 1.88 Jubilant Foodworks Limited Consumer Non Durables 1.88 MRF Limited Auto Ancillaries 1.88 Motherson Sumi Systems Ltd. Auto Ancillaries 1.87 Mahindra & Mahindra Financial Services Ltd. Finance 1.83 Strides Arcolab Ltd. Pharmaceuticals 1.82 Va Tech Wabag Limited Engineering Services 1.79 Kansai Nerolac Paints Ltd Consumer Non Durables 1.78 Bajaj Finance Limited Finance 1.77 HSIL Ltd. Consumer Durables 1.77 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.76 Axis Bank Ltd Banks 1.69 SRF Ltd. Textile Products 1.62 Cadila Healthcare Ltd. Pharmaceuticals 1.60 Bharat Forge Ltd. Industrial Products 1.53 Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Pennar Engineered Building Systems Limited Ferrous Metals 1.53 Navneet Education Ltd. Media and Entertainment 1.46 PVR Ltd. Media and Entertainment 1.45 Atul Ltd. Chemicals 1.44 UPL Ltd Pesticides 1.39 Adani Port and Special Economic Zone Limited Transportation 1.36 Bharat Petroleum Corporation Ltd. Petroleum Products 1.35 Container Corporation of India Ltd. Transportation 1.28 Voltas Ltd. Construction Project 1.27 NIIT Technologies Ltd Software 1.26 Hindustan Petroleum Corporation Ltd Petroleum Products 1.20 Bank Of Baroda Banks 1.13 Tech Mahindra Ltd. Software 1.13 WPIL Ltd Industrial Products 1.13 Zuari Agro Chemicals Ltd Fertilisers 1.06 Havells India Ltd. Consumer Durables 1.05 Shriram Transport Finance Co Ltd. Finance 1.04 Alkem Laboratories Ltd Pharmaceuticals 1.03 DR.Lal Pathlabs Ltd Healthcare Services 1.02 Power Mech Projects Ltd Power 0.94 Union Bank Of India Banks 0.92 SKF India Ltd Industrial Products 0.86 Yes Bank Ltd Banks 0.85 Jk Lakshmi Cement Ltd. Cement 0.83 LIC Housing Finance Ltd. Finance 0.72 MBL Infrastructures Ltd. Construction 0.64 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 1.19 Net Current /(Liabilities) 0.53 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 December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Industrial Products Consumer Durables Pharmaceuticals Cement Consumer Non Durables Textile Products Finance Media & Entertainment Software Others Midcap and Small cap stocks as a % age of Net : 81.03% * 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 1,310, , ,362 1,076,039 1,790,525 2,818,739 3,324, , , ,217 1,468,162 2,396,703 2,847, , , ,215 1,193,013 1,923,575 2,314, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 45.33% Beta: 1.01 ## Sharpe : 0.90 Standard Deviation : 18.57% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.32% Direct: 1.11% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Whirlpool of India Ltd. Consumer Durables 3.56 The Ramco Cements Ltd Cement 3.35 Solar Industries India Limited Chemicals 3.16 IndusInd Bank Ltd. Banks 2.75 V-Guard Industries Ltd. Industrial Capital Goods 2.63 Hawkins Cooker Ltd Household Appliances 2.56 Fag Bearings India Ltd. Industrial Products 2.53 Finolex Cables Ltd. Industrial Products 2.39 Persistent Systems Limited Software 2.36 DB Corp Limited Media and Entertainment 2.19 Supreme Industries Limited Industrial Products 2.13 Navneet Education Ltd. Media and Entertainment 2.07 Federal Bank Ltd. Banks 2.03 Kewal Kiran Clothing Limited. Textile Products 2.01 Strides Arcolab Ltd. Pharmaceuticals 2.00 Shriram City Union Finance Ltd. Finance 1.94 Jubilant Foodworks Limited Consumer Non Durables 1.88 Britannia Industries Ltd. Consumer Non Durables 1.77 SRF Ltd. Textile Products 1.77 Mahindra & Mahindra Financial Services Ltd. Finance 1.70 D-Link (India) Ltd Hardware 1.66 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.63 Va Tech Wabag Limited Engineering Services 1.62 Alkem Laboratories Ltd Pharmaceuticals 1.60 PNC INFRATECH LIMITED Construction Project 1.60 ICICI Bank Ltd. Banks 1.55 Ramkrishna Forgings Ltd. Industrial Products 1.53 Divi s Laboratories Limited Pharmaceuticals 1.52 Greaves Cotton Ltd. Industrial Products 1.48 Pennar Engineered Building Systems Limited Ferrous Metals 1.48 PVR Ltd. Media and Entertainment 1.48 Bajaj Finance Limited Finance 1.40 Max India Ltd. Finance 1.39 Axis Bank Ltd Banks 1.38 Jk Lakshmi Cement Ltd. Cement 1.38 SKF India Ltd Industrial Products 1.38 Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Finolex Industries Ltd. Industrial Products 1.35 KPIT Technologies LImited Software 1.30 Carborundum Universal Ltd. Industrial Products 1.22 Motherson Sumi Systems Ltd. Auto Ancillaries 1.21 Power Mech Projects Ltd Power 1.20 IDFC Bank Limited Banks 1.17 WPIL Ltd Industrial Products 1.15 Blue Dart Express Ltd. Transportation 1.11 Marksans Pharma Ltd Pharmaceuticals 1.08 Oberoi Realty Ltd Construction 1.04 IFB Industries Ltd. Consumer Durables 1.03 Yes Bank Ltd Banks 0.99 Zuari Agro Chemicals Ltd Fertilisers 0.98 Kirloskar Brothers Ltd. Industrial Products 0.94 Atul Ltd. Chemicals 0.92 Maharashtra Seamless Ltd. Ferrous Metals 0.90 GMM Pfaudler Ltd. Engineering 0.86 Bank Of Baroda Banks 0.84 Coromandel International Ltd. Fertilisers 0.75 MBL Infrastructures Ltd. Construction 0.69 Multi Commodity Exchange of India Limited Finance 0.62 Amara Raja Batteries Ltd. Auto Ancillaries 0.53 IDFC Limited Finance 0.49 WABCO India Ltd. Auto Ancillaries 0.40 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.01 Corporate Debt/Financial Institutions - Total 0.01 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.30 Collateral Borrowing & Lending obligation 5.69 Net Current /(Liabilities) 0.37 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 December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Pharmaceuticals Banks Consumer Durables Finance Cement Media and Entertainment Others Chemicals Textile Products CBLO & Term Deposits & Rev.Repo Midcap and Small cap stocks as a % age of Net : 87.95% * 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 1,060, , ,943 1,160,478 1,883,413 2,463, , , ,909 1,461,024 1,926, , , ,215 1,193,013 1,595, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. There is no assurance that the investment objective of the will be achieved. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 61.14% Beta: 1.21 ## Sharpe : 0.60 Standard Deviation : 20.72% Source: ICRAMFI Explorer. Beta, Standard Deviation &Sharpe Ratio are calculated onannualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.63% Direct: 1.16% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 7.26 Bharti Airtel Ltd. Telecom - Services 6.62 Ultratech Cement Ltd. Cement 6.46 Indraprastha Gas Ltd. Gas 6.39 Larsen And Toubro Ltd. Construction Project 6.39 SKF India Ltd Industrial Products 5.92 Thermax Ltd. Industrial Capital Goods 5.67 KSB Pump Ltd Industrial Products 5.42 Kirloskar Oil Engines Ltd. Industrial Products 5.11 Fag Bearings India Ltd. Industrial Products 5.02 Cummins India Ltd. Industrial Products 4.39 Supreme Industries Limited Industrial Products 3.91 AIA Engineering Limited Industrial Capital Goods 3.04 Power Grid Corporation Of India Ltd Power 3.01 Tata Motors Ltd - DVR Auto 2.67 Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Gateway Distriparks Ltd. Transportation 2.64 Container Corporation of India Ltd. Transportation 2.56 MRF Limited Auto Ancillaries 2.55 Solar Industries India Limited Chemicals 2.40 Adani Port and Special Economic Zone Limited Transportation 2.32 Siemens Ltd. Industrial Capital Goods 2.22 Kajaria Ceramics Ltd. Construction 2.21 IDFC Bank Limited Banks 1.68 MBL Infrastructures Ltd. Construction 1.20 CESC Ltd. Power 0.98 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 2.66 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 December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project Construction Auto Others 1 year 3 years 5 years 7 years Since Inception 120, , , , , , , ,636 1,427,226 1,670, , , ,522 1,208,940 1,423, , , ,215 1,193,013 1,405, Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 64.48% Beta: 0.92 ## Sharpe : 0.48 Standard Deviation : 9.18% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.55% Direct: 1.27% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 4.32 HDFC Bank Ltd. Banks 4.04 ICICI Bank Ltd. Banks 3.46 Larsen And Toubro Ltd. Construction Project 2.89 Axis Bank Ltd Banks 2 Reliance Industries Ltd. Petroleum Products 2 IndusInd Bank Ltd. Banks 1.96 The Ramco Cements Ltd Cement 1.96 ITC Ltd. Consumer Non Durables 1.88 Maruti Suzuki India Limited Auto 1.65 HDFC Ltd. Finance 1.58 Supreme Industries Limited Industrial Products 1.52 Solar Industries India Limited Chemicals 1.49 HCL Technologies Ltd. Software 1.41 Ultratech Cement Ltd. Cement 1.34 Tata Consultancy Services Ltd. Software 1.32 Fag Bearings India Ltd. Industrial Products 1.29 State Bank Of India Banks 1.29 JK Cement Ltd. Cement 1.20 Finolex Cables Ltd. Industrial Products 1.19 Hindustan Unilever Ltd. Consumer Non Durables 1.05 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.05 Jubilant Foodworks Limited Consumer Non Durables 1.04 Container Corporation of India Ltd. Transportation 1.02 Va Tech Wabag Limited Engineering Services 0.99 Whirlpool of India Ltd. Consumer Durables 0.98 Oil & Natural Gas Corporation Ltd. Oil 0.96 UPL Ltd Pesticides 0.94 Britannia Industries Ltd. Consumer Non Durables 0.92 Mahindra & Mahindra Ltd. Auto 0.88 Navkar Corporation Limited Transportation 0.88 Ramkrishna Forgings Ltd. Industrial Products 0.86 Tata Motors Ltd. Auto 0.86 HDFC Ltd. Warrants Finance 0.84 Alkem Laboratories Ltd Pharmaceuticals 0.82 SRF Ltd. Textile Products 0.78 IDFC Bank Limited Banks 0.77 DB Corp Limited Media and Entertainment 0.75 Voltas Ltd. Construction Project 0.75 Bank Of Baroda Banks 0.73 Hindustan Petroleum Corporation Ltd Petroleum Products 0.71 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 31, 2015 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Government Dated Securities Industrial Products Banks Software CBLO & Term Deposits & Rev.Repo Finance Consumer Non Durables Auto Cement Construction Project Others SYSTEMATIC INVESTMENT PLAN (SIP) Coal India Ltd. Minerals/Mining 0.70 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.68 Bharat Forge Ltd. Industrial Products 0.66 PNC INFRATECH LIMITED Construction Project 0.66 S H Kelkar and Company Ltd Consumer Non Durables 0.66 Amara Raja Batteries Ltd. Auto Ancillaries 0.62 IDFC Limited Finance 0.61 Strides Arcolab Ltd. Pharmaceuticals 0.61 Lupin Ltd. Pharmaceuticals 0.57 Arvind Ltd Textile Products 0.56 Mahindra & Mahindra Financial Services Ltd. Finance 0.56 Federal Bank Ltd. Banks 0.55 Pennar Engineered Building Systems Limited Ferrous Metals 0.52 Cairn India Limited Oil 0.47 Gujarat State Petronet Ltd. Gas 0.47 Tech Mahindra Ltd. Software 0.46 Yes Bank Ltd Banks 0.40 Adani Port and Special Economic Zone Limited Transportation 0.35 Power Mech Projects Ltd Power 0.34 The Indian Hotels Company Ltd - CCD Hotels 0.05 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.20 Tata Sons Ltd. CRISIL AAA 0.08 Corporate Debt/Financial Institutions - Total 0.28 Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 1.93 Government Dated Securities - Total TERM DEPOSITS Standard Chartered Bank Ltd 8.85 Term Deposits - Total 8.85 Collateral Borrowing & Lending obligation 7.16 Net Current /(Liabilities) 1.71 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 1,940, , , ,117 1,207,472 1,968,328 7,150, , , ,458 1,182,988 1,931,125 NA NA 114, , ,215 1,193,013 1,923,575 6,271, 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 December 31,2015, 2015: ` (Dividend Option), `15.227(Direct Dividend Option), ` (Growth Option) (Direct Growth Option) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.61 ## Sharpe : 2.04 Standard Deviation : 0.59% Source: ICRA MFI Explorer. Beta, Standard Deviation & Sharpe Ratio are calculated on Annualised basis using 3 years history of monthly returns. ## Risk-free rate assumed to be 7.03% (3 months T-bill yield as on Dec 31, 2015) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including STP/SWP) within 90 days from the date of allotment of units, irrespective of the amount of investment: 0.50% II) For redemptions/switch outs (including STP/SWP) within 90 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans), (w.e.f. April 8, 2013) Regular: 1.10% Direct: 0.60% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged Aurobindo Pharma Ltd. Pharmaceuticals Britannia Industries Ltd. Consumer Non Durables Adani Port and Special Economic Zone Limited Transportation Larsen And Toubro Ltd. Construction Project Reliance Industries Ltd. Petroleum Products HDFC Bank Ltd. Banks HDFC Ltd. Finance 2-2 Indiabulls Housing Finance Ltd. Finance Axis Bank Ltd Banks Yes Bank Ltd Banks Hindustan Petroleum Corporation Ltd Petroleum Products Eicher Motors Ltd Auto Vedanta Ltd. Minerals/Mining IDFC Limited Finance Indian Oil Corporation Ltd Petroleum Products Reliance Capital Ltd. Finance SKS Microfinance Limited Finance JSW Steel Ltd. Ferrous Metals MRF Limited Auto Ancillaries Tata Global Beverages Limited Consumer Non Durables Sun TV Limited. Media and Entertainment ITC Ltd. Consumer Non Durables Shriram Transport Finance Co Ltd. Finance Castrol (India ) Ltd. Petroleum Products UPL Ltd Pesticides Cadila Healthcare Ltd. Pharmaceuticals Wockhardt Ltd. Pharmaceuticals Dish TV India Ltd. Media and Entertainment Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Adani Power Ltd Power Reliance Power Ltd Power Hindalco Industries Ltd Non - Ferrous Metals Lupin Ltd. Pharmaceuticals Cipla Ltd. Pharmaceuticals Tata Communications Ltd Telecom - Services Amara Raja Batteries Ltd. Auto Ancillaries Dewan Housing Finance Corporation Ltd. Finance Jindal Steel & Power Ltd. Ferrous Metals Power Finance Corporation Ltd. Finance Reliance Infrastructure Ltd Power Bharti Infratel Ltd. Telecom - Equipment & Accessories Glenmark Pharmaceuticals Ltd Pharmaceuticals Century Textiles & Industries Ltd. Cement TV18 Broadcast Ltd Media and Entertainment Jubilant Foodworks Limited Consumer Non Durables Bosch Limited Auto Ancillaries CESC Ltd. Power Ajanta Pharma Ltd. Pharmaceuticals LIC Housing Finance Ltd. Finance SRF Ltd. Textile Products Biocon Ltd. Pharmaceuticals * 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 MindTree Ltd. Software NCC Limited Construction Project Oracle Financial Services Software Ltd Software IFCI Ltd. Finance India Cements Ltd. Cement Pidilite Industries Ltd. Chemicals Apollo Tyres Ltd. Auto Ancillaries Jain Irrigation Systems Ltd. Industrial Products Tata Chemicals Ltd. Chemicals GMR Infrastructure Ltd. Construction Project Housing Development and Infrastructure Limited Construction IRB Infrastructure Developers Ltd Construction Bharat Earth Movers Ltd. Industrial Capital Goods Bharat Petroleum Corporation Ltd. Petroleum Products PTC India Ltd. Power Strides Arcolab Ltd. Pharmaceuticals Hexaware Technologies Ltd. Software Zee Entertainment Enterprises Ltd Media and Entertainment Ultratech Cement Ltd. Cement CEAT Ltd. Auto Ancillaries Karnataka Bank Ltd Banks L&T Finance Holdings Ltd Finance Tata Power Co. Ltd. Power Tata Motors Ltd - DVR Auto Indiabulls Real Estate Ltd Construction Engineers India Ltd. Construction Project Tata Motors Ltd. Auto The South Indian Bank Ltd. Banks Siemens Ltd. Industrial Capital Goods Unitech Ltd Construction Mahindra & Mahindra Ltd. Auto Adani Enterprises Ltd Trading Allahabad Bank. Banks Indraprastha Gas Ltd. Gas Ashok Leyland Ltd. Auto Asian Paints Ltd. Consumer Non Durables Hindustan Zinc Ltd. Non - Ferrous Metals Punjab National Bank Banks Bajaj Finance Limited Finance Aditya Birla Nuvo Limited Services Cairn India Limited Oil Infosys Ltd. Software Divi s Laboratories Limited Pharmaceuticals DLF Limited Construction Dr Reddys Laboratories Ltd Pharmaceuticals United Breweries Ltd. Consumer Non Durables NHPC Limited Power Syndicate Bank Banks TVS Motors Company Ltd Auto Andhra Bank Banks Havells India Ltd. Consumer Durables Federal Bank Ltd. Banks Jaiprakash Associates Ltd Construction Mcleod Russel India Ltd Consumer Non Durables Oriental Bank of Commerce Banks

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives UCO Bank Banks Canara Bank Banks Wipro Ltd. Software Ambuja Cements Ltd Cement Hindustan Unilever Ltd. Consumer Non Durables Oil & Natural Gas Corporation Ltd. Oil Dabur India Ltd Consumer Non Durables Tech Mahindra Ltd. Software Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units 3.04 Mutual Fund Units - Total 3.04 TERM DEPOSITS Kotak Mahindra Bank Ltd IndusInd Bank Ltd Ratnakar Bank Ltd 1.86 Term Deposits - Total Collateral Borrowing & Lending obligation 3.53 Net Current /(Liabilities) Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) Mutual Fund Units CBLO & Term Deposits & Rev.Repo Banks Pharmaceuticals Finance Petroleum Products Transportation Consumer Non Durables Power Others Construction Project Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Crisil Liquid Fund & 25% in Nifty 50 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For exit within 1 year from date of allotment of units: 1%; ii) For exit after 1year from the date of allotment of units: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the. iii) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.60% Direct: 0.98% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge Infosys Ltd. Software 1.69 Maruti Suzuki India Limited Auto 1.46 IndusInd Bank Ltd. Banks 1.45 HDFC Bank Ltd. Banks 1.31 Lupin Ltd. Pharmaceuticals 1.30 Bharat Petroleum Corporation Ltd. Petroleum Products 1.13 HDFC Ltd. Warrants Finance 1.13 Dr Reddys Laboratories Ltd Pharmaceuticals 1.06 Zee Entertainment Enterprises Ltd Media and Entertainment 0.93 HCL Technologies Ltd. Software 0.88 Hindustan Unilever Ltd. Consumer Non Durables 0.86 Tata Consultancy Services Ltd. Software 0.79 Axis Bank Ltd Banks 0.72 Bosch Limited Auto Ancillaries 0.72 Asian Paints Ltd. Consumer Non Durables 0.67 Bajaj Finance Limited Finance 0.64 Britannia Industries Ltd. Consumer Non Durables 0.61 Bajaj Finserv Ltd. Finance 0.60 ICICI Bank Ltd. Banks 0.56 Tata Motors Ltd. Auto 0.53 Dish TV India Ltd. Media and Entertainment 0.49 Larsen And Toubro Ltd. Construction Project 0.48 S H Kelkar and Company Ltd Consumer Non Durables 0.48 Bajaj Auto Ltd. Auto 0.42 Bank Of Baroda Banks 0.41 Alkem Laboratories Ltd Pharmaceuticals 0.39 Yes Bank Ltd Banks 0.38 Ashok Leyland Ltd. Auto 0.35 HDFC Ltd. Finance 0.35 ITC Ltd. Consumer Non Durables 0.27 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.26 Cummins India Ltd. Industrial Products 0.25 Cadila Healthcare Ltd. Pharmaceuticals 0.22 Emami Ltd. Consumer Non Durables 0.22 Ultratech Cement Ltd. Cement 0.20 Aurobindo Pharma Ltd. Pharmaceuticals 0.18 Bharti Airtel Ltd. Telecom - Services 0.18 Reliance Industries Ltd. Petroleum Products 0.14 Grasim Industries Ltd. Cement 0.13 UPL Ltd Pesticides 0.12 Wipro Ltd. Software 0.11 Coal India Ltd. Minerals/Mining 0.10 Oracle Financial Services Software Ltd Software 0.09 CNX NIFTY Call Option - December Divi s Laboratories Limited Pharmaceuticals 0.08 Aditya Birla Nuvo Limited Services 0.07 Cipla Ltd. Pharmaceuticals 0.05 Bharat Electronics Ltd Industrial Capital Goods 0.04 Shree Cement Ltd. Cement 0.04 Mahindra & Mahindra Ltd. Auto 0.03 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Hero MotoCorp Ltd. Auto 0.02 TVS Motors Company Ltd Auto 0.02 Adani Port and Special Economic Zone Limited Transportation 0.01 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.01 Hindustan Petroleum Corporation Ltd Petroleum Products 0.01 Indian Oil Corporation Ltd Petroleum Products 0.01 Non-Hedged- Total Hedged HDFC Bank Ltd. Banks Strides Arcolab Ltd. Pharmaceuticals Tata Communications Ltd Telecom - Services Jain Irrigation Systems Ltd. Industrial Products Reliance Capital Ltd. Finance MRF Limited Auto Ancillaries SKS Microfinance Limited Finance India Cements Ltd. Cement Vedanta Ltd. Minerals/Mining Axis Bank Ltd Banks IFCI Ltd. Finance Castrol (India ) Ltd. Petroleum Products Housing Development and Infrastructure Limited Construction Century Textiles & Industries Ltd. Cement NHPC Limited Power Power Finance Corporation Ltd. Finance Aurobindo Pharma Ltd. Pharmaceuticals Yes Bank Ltd Banks Adani Power Ltd Power Reliance Power Ltd Power Reliance Industries Ltd. Petroleum Products ITC Ltd. Consumer Non Durables Indiabulls Housing Finance Ltd. Finance Sun TV Limited. Media and Entertainment Tata Chemicals Ltd. Chemicals L&T Finance Holdings Ltd Finance Indiabulls Real Estate Ltd Construction Hindalco Industries Ltd Non - Ferrous Metals Engineers India Ltd. Construction Project Hexaware Technologies Ltd. Software UPL Ltd Pesticides * 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 Adani Enterprises Ltd Trading Dish TV India Ltd. Media and Entertainment Eicher Motors Ltd Auto IDFC Limited Finance Cipla Ltd. Pharmaceuticals Syndicate Bank Banks Tata Global Beverages Limited Consumer Non Durables Indian Oil Corporation Ltd Petroleum Products NCC Limited Construction Project Amara Raja Batteries Ltd. Auto Ancillaries Hindustan Petroleum Corporation Ltd Petroleum Products Wockhardt Ltd. Pharmaceuticals Adani Port and Special Economic Zone Limited Transportation Dewan Housing Finance Corporation Ltd. Finance UCO Bank Banks TV18 Broadcast Ltd Media and Entertainment IRB Infrastructure Developers Ltd Construction Shriram Transport Finance Co Ltd. Finance Bharti Infratel Ltd. Telecom - Equipment & Accessories Hindustan Zinc Ltd. Non - Ferrous Metals Larsen And Toubro Ltd. Construction Project PTC India Ltd. Power Bharat Petroleum Corporation Ltd. Petroleum Products Karnataka Bank Ltd Banks Cairn India Limited Oil DLF Limited Construction HDFC Ltd. Finance Infosys Ltd. Software CESC Ltd. Power Jaiprakash Associates Ltd Construction Ajanta Pharma Ltd. Pharmaceuticals Divi s Laboratories Limited Pharmaceuticals JSW Steel Ltd. Ferrous Metals Jubilant Foodworks Limited Consumer Non Durables Ultratech Cement Ltd. Cement Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units 6.53 Mutual Fund Units - Total 6.53 Government Dated Securities 7.73% Central Government SOV % Central Government SOV 1.90 Government Dated Securities - Total 6.26 TERM DEPOSITS Kotak Mahindra Bank Ltd Standard Chartered Bank Ltd 6.38 Ratnakar Bank Ltd 1.79 Term Deposits - Total Collateral Borrowing & Lending obligation 3.59 Net Current /(Liabilities) 2.57 Notes: #Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Savings Fund NAV as on December 31, 2015: ` (Growth Option), ` (Monthly Dividend Option), ` (Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Banks Finance Software Pharmaceuticals Government Dated Securities Consumer Non Durables Petroleum Products Auto Mutual Fund Units Others Investors understand that their principal will be at moderately high risk Income from arbitrage opportunities in the equity market & long term capital growth Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 18

20 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. There is no assurance or guarantee that the investment objective of the scheme will be achieved. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 9.48 HDFC Bank Ltd. Banks 8.91 ICICI Bank Ltd. Banks 7.89 Tata Motors Ltd - DVR Auto 6.35 Maruti Suzuki India Limited Auto 5.89 IndusInd Bank Ltd. Banks 5.65 Reliance Industries Ltd. Petroleum Products 5.60 Larsen And Toubro Ltd. Construction Project 5.30 Axis Bank Ltd Banks 4.93 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 4.90 Britannia Industries Ltd. Consumer Non Durables 4.15 Hero MotoCorp Ltd. Auto 4.10 Ultratech Cement Ltd. Cement 3.67 Persistent Systems Limited Software 3.20 Kajaria Ceramics Ltd. Construction 3.19 MRF Limited Auto Ancillaries 3.12 Power Grid Corporation Of India Ltd Power 3.10 Shree Cement Ltd. Cement 2.94 Oracle Financial Services Software Ltd Software 2.56 Jubilant Foodworks Limited Consumer Non Durables 2.44 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.82 Collateral Borrowing & Lending obligation 1.88 Net Current /(Liabilities) Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 11.20% The scheme is a close ended scheme. The units of the scheme can be traded on the stock exchange. Entry Load: Nil. Exit Load: Nil. Regular: 2.52% Direct: 2.02% Kotak India Growth Fund Series I NAV as on December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Cement Software Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project Construction Auto Others Auto Ancillaries Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 19

21 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003; Plan A - November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 8, AUM (` In Crores) AUM as on Dec 31, 2015: ` 7, Plans: a) Regular & b) Institutional (discontinued for further subscriptions w.e.f. October 1, 2012) c) Plan A (Previously known as Institutional Premium Plan) d) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.18%, Modified Duration: 0.16 yrs, Portfolio Yield: 7.32% 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 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A Piramal Enterprises Limited ICRA A Manappuram Finance Ltd CRISIL A Au Financiers (India) Limited FITCH A1+(IND) 2.64 Larsen and Toubro Ltd. CRISIL A Mahindra & Mahindra Financial Services Ltd. CRISIL A Shapoorji Pallonji and Company Private Limited ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL A Power Finance Corporation Ltd. CRISIL A National Bank for Agriculture and Rural Developmen CRISIL A Steel Authority of India Ltd. CARE A Small Industries Development Bank Of India. CARE A Corporation Bank CRISIL A Punjab & Sind Bank CRISIL A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 28/03/2016 SOV Days Treasury Bill 31/03/2016 SOV Days Treasury Bill 12/02/2016 SOV Days Treasury Bill 10/03/2016 SOV 0.33 Treasury Bills - Total Collateral Borrowing & Lending obligation 0.31 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.16 years Kotak Liquid Plan A Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE Regular: 0.12% Direct: 0.00% Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Net Current Treasury Bills A1+, A1+(IND), A1+, SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no

22 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 7, AUM (` In Crores) AUM as on Dec 31, 2015: ` 7, A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily Weekly (Every Monday), Monthly (12th of every Month) Ratios Standard Deviation: 0.19%, Modified Duration: 0.13 yrs, Portfolio Yield: 7.64% 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: 0.14% Direct: 0.09% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Lands End Properties Private Limited ( backed by unconditional and irrevocable undertaking by Indian Hotel) CARE AA+(SO) 1.18 HDB Financial Services Ltd. CRISIL AAA 0.47 Corporate Debt/Financial Institutions - Total 1.65 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Reality Ltd CARE A Reliance Jio Infocomm Limited CARE A Mahindra & Mahindra Financial Services Ltd. CRISIL A HDFC Ltd. ICRA A Tata Power Company Ltd. ICRA A Edelweiss Commodities Services Ltd. CRISIL A ONGC Manglore Petrochemicals Ltd. ICRA A ECL Finance Limited CRISIL A Adani Transmission Ltd FITCH A1+(IND) 2.81 Manappuram Finance Ltd CRISIL A RHC Finance Private Limited FITCH A1+(IND) 2.80 Piramal Enterprises Limited ICRA A Edelweiss Financial Services Limited CRISIL A Bharat Alluminum Co. Ltd. CRISIL A1+(SO) 2.12 Larsen and Toubro Ltd. CRISIL A Adani Port and Special Economic Zone Limited ICRA A Aditya Birla Nuvo Limited ICRA A ICICI Bank Ltd. ICRA A HDFC Ltd Corporate Debt/Financial Institutions - Total Public Sector Undertakings Small Industries Development Bank Of India. CARE A National Bank for Agriculture and Rural Developmen CRISIL A Corporation Bank CRISIL A Public Sector Undertakings - Total Reverse Repo 0.65 Treasury Bills 91 Days Treasury Bill 10/03/2016 SOV 4.56 Treasury Bills - Total 4.56 Collateral Borrowing & Lending obligation 0.25 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.13 years Kotak Floater Short Term Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE (%) Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Net Current Debentures and Bonds Treasury Bills A1+, A1+(SO), AAA, A1+(IND), A1+, SOV CBLO & Term Deposits & Rev.Repo Net Current AA+(SO) Unrated Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 21 Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

23 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: `4, AUM (` In Crores) AUM as on Dec 31, 2015: `4, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily Monthly (12th of every Month), Weekly (Every Monday) Ratios Standard Deviation: 0.34%, Modified Duration: 0.49 yrs, Portfolio Yield: 8.22% 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: 0.93% Direct: 0.59% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Prime Ltd. CRISIL AAA 5.28 Indiabulls Housing Finance Limited CARE AAA 4.79 Mahindra & Mahindra Financial Services Ltd. FITCH AAA(IND) 4.79 Karelides Traders Private Ltd. ICRA AA Adani Power Ltd ( lending against shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR A Shriram Transport Finance Co Ltd. FITCH AA+(IND) 3.12 Shriram Transport Finance Co Ltd. CRISIL AA HDFC Ltd. CRISIL AAA 2.63 Dewan Housing Finance Corporation Ltd. CARE AAA 2.28 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by L&T ) ICRA AAA 1.79 L & T Finance Limited ICRA AA LIC Housing Finance Ltd. CRISIL AAA 0.60 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.48 Tata Capital Financial Services Limited CRISIL AA Tata Capital Housing Finance Ltd CRISIL AA Tata Motors Finance Ltd CRISIL AA 0.17 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.12 Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India. CRISIL AAA 3.05 Power Finance Corporation Ltd. CRISIL AAA 0.10 Public Sector Undertakings - Total 3.15 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Enterprises Limited ICRA A Larsen and Toubro Ltd. CRISIL A Reliance Jio Infocomm Limited CARE A Sun Pharmaceutical Industries Ltd ICRA A AXIS Bank Ltd. CRISIL A Tata Capital Financial Services Limited ICRA A Adani Port and Special Economic Zone Limited ICRA A Edelweiss Financial Services Limited CRISIL A HDFC Ltd. ICRA A IL & FS Financial Services Ltd. CRISIL A ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL A Small Industries Development Bank Of India. CRISIL A Vijaya Bank CARE A Public Sector Undertakings - Total Treasury Bills 91 Days Treasury Bill 28/03/2016 SOV 3.07 Treasury Bills - Total 3.07 Collateral Borrowing & Lending obligation 1.84 Net Current /(Liabilities) 0.12 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.53 years. Kotak Treasury Advantage Fund NAV as on December 31, 2015: ` (Daily Dividend Option), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), `10.753(Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) Treasury Bills CBLO & Term Deposits & Rev. Repo Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current RATING PROFILE BWR A1+, A1+, AAA, A1+, AAA, AAA(IND), A1+, AAA, SOV AA+, AA+(IND), AA+, AA,AA- 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. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 0.47%, Debt Instruments Debentures and Bonds Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA Steel Authority of India Ltd. CARE AAA Rural Electrification Corporation Ltd. CRISIL AAA 8.34 State Bank Of India. CRISIL AAA 8.29 Public Sector Undertakings - Total Government Dated Securities 8.47% State Government SOV Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Small Industries Development Bank Of India. CRISIL A Rural Electrification Corporation Ltd. CRISIL A Vijaya Bank CARE A Public Sector Undertakings - Total Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 2.13 Treasury Bills - Total 2.13 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 1.06 years. Kotak Banking And PSU Debt Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Modified Duration: 0.97 yrs, Portfolio Yield: 7.91% 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: 0.51% Direct: 0.11% Net Current Debentures and Bonds Government Dated Securities Treasury Bills AAA, A1+, AAA, A1+, SOV Net Current Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 23 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. There is no assurance or guarantee that the investment objective of the scheme will be achieved. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 1, AUM (` In Crores) AUM as on Dec 31, 2015: `1, A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.44%, Modified Duration: 0.50 yrs, Portfolio Yield: 9.71% 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: 1.08% Direct: 0.30% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Adani Power Ltd ( lending against shares of Adani Ports and SEZ Ltd )BRICKWORK BWR A HPCL Mittal Energy Ltd. ICRA AA Shriram Transport Finance Co Ltd. FITCH AA+(IND) 9.81 Innovadors Realty (backed by unconditional and irrevocable undertaking by Piramal) ICRA A1+(SO) 6.63 Karelides Traders Private Ltd. ICRA AA Muthoot Fincorp Ltd. CRISIL A 6.52 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd ) ICRA A 5.73 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 3.55 Dewan Housing Finance Corporation Ltd. CARE AAA 3.49 Emami Realty Ltd ( lending against shares of Emami Ltd ) BRICKWORK BWR AA-(SO) 3.46 Sterlite Industries (India) Ltd CRISIL AA 3.19 Tata Capital Financial Services Limited CRISIL AA Hero Realty Ltd ( project-backed lending to Hero Group ) ICRA A Sahyadri Agencies Ltd (lending against shares of Jyothy Laboratories Ltd) BRICKWORK BWR A(SO) 2.22 Indostar Capital Finance Private Limited CARE AA Muthoot Finance Ltd CRISIL AA Tata Motors Finance Ltd CRISIL AA 0.33 HDB Financial Services Ltd. CARE AAA 0.08 Tata Motors Ltd. CARE AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings Vijaya Bank CARE AA Public Sector Undertakings - Total 0.99 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A Edelweiss Financial Services Limited CRISIL A Corporate Debt/Financial Institutions - Total 8.01 Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL A Punjab & Sind Bank CRISIL A Public Sector Undertakings - Total 1.94 Reverse Repo 1.50 Treasury Bills 91 Days Treasury Bill 28/03/2016 SOV 5.47 Treasury Bills - Total 5.47 Collateral Borrowing & Lending obligation 2.69 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.55 years Kotak Duration Fund NAV as on December 31, 2015: ` (Retail Plan-Growth Option), ` (RetailPlan-Weekly Dividend),` (Retail Plan-Monthly Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend). ` (Direct Plan- Bonus) SECTOR ALLOCATION (%) Treasury Bills RATING PROFILE A+, BWR A(SO), A BWR A1+, AAA, A1+,A1+(SO), AAA, SOV AA+, AA+(IND), AA,BWR AA-(SO), AA- Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. There is no assurance that the investment objective of the will be realised. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 2, AUM (` In Crores) AUM as on Dec 31, 2015: ` 2, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 0.91%, Modified Duration: 2.33 yrs, Portfolio Yield: 8.75% 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: I) For redemptions/ switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 0.25% ii) For redemptions / switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.27%; Direct: 0.28% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by L&T ) ICRA AAA HDFC Ltd. CRISIL AAA 9.34 Reliance Jio Infocomm Limited CRISIL AAA 9.34 Dewan Housing Finance Corporation Ltd. CARE AAA 8.81 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital )ICRA AAA 7.36 Fullerton India Credit Co. Ltd. CARE AAA 5.24 HDB Financial Services Ltd. CRISIL AAA 4.94 Kotak Mahindra Prime Ltd. CRISIL AAA 3.36 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 1.50 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 1.39 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by L&T ) ICRA AAA 0.85 Mahindra & Mahindra Financial Services Ltd. FITCH AAA(IND) 0.08 HDB Financial Services Ltd. CARE AAA 0.05 IDFC Bank Limited ICRA AAA 0.04 Corporate Debt/Financial Institutions - Total Issuer/Instrument Industry/ % to Net Rating Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 9.77 National Bank for Agriculture and Rural Development CRISIL AAA 2.09 State Bank Of India. CRISIL AAA 1.48 Rural Electrification Corporation Ltd. CRISIL AAA 0.95 Steel Authority of India Ltd. CARE AAA 0.62 Public Sector Undertakings - Total Government Dated Securities 8.83% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 1.10 Government Dated Securities - 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 3.91 Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Vijaya Bank CARE A Public Sector Undertakings - Total 4.21 Reverse Repo 1.66 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.98 years. Kotak Bond Short Term Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Half Yearly Dividend), ` (Direct Half Yearly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev. Repo Investors understand that their principal will be at moderately low risk AAA, A1+, AAA, AAA(SO), AAA(IND), AAA, SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 25 * 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. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular (discontinued for further subscriptions w.e.f. October 1, 2012) b) Plan A (Previously known as Institutional Plan) c) Direct Plan / Options: Dividend Payout, Dividend Reinvestment, Growth & Bonus Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 2.61%, Modified Duration: 1.80yrs, Portfolio Yield: 7.67% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 1.00%, ii) For redemptions/ switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: NIL, iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.15% Direct: 0.40% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA Tata Capital Housing Finance Ltd; CRISIL AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 0.43 Rural Electrification Corporation Ltd CRISIL AAA 0.15 Public Sector Undertakings - Total 0.58 Government Dated Securities 1.44% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV 0.55 Government Dated Securities - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) 5.26 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.77 years Kotak Flexi Debt Plan A Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) Net Current CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds RATING PROFILE AAA, SOV AA+ Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. There is no assurance that or guarantee that the investment objective of the scheme will be achieved. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 1, AUM (` In Crores) AUM as on Dec 31, 2015: ` 1, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of March / June / September / December), Annual (12th of March). Ratios Standard Deviation: 0.62%, Modified Duration: 1.59yrs, Portfolio Yield: 10.59% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/ STP) within 1 year from the date of allotment of units,irrespective of the amount of investment: 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. 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: 1.91% Direct: 0.59% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Sterlite Industries (India) Ltd CRISIL AA 9.53 DLF Emporio Ltd CRISIL AA 9.46 Au Financiers (India) Limited FITCH A+(IND) 9.28 Prestige Estates Projects Limited ICRA A Karelides Traders Private Ltd. ICRA AA Dewan Housing Finance Corporation Ltd. CARE AAA 6.01 Janalakshami Financial Services Ltd. ICRA A 5.64 Adani Power Ltd ( lending against shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Equitas Micro Finance Ltd. CARE A 3.74 SBK Properties Pvt Ltd. ( lending to promoters of Bharat Forge group ) ICRA AA Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 3.51 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 2.35 Shriram Transport Finance Co Ltd. FITCH AA+(IND) 2.33 HPCL Mittal Energy Ltd. ICRA AA Reliance Jio Infocomm Limited CRISIL AAA 2.08 HPCL Mittal Pipelines Ltd. ICRA AA Peninsula Land Limited ICRA A 1.76 Tata Capital Housing Finance Ltd; CRISIL AA Issuer/Instrument Industry/ % to Net Rating Hero Realty Ltd ( project-backed lending to Hero Group ) ICRA A HDB Financial Services Ltd. CRISIL AAA 0.28 HDFC Ltd. CRISIL AAA 0.11 LIC Housing Finance Ltd. CRISIL AAA 0.08 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Indian Overseas Bank BRICKWORK BWR A 3.47 Bank of India BRICKWORK BWR AA Tamil Nadu Generation & Distribution Corporation L ( backed by unconditional and irrevocable guarantee of Tamilnadu State Government ) ICRA A-(SO) 0.87 State Bank Of India. CRISIL AAA 0.02 Public Sector Undertakings - Total 5.35 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total 4.57 Public Sector Undertakings Punjab & Sind Bank CRISIL A Public Sector Undertakings - Total 0.46 Treasury Bills 91 Days Treasury Bill 28/03/2016 SOV 3.20 Treasury Bills - Total 3.20 Collateral Borrowing & Lending obligation 0.53 Net Current /(Liabilities) 2.23 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.96 years. Kotak Income Opportunities Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Treasury BIlls Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo BWR AA+, AA+, AA+(IND), AA, BWR AA-, AA-, LAA-(SO) AAA, A1+, AAA, A1+, AAA, SOV Net Current A+(IND), A+, BWR A, A, A-, A-(SO) Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. There is no assurance or guarantee that the investment objective of the scheme will be achieved. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` Plans: a) Regular & b) Direct Plan Options: Dividend Payout, Dividend Reinvestment and Growth (applicable for all plans) Dividend Frequency Monthly and Quarterly Ratios Standard Deviation: 1.34%, Modified Duration: 1.74 yrs, Portfolio Yield: 8.34% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1for purchase and for `0.01 for switches. Ideal Investment Horizon: 1 Year & Above Entry Load: Nil. Exit Load: 1) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 2.00%; 2) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment Nil Regular: 0.50% Direct: 0.29% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by L&T ) ICRA AAA Reliance Jio Infocomm Limited CRISIL AAA IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 9.89 HDFC Ltd. CRISIL AAA 9.47 Shriram Transport Finance Co Ltd CRISIL AA Ultratech Cement Ltd. CRISIL AAA 4.95 Inox Air Products Ltd. CRISIL AA 2.74 Mahindra & Mahindra Financial Services Ltd. FITCH AAA 2.70 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 5.44 Export-Import Bank of India. CRISIL AAA 4.80 Rural Electrification Corporation Ltd CRISIL AAA 2.74 Airports Authority of India CRISIL AAA 2.73 National Bank for Agriculture and Rural Development CRISIL AAA 2.53 Steel Authority of India Ltd. CARE AAA 2.19 Public Sector Undertakings - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) 6.88 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.02 years Kotak Corporate Bond Fund NAV as on December 31, 2015: ` (Standard Plan-Growth Option), ` (Standard Plan- Weekly Dividend),` (Standard Plan-Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Standard Plan-Daily Dividend), ` (Retail Plan-Growth Option), ` (Retail Plan- Weekly Dividend), ` (Retail Plan- Monthly Dividend), ` (Retail Plan-Daily Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend), ` (Institutional Plan-Growth Option) AAA, AAA(SO), AAA Net Current AA+, AA CBLO & Term Deposits & Rev.Repo Regular income over short term Income by investing in fixed income securities of varying maturities & credit * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

30 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 1, AUM (` In Crores) AUM as on Dec 31, 2015: ` 1, A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of March / June / September / December), Annually (12th of March) Ratios Standard Deviation: 1.08%, Modified Duration: 2.43 yrs, Portfolio Yield: 10.34% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For exit on or within 18 months from date of allotment of units: 2%, ii) For exit after 18 months from the date of allotment of units: Nil (applicable for all plans) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.89% Direct: 0.44% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA Dewan Housing Finance Corporation Ltd. CARE AAA 7.43 Prestige Estates Projects Limited ICRA A+ 7 Muthoot Finance Ltd ICRA AA Ashirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) CARE A ECL Finance Limited CARE AA 4.40 SBK Properties Pvt Ltd. ( lending to promoters of Bharat Forge group) ICRA AA Janalakshami Financial Services Ltd. ICRA A 3.77 L & T Finance Limited ICRA AA Intime Properties Ltd. FITCH AAA(IND) 3.63 Peninsula Land Limited ICRA A 3.59 Equitas Micro Finance Ltd. CARE A 3.28 Tata Power Company Ltd. CRISIL AA Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 2.71 Au Financiers (India) Limited FITCH A+(IND) 2.37 Adani Power Ltd ( lending against shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 2.17 Powergrid Vizag Transminssion Ltd. (backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.88 Shriram Transport Finance Co Ltd. FITCH AA+(IND) 1.87 Reliance Ports And Terminals Limited CRISIL AAA 1.83 Sterlite Industries (India) Ltd CRISIL AA 1.82 HDFC Ltd. CRISIL AAA 0.93 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.83 India Infoline Finance Limited CARE AA 0.28 IOT Utkal Energy Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 2.54 Bank of India BRICKWORK BWR AA Public Sector Undertakings - Total 4.71 Government Dated Securities 1.44% Central Government SOV 2.46 Government Dated Securities - Total 2.46 Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 0.89 Treasury Bills - Total 0.89 Collateral Borrowing & Lending obligation 0.70 Net Current /(Liabilities) 2.96 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.32 years Kotak Medium Term Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). CBLO & Term Deposits & Rev.Repo Debentures and Bonds Treasury Bills Government Dated Securities Investors understand that their principal will be at moderate risk Net Current RATING PROFILE AAA, AAA(SO), AAA(IND), AAA, SOV A+(IND), A+, A, A- BWR AA+, AA+(IND), AA+, AA, BWR AA-, AA-, LAA-(SO) Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) AAUM as on Dec 31, 2015: ` 5, AUM (` In Crores) AUM as on Dec 31, 2015: ` 5, A) Deposit (discontinued for further subscriptions w.e.f. October 1, 2012) B) Plan A (Previously known as Regular Plan) C) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 3.74% Modified Duration: 7.26 yrs Portfolio Yield: 8.12% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.76% Direct: 0.96% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA Reliance Jio Infocomm Limited CRISIL AAA 0.30 India InfraDebt Ltd CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total 2.57 Public Sector Undertakings Bank of India Tamil Nadu Generation & Distribution Corporation L ( backed by unconditional and irrevocable guarantee BRICKWORK BWR AA of Tamilnadu State Government ) ICRA A-(SO) 0.64 Rural Electrification Corporation Ltd. CRISIL AAA 0.12 Power Grid Corporation of India Ltd. CRISIL AAA 0.01 Public Sector Undertakings - Total 2.35 Government Dated Securities 7.73% Central Government SOV % Central Government SOV Issuer/Instrument Industry/ % to Net Rating 8.17% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 0.01 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total 0.97 Collateral Borrowing & Lending obligation 8.08 Net Current /(Liabilities) 8.10 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 December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan), ` (Deposit Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds AAA, A1+, SOV A-(SO) BWR AA+, AA- Net Current Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

32 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 4.01%, B) PF & Trust Plan: 4.03%, Modified Duration: 7.24 yrs, Portfolio Yield: 8.05% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: (a) Regular Plan - Entry: Nil. (b) PF & Trust Plan - Entry: Nil. (applicable for all plans) Exit Load: (a) Regular Plan - Exit: Nil. (b) PF&Trust Plan - Exit: Nil. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.40% Direct: 0.40% Issuer/Instrument Industry/ % to Net Rating Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 3.48 Issuer/Instrument Industry/ % to Net Rating 7.68% Central Government SOV % Central Government SOV % State Government SOV 0.12 Government Dated Securities - Total Collateral Borrowing & Lending obligation 6.27 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :14.45 years. Kotak Gilt Investment Fund NAV as on December 31, 2015: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo SOV Net Current CBLO & Term Deposits & Rev.Repo 31 Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 23

33 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 3.40%, Modified Duration: 4.39yrs, Portfolio Yield: 6.99% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load Regular: 2.41% Direct: 1.27% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd Consumer Non Durables 1.63 Infosys Ltd. Software 1.38 Tata Motors Ltd. Auto 1.14 ICICI Bank Ltd. Banks 1.07 HDFC Bank Ltd. Banks 0.91 Maruti Suzuki India Limited Auto 0.88 Axis Bank Ltd Banks 0.71 State Bank Of India Banks 0.70 Hindustan Petroleum Corporation Ltd Petroleum Products 0.69 Sun TV Limited. Media and Entertainment 0.64 TVS Motors Company Ltd Auto 0.58 Britannia Industries Ltd. Consumer Non Durables 0.57 Navkar Corporation Limited Transportation 0.50 Reliance Industries Ltd. Petroleum Products 0.47 Motherson Sumi Systems Ltd. Auto Ancillaries 0.44 PNC INFRATECH LIMITED Construction Project 0.44 Dalmia Bharat Ltd Cement 0.41 Whirlpool of India Ltd. Consumer Durables 0.41 Supreme Industries Limited Industrial Products 0.39 Power Mech Projects Ltd Power 0.38 IFB Industries Ltd. Consumer Durables 0.37 IndusInd Bank Ltd. Banks 0.36 Marksans Pharma Ltd Pharmaceuticals 0.35 Shoppers Stop Ltd. Retailing 0.34 Alkem Laboratories Ltd Pharmaceuticals 0.33 Tata Communications Ltd Telecom - Services 0.33 Persistent Systems Limited Software 0.32 Techno Electric & Engineering Co Ltd. Construction Project 0.32 HSIL Ltd. Consumer Durables 0.31 Bank Of Baroda Banks 0.28 Issuer/Instrument Industry/ % to Net Rating Dish TV India Ltd. Media and Entertainment 0.28 Federal Bank Ltd. Banks 0.28 Yes Bank Ltd Banks 0.27 Adani Port and Special Economic Zone Limited Transportation 0.26 IDFC Bank Limited Banks 0.24 Finolex Cables Ltd. Industrial Products 0.21 S H Kelkar and Company Ltd Consumer Non Durables 0.21 Sun Pharmaceuticals Industries Ltd Pharmaceuticals 0.20 Pennar Engineered Building Systems Limited Ferrous Metals 0.16 HDFC Ltd. Warrants Finance 0.10 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Public Sector Undertakings Indian Overseas Bank BRICKWORK BWR A 1.71 Rural Electrification Corporation Ltd. CRISIL AAA 0.08 Public Sector Undertakings - Total 1.79 Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV 6.71 Government Dated Securities - Total TERM DEPOSITS Standard Chartered Bank Ltd 9.43 Term Deposits - Total 9.43 Collateral Borrowing & Lending obligation 8.50 Net Current /(Liabilities) 9.55 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :7.92 years. Kotak Monthly Income Plan Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo AAA, SOV BWR A RATING PROFILE CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 32

34 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) AAUM as on Dec 31, 2015: ` AUM (` In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 3.45%, Modified Duration: 4.76yrs, Portfolio Yield: 7.14% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `10000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: i) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil. iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.45% Direct: 0.77% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.55 Infosys Ltd. Software 1.35 Maruti Suzuki India Limited Auto 1.16 IndusInd Bank Ltd. Banks 1.15 Lupin Ltd. Pharmaceuticals 1.05 Dr Reddys Laboratories Ltd Pharmaceuticals 0.90 Bharat Petroleum Corporation Ltd. Petroleum Products 0.86 Hindustan Unilever Ltd. Consumer Non Durables 0.77 Zee Entertainment Enterprises Ltd Media and Entertainment 0.73 HCL Technologies Ltd. Software 0.72 Bosch Limited Auto Ancillaries 0.56 Tata Consultancy Services Ltd. Software 0.53 Asian Paints Ltd. Consumer Non Durables 0.51 Bajaj Finance Limited Finance 0.49 Britannia Industries Ltd. Consumer Non Durables 0.48 Bajaj Finserv Ltd. Finance 0.46 ICICI Bank Ltd. Banks 0.46 Tata Motors Ltd. Auto 0.44 Axis Bank Ltd Banks 0.43 Larsen And Toubro Ltd. Construction Project 0.39 Dish TV India Ltd. Media and Entertainment 0.36 Bajaj Auto Ltd. Auto 0.31 Ashok Leyland Ltd. Auto 0.27 HDFC Ltd. Finance 0.24 ITC Ltd. Consumer Non Durables 0.24 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.20 Cummins India Ltd. Industrial Products 0.19 Cadila Healthcare Ltd. Pharmaceuticals 0.18 Emami Ltd. Consumer Non Durables 0.17 Ultratech Cement Ltd. Cement 0.16 Bank Of Baroda Banks 0.15 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.15 Yes Bank Ltd Banks 0.14 Bharti Airtel Ltd. Telecom - Services 0.13 Aurobindo Pharma Ltd. Pharmaceuticals 0.11 Issuer/Instrument Industry/ % to Net Rating Grasim Industries Ltd. Cement 0.11 Reliance Industries Ltd. Petroleum Products 0.11 Wipro Ltd. Software 0.09 Coal India Ltd. Minerals/Mining 0.07 Divi s Laboratories Limited Pharmaceuticals 0.07 UPL Ltd Pesticides 0.07 Cipla Ltd. Pharmaceuticals 0.04 Hero MotoCorp Ltd. Auto 0.02 Adani Port and Special Economic Zone Limited Transportation 0.01 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.01 Hindustan Petroleum Corporation Ltd Petroleum Products 0.01 Indian Oil Corporation Ltd Petroleum Products 0.01 TVS Motors Company Ltd Auto 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 6.78 Mutual Fund Units - Total 6.78 Futures CNX NIFTY-JAN Futures (Market value represents Notional Value) Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 2.70 Government Dated Securities 7.73% Central Government SOV % Central Government SOV Government Dated Securities - Total TERM DEPOSITS Standard Chartered Bank Ltd 4.43 Kotak Mahindra Bank Ltd Term Deposits - Total 7.84 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 1.46 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 8.91 years. Note: #Term Deposit as provided above is towards margin for derivatives transactions Kotak Multi Asset Allocation Fund NAV as on December 31, 2015: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Net Current Derivatives Mutual Fund Units SOV Mutual Fund Units AA- Derivatives Investors understand that their principal will be at moderate risk Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on 31 December 2015 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Developers and Constructions Private Limited (lending to promoters of Piramal Enterprises Ltd) 0.18 Adani Port and Special Economic Zone Limited 0.49 Adani Power Ltd (Secured by Equity shares of Adani Ports and SEZ Ltd) 1.25 Adani Transmission Ltd 0.50 Aditya Birla Finance Ltd Aditya Birla Nuvo Limited 0.25 Airports Authority of India 0.07 Ashirvad Microfinance Private Limited (85% subsidiary of Manappuram Finance Ltd) 0.13 Au Financiers (India) Limited 0.81 Bajaj Finance Limited 0.80 Bank of India 0.29 Bhanu Vyapaar Private Limited (Secured by Equity shares of Emami Ltd) 0.11 Bharat Alluminum Co. Ltd CBLO/REVERSE REPO 2.93 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Corporation Bank 1.50 DLF Emporio Ltd 0.25 Dewan Housing Finance Corporation Ltd ECL Finance Limited 0.82 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.92 Edelweiss Housing Finanance Limited 0.13 Emami Enclave Markets Pvt Ltd. (Secured by Equity shares of Emami Ltd) 0.10 Emami Realty Ltd (Secured by Equity shares of Emami Ltd) 0.27 Equitas Micro Finance Ltd Export-Import Bank of India Fullerton India Credit Co. Ltd GSPC Distribution Networks Ltd. (backed by unconditional and irrevocable guarantee of Gujarat State Petroleum Corp group) 0.03 Grand View Estate Pvt Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) 0.21 HDB Financial Services Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Haldhar Developers Private Limited (backed by unconditional and irrevocable undertaking by Piramal) 0.23 Hero Realty Ltd. (project-backed lending to Hero Group) 0.25 Hindalco Industries Ltd ICICI Bank Ltd ICICI Home Finance Company Limited 0.25 IDFC Bank Limited 0.22 IL & FS Financial Services Ltd IOT Utkal Energy Services Ltd India Infoline Finance Limited 0.26 India Infoline Housing Finance Ltd India InfraDebt Ltd 0.00 Indiabulls Housing Finance Limited 0.50 Indian Oil Corporation Ltd Indian Overseas Bank 0.10 Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.19 Infrastructure Leasing & Financial Services Limite 0.03 Innovadors Realty (backed by unconditional and irrevocable undertaking by Piramal) 0.25 Inox Air Products Ltd Intime Properties Ltd Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.08 Karelides Traders (backed by an irrevocable and unconditional undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd) 0.94 Kotak Mahindra Bank Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.52 LIC Housing Finance Ltd Lands End Properties Private Limited (backed by Issuer Name %age of Exposure to Debt AUM unconditional and irrevocable undertaking by Indian Hotels) 0.28 Larsen and Toubro Ltd Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 1.16 Mandava Holdings Private Limited (backed by unconditional and irrevocable undertaking by Axis Capital) 0.44 Muthoot Finance Ltd 0.22 Muthoot Fincorp Ltd Nabha Power Ltd. (backed by unconditional and irrevocable guarantee by L&T) 1.60 National Bank for Agriculture and Rural Developmen 4.05 National Housing Bank 0.33 ONGC Manglore Petrochemicals Ltd PNB Housing Finance Ltd Peninsula Land Limited 0.14 Piramal Enterprises Limited 2.50 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. (backed by unconditional and irrevocable guarantee by Powergrid Corp) 0.05 Prestige Estates Projects Limited 0.50 Pune Solapur Expressways Pvt. Ltd Punjab & Sind Bank 0.52 RHC Finance Private Limited 0.49 Raymond Ltd Reliance Jio Infocomm Limited 3.19 Reliance Media Works Limited (backed by unconditional and irrevocable guarantee of Reliance Capital Ltd) 0.03 Reliance Ports And Terminals Limited 0.05 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. (lending to promoters of Bharat Forge group) 0.21 SP Jammu Udhampur way Ltd (backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd) 0.26 Sahyadri Agencies Ltd (Secured by Equity shares of Jyothy Laboratories Ltd) 0.26 Shapoorji Pallonji and Company Private Limited 0.25 Shivprasad Realty Pvt Ltd (backed by unconditional and irrevocable undertaking by Axis Capital) 0.14 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd (Secured by Equity shares of Emami Ltd) 0.08 Sneha Enclave Pvt Ltd (Secured by Equith shares of Emami Ltd) 0.05 Standard Chartered Bank Ltd 0.09 State Bank Of India State Bank of Hyderabad 0.13 State Government 2.31 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.43 Sun Pharmaceutical Industries Ltd Sundaram BNP Paribas Home Finance Ltd 0.11 Sundaram Finance Ltd Suraksha Reality Ltd (Secured by Equit shares of Sun Pharmaceuticals Industries Ltd) 1.77 Tamil Nadu Generation & Distribution Corporation Ltd (backed by unconditional and irrevocable guarantee of Tamilnadu State Government) 0.10 Tata Motors Finance Solutions Private Limited (100% subsidiary of Tata Motors Finance Ltd) 0.80 Tata Capital Housing Finance Ltd; 0.88 Tata Motors Finance Ltd 0.09 Tata Motors Ltd Tata Power Company Ltd Tata Sons Ltd Ultratech Cement Ltd Vijaya Bank 0.17 Vizag General Cargo Berth Private Limited (backed by unconditional and irrevocable guarantee of Vedanta Ltd) 0.03 Total 100 Industry / Sector %age of Exposure to Debt AUM BANK 4.99 CASH(CBLO/REVERSE REPO) 2.93 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.76 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 Dec 31, 2015: `26.26 AUM (` In Crores) AUM as on Dec 31, 2015: `26.40 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: 1.80% Direct: 1.32% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Select Focus Fund Direct Growth Equity Kotak Mahindra Bond Plan Debt Kotak Floater Long Term Direct Growth Debt Mutual Fund Units - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) Kotak Asset Allocator Fund NAV as on December 31, 2015: ` (Dividend Option), `60.046(Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt Others CBLO & Term Deposit & Rev Repo Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 35 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the scheme is to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity related securities of companies having assets, products or operations in the United States. However, there is no assurance that the investment objective of the will be realized. December 20, 2013 Mr. Deepak Gupta* Standard & Poor's 500 Total Return Net Index in USD is the benchmark of the underlying scheme. The same converted into INR using RBI reference rate will be the benchmark for the scheme. AAUM (` In Crores) AAUM as on Dec 31, 2015: `5.59 AUM (` In Crores) AUM as on Dec 31, 2015: `5.53 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.40% Direct: 0.65% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 1.48 Kotak US Equity Fund NAV as on December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), `11.752(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

38 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. September 26, 2007 s Mr. Deepak Gupta (Dedicated fund manager for s overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) AAUM as on Dec 31, 2015: `31.10 AUM (` In Crores) AUM as on Dec 31, 2015: `30.90 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: 1.87% Direct: 1.37% 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 Net Current /(Liabilities) 3.89 Kotak Global Emerging Market Fund NAV as on December 31, 2015: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at high risk Long term capital growth Investment in overseas mutual fund schemes that invest in a diversified portfolio of securities in global emerging markets * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 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 Dec 31, 2015: `31.24 AUM (` In Crores) AUM as on Dec 31, 2015: `30.19 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.89% Direct: 1.29% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) Kotak World Gold Fund NAV as on December 31, 2015: `5.120 (Dividend Option), `5.236 (Direct Dividend Option), `6.176 (Growth Option), `6.310 (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * 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 Dec 31, 2015: ` AUM (`In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on December 31, 2015: ` Tracking Error: 0.06 NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) 0.14 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 Dec 31, 2015: ` AUM (`In Crores) AUM as on Dec 31, 2015: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 43.64% Tracking Error: 0.09% Through Exchange:1 Unit, Through AMC: 5000 Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.10% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 7.78 HDFC Bank Ltd. Banks 7.55 HDFC Ltd. Finance 7.03 ITC Ltd. Consumer Non Durables 6.49 Reliance Industries Ltd. Petroleum Products 5.91 ICICI Bank Ltd. Banks 5.35 Tata Consultancy Services Ltd. Software 4.42 Larsen And Toubro Ltd. Construction Project 3.68 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.15 Tata Motors Ltd. Auto 2.67 Axis Bank Ltd Banks 2.65 Kotak Mahindra Bank Ltd. Banks 2.61 State Bank Of India Banks 2.45 Hindustan Unilever Ltd. Consumer Non Durables 2.16 Maruti Suzuki India Limited Auto 2.16 Mahindra & Mahindra Ltd. Auto 2.07 HCL Technologies Ltd. Software 1.67 Bharti Airtel Ltd. Telecom - Services 1.66 IndusInd Bank Ltd. Banks 1.66 Lupin Ltd. Pharmaceuticals 1.56 Oil & Natural Gas Corporation Ltd. Oil 1.53 Coal India Ltd. Minerals/Mining 1.49 Asian Paints Ltd. Consumer Non Durables 1.41 Dr Reddys Laboratories Ltd Pharmaceuticals 1.39 Wipro Ltd. Software 1.27 Bajaj Auto Ltd. Auto 1.22 Cipla Ltd. Pharmaceuticals 1.16 NAV Issuer / Instrument Industry/ % to Net Rating Hero MotoCorp Ltd. Auto 1.16 Tech Mahindra Ltd. Software 1.13 Power Grid Corporation Of India Ltd Power 1.10 National Thermal Power Corporation Limited Power 1.06 Ultratech Cement Ltd. Cement 1 Grasim Industries Ltd. Cement 0.84 Yes Bank Ltd Banks 0.84 Zee Entertainment Enterprises Ltd Media and Entertainment 0.84 Adani Port and Special Economic Zone Limited Transportation 0.83 Bharat Petroleum Corporation Ltd. Petroleum Products 0.81 GAIL (India) Ltd. Gas 0.61 Tata Steel Limited. Ferrous Metals 0.61 Bosch Limited Auto Ancillaries 0.59 Idea Cellular Ltd. Telecom - Services 0.57 Ambuja Cements Ltd Cement 0.55 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.54 Bank Of Baroda Banks 0.52 ACC Ltd. Cement 0.45 Tata Power Co. Ltd. Power 0.43 Hindalco Industries Ltd Non - Ferrous Metals 0.38 Vedanta Ltd. Minerals/Mining 0.35 Punjab National Bank Banks 0.30 Cairn India Limited Oil 0.28 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.06 Kotak Nifty ETF NAV as on December 31, 2015 : ` Sector Allocation (%) Banks Software Consumer Non Durables Auto Pharmaceuticals Finance Petroleum Products Construction Project Cement Power Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

42 ETF SCHEMES KOTAK SENSEX ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. June 6, 2008 Mr. Deepak Gupta* S&P BSE SENSEX AAUM (`In Crores) AAUM as on Dec 31, 2015: ` 9.14 AUM (`In Crores) AUM as on Dec 31, 2015: ` 9.33 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 12.89% Tracking Error: 0.13% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.25% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 9.37 HDFC Bank Ltd. Banks 9.04 HDFC Ltd. Finance 8.46 ITC Ltd. Consumer Non Durables 7.82 Reliance Industries Ltd. Petroleum Products 7.10 ICICI Bank Ltd. Banks 6.45 Tata Consultancy Services Ltd. Software 5.30 Larsen And Toubro Ltd. Construction Project 4.44 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.77 Axis Bank Ltd Banks 3.22 Tata Motors Ltd. Auto 3.16 State Bank Of India Banks 3.03 Hindustan Unilever Ltd. Consumer Non Durables 2.61 Maruti Suzuki India Limited Auto 2.61 Mahindra & Mahindra Ltd. Auto 2.48 Bharti Airtel Ltd. Telecom - Services 2.02 Lupin Ltd. Pharmaceuticals 1.86 Oil & Natural Gas Corporation Ltd. Oil 1.84 NAV Issuer / Instrument Industry/ % to Net Rating Coal India Ltd. Minerals/Mining 1.76 Asian Paints Ltd. Consumer Non Durables 1.69 Dr Reddys Laboratories Ltd Pharmaceuticals 1.69 Wipro Ltd. Software 1.53 Bajaj Auto Ltd. Auto 1.46 Cipla Ltd. Pharmaceuticals 1.40 Hero MotoCorp Ltd. Auto 1.39 National Thermal Power Corporation Limited Power 1.28 Adani Port and Special Economic Zone Limited Transportation 1.01 GAIL (India) Ltd. Gas 0.75 Tata Steel Limited. Ferrous Metals 0.74 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.65 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.07 Kotak Sensex ETF NAV as on December 31, 2015 : ` Sector Allocation (%) Banks Software Auto Consumer Non Durables Pharmaceuticals Finance Petroleum Products Construction Project Telecom - Services Others Oil Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 41 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

43 ETF SCHEMES KOTAK BANKING ETF An Open Ended Exchange Traded Fund The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of stocks as represented by the CNX Bank Index subject to tracking errors. There can be no assurance or guarantee that the investment objective of the plan will be achieved. December 04, 2014 Mr. Deepak Gupta* Nifty Bank AAUM (`In Crores) AAUM as on Dec 31, 2015: ` AUM (`In Crores) AUM as on Dec 31, 2015: ` Option - Dividend Payout Ratios Portfolio Turnover: 15.84% Tracking Error: 0.12% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.20% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks ICICI Bank Ltd. Banks Axis Bank Ltd Banks Kotak Mahindra Bank Ltd. Banks State Bank Of India Banks 9.99 IndusInd Bank Ltd. Banks 6.80 Yes Bank Ltd Banks 3.42 Bank Of Baroda Banks 2.12 Kotak Banking ETF NAV as on December 31, 2015: ` NAV Issuer / Instrument Industry/ % to Net Rating Federal Bank Ltd. Banks 1.39 Punjab National Bank Banks 1.24 Canara Bank Banks 0.48 Bank of India Banks 0.35 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.01 Sector Allocation (%) Investors understand that their principal will be at moderate risk Banks Others Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

44 ETF SCHEMES KOTAK PSU BANK ETF An Open Ended Exchange Traded Fund The investment objective of the scheme is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors. November 8, 2007 Mr. Deepak Gupta* Nifty PSU Bank AAUM (`In Crores) AAUM as on Dec 31, 2015: `20.86 AUM (`In Crores) AUM as on Dec 31, 2015: `19.48 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 77.26% Tracking Error: 0.27% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Total Regular: 0.49% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) State Bank Of India Banks Bank Of Baroda Banks Punjab National Bank Banks 7.61 Union Bank Of India Banks 3.30 Industrial Development Bank of India Ltd. Banks 2.96 Canara Bank Banks 2.94 Bank of India Banks 2.17 Kotak PSU Bank ETF NAV as on December 31, 2015: ` NAV Issuer / Instrument Industry/ % to Net Rating Syndicate Bank Banks 1.58 Oriental Bank of Commerce Banks 1.52 Allahabad Bank. Banks 1.37 Andhra Bank Banks 1.36 Indian Overseas Bank Banks 0.89 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.01 Sector Allocation (%) 0.01 Banks Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 43 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58