February 28, For scheme speci c risk factors please refer page 9

Transcription

1 February 28, 2017 For scheme speci c risk factors please refer page 9

2 EXPERT SPEAK Mr. Nilesh Shah February 28, 2017 Dear Friends, Investor centricity is the fundamental engine of our business. In my career and through my experience, I have come to realise that the theory is only as good as the creative practise that you can bring in to bear. It is in the earnest execution of your work that you can deliver your quality of service, trust, communication and knowledge to the investor. I have observed that the innovative practises that many successful distributors have developed in scaling up their business can be broadly categorised as, activities for a) client acquisition, b) client penetration, c) client delight and d) client mindshare. a) Client Acquisition: It is important that the distributor develops the mental strength that makes them derive positive motivation from refusals or challenges. Distributor's constant reach and communication with prospective investors will increase their chances of converting the savers into investors. In another example: I know an IFA who makes it a duty to visit the hospital at the time of baby's birth in his community to ensure that the new father commits himself to lifelong investment for the baby's welfare through SIP: be it for education, marriage or foreign studies. Similarly, another prominent IFA has made it a cause to visit the happy occasions of his clients and their families, such as marriage or house-purchase etc and signs them up for retirement planning solutions or saving for long holidays etc. What is common is that a distributor is working to transfer the investors' commitment of that happy occasion into a tangible financial goal that will prolong the essence of that event. I have had the opportunity to visit many investor meets organised by IFAs. I have observed that the best follow-through a distributor can do henceforth is to provide for a closure to the investor. This can be done by as little as providing an investment form to fructify the advice. Then there is a need to reachout to the underserviced demographics and/or professional groups such as Army, Police, paramilitary etc. Digital outreach is another important activity through with the distributor community may reach-out to the investors and implement product awareness, sales, aftersales, communication etc. It also matters where a distributor's office is located. More often than not, a retail investor oriented distributor may be better off, if the office is located on the ground floor rather than the 5th floor. The situation reverses if the clientele is primarily HNI. Positive testimonials from your prominent and reputed investors in the local community would also go a long way in establishing presence and preference in minds of other potential investors. b) Investor Penetration: This is perhaps the most important aspect if one is looking to scale up the advisory business. For this, a distributor needs a long term relationship with the investor and ownership and concern for his/her investment plan. You as a distributor must make your clients follow the plan rather than let them ride the emotional see-saw that comes with market ups and downs. Specialise in the product niche that your investors seem to be liking but have a diversified portfolio across the management style (value, growth, contra, momentum). In one instance, an IFA helped his investors pursue their mutually shared hobbies more vigorously and was able to create a bond built on trust and sense of belonging c) Investor Delight: The quality of service and advisory is vital in ensuring repeat investor engagement. Just as a picks stocks to generate alpha, the IFA must show similar due diligence in short listing and selling the funds. Their advisory choice must be future looking rather than be driven by short term incentive or past performance of the fund. There are prominent IFAs whose fund advisory list is so sacrosanct to them, that nothing will make them operate out of it, other than the conviction that there is wealth creation potential in other prospective fund. This forward looking performance outlook creates a long term wealth for investors and a sense of loyalty towards the IFA. d) Strive for Investors Mindshare:. As a distributor, you must also be able to pin-point the value of your advice and the opportunity loss if the any of the investors missed out from acting on it. Ring fencing your investors by selling unique propositions and funds that are otherwise not easily analysable by google-oriented investors or competitors too is beneficial. Presence and availability of distributors on the investors' hour of preference also seems to have a high recall with clientele. For this purpose, the distributor needs to develop flexibility of work, location and time. Also, your advisory must have a larger purpose of giving and adding back to the society by as little as helping even the marginalised saver in joining the market. This will develop respect amongst investors for the distributor Our industry is poised towards steep growth as demonetisation helps stimulate financialisation of cash savings. It would be up to the distributors as to how they are able to bring about a change in the mindset of these new investors to change their savings and investment habits. Accumulation and implementation of best practises will help create a brand image that would attract these new and old investors; and provide fresh thrust to your advisory business. Regards, Nilesh Shah Managing Director 1

3 DEBT VIEW Items Feb-17 Jan -17 Change Reverse Repo 5.75% 5.75% Nil Repo 6.25% 6.25% Nil CRR 4.00% 4.00% Nil SLR 20.50% 20.50% 25bps Mibor Overnight 6.05% 6.25% 20 bps Call(O/N) 5.95% 6.02% 7 bps CBLO 5.73% 6.17% -44 bps 1 yr T Bill 6.21% 6.17% 4 bps 10 G Sec 6.87% 6.40% 47 bps 5 Year AAA 7.43% 7.13% 30 bps USD/INR paise Source: RBI; Bloomberg. Key Events: India GDP : India's economic growth slowed marginally to 7% in October-December from 7.4% in the previous quarter, government data showed, putting to rest the fear that India's ongoing cash crunch following demonetization would take a big bite out of the economy. Gross value added (GVA) was 6.6%, with the difference explained by robust indirect taxes and reining in of subsidies. The CPI inflation eased to a series-low of 3.2% in January 2017 (+5.7% in January 2016 from 3.4% in December 2016 (+5.6% in December 2015), thanks to a slide in food and vegetable prices The WPI inflation rose to 5.2%(30-month high) in January 2017 from 3.4% in December 2016, reflecting rising commodity prices. Foreign direct investment (FDI) in India grew 18 % during 2016 to touch 46 billion, data released by the Department of Industrial Policy and Promotion (DIPP) showed The RBI kept the repo rate unchanged at 6.25% in its bi-monthly monetary policy review. The reverse repo rate also remains unchanged at 5.75%. The RBI further said that the expected GDP growth is 6.9% for the fiscal. The policy saw the central bank change its stance from accommodative to neutral, which is seen as a hawkish move. Four out of six members of the monetary policy committee (MPC) were in favour of changing the monetary policy stance to neutral from accommodative on 7 February, according to minutes of the meeting released. India's industrial production declined 0.4% in December 2016, after having registered a 5.7% growth in the preceding month. Output dropped in December due to a 2% decline in manufacturing sector production. India's merchandize exports expanded for a fifth straight month in January 2017, rising 4.32% to 22.1 billion thanks to increase in shipments of engineering and petroleum products, official data showed. Imports also rose by 10.7%, leading to the trade deficit expanding to 9.84 billion Federal Reserve officials have said they may need to raise interest rates "fairly soon" if the economy stays strong, minutes of their meeting show Debt Outlook The month of February gave a big shock to the bond markets when RBI monetary policy changed stance to neutral from accommodative The falling rates cycle has got extended as the RBI wants to see the headline inflation at 4% in H2 FY 2018 before they move ahead in the easing cycle Bond yields sold off sharply especially in the mid to long bonds curve. The 10 yr benchmark is likely to trade in the band of 6.75% -7.00% in the near future We have a US FED policy meet in mid March which will keep the market participants on the toes. Market is predicting a 80% probability of a 25 bps hike and we believe that this event is already discounted in the current market yields. The 10 yr US treasury remains stable between and is down 12 bps from the peak We have UP election results in mid March. If the outcome is in favor of the NDA then it can add to the sentiments of the equity bull markets and therefore INR and rates Historically, the 10 yr gilt trades at ~100 bps over inflation. This is now at 250 bps (assuming average CPI of about 4.5%). Thus, the real interest rates are higher than average which is much better for savers We expect that investors may prefer MF investments over FD; and financial assets over real assets since they will deliver better risk /liquidity/tax adjusted return Easy liquidity and chase of carry has squeezed the credit spread and made sovereign cheap and therefore duration should not be completely ignored despite being volatile. The curve is likely to remain steep till we have clarity on monetary policy stance. Therefore long term investors will be rewarded suitably on a risk adjusted basis. Key Variables & their Impact On Interest Rates Key Variables Inflation Rupee Credit Demand Government Borrowing RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Short term (3 6 month) Medium term (6month 2 years) Liquidity Denotes fall in interest rates 3 2

4 EQUITY VIEW Indian equity markets continued the strong up-move in the month of February The large cap Nifty index rose by 5% (USD terms) while the Nifty Midcap index rose 8.24% (USD terms). This has been aided by strong flows into domestic mutual funds and some signs of revival in net inflows by Foreign Institutional Investments (FIIs). The net investments into equity markets by FIIs in the month of February 2017 stood at USD1.40Bn while Domestic Institutional Investors (DIIs) were net investors to the tune of USD138Mn. Despite, the month of February 2017 being an event heavy month, the Indian markets have been resilient. The month started with the presentation of the Union Budget which clearly outlined the governments focus on rural and infrastructure spend. This was followed by the completion of the corporate earnings season and the monetary policy announcement. The market will now focus on the outcome of the state elections (particularly Uttar Pradesh and Punjab) as well as the timelines for the implementation of the Goods and Services Tax (GST). The government has stated that they are on track to implement the same by July1, 2017, having received the consent of all the states. The implementation of GST would be a key structural reform in the overall legislative landscape of India. Q3FY17 earnings: Better than feared; FY18 earnings growth trajectory now key to valuations Despite many apprehensions, the Q3FY17 earnings season saw a steady pace of earnings growth with the Nifty universe reporting a 10% YoY growth in profits. There has been a reduction in the pace of earnings downgrades post the Q3FY17 results which augurs well for future earnings trajectory. Earnings growth was led by commodities and financials (off a low base) while telecom, technology and Pharmaceuticals reported muted trends. Smaller private sector banks and retail banks also exhibited healthy trends in terms of both loan growth and asset quality while corporate banks saw high provisioning requirements. IT companies had a tough quarter in line with seasonal trends with slower demand impacting revenue growth. Contrary to expectations, earnings numbers did not reveal a sharp impact of demonetisation in domestic sectors baring a few (e.g.: two wheelers). This is likely due to a strong festive season and the fact that the segment most impacted post demonetization would have been the un-organized one, data of which is not captured in the listed universe. We expect that FY18 would see revival in earnings growth on the back of an improving GDP outlook and waning impact of demonetization. Growth, we believe would be predominantly led by consumption recovery as well as pockets of improvement in infrastructure spend. With the implementation of GST, we also expect that the structural movement of market share from the unorganized to the organized segment would gather steam. The large cap Nifty Index is now trading at 21xFY17e EPS and 17.5x FY18e EPS (Free float basis). Structural shift towards financial savings likely to continue; positive for flows into mutual funds and life insurance Post demonetization, there has been a clear shift towards savings in financial assets. This we believe would be a structural trend going forward given that investments in real estate and gold do not hold significant promise anymore. One point to note is that while financial savings as a percentage of GDP stood at 7.7%, deposits constituted 41% of the total and equity and debentures constituted only 6% of the total. With interest rates having come down sharply, the attractiveness of deposits as an investment avenue has also reduced considerably for Indian investors. This we believe would result in a shift in financial savings from deposits to equities and debt. Post demonetization, banks have seen a sharp rise in their deposit base (mainly low cost savings and current account deposits). As the pace of re-monetization picks up, we expect to see some outflows from bank deposits towards other avenues of investment. Further, with the government encouraging use of digital channels for transactions, it is likely that the usage of cash in the economy would see a downward movement as well. Monetary policy: shift in stance from accommodative to neutral The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted unanimously 6-0 to leave the policy repo rate unchanged at 6.25%, against our expectations of a 25bp cut. Further, RBI has also shifted its stance from accommodative to neutral with the focus on achieving the 4% CPI inflation target (within a +/-2%) over the medium term. Achieving a structurally lower inflation trajectory, in the opinion of RBI requires a significant decline in inflation expectation especially since the services component of inflation that is sensitive to wage movements, has been sticky. The shift in the policy stance to neutral even while keeping rates on hold is to assess how the transitory effects of demonetisation on inflation and the output gap play out. However, the 'ex ante' liquidity stance will continue even while surplus liquidity should decline with progressive remonetisation. Policy decision highlights: The Repo rate remains unchanged at 6.25% Consequently, Reverse Repo rate remains unchanged at 5.75% and MSF (Marginal Standing Facility) rate at 6.75% All six members voted for the pause The key reason for keeping policy rates on hold appears to be the stickiness in core inflation. Excluding food and fuel, inflation has been at ~4.9% since September RBI states that the persistence of core inflation could set a floor on further downward movement in headline inflation and could trigger second order effects. It however, acknowledges that CPI inflation in Q4FY17 would likely be below the 5% targeted by RBI and thereafter pick up pace as growth improves and the output gap narrows. The central bank sees upside risks to its base inflation projections from higher oil prices, exchange rate volatility and fuller effects from the housing rent allowances under the seventh pay commission. With the change in policy stance, we believe that policy rates would stay on hold in the near term (this is opposed to our earlier expectation of reduction in policy rates by 25-50bps). The room for further rate cuts would open up if: Core inflation moves significantly below the 5% mark Global commodity prices stay benign and Fed's interest rate cycle is more benign than is currently built in As per our estimates, we believe that CPI inflation would average 4.5-5% in Fy18. Real GDP Growth: Q3FY17 numbers reveals limited impact of demonetization; Growth recovery likely in Fy18 The Central Statistical Organization declared the numbers for Q3FY17 GDP growth as well as the second advanced estimates for FY17 real GDP growth. The second advance estimate (2nd AE) for FY17 surprised with real GDP growth of 7.1% implying that demonetization has had limited impact on the economy. However, CSO's real GVA (Gross Value Added) growth estimate for FY17 has now been revised down to 6.7% as against the first estimate of 7.0%. The relatively better net indirect taxes growth estimates helped keep real GDP growth steady at 7.1%. Real GVA growth in Q3FY17 stood at 6.6% YoY only marginally lower than 6.7% in Q2FY17. The GVA growth by economic activity in Q3FY17 was led by strong growth in agriculture, manufacturing and government spending. On the expenditure side, while the strong growth in government expenditure was largely expected, the resilience of the private consumption expenditure was somewhat surprising. While we do view the data with some degree of caution, it is likely that advancement of purchases, strong Diwali led demand in October 2016 and limited data capture of the unorganized sector (which was affected the most due to demonetization) have probably aided GDP growth. The remonetisation process is likely to be completed by Mar'17, which should help normalise economic activity going into FY18. We expect a consumption driven pick-up in growth in FY18 led by lending rate cuts, central and state pay commission pay-outs, healthy agricultural output in FY17 leading to improvement in rural wages and improved consumer confidence levels. In this respect we expect real GVA growth in FY17E at 6.6% and FY18E at 7%. Some downside risk to growth may come from the possible shrinkage of the informal sector post the implementation of GST. 3

5 EQUITY VIEW (Continued) Key Variables & Their Impact On Equities Key Variables Short term Economy Corporate Earnings FII Flow DII Flow Supply of paper Medium term Remarks Demonitisation to impact near-term growth but by March 17 normalcy to return. Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY18). Key is improvement in capacity utilisation India stands out among global asset classes with prospects of strong long term growth. Our tax policy has spooked FII couple off times. Budget FY 18 should reassure them. Focus on improving financial savings of households er disinvestment target and repair of leveraged balance sheet to create supply in markets. Interest Rates Policy/Reform Initiative Fall in interest rates to help revive demand and reduce stress for companies with significant debt. Market expecting better transmission of rates. GST is key reform for government to focus on; if it gets passed, can provide a significant fillip Asset Allocation Graph Market Cheap Attractive Fair Fair Value Plus Stretched Bubble Equity Allocaion Over Invested 80% 90% Neutral + 65% 75% Neutral 50% Neutral 35% 45% Under Invested 15% 25% Exit 5% 10% Suggested equity allocation (Assuming 50% equity allocation as neutral) This asset allocation guide helps you to determine the suggested equity exposure at different valuations levels based on the Sensex. Jan 14 Mar 14 Stretched 18x 20x Fair Value Plus 16 18x Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Fair 12x 16x Attractive 10x 12x Cheap 9x-10x Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Valuation levels of the Sensex based on rolling 12month fwd EPS estimate of 1650 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 GOLD VIEW Gold has been traditionally perceived to be a safe haven currency at the time of geo political risk or Dollar weakening or fed rate cut. In the month of Feb, the gold prices rose by almost 2%. But this time, the dollar also rose by about 2%. Oil prices hovered around the 56 mark testing the technical resistance INR has appreciated to almost 2% MoM. This has taken away gains made by gold in dollar terms, therefore making the gold as an asset unattractive for domestic investors There are likely to be changes in the Gold Duty post implementation of GST, which may take away significant gains for the yellow metal over a period of time. To sum it up, we expect the gold prices to remain range bound or fall as fed may hike rates and therefore other assets particularly equities may do well, followed by bonds We believe that India story is unfolding and it has a long way to go. Therefore, for long term growth seekers, equities are likely to be a better play followed by bonds and then gold bonds for domestic investors. 4

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 65.02% Beta: 1.00 ## Sharpe :0.82 Standard Deviation : 14.54% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.18% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 7.70 Infosys Ltd. Software 6.15 ITC Ltd. Consumer Non Durables 5.55 ICICI Bank Ltd. Banks 4.65 IndusInd Bank Ltd. Banks 4.44 Reliance Industries Ltd. Petroleum Products 4.29 Maruti Suzuki India Limited Auto 3.64 Axis Bank Ltd Banks 3.42 Hero MotoCorp Ltd. Auto 3.17 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.95 Larsen And Toubro Ltd. Construction Project 2.85 Ultratech Cement Ltd. Cement 2.49 Tata Motors Ltd - DVR Auto 2.41 GAIL (India) Ltd. Gas 2.11 Bharat Petroleum Corporation Ltd. Petroleum Products 2.00 Britannia Industries Ltd. Consumer Non Durables 1.96 Tata Consultancy Services Ltd. Software 1.92 The Ramco Cements Ltd Cement 1.57 Shree Cement Ltd. Cement 1.49 Supreme Industries Limited Industrial Products 1.45 HCL Technologies Ltd. Software 1.44 Kajaria Ceramics Ltd. Construction 1.36 Bank Of Baroda Banks 1.25 Fag Bearings India Ltd. Industrial Products 1.24 Equitas Holdings Ltd Finance 1.23 Tech Mahindra Ltd. Software 1.20 ICICI Prudential Life Insurance Company Ltd Finance 1.12 Persistent Systems Limited Software 1.12 DB Corp Limited Media and Entertainment 1.10 Bharat Electronics Ltd Industrial Capital Goods 1.06 Bayer Cropscience Ltd. Pesticides 1.05 State Bank Of India Banks 1.05 Cadila Healthcare Ltd. Pharmaceuticals 1.03 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Nestle India Ltd. Consumer Non Durables 1.03 Arvind Ltd Textile Products 1.02 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.01 Indraprastha Gas Ltd. Gas 1.01 Sanofi India Ltd. Pharmaceuticals 1.01 National Thermal Power Corporation Limited Power 0.98 Strides Shasun Ltd. Pharmaceuticals 0.95 Shriram Transport Finance Co Ltd. Finance 0.94 Lupin Ltd. Pharmaceuticals 0.92 Mahindra & Mahindra Ltd. Auto 0.92 GE Power India Limited Industrial Capital Goods 0.82 MRF Limited Auto Ancillaries 0.81 RBL Bank Ltd Banks 0.78 Sun TV Limited. Media and Entertainment 0.76 Zee Entertainment Enterprises Ltd Media and Entertainment 0.74 Laurus Labs Ltd Pharmaceuticals 0.70 Solar Industries India Limited Chemicals 0.43 HDFC Ltd. Warrants Finance 0.38 Asian Paints Ltd. Consumer Non Durables 0.32 Listed/Awaiting Listing on Stock Exchange - Total Futures Sun TV Limited.-MAR HDFC Bank Ltd.-MAR Jubilant Foodworks Limited-MAR Futures (Market value represents Notional Value) - Total 1.44 TERM DEPOSITS AXIS Bank Ltd HDFC Bank Ltd Term Deposits - Total 0.50 Collateral Borrowing & Lending obligation 2.47 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 21,70,000 1,20,444 3,99,105 8,06,535 12,29,528 20,72,811 1,25,98, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 74,22, ,20,762 3,69,670 7,15,738 10,70,187 17,62,502 74,53, 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 February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Petroleum Products Others Finance Gas CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Deepak Gupta* Nifty 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.96 ## Sharpe :0.69 Standard Deviation : 14.07% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.69% Direct: 1.24% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.96 Infosys Ltd. Software 6.52 ITC Ltd. Consumer Non Durables 4.12 Tata Consultancy Services Ltd. Software 3.96 Power Grid Corporation Of India Ltd Power 3.75 National Thermal Power Corporation Limited Power 2.98 Hindalco Industries Ltd Non - Ferrous Metals 2.91 Hero MotoCorp Ltd. Auto 2.89 Tata Steel Limited. Ferrous Metals 2.76 Asian Paints Ltd. Consumer Non Durables 2.19 Reliance Industries Ltd. Petroleum Products 2.15 GAIL (India) Ltd. Gas 2.08 Tata Motors Ltd - DVR Auto 2.05 Yes Bank Ltd Banks 1.95 Ultratech Cement Ltd. Cement 1.79 Oil & Natural Gas Corporation Ltd. Oil 1.76 Tech Mahindra Ltd. Software 1.76 Biocon Ltd. Pharmaceuticals 1.75 Hindustan Unilever Ltd. Consumer Non Durables 1.48 Zee Entertainment Enterprises Ltd Media and Entertainment 1.48 Wipro Ltd. Software 1.40 State Bank Of India Banks 1.39 HCL Technologies Ltd. Software 1.37 Petronet LNG Ltd. Gas 1.29 RBL Bank Ltd Banks 1.26 Bajaj Finserv Ltd. Finance 1.16 Lupin Ltd. Pharmaceuticals 1.14 Grasim Industries Ltd. Cement 1.13 Laurus Labs Ltd Pharmaceuticals 1.01 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.99 JSW Steel Ltd. Ferrous Metals 0.94 ACC Ltd. Cement 0.87 HDFC Ltd. Warrants Finance 0.85 BSE Ltd Finance 0.82 The Ramco Cements Ltd Cement 0.79 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Indraprastha Gas Ltd. Gas 0.78 Adani Port and Special Economic Zone Limited Transportation 0.72 Axis Bank Ltd Banks 0.63 Hindustan Zinc Ltd. Non - Ferrous Metals 0.63 Maruti Suzuki India Limited Auto 0.59 Vedanta Ltd. Non - Ferrous Metals 0.58 Hindustan Petroleum Corporation Ltd Petroleum Products 0.57 Tata Communications Ltd Telecom - Services 0.57 HDFC Ltd. Finance 0.56 Eicher Motors Ltd Auto 0.52 IndusInd Bank Ltd. Banks 0.48 Cipla Ltd. Pharmaceuticals 0.47 Bajaj Finance Limited Finance 0.44 Piramal Enterprises Limited Pharmaceuticals 0.43 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.33 Dr Reddys Laboratories Ltd Pharmaceuticals 0.31 ICICI Bank Ltd. Banks 0.19 UPL Ltd Pesticides 0.08 Ambuja Cements Ltd Cement 0.06 Bharat Petroleum Corporation Ltd. Petroleum Products 0.06 Listed/Awaiting Listing on Stock Exchange - Total Futures Bharat Petroleum Corporation Ltd.-MAR IndusInd Bank Ltd.-MAR HDFC Bank Ltd.-MAR CNX NIFTY-MAR ICICI Bank Ltd.-MAR Maruti Suzuki India Limited-MAR Axis Bank Ltd-MAR Ambuja Cements Ltd-MAR Bajaj Finance Limited-MAR Vedanta Ltd.-MAR Futures (Market value represents Notional Value) - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 3.34 Collateral Borrowing & Lending obligation Net Current /(Liabilities) Inception : - July 27,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Classic Equity NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Pharmaceuticals Cement Consumer Non Durables Power Derivatives Others CBLO & Term Deposits & Rev.Repo Gas * 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 13,80,000 1,23,563 3,94,204 7,90,471 12,10,793 20,83,682 26,25, ,21,526 3,82,741 7,50,997 11,27,860 18,88,118 24,08, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 23,02, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 54.29% Beta: 0.99 ## Sharpe :1.07 Standard Deviation :15.14% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular:2.20% Direct: 1.03% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. Petroleum Products 4.51 ITC Ltd. Consumer Non Durables 4.24 IndusInd Bank Ltd. Banks 3.27 Hero MotoCorp Ltd. Auto 3.26 Maruti Suzuki India Limited Auto 2.96 Infosys Ltd. Software 2.95 Hindustan Petroleum Corporation Ltd Petroleum Products 2.81 Larsen And Toubro Ltd. Construction Project 2.76 Shree Cement Ltd. Cement 2.70 ICICI Bank Ltd. Banks 2.68 GAIL (India) Ltd. Gas 2.39 Axis Bank Ltd Banks 2.15 Bharat Petroleum Corporation Ltd. Petroleum Products 2.14 Petronet LNG Ltd. Gas 2.06 Britannia Industries Ltd. Consumer Non Durables 2.04 Dalmia Bharat Ltd Cement 2.00 Max Financial Services Ltd. Finance 2.00 Indraprastha Gas Ltd. Gas 1.98 State Bank of Bikaner and Jaipur Banks 1.98 Ultratech Cement Ltd. Cement 1.98 UPL Ltd Pesticides 1.98 Healthcare Global Enterprises Ltd Healthcare Services 1.72 Arvind Ltd Textile Products 1.69 Mahindra & Mahindra Ltd. Auto 1.68 Bajaj Finance Limited Finance 1.52 Coromandel International Ltd. Fertilisers 1.47 ICICI Prudential Life Insurance Company Ltd Finance 1.46 The Ramco Cements Ltd Cement 1.43 Equitas Holdings Ltd Finance 1.24 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.24 Tata Motors Ltd. Auto 1.24 Zee Entertainment Enterprises Ltd Media and Entertainment 1.24 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.16 Techno Electric & Engineering Co Ltd. Construction Project 1.05 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - September 09, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Opportunities NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Finance Auto Derivatives Consumer Non Durables Cement Gas 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 Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,80,000 1,26,352 4,28,972 8,91,717 13,69,596 23,70,318 38,59, ,21,935 3,90,507 7,73,863 11,53,437 19,08,890 28,24, ,21,038 3,75,662 7,28,382 10,91,651 18,05,065 27,26, HCL Technologies Ltd. Software 1.02 HDFC Bank Ltd. Banks 1.01 SRF Ltd. Textile Products 1.00 AIA Engineering Limited Industrial Products 0.99 Lupin Ltd. Pharmaceuticals 0.98 JK Cement Ltd. Cement 0.96 Linde India Ltd. Chemicals 0.96 MRF Limited Auto Ancillaries 0.96 Bata India Ltd. Consumer Durables 0.90 State Bank Of India Banks 0.90 National Buildings Construction Corporation Limited Construction 0.84 Multi Commodity Exchange of India Limited Finance 0.81 Va Tech Wabag Limited Engineering Services 0.79 Whirlpool of India Ltd. Consumer Durables 0.78 Bank Of Baroda Banks 0.76 DR.Lal Pathlabs Ltd Healthcare Services 0.75 Ashok Leyland Ltd. Auto 0.74 Persistent Systems Limited Software 0.72 Cummins India Ltd. Industrial Products 0.66 Fag Bearings India Ltd. Industrial Products 0.65 Container Corporation of India Ltd. Transportation 0.58 SKF India Ltd Industrial Products 0.36 Swaraj Engines Ltd Industrial Products 0.34 HDFC Ltd. Warrants Finance % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.10 Listed/Awaiting Listing on Stock Exchange - Total Futures HDFC Bank Ltd.-MAR GAIL (India) Ltd.-MAR Futures (Market value represents Notional Value) - Total 5.21 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 1.09 Collateral Borrowing & Lending obligation 7.21 Net Current /(Liabilities) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 37.80% Beta: 1.02 ## Sharpe : 1.16 Standard Deviation : 15.52% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.99% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. Petroleum Products 4.55 ITC Ltd. Consumer Non Durables 4.34 Hero MotoCorp Ltd. Auto 3.71 Ultratech Cement Ltd. Cement 3.68 Maruti Suzuki India Limited Auto 3.32 IndusInd Bank Ltd. Banks 3.26 State Bank Of India Banks 3.02 The Ramco Cements Ltd Cement 2.99 Hindustan Petroleum Corporation Ltd Petroleum Products 2.86 GAIL (India) Ltd. Gas 2.72 Shree Cement Ltd. Cement 2.72 ICICI Bank Ltd. Banks 2.61 Larsen And Toubro Ltd. Construction Project 2.52 Infosys Ltd. Software 2.51 Axis Bank Ltd Banks 2.40 Indraprastha Gas Ltd. Gas 2.34 Petronet LNG Ltd. Gas 2.31 Bharat Electronics Ltd Industrial Capital Goods 2.24 Mahindra & Mahindra Ltd. Auto 2.05 Arvind Ltd Textile Products 2.02 Max Financial Services Ltd. Finance 2.02 Britannia Industries Ltd. Consumer Non Durables 2.00 Bajaj Finance Limited Finance 1.96 Bharat Petroleum Corporation Ltd. Petroleum Products 1.50 ICICI Prudential Life Insurance Company Ltd Finance 1.37 RBL Bank Ltd Banks 1.36 Equitas Holdings Ltd Finance 1.24 Tata Motors Ltd. Auto 1.19 Godrej Consumer Products Ltd. Consumer Non Durables 1.17 Bajaj Finserv Ltd. Finance 1.16 HCL Technologies Ltd. Software 1.09 MRF Limited Auto Ancillaries 1.09 Sun Pharmaceuticals * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Industries Ltd. Pharmaceuticals 1.00 Bayer Cropscience Ltd. Pesticides 0.96 Lupin Ltd. Pharmaceuticals 0.96 Federal Bank Ltd. Banks 0.83 Ashok Leyland Ltd. Auto 0.80 Cadila Healthcare Ltd. Pharmaceuticals 0.78 Jk Lakshmi Cement Ltd. Cement 0.73 Techno Electric & Engineering Co Ltd. Construction Project 0.70 AIA Engineering Limited Industrial Products 0.62 Container Corporation of India Ltd. Transportation 0.62 Laurus Labs Ltd Pharmaceuticals 0.54 Solar Industries India Limited Chemicals 0.53 Bank Of Baroda Banks 0.49 Kec International Ltd. Construction Project 0.45 Max India Limited Finance 0.40 Whirlpool of India Ltd. Consumer Durables 0.34 Navkar Corporation Limited Transportation 0.26 HDFC Ltd. Warrants Finance 0.19 Kirloskar Oil Engines Ltd. Industrial Products 0.18 HDFC Bank Ltd. Banks % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.01 Listed/Awaiting Listing on Stock Exchange - Total Futures HDFC Bank Ltd.-MAR CNX NIFTY-MAR Futures (Market value represents Notional Value) - Total 7.50 TERM DEPOSITS AXIS Bank Ltd HDFC Bank Ltd Term Deposits - Total 1.54 Collateral Borrowing & Lending obligation Net Current /(Liabilities) Inception : - September 11, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Select Focus Fund NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Derivatives Petroleum Products Gas Auto Finance Consumer Non Durables Construction Project Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 NA 8,80,000 1,25,488 4,33,573 9,31,837 14,62,272 NA 15,61, NA ,21,745 3,86,002 7,59,371 11,32,347 NA 12,00, NA ,21,038 3,75,662 7,28,382 10,91,651 NA 11,58, NA Others Cement CBLO & Term Deposits & Rev.Repo 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. 8

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 50.70% Beta: 1.05 ## Sharpe : 1.05 Standard Deviation : 16.33% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `500 and in multiple of `500 Investment: `500 & in multiples of `500 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Exit Load is not applicable for Kotak Tax Saver. (applicable for all plans) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.43% Direct: 1.18% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.58 Reliance Industries Ltd. Petroleum Products 4.64 ITC Ltd. Consumer Non Durables 3.81 Infosys Ltd. Software 3.67 Shree Cement Ltd. Cement 3.50 Hindustan Petroleum Corporation Ltd Petroleum Products 3.41 IndusInd Bank Ltd. Banks 3.33 Bharat Petroleum Corporation Ltd. Petroleum Products 2.91 ICICI Bank Ltd. Banks 2.88 Hero MotoCorp Ltd. Auto 2.84 Mahanagar Gas Ltd Gas 2.75 Ultratech Cement Ltd. Cement 2.73 Axis Bank Ltd Banks 2.71 RBL Bank Ltd Banks 2.63 State Bank of Bikaner and Jaipur Banks 2.62 Dalmia Bharat Ltd Cement 2.24 Techno Electric & Engineering Co Ltd. Construction Project 2.02 Britannia Industries Ltd. Consumer Non Durables 1.99 Cadila Healthcare Ltd. Pharmaceuticals 1.99 Whirlpool of India Ltd. Consumer Durables 1.97 SKF India Ltd Industrial Products 1.88 Larsen And Toubro Ltd. Construction Project 1.86 The Ramco Cements Ltd Cement 1.81 Tata Motors Ltd. Auto 1.75 GAIL (India) Ltd. Gas 1.69 Maruti Suzuki India Limited Auto 1.61 UPL Ltd Pesticides 1.56 Solar Industries India Limited Chemicals 1.45 Arvind Ltd Textile Products 1.38 Max Financial Services Ltd. Finance 1.38 AIA Engineering Limited Industrial Products 1.34 Lupin Ltd. Pharmaceuticals 1.33 Bajaj Finance Limited Finance 1.30 Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Federal Bank Ltd. Banks 1.27 SRF Ltd. Textile Products 1.27 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.23 HCL Technologies Ltd. Software 1.22 Multi Commodity Exchange of India Limited Finance 1.22 Ashok Leyland Ltd. Auto 1.15 Bank Of Baroda Banks 1.05 Navneet Education Ltd. Media and Entertainment 1.04 Laurus Labs Ltd Pharmaceuticals 1.02 Bata India Ltd. Consumer Durables 1.01 Linde India Ltd. Chemicals 0.99 Mahindra & Mahindra Ltd. Auto 0.95 Container Corporation of India Ltd. Transportation 0.88 Thermax Ltd. Industrial Capital Goods 0.86 Hawkins Cooker Ltd Household Appliances 0.78 Blue Dart Express Ltd. Transportation 0.66 LIC Housing Finance Ltd. Finance 0.51 Cummins India Ltd. Industrial Products 0.48 KSB Pump Ltd Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.14 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.02 Corporate Debt/Financial Institutions - Total 0.02 Collateral Borrowing & Lending obligation 1.20 Net Current /(Liabilities) 0.05 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 February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Consumer Non Durables Petroleum Products Auto Cement Finance Industrial Products Banks Gas Software Others Pharmaceuticals * 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 13,40,000 1,24,679 4,22,345 8,56,815 12,92,850 21,30,926 25,22, ,21,935 3,90,507 7,73,863 11,53,437 19,09,020 22,70, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 21,64, Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 47.19% Beta: 0.98 ## Sharpe : 1.37 Standard Deviation : 17.65% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.42% Direct: 1.13% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Techno Electric & Engineering Co Ltd. Construction Project 2.82 IndusInd Bank Ltd. Banks 2.55 Fag Bearings India Ltd. Industrial Products 2.46 Solar Industries India Limited Chemicals 2.43 Strides Shasun Ltd. Pharmaceuticals 2.26 RBL Bank Ltd Banks 2.23 Federal Bank Ltd. Banks 2.22 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.21 ICICI Bank Ltd. Banks 2.11 JK Cement Ltd. Cement 2.10 Atul Ltd. Chemicals 2.08 Finolex Cables Ltd. Industrial Products 2.01 Motherson Sumi Systems Ltd. Auto Ancillaries 2.01 Hindustan Petroleum Corporation Ltd Petroleum Products 1.99 Hawkins Cooker Ltd Household Appliances 1.98 Sun TV Limited. Media and Entertainment 1.98 Persistent Systems Limited Software 1.95 SRF Ltd. Textile Products 1.95 Bharat Forge Ltd. Industrial Products 1.93 The Ramco Cements Ltd Cement 1.90 Supreme Industries Limited Industrial Products 1.85 Shriram City Union Finance Ltd. Finance 1.84 Bajaj Finserv Ltd. Finance 1.83 DB Corp Limited Media and Entertainment 1.82 Laurus Labs Ltd Pharmaceuticals 1.82 Mahindra & Mahindra Financial Services Ltd. Finance 1.72 V.S.T Tillers Tractors Ltd Auto 1.72 Cadila Healthcare Ltd. Pharmaceuticals 1.67 Va Tech Wabag Limited Engineering Services 1.63 Divi s Laboratories Limited Pharmaceuticals 1.61 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.61 Arvind Ltd Textile Products 1.59 BSE Ltd Finance 1.58 Castrol (India ) Ltd. Petroleum Products 1.50 Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty Free Float Midcap 100 (Rs)# Nifty Free Float Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Navneet Education Ltd. Media and Entertainment 1.48 Whirlpool of India Ltd. Consumer Durables 1.42 ICICI Prudential Life Insurance Company Ltd Finance 1.41 Shriram Transport Finance Co Ltd. Finance 1.36 NIIT Technologies Ltd Software 1.33 UPL Ltd Pesticides 1.32 SKF India Ltd Industrial Products 1.30 Britannia Industries Ltd. Consumer Non Durables 1.28 Thermax Ltd. Industrial Capital Goods 1.28 Axis Bank Ltd Banks 1.22 Bank Of Baroda Banks 1.22 Sundaram Finance Ltd. Finance 1.18 Alkem Laboratories Ltd Pharmaceuticals 1.17 PVR Ltd. Media and Entertainment 1.10 Voltas Ltd. Construction Project 1.02 Bajaj Finance Limited Finance 0.98 Zuari Agro Chemicals Ltd Fertilisers 0.98 Havells India Ltd. Consumer Durables 0.97 MRF Limited Auto Ancillaries 0.92 Jk Lakshmi Cement Ltd. Cement 0.91 Mcleod Russel India Ltd Consumer Non Durables 0.91 Sheela Foam Ltd Consumer Durables 0.91 Kewal Kiran Clothing Limited. Textile Products 0.90 WPIL Ltd Industrial Products 0.72 Pennar Engineered Building Systems Limited Ferrous Metals 0.71 Bharat Petroleum Corporation Ltd. Petroleum Products 0.69 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 4.77 Net Current /(Liabilities) Inception : - February 24,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Mid-cap NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Finance Textile Products Chemicals Others Cement Industrial Products Pharmaceuticals Petroleum Products Media & Entertainment CBLO & Term Deposits & Rev.Repo Midcap and Small cap stocks as a % age of Net : 84.39% * 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 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,30,000 1,24,432 4,56,170 10,07,883 15,82,979 27,85,948 37,43, ,24,103 4,32,410 8,94,727 13,28,804 23,05,464 31,74, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 25,04, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 34.44% Beta: 0.94 ## Sharpe :1.57 Standard Deviation : 17.35% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:2.17% Direct: 0.96% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) IndusInd Bank Ltd. Banks 3.28 Fag Bearings India Ltd. Industrial Products 3.07 V-Guard Industries Ltd. Industrial Capital Goods 2.66 Atul Ltd. Chemicals 2.61 Solar Industries India Limited Chemicals 2.51 The Ramco Cements Ltd Cement 2.42 Finolex Cables Ltd. Industrial Products 2.35 Motherson Sumi Systems Ltd. Auto Ancillaries 2.31 Navneet Education Ltd. Media and Entertainment 2.29 Persistent Systems Limited Software 2.26 Whirlpool of India Ltd. Consumer Durables 2.24 Strides Shasun Ltd. Pharmaceuticals 2.19 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.17 Federal Bank Ltd. Banks 2.15 Hawkins Cooker Ltd Household Appliances 1.93 Mahindra & Mahindra Financial Services Ltd. Finance 1.92 Supreme Industries Limited Industrial Products 1.91 DB Corp Limited Media and Entertainment 1.90 SRF Ltd. Textile Products 1.88 Kirloskar Oil Engines Ltd. Industrial Products 1.83 Va Tech Wabag Limited Engineering Services 1.83 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.75 Equitas Holdings Ltd Finance 1.74 ICICI Bank Ltd. Banks 1.73 SKF India Ltd Industrial Products 1.73 Alkem Laboratories Ltd Pharmaceuticals 1.65 Finolex Industries Ltd. Industrial Products 1.65 Shriram City Union Finance Ltd. Finance 1.64 Sundaram Finance Ltd. Finance 1.64 Divi s Laboratories Limited Pharmaceuticals 1.62 Carborundum Universal Ltd. Industrial Products 1.53 Ramkrishna Forgings Ltd. Industrial Products 1.52 Kewal Kiran Clothing Limited. Textile Products 1.45 Kajaria Ceramics Ltd. Construction 1.42 PVR Ltd. Media and Entertainment 1.40 Castrol (India ) Ltd. Petroleum Products 1.39 Oberoi Realty Ltd Construction 1.35 Note: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) ICICI Prudential Life Insurance Company Ltd Finance 1.21 Indraprastha Gas Ltd. Gas 1.14 Maharashtra Seamless Ltd. Ferrous Metals 1.14 Zuari Agro Chemicals Ltd Fertilisers 1.14 Shriram Transport Finance Co Ltd. Finance 1.13 D-Link (India) Ltd Hardware 1.12 Jk Lakshmi Cement Ltd. Cement 1.12 Britannia Industries Ltd. Consumer Non Durables 1.11 Coromandel International Ltd. Fertilisers 1.08 PNC INFRATECH LIMITED Construction 1.07 Bank Of Baroda Banks 1.05 Laurus Labs Ltd Pharmaceuticals 1.01 Bajaj Finance Limited Finance 1.00 Sheela Foam Ltd Consumer Durables 0.97 Zee Entertainment Enterprises Ltd Media and Entertainment 0.93 Max Financial Services Ltd. Finance 0.85 Kirloskar Brothers Ltd. Industrial Products 0.77 Pennar Engineered Building Systems Limited Ferrous Metals 0.70 WPIL Ltd Industrial Products 0.64 RBL Bank Ltd Banks 0.60 Kec International Ltd. Construction Project 0.59 Multi Commodity Exchange of India Limited Finance 0.44 Power Mech Projects Ltd Construction Project 0.39 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.18 Collateral Borrowing & Lending obligation 5.61 Net Current /(Liabilities) 0.09 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 February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Banks Construction Finance Cement Media and Entertainment CBLO & Term Deposits & Rev.Repo Chemicals Textile Products Others Pharmaceuticals Midcap and Small cap stocks as a % age of Net : 83.66% * 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 1,20,000 3,60,000 6,00,000 8,40,000 NA 11,80,000 1,26,182 4,74,977 10,84,538 17,07,816 NA 28,45, NA ,23,647 4,29,223 8,88,039 13,03,230 NA 21,40, NA ,21,038 3,75,662 7,28,382 10,91,651 NA 17,64, NA Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms.however, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 43.30% Beta: 1.16 ## Sharpe :1.11 Standard Deviation : 19.94% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.58% Direct: 1.12% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 6.81 Indraprastha Gas Ltd. Gas 5.54 Ultratech Cement Ltd. Cement 5.52 Larsen And Toubro Ltd. Construction Project 5.44 SKF India Ltd Industrial Products 5.43 Kirloskar Oil Engines Ltd. Industrial Products 5.06 Container Corporation of India Ltd. Transportation 4.32 Bharti Airtel Ltd. Telecom - Services 4.27 Thermax Ltd. Industrial Capital Goods 3.98 Fag Bearings India Ltd. Industrial Products 3.85 Cummins India Ltd. Industrial Products 3.59 KSB Pump Ltd Industrial Products 3.51 GAIL (India) Ltd. Gas 3.35 AIA Engineering Limited Industrial Products 3.25 National Thermal Power Corporation Limited Power 3.18 Solar Industries India Limited Chemicals 2.93 Kajaria Ceramics Ltd. Construction 2.87 Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Supreme Industries Limited Industrial Products 2.69 Mahanagar Gas Ltd Gas 2.66 Jk Lakshmi Cement Ltd. Cement 2.09 Bharat Electronics Ltd Industrial Capital Goods 2.07 Gujarat Gas Company Ltd Gas 1.98 Linde India Ltd. Chemicals 1.98 MRF Limited Auto Ancillaries 1.77 Gateway Distriparks Ltd. Transportation 1.68 Shriram Transport Finance Co Ltd. Finance 1.68 The Ramco Cements Ltd Cement 1.61 GE Power India Limited Industrial Capital Goods 1.20 Rural Electrification Corporation Ltd Finance 0.97 GP Petroleums Limited Petroleum Products 0.94 Somany Ceramics Ltd. Construction 0.09 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 4.87 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 February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Others Industrial Capital Goods Telecom - Services Gas Transportation Construction Project Power CBLO & Term Deposits & Rev.Repo Chemicals 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 NA 10,70,000 1,24,616 4,35,188 9,19,192 13,52,387 NA 19,49, NA ,21,484 3,79,812 7,40,761 11,06,033 NA 15,95, NA ,21,038 3,75,662 7,28,382 10,91,651 NA 15,68, NA 8.37 Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 20.54% Beta: 1.16 ## Sharpe : 0.82 Standard Deviation : 11.43% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemption/switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or alter 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. v) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ICICI Bank Ltd. Banks 2.13 IndusInd Bank Ltd. Banks 1.83 GAIL (India) Ltd. Gas 1.80 Fag Bearings India Ltd. Industrial Products 1.73 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.65 Sun TV Limited. Media and Entertainment 1.63 Kajaria Ceramics Ltd. Construction 1.60 Maruti Suzuki India Limited Auto 1.57 JK Cement Ltd. Cement 1.55 Larsen And Toubro Ltd. Construction Project 1.55 State Bank Of India Banks 1.52 Tata Motors Ltd. Auto 1.51 V.S.T Tillers Tractors Ltd Auto 1.48 Reliance Industries Ltd. Petroleum Products 1.43 Laurus Labs Ltd Pharmaceuticals 1.42 Zee Entertainment Enterprises Ltd Media and Entertainment 1.42 Motherson Sumi Systems Ltd. Auto Ancillaries 1.39 Axis Bank Ltd Banks 1.33 Atul Ltd. Chemicals 1.29 Techno Electric & Engineering Co Ltd. Construction Project 1.22 ICICI Prudential Life Insurance Company Ltd Finance 1.20 Bajaj Finserv Ltd. Finance 1.15 ITC Ltd. Consumer Non Durables 1.14 DB Corp Limited Media and Entertainment 1.07 Divi s Laboratories Limited Pharmaceuticals 1.07 Tata Consultancy Services Ltd. Software 1.07 Bank Of Baroda Banks 1.05 Mahindra & Mahindra Financial Services Ltd. Finance 1.03 SRF Ltd. Textile Products 1.03 HDFC Ltd. Finance 1.01 BSE Ltd Finance 1.00 Strides Shasun Ltd. Pharmaceuticals 0.99 Bharat Forge Ltd. Industrial Products 0.95 Solar Industries India Limited Chemicals 0.95 Mcleod Russel India Ltd Consumer Non Durables 0.94 Persistent Systems Limited Software 0.91 HCL Technologies Ltd. Software 0.89 Equitas Holdings Ltd Finance 0.87 Federal Bank Ltd. Banks 0.87 Mahindra & Mahindra Ltd. Auto 0.87 Havells India Ltd. Consumer Durables 0.85 Arvind Ltd Textile Products 0.84 The Ramco Cements Ltd Cement 0.84 HDFC Bank Ltd. Infosys Ltd. Banks Software Software Finance Banks Regular: 2.30% CBLO & Term Deposits & Rev.Repo Pharmaceuticals Direct: 1.07% Media and Entertainment Auto Debentures and Bonds Government Dated Securities Others Industrial Products 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Note: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) CRISIL Balanced Fund SECTOR ALLOCATION (%) Aggressive Index (Rs)# CRISIL Balanced Fund Aggressive Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Hindustan Petroleum Corporation Ltd Petroleum Products 0.80 RBL Bank Ltd Banks 0.67 Shriram Transport Finance Co Ltd. Finance 0.66 Navkar Corporation Limited Transportation 0.65 Cipla Ltd. Pharmaceuticals 0.64 Thermax Ltd. Industrial Capital Goods 0.63 Va Tech Wabag Limited Engineering Services 0.63 Ultratech Cement Ltd. Cement 0.58 Kirloskar Oil Engines Ltd. Industrial Products 0.55 Whirlpool of India Ltd. Consumer Durables 0.55 Finolex Cables Ltd. Industrial Products 0.49 Ramkrishna Forgings Ltd. Industrial Products 0.46 Carborundum Universal Ltd. Industrial Products 0.34 GNA Axles Ltd Auto Ancillaries 0.33 HDFC Ltd. Warrants Finance 0.19 Pennar Engineered Building Systems Limited Ferrous Metals 0.18 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Bank Ltd. CRISIL AAA 1.16 LIC Housing Finance Ltd. CRISIL AAA 0.06 Tata Sons Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total 1.24 Public Sector Undertakings Syndicate Bank CARE AA Power Finance Corporation Ltd. CRISIL AAA 1.06 State Bank Of India. CRISIL AA Konkan Railway Corporation Ltd. ICRA AAA 0.56 Public Sector Undertakings - Total 5.14 Government Dated Securities 7.61% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.01 Government Dated Securities - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.05 Collateral Borrowing & Lending obligation 5.52 Net Current /(Liabilities) 0.94 Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 20,60,000 1,26,325 4,13,376 8,01,800 12,28,678 20,61,880 83,70, ,23,695 3,94,781 7,51,141 11,36,062 18,77,878 NA NA 1,21,038 3,75,662 7,28,382 10,91,651 18,05,099 65,81, 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 February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Nifty 50 Arbitrage AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Fortnightly (Every alternate Monday from the 1st record date), Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.52 ## Sharpe : 2.12 Standard Deviation : 0.52% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on 28th February 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 0.25% II) For redemptions/switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 1.10% Direct: 0.59% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged HDFC Ltd. Finance Cairn India Limited Oil JSW Steel Ltd. Ferrous Metals Federal Bank Ltd. Banks Shriram Transport Finance Co Ltd. Finance Reliance Industries Ltd. Petroleum Products ITC Ltd. Consumer Non Durables Asian Paints Ltd. Consumer Non Durables IDFC Limited Finance Ashok Leyland Ltd. Auto Bharat Financial Inclusion Limited Finance Tata Motors Ltd - DVR Auto Bharat Electronics Ltd Industrial Capital Goods Britannia Industries Ltd. Consumer Non Durables Dewan Housing Finance Corporation Ltd. Finance Indiabulls Housing Finance Ltd. Finance Eicher Motors Ltd Auto Bharti Infratel Ltd. Telecom - Equipment & Accessories Tata Global Beverages Limited Consumer Non Durables Petronet LNG Ltd. Gas UPL Ltd Pesticides Aurobindo Pharma Ltd. Pharmaceuticals Dr Reddys Laboratories Ltd Pharmaceuticals Tata Communications Ltd Telecom - Services Aditya Birla Nuvo Limited Services Maruti Suzuki India Limited Auto Reliance Capital Ltd. Finance CESC Ltd. Power Castrol (India ) Ltd. Petroleum Products Divi s Laboratories Limited Pharmaceuticals Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Bharat Forge Ltd. Industrial Products Karnataka Bank Ltd Banks IDFC Bank Limited Banks Lupin Ltd. Pharmaceuticals Motherson Sumi Systems Ltd. Auto Ancillaries Adani Power Ltd Power LIC Housing Finance Ltd. Finance United Spirits Ltd. Consumer Non Durables Yes Bank Ltd Banks Tata Power Co. Ltd. Power Bosch Limited Auto Ancillaries MRF Limited Auto Ancillaries Zee Entertainment Enterprises Ltd Media and Entertainment Hindalco Industries Ltd Non - Ferrous Metals Exide Industries Ltd Auto Ancillaries Indraprastha Gas Ltd. Gas National Thermal Power Corporation Limited Power JSW Energy Ltd. Power NCC Limited Construction Project Century Textiles & Industries Ltd. Cement Oil & Natural Gas Corporation Ltd. Oil Sun TV Limited. Media and Entertainment HCL Technologies Ltd. Software Oracle Financial Services Software Ltd Software Glenmark Pharmaceuticals Ltd Pharmaceuticals Jain Irrigation Systems Ltd. Industrial Products Marico Ltd. Consumer Non Durables Power Grid Corporation Of India Ltd Power TV18 Broadcast Ltd Media and Entertainment Engineers India Ltd. Construction Project GMR Infrastructure Ltd. Construction Project Bharat Earth Movers Ltd. Industrial Capital Goods Reliance Power Ltd Power Sintex Industries Ltd. Industrial Products Apollo Tyres Ltd. Auto Ancillaries * 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 IRB Infrastructure Developers Ltd Construction Dish TV India Ltd. Media and Entertainment Hexaware Technologies Ltd. Software PTC India Ltd. Power ACC Ltd. Cement Hindustan Unilever Ltd. Consumer Non Durables Idea Cellular Ltd. Telecom - Services Indiabulls Real Estate Ltd Construction Colgate Palmolive (India ) Ltd. Consumer Non Durables Adani Enterprises Ltd Trading Kaveri Seed Company Ltd. Consumer Non Durables Larsen And Toubro Ltd. Construction Project The South Indian Bank Ltd. Banks Titan Company Ltd. Consumer Durables Granules India Ltd. Pharmaceuticals Pidilite Industries Ltd. Chemicals Jindal Steel & Power Ltd. Ferrous Metals United Breweries Ltd. Consumer Non Durables Torrent Power Ltd Power India Cements Ltd. Cement Reliance Infrastructure Ltd Power Tata Consultancy Services Ltd. Software Tata Elxsi Ltd. Software Torrent Pharmaceuticals Ltd. Pharmaceuticals Development Credit Bank Ltd. Banks IndusInd Bank Ltd. Banks Oil India Limited Oil Ajanta Pharma Ltd. Pharmaceuticals Cipla Ltd. Pharmaceuticals Amara Raja Batteries Ltd. Auto Ancillaries Jet Airways (India) Ltd. Transportation L&T Finance Holdings Ltd Finance SRF Ltd. Textile Products Tata Motors Ltd. Auto Adani Port and Special Economic Zone Limited Transportation Bharat Heavy Electricals Ltd. Industrial Capital Goods ICICI Bank Ltd. Banks Tata Steel Limited. Ferrous Metals Bank Of Baroda Banks Cadila Healthcare Ltd. Pharmaceuticals Cummins India Ltd. Industrial Products Indo Count Industries Ltd. Textiles - Cotton NIIT Technologies Ltd Software Strides Shasun Ltd. Pharmaceuticals Wockhardt Ltd. Pharmaceuticals Housing Development and Infrastructure Limited Construction Jaiprakash Associates Ltd Cement Mahindra & Mahindra Ltd. Auto IFCI Ltd. Finance Siemens Ltd. Industrial Capital Goods Industrial Development Bank of India Ltd. Banks Reliance Communications Ltd. Telecom - Services Andhra Bank Banks KPIT Technologies LImited Software Crompton Greaves Ltd. Industrial Capital Goods Havells India Ltd. Consumer Durables MindTree Ltd. Software Bajaj Finance Limited Finance Hero MotoCorp Ltd. Auto Syndicate Bank Banks Apollo Hospitals Enterprises Ltd. Healthcare Services Page Industries Ltd Textile Products Ambuja Cements Ltd Cement Godrej Consumer Products Ltd. Consumer Non Durables Infosys Ltd. Software Mahindra & Mahindra Financial Services Ltd. Finance Axis Bank Ltd Banks Bharat Petroleum Corporation Ltd. Petroleum Products NHPC Limited Power

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives Oriental Bank of Commerce Banks State Bank Of India Banks Tata Chemicals Ltd. Chemicals Ultratech Cement Ltd. Cement Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Government Dated Securities Hedged 7.88% Central Government SOV Hedged - Total Government Dated Securities - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Kotak Mutual Fund Units Mutual Fund Units - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 3.46 Kotak Mahindra Prime Ltd. CRISIL AAA 3.21 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 2.60 LIC Housing Finance Ltd. CARE AAA 0.78 Corporate Debt/Financial Institutions - Total TERM DEPOSITS IndusInd Bank Ltd AXIS Bank Ltd HDFC Bank Ltd Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 0.84 Term Deposits - Total Collateral Borrowing & Lending obligation 0.46 Net Current /(Liabilities) 1.08 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Auto Others Power Pharmaceuticals Banks Finance Consumer Non Durables Debentures and Bonds Kotak Mutual Fund Units Government Dated Securities Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Nifty 50 Arbitrage index and 25% in Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.06% Direct: 1.44% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge Cairn India Limited Oil 1.30 ITC Ltd. Consumer Non Durables 1.23 Bharat Petroleum Corporation Ltd. Petroleum Products 1.22 IndusInd Bank Ltd. Banks 1.10 Power Grid Corporation Of India Ltd Power 1.06 Infosys Ltd. Software 0.95 Tata Steel Limited. Ferrous Metals 0.94 Yes Bank Ltd Banks 0.92 HDFC Ltd. Warrants Finance 0.89 Hindalco Industries Ltd Non - Ferrous Metals 0.88 National Thermal Power Corporation Limited Power 0.87 Varun Beverages Ltd Consumer Non Durables 0.82 Grasim Industries Ltd. Cement 0.79 Asian Paints Ltd. Consumer Non Durables 0.74 Tata Motors Ltd - DVR Auto 0.73 Biocon Ltd. Pharmaceuticals 0.67 Reliance Industries Ltd. Petroleum Products 0.66 Hero MotoCorp Ltd. Auto 0.65 Bata India Ltd. Consumer Durables 0.62 Bajaj Finance Limited Finance 0.61 Zee Entertainment Enterprises Ltd Media and Entertainment 0.61 Laurus Labs Ltd Pharmaceuticals 0.54 Hindustan Unilever Ltd. Consumer Non Durables 0.52 Axis Bank Ltd Banks 0.50 Mcleod Russel India Ltd Consumer Non Durables 0.50 Petronet LNG Ltd. Gas 0.49 Maruti Suzuki India Limited Auto 0.46 Ultratech Cement Ltd. Cement 0.46 BSE Ltd Finance 0.45 JSW Steel Ltd. Ferrous Metals 0.44 The Ramco Cements Ltd Cement 0.42 Tata Consultancy Services Ltd. Software 0.33 ICICI Bank Ltd. Banks 0.22 Bajaj Finserv Ltd. Finance 0.21 State Bank Of India Banks 0.21 HDFC Ltd. Finance 0.20 Larsen And Toubro Ltd. Construction Project 0.18 RBL Bank Ltd Banks 0.18 Wipro Ltd. Software 0.18 GAIL (India) Ltd. Gas 0.17 Mahindra & Mahindra Ltd. Auto 0.17 HDFC Bank Ltd. Banks Lupin Ltd. Pharmaceuticals 0.13 Container Corporation of India Ltd. Transportation Dr Reddys Laboratories Ltd Pharmaceuticals 0.12 Hindustan Petroleum Corporation Ltd Petroleum Products 0.11 Tata Motors Ltd. Auto 0.11 Eicher Motors Ltd Auto 0.10 Tech Mahindra Ltd. Software 0.08 Adani Port and Special Economic Zone Limited Transportation 0.06 Cipla Ltd. Pharmaceuticals 0.06 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.06 Hindustan Zinc Ltd. Non - Ferrous Metals 0.03 Ambuja Cements Ltd Cement 0.02 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 ACC Ltd. Cement 0.01 UPL Ltd Pesticides 0.01 CNX NIFTY-MAR Non-Hedged- Total Hedged Geometric Software Solutions Co Ltd Software 7.74 HCL Technologies Ltd. Software Cairn India Limited Oil 4.17 Vedanta Ltd. Non - Ferrous Metals GMR Infrastructure Ltd. Construction Project Jain Irrigation Systems Ltd. Industrial Products Reliance Capital Ltd. Finance Tata Communications Ltd Telecom - Services IDFC Limited Finance Reliance Mutual Fund CPSE ETF Mutual Fund Units 1.19 Bharat Electronics Ltd Industrial Capital Goods Coal India Ltd. Mineral/Mining Engineers India Ltd. Construction Project Indian Oil Corporation Ltd Petroleum Products Oil & Natural Gas Corporation Ltd. Oil Oil India Limited Oil Power Finance Corporation Ltd. Finance Rural Electrification Corporation Ltd Finance JSW Steel Ltd. Ferrous Metals Century Textiles & Industries Ltd. Cement Ashok Leyland Ltd. Auto Jaiprakash Associates Ltd Cement Divi s Laboratories Limited Pharmaceuticals HDFC Ltd. Finance UPL Ltd Pesticides Dewan Housing Finance Corporation Ltd. Finance Aditya Birla Nuvo Limited Services Glenmark Pharmaceuticals Ltd Pharmaceuticals Aurobindo Pharma Ltd. Pharmaceuticals Housing Development and Infrastructure Limited Construction Yes Bank Ltd Banks * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives Bharat Financial Inclusion Limited Finance Wockhardt Ltd. Pharmaceuticals IRB Infrastructure Developers Ltd Construction Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Bharat Electronics Ltd Industrial Capital Goods Indiabulls Housing Finance Ltd. Finance Castrol (India ) Ltd. Petroleum Products Shriram Transport Finance Co Ltd. Finance Petronet LNG Ltd. Gas NCC Limited Construction Project Tata Motors Ltd. Auto Adani Power Ltd Power India Cements Ltd. Cement ITC Ltd. Consumer Non Durables Indiabulls Real Estate Ltd Construction Tata Elxsi Ltd. Software Vedanta Ltd. Non - Ferrous Metals HCL Technologies Ltd. Software IDFC Bank Limited Banks Jindal Steel & Power Ltd. Ferrous Metals Reliance Infrastructure Ltd Power Tata Motors Ltd - DVR Auto Britannia Industries Ltd. Consumer Non Durables Exide Industries Ltd Auto Ancillaries Oil & Natural Gas Corporation Ltd. Oil IFCI Ltd. Finance Sun TV Limited. Media and Entertainment Federal Bank Ltd. Banks JSW Energy Ltd. Power Tata Global Beverages Limited Consumer Non Durables Asian Paints Ltd. Consumer Non Durables GAIL (India) Ltd. Gas LIC Housing Finance Ltd. Finance Zee Entertainment Enterprises Ltd Media and Entertainment Mahindra & Mahindra Ltd. Auto Reliance Power Ltd Power Oracle Financial Services Software Ltd Software Engineers India Ltd. Construction Project Lupin Ltd. Pharmaceuticals Motherson Sumi Systems Ltd. Auto Ancillaries Pidilite Industries Ltd. Chemicals Tata Steel Limited. Ferrous Metals ICICI Bank Ltd. Banks NIIT Technologies Ltd Software Granules India Ltd. Pharmaceuticals KPIT Technologies LImited Software TV18 Broadcast Ltd Media and Entertainment CESC Ltd. Power Tata Power Co. Ltd. Power Wipro Ltd. Software Bharti Infratel Ltd. Telecom - Equipment & Accessories Maruti Suzuki India Limited Auto Colgate Palmolive (India ) Ltd. Consumer Non Durables National Thermal Power Corporation Limited Power Bajaj Finance Limited Finance Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Floater Short Term Direct Growth Mutual Fund Units Mutual Fund Units - Total Government Dated Securities 8.53% State Government SOV 0.74 Government Dated Securities - Total 0.74 TERM DEPOSITS AXIS Bank Ltd HDFC Bank Ltd Kotak Mahindra Bank Ltd IndusInd Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 1.28 Net Current /(Liabilities) 1.90 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Savings Fund NAV as on February 28, 2017: ` (Growth Option), ` (Monthly Dividend Option), ` Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) 18

20 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund SYSTEMATIC INVESTMENT PLAN (SIP) Systematic Investment Plan (SIP) If you had invested `10,000 every month SYSTEMATIC INVESTMENT PLAN 1 year Since Inception Total amount invested (Rs) 1,20,000 2,70,000 Total Value as on Dec 30, 2016 (Rs) 1,23,951 2,89,016 Returns (%) % NIFTY 50 ARBITRAGE + 25% Nifty 50 (Rs)# 122, ,598 75% NIFTY 50 ARBITRAGE + 25% Nifty 50 Returns (%) Nifty 50 (Rs)^ 121, ,745 Nifty 50 Returns (%) Inception : - October 13, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Banks Finance Auto Others Software Mutual Fund Units Consumer Non Durables Cement Construction Project Pharmaceuticals Investors understand that their principal will be at moderately high risk Income from arbitrage opportunities in the equity market & long term capital growth Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 19

21 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.80 Infosys Ltd. Software 7.59 ICICI Bank Ltd. Banks 7.13 IndusInd Bank Ltd. Banks 6.52 Maruti Suzuki India Limited Auto 6.32 Reliance Industries Ltd. Petroleum Products 6.18 Axis Bank Ltd Banks 5.04 Hero MotoCorp Ltd. Auto 4.83 Britannia Industries Ltd. Consumer Non Durables 4.81 Larsen And Toubro Ltd. Construction Project 4.74 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 4.72 Ultratech Cement Ltd. Cement 4.51 Shree Cement Ltd. Cement 3.96 Tata Motors Ltd - DVR Auto 3.79 Kajaria Ceramics Ltd. Construction 3.11 Persistent Systems Limited Software 3.09 GAIL (India) Ltd. Gas 3.04 Note: Term Deposit as provided above is towards margin for derivatives transactions Sun TV Limited. Media and Entertainment 2.96 Equitas Holdings Ltd Finance 2.76 Laurus Labs Ltd Pharmaceuticals 2.15 Entertainment Network (India) Ltd. Media and Entertainment 1.03 Motherson Sumi Systems Ltd. Auto Ancillaries 1.00 ICICI Prudential Life Insurance Company Ltd Finance 0.40 Listed/Awaiting Listing on Stock Exchange - Total Futures Jubilant Foodworks Limited-MAR Futures (Market value represents Notional Value) - Total 0.28 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.50 Collateral Borrowing & Lending obligation 1.80 Net Current /(Liabilities) Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 25.18% The scheme is a close ended scheme. The units of the scheme can be traded on the stock exchange. Entry Load: Nil. Exit Load: Nil. Regular: 2.51% Direct: 2.01% Kotak India Growth Fund Series I NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Finance Others Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project Media and Entertainment Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity and equity related securities across market capitalisation and sectors * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 20

22 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` Plans: a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.26%, Modified Duration: 0.07yrs, Portfolio Yield: 6.37% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.12% Direct: 0.07% Debt Instruments Debentures and Bonds Public Sector Undertakings HDFC Ltd. CRISIL AAA 3.38 Indiabulls Housing Finance Limited CARE AA LIC Housing Finance Ltd. CRISIL AAA 0.25 Bajaj Finance Limited CRISIL AAA 0.09 Sundaram Finance Ltd. ICRA AA Corporate Debt/Financial Institutions - Total 4.08 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Finance Limited ICRA A Bharti Enterprises (Holding) Pvt. Ltd. CRISIL A India Infoline Finance Limited ICRA A Tata Motors Finance Ltd ICRA A Bharti Airtel Ltd. ICRA A LIC Housing Finance Ltd. CRISIL A Muthoot Finance Ltd CRISIL A Tata Capital Housing Finance Ltd; CRISIL A Edelweiss Commodities Services Ltd. CRISIL A Nirma Ltd. CRISIL A Reliance Capital Ltd. ICRA A Essel Mining & Industries Ltd. ICRA A Bajaj Finance Limited CRISIL A Standard Chartered Investment & Loan India Ltd. CRISIL A Tata Capital Financial Services Limited ICRA A Dewan Housing Finance Corporation Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A Note: Term Deposit as provided above is towards margin for derivatives transactions Andhra Bank CARE A Public Sector Undertakings - Total 5.00 Reverse Repo 3.43 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Treasury Bill 25/05/2017 SOV Days Cash Management Treasury Bill 03/03/2017 SOV Days Cash Management Treasury Bill 06/03/2017 SOV Days Treasury Bill SOV Days Treasury Bill 16/03/2017 SOV Days Cash Management Treasury Bill 14/03/2017 SOV 0.01 Treasury Bills - Total TERM DEPOSITS IndusInd Bank Ltd Deutsche Bank 4.36 Term Deposits - Total 9.60 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.51 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.07 years Kotak Liquid Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Treasury Bills Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Net Current A1+, AAA, SOV RATING PROFILE CBLO & Term Deposits & Rev.Repo AA Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk 21 * For experience, please refer page For scheme performance, please refer page no

23 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.25%, Modified Duration:0.10 yrs, Portfolio Yield: 6.66% 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: 0.16% Direct: 0.12% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 1.95 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR A Indiabulls Housing Finance Limited CARE AA Corporate Debt/Financial Institutions - Total 3.84 Government Dated Securities 8.42% State Government SOV 0.04 Government Dated Securities - Total 0.04 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Bharti Enterprises (Holding) Pvt. Ltd. CRISIL A Muthoot Finance Ltd CRISIL A Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 5.89 Bharti Airtel Ltd. ICRA A LIC Housing Finance Ltd. CRISIL A Aditya Birla Finance Ltd. ICRA A Bajaj Finance Limited CRISIL A Bharat Aluminum Co. Ltd. CRISIL A1+(SO) 2.66 S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 2.10 Sun Pharma Laboratories Limited ICRA A1+ 2 FAMILY CREDIT LTD CARE A Piramal Finance Limited ICRA A India Infoline Finance Limited ICRA A Tata Motors Finance Ltd ICRA A Tata Power Company Ltd. ICRA A Reliance Capital Ltd. ICRA A Edelweiss Commodities Services Ltd. CRISIL A Manappuram Finance Ltd ICRA A Bahadur Chand Investments Private Limited ICRA A Vedanta Ltd. CRISIL A Adani Transmission Ltd FITCH A1+(IND) 0.36 Note: Term Deposit as provided above is towards margin for derivatives transactions ICICI Bank Ltd. CRISIL A Ford Credit India Pvt. Ltd. FITCH IND A L & T Infrastructure Development Project Ltd. CRISIL A Mahindra & Mahindra Financial Services Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A Corporation Bank CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 4.18 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Treasury Bill 25/05/2017 SOV Days Cash Management Treasury Bill 06/03/2017 SOV Days Treasury Bill SOV Days Treasury Bill 09/03/2017 SOV Days Cash Management Treasury Bill 14/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Cash Management Treasury Bill 03/03/2017 SOV 0.71 Treasury Bills - Total TERM DEPOSITS Deutsche Bank 7.10 IndusInd Bank Ltd HDFC Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 2.21 Net Current /(Liabilities) 0.47 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.10 years Kotak Floater Short Term Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Treasury Bills CBLO & Term Deposits & Rev.Repo Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Net Current Government Dated Securities AA+ RATING PROFILE (%) A1+, A1+(IND), A1+(SO), AAA, BWR A1+, IND A1+, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 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

24 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation:0.58%, Modified Duration:0.33 yrs, Portfolio Yield: 7.08% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth- `5000 & above (ii) Dividend Payout (Weekly) - `1,00,00,000 & above Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.60% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd.(^) CRISIL AAA 4.17 Tata Motors Finance Ltd CRISIL AA 2.99 Shriram Transport Finance Co Ltd.(^) CRISIL AA Vedanta Ltd.(^) CRISIL AA Fullerton India Credit Co. Ltd.(^) CARE AAA 2.22 Nirma Ltd. CRISIL AA 2.22 FAMILY CREDIT LTD(^) CARE AA AXIS Bank Ltd.(^) CRISIL AA 2.09 Shriram Transport Finance Co Ltd. FITCH IND AA Kotak Mahindra Investments Ltd.(^) CRISIL AAA 1.85 Kotak Mahindra Prime Ltd. CRISIL AAA 1.85 Kotak Mahindra Prime Ltd.(^) CRISIL AAA 1.85 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) (^) ICRA AAA 1.78 Indiabulls Housing Finance Limited(^) CARE AAA 1.60 LIC Housing Finance Ltd.(^) CRISIL AAA 1.21 Muthoot Finance Ltd CRISIL AA 1.20 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) (^) ICRA AAA(SO) 1.10 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) (^) ICRA AA LIC Housing Finance Ltd. CRISIL AAA 0.82 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.46 India Infoline Housing Finance Ltd.(^) ICRA AA 0.37 HDFC Ltd. CRISIL AAA 0.28 Indiabulls Housing Finance Limited CARE AAA 0.28 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.24 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) FITCH IND AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.18 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.17 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.09 India Infoline Finance Limited CARE AA 0.09 East-North Interconnection Company Limited CRISIL AAA(SO) 0.06 FAMILY CREDIT LTD CARE AA Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA(SO) 0.06 Tata Sons Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL AAA 3.49 Power Finance Corporation Ltd.(^) CRISIL AAA 2.33 Rural Electrification Corporation Ltd.(^) CRISIL AAA 2.18 National Housing Bank CRISIL AAA 1.85 National Bank for Agriculture & Rural Development CRISIL AAA 1.79 Small Industries Development Bank Of India. CRISIL AAA 1.66 Small Industries Development Bank Of India. CARE AAA 0.92 Canara Bank(^) CRISIL AAA 0.81 Power Finance Corporation Ltd. CRISIL AAA 0.40 Rural Electrification Corporation Ltd. CRISIL AAA 0.30 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.12 Power Grid Corporation of India Ltd. CRISIL AAA 0.10 Public Sector Undertakings - Total Government Dated Securities 7.61% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV 0.14 Government Dated Securities - Total 7.48 Futures GS CG 6.97% 06/09/2026-MAR % GS 09/05/2030-MAR Futures (Market value represents Notional Value) - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IDFC Bank Limited ICRA A AXIS Bank Ltd. CRISIL A IndusInd Bank Ltd. CRISIL A Piramal Enterprises Limited ICRA A Shapoorji Pallonji and Company Private Limited ICRA A HDFC Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CRISIL A Andhra Bank CARE A Corporation Bank CRISIL A Public Sector Undertakings - Total 4.05 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Treasury Bill 09/03/2017 SOV 0.03 Treasury Bills - Total 4.81 Net Current /(Liabilities) 9.39 Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS), Hedging Position through Interest Rate Swaps as on 28 Feb 2017 is 27.70% of the net assets.. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.39 years. Kotak Treasury Advantage Fund NAV as on February 28, 2017: ` (Daily Dividend Option), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) SECTOR ALLOCATION (%) Derivatives Treasury Bills Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Government Dated Securities Net Current RATING PROFILE 6.57 AA+, IND AA+, AA, AA(SO), AA-, IND AA- A1+, AAA, AAA(SO), IND AAA, SOV Derivatives Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 23 Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* CRISIL Short Term Bond Fund Index(w.e.f February 1, 2017 ) AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 2.15%, Modified Duration: 2.04yrs, Portfolio Yield: 7.57% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Dividend Payout, Dividend Re-investment & Growth `5000 & above. Investment: `1000 & in multiples of `1. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular:0.50% Direct: 0.15% Debt Instruments Debentures and Bonds AXIS Bank Ltd. CRISIL AA 3.29 Corporate Debt/Financial Institutions - Total 3.29 Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 9.42 National Bank for Agriculture & Rural Development CRISIL AAA 5.53 Power Finance Corporation Ltd. CRISIL AAA 5.52 Bank Of Baroda CARE AA 4.23 State Bank Of India. CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 3.64 Union Bank of India CRISIL AAA 2.98 State Bank of Travancore CRISIL AAA 2.91 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 2.82 State Bank Of India. CRISIL AAA 2.59 Canara Bank CRISIL AAA 2.56 Punjab National Bank CARE AA 2.54 Union Bank of India CARE AA 2.14 Andhra Bank CRISIL AA Oriental Bank of Commerce ICRA A Bank Of Baroda CARE AA Export-Import Bank of India. CRISIL AAA 1.88 Bank of Maharashtra CRISIL A Power Finance Corporation Ltd. ICRA AAA 1.73 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.13 National Housing Bank CRISIL AAA 0.68 Steel Authority of India Ltd. FITCH IND AA 0.34 Public Sector Undertakings - Total Government Dated Securities 8.53% State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.42 Government Dated Securities - Total 7.03 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. ICRA A IndusInd Bank Ltd. CRISIL A ICICI Bank Ltd. CRISIL A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 7.87 Public Sector Undertakings Export-Import Bank of India. CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 9.28 Collateral Borrowing & Lending obligation 4.92 Net Current /(Liabilities) 2.87 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 2.60 years. Kotak Banking And PSU Debt Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual Dividend) Debentures and Bonds Government Dated Securities Net Current CBLO & Term Deposits & Rev.Repo Commercial Paper (CP)/Certi cate of Deposits (CD) AA+, AA, IND AA, AA- Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), IND AAA, SOV A+, A- Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.80%, Modified Duration: 0.97 yrs, Portfolio Yield: 8.12% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.00% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Tata Power Company Ltd. ICRA AA 8.99 Vedanta Ltd. CRISIL AA Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA-(SO) 6.76 Manappuram Finance Ltd ICRA AA HDFC Ltd. CRISIL AAA 5.36 Indiabulls Housing Finance Limited CARE AAA 5.02 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR AA-(SO) 4.46 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 3.97 Tata Motors Ltd. CARE AA Shriram Transport Finance Co Ltd. FITCH IND AA Karelides Traders Private Ltd. (backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Nirchem Cement Ltd. CRISIL AA 2.01 Tata Steel Limited BRICKWORK BWR AA 2.01 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 1.95 Vodafone Mobile Services Ltd. CRISIL AA 1.68 FAMILY CREDIT LTD CARE AA AXIS Bank Ltd. CRISIL AA 1.52 Altico Capital India Pvt Ltd FITCH AA-(IND) 1.44 Janalakshami Financial Services Ltd. ICRA A Peninsula Land Limited BRICKWORK BWR A 1.11 HPCL Mittal Energy Ltd. ICRA AA 0.96 Piramal Finance Limited ICRA AA 0.92 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.90 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.77 Muthoot Fincorp Ltd. CRISIL A Indostar Capital Finance Private Limited CARE AA Intime Properties Ltd. FITCH IND AAA 0.51 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 0.42 Kotak Mahindra Prime Ltd. CRISIL AAA 0.42 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) FITCH IND AA SP Jammu Udhampur way Ltd. ( backed by unconditional and I rrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.24 ECL Finance Limited CARE AA 0.13 HDB Financial Services Ltd. CRISIL AAA 0.11 Aspire Home Finance Corporation Ltd ICRA AA LIC Housing Finance Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Bank Of Baroda CARE AA 2.35 Oriental Bank of Commerce ICRA A Andhra Bank CRISIL AA Canara Bank CRISIL AAA 0.71 National Bank for Agriculture & Rural Development CRISIL AAA 0.67 Allahabad Bank CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 0.12 Public Sector Undertakings - Total 7.96 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) CARE A1+(SO) 4.19 Shapoorji Pallonji and Company Private Limited ICRA A IDFC Bank Limited ICRA A IndusInd Bank Ltd. CRISIL A Reliance Infrastructure Ltd FITCH IND A1+(SO) 0.63 AXIS Bank Ltd. CRISIL A HDFC Ltd. ICRA A Adani Ports and Special Economic Zone Limited ICRA A Sadbhav Engineering Ltd. CARE A Corporate Debt/Financial Institutions - Total 9.13 Public Sector Undertakings Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 1.62 Collateral Borrowing & Lending obligation 2.08 Net Current /(Liabilities) 0.61 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.10 years Kotak Duration Fund NAV as on February 28, 2017: ` (Normal Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) Debentures and Bonds RATING PROFILE A+, A, BWR A, BWR A(SO), A- Net Current A1+, A1+(SO), AAA, IND A1+(SO), IND AAA AA+, IND AA+, AA, AA(SO), BWR AA, AA-, AA-(IND), AA-(SO), BWR AA-(SO),IND AA- CBLO & Term Deposits & Rev.Repo Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk 25 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

27 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 2.09%, Modified Duration: 2.04 yrs, Portfolio Yield: 7.33% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth - `5000 & above (ii) Dividend Payout (Monthly Dividend) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Total Expense Ratio Regular: 1.10%; Direct: 0.25% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 6.83 Reliance Jio Infocomm Limited CRISIL AAA 6.48 Kotak Mahindra Prime Ltd. CRISIL AAA 5.58 LIC Housing Finance Ltd. CRISIL AAA 5.45 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 5.43 HDFC Ltd. CRISIL AAA 4.94 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 2.52 ICICI Home Finance Company Limited ICRA AAA 2.32 Indiabulls Housing Finance Limited CARE AAA 1.80 Bajaj Finance Limited(^) FITCH IND AAA 1.75 Dewan Housing Finance Corporation Ltd. CARE AAA 1.68 HDB Financial Services Ltd. CRISIL AAA 1.32 Fullerton India Credit Co. Ltd. CARE AAA 1.12 BMW India Financial Services Private Limited CRISIL AAA 1.11 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.48 East-North Interconnection Company Limited CRISIL AAA(SO) 0.06 Bajaj Finance Limited FITCH IND AAA 0.01 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd.(^) CRISIL AAA 6.03 National Bank for Agriculture & Rural Development CRISIL AAA 4.41 Small Industries Development Bank Of India. CARE AAA 3.63 Power Finance Corporation Ltd. CRISIL AAA 3.03 ONGC Manglore Petrochemicals Ltd.(^) FITCH IND AAA 3.00 PNB Housing Finance Ltd.(^) CARE AAA 1.90 Rural Electrification Corporation Ltd. CRISIL AAA 1.90 Issuer/Instrument Industry/ % to Net Rating Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS), Hedging Position through Interest Rate Swaps as on 28 Feb 2017 is 11.10% of the net assets. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.48 years. Kotak Bond Short Term Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) SECTOR ALLOCATION (%) Treasury Bills Commercial Paper (CP)/Certi cate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities IND AA Export-Import Bank of India. CRISIL AAA 1.74 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 1.30 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.14 Steel Authority of India Ltd. FITCH IND AA 0.11 Public Sector Undertakings - Total Government Dated Securities 7.59% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.11 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IndusInd Bank Ltd. CRISIL A HDFC Ltd. ICRA A Corporate Debt/Financial Institutions - Total 1.25 Public Sector Undertakings Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 3.59 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV 0.50 Treasury Bills - Total 0.50 Collateral Borrowing & Lending obligation 0.15 Net Current /(Liabilities) A1+, AAA, AAA(SO), IND AAA, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 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 FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 4.63%, Modified Duration: 4.84yrs, Portfolio Yield: 7.76% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Regular:0.90% Direct: 0.35% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited CARE AAA 8.90 Mahindra & Mahindra Financial Services Ltd. CARE AAA 4.33 Reliance Ports And Terminals Limited CRISIL AAA 3.58 HDFC Ltd. CRISIL AAA 2.84 AXIS Bank Ltd. CRISIL AA 1.56 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.33 Reliance Jio Infocomm Limited CRISIL AAA 1.10 LIC Housing Finance Ltd. CRISIL AAA 0.33 Indiabulls Housing Finance Limited CARE AAA 0.27 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.08 Shriram Transport Finance Co Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India. CRISIL AA Bank Of Baroda CARE AA 4.01 PNB Housing Finance Ltd. CARE AAA 2.44 Export-Import Bank of India. CRISIL AAA 0.08 Power Finance Corporation Ltd. CRISIL AAA 0.03 Rural Electrification Corporation Ltd. CRISIL AAA 0.02 Public Sector Undertakings - Total Government Dated Securities 7.59% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.08 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.09 Net Current /(Liabilities) 2.24 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 6.74 years Kotak Flexi Debt Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Net Current Government Dated Securities Debentures and Bonds Net Current AAA, SOV RATING PROFILE CBLO & Term Deposits & Rev.Repo AA+, AA Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annual (12th of March). Ratios Standard Deviation: 2.06%, Modified Duration: 2.23yrs, Portfolio Yield: 8.48% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. II) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Pipelines Ltd. ICRA AA 5.76 Tata Power Company Ltd. ICRA AA 5.51 Reliance Jio Infocomm Limited CRISIL AAA 4.86 Vedanta Ltd. CRISIL AA HPCL Mittal Energy Ltd. ICRA AA 4.64 Indiabulls Housing Finance Limited CARE AAA 3.41 Janalakshami Financial Services Ltd. ICRA A DLF Emporio Ltd CRISIL AA 3.03 Au Financiers (India) Limited FITCH IND A Vodafone Mobile Services Ltd. CRISIL AA 2.97 India Infoline Housing Finance Ltd. ICRA AA 2.94 K Raheja IT Park (Hyderabad) Ltd. FITCH IND AAA(SO) 2.93 Nirchem Cement Ltd. CRISIL AA 2.68 Piramal Finance Limited ICRA AA 2.53 ECL Finance Limited ICRA AA 2.40 Nirma Ltd. CRISIL AA 2.35 Tata Power Company Ltd. CRISIL AA Prestige Estates Projects Limited ICRA A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Tata Steel Limited BRICKWORK BWR AA 2.12 Reliance Ports And Terminals Limited CRISIL AAA 1.71 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.48 LIC Housing Finance Ltd. CARE AAA 1.47 AXIS Bank Ltd. CRISIL AA 1.30 Tata Power Renewable Energy Ltd. CARE AA(SO) 1.21 Equitas Micro Finance Ltd. CARE A Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Dalmia Cement (Bharat) Ltd ICRA AA 0.99 ECL Finance Limited CARE AA 0.96 Shriram Transport Finance Co Ltd. CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.75 Kolte-Patil Developers Limited CRISIL A Manappuram Finance Ltd CRISIL AA Muthoot Finance Ltd CRISIL AA 0.73 Shriram Transport Finance Co Ltd. FITCH IND AA Bhanu Vyapaar Private Limited Regular: 1.60% Direct: 0.90% 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 Issuer/Instrument Industry/ % to Net Rating ( Secured by Equity shares of Emami Ltd ) FITCH IND AA SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA HDFC Ltd. CRISIL AAA 0.62 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) BRICKWORK BWR A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.44 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.42 FAMILY CREDIT LTD CARE AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.25 Indostar Capital Finance Private Limited CARE AA LIC Housing Finance Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Union Bank of India CARE AA 1.95 Bank of India CRISIL A Bank Of Baroda CARE AA 0.74 PNB Housing Finance Ltd. CARE AAA 0.74 Syndicate Bank CARE AA Allahabad Bank CRISIL AA Power Finance Corporation Ltd. CRISIL AAA 0.30 Bank of India BRICKWORK BWR AA Konkan Railway Corporation Ltd. ICRA AAA 0.15 National Bank for Agriculture & Rural Development CRISIL AAA 0.09 Public Sector Undertakings - Total 6.35 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. HDFC Ltd. CRISIL A1+ ICRA A Corporate Debt/Financial Institutions - Total 2.00 Public Sector Undertakings Dena Bank CRISIL A Public Sector Undertakings - Total 0.42 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV 1.17 Treasury Bills - Total 1.17 Collateral Borrowing & Lending obligation 1.52 Net Current /(Liabilities) 2.99 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.78 years. Kotak Income Opportunities Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). SECTOR ALLOCATION (%) Debentures and Bonds Treasury Bills CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certi cate of Deposits (CD) AA+, IND AA+, AA, AA(SO), BWR AA, AA-, BWR AA-, IND AA- Net Current A1+, AAA, IND AAA(SO), SOV CBLO & Term Deposits & Rev.Repo A+, BWR A+, IND A+ Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 28

30 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The Fund seeks to generate income and capital appreciation largely through a focus on investments in corporate debt securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.42%, Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Muthoot Finance Ltd CRISIL AA 8.38 HDFC Ltd. CRISIL AAA 8.23 Reliance Jio Infocomm Limited CRISIL AAA 7.41 LIC Housing Finance Ltd. CRISIL AAA 6.11 Piramal Enterprises Limited ICRA AA 5.67 Bajaj Finance Limited FITCH IND AAA 5.20 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 3.97 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 3.41 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 3.21 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 2.84 ECL Finance Limited CARE AA 2.29 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.02 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.57 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 5.96 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 5.16 National Housing Bank CRISIL AAA 4.54 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 4.07 National Bank for Agriculture & Rural Development CRISIL AAA 2.92 Power Finance Corporation Ltd. CRISIL AAA 2.55 Export-Import Bank of India. CRISIL AAA 1.00 Airports Authority of India CRISIL AAA 0.57 Steel Authority of India Ltd. FITCH IND AA 0.46 Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 5.41 Net Current /(Liabilities) 7.91 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.50 years Kotak Corporate Bond Fund NAV as on February 28, 2017: ` (Standard Plan-Growth Option), ` (Standard Plan- Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend) Modified Duration: 1.27yrs, Portfolio Yield: 7.41% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1for purchase and for `0.01 for switches. Ideal Investment Horizon: 1 Year & Above Entry Load: Nil. Exit Load: Nil Regular: 0.50% Direct: 0.30% Debentures and Bonds AAA, AAA(SO), IND AAA Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo AA+, AA, IND AA Net Current Regular income over short term Income by investing in fixed income securities of varying maturities & credit * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 EQUITY SCHEMES Equity Fund Ready Reckoner (as on February 28, 2017) Kotak 50 Kotak Classic Equity Kotak Opportuni es Kotak Select Focus Fund Kotak Tax Saver Kotak Midcap Kotak Emerging Equity Kotak Infrastructure & Economic Reform Fund Kotak Balance Fund Kotak Equity Arbitrage Fund Kotak Equity Savings Fund Investment Theme Large cap Large cap Diversified Mul Cap ELSS Mid cap Mid and Small Cap Thema c: Infrastructure Balanced Equity Arbitrage Equity Savings Product Posi oning Invest with industry leaders Long term wealth creators Spo ng the hidden gems Focus on few selected sectors Tax advantage with poten al equity growth Spot them young, watch them grow Emerging leaders True to label Best of both worlds: equity & debt Arbitrage opportuni es MIP with equity tax efficiency Key Features a. Favours industry leaders in cost,innova on, brand, competence, etc with a proven execu on track record across cycles. b. convic on and long term calls taken a. Focus on sustainable large cap stories which can withstand market shocks b. These are companies with pricing power for their compe ve advantage or entry barriers Iden fies investment opportuni es across market capitalisa on and sectors a. Invests in a few sectors as the various sectors of the economy tend to perform differently at different points of me b. Flexibility to move across market caps depending on their a rac veness during the economic phase a. Por olio is diversified across sectors and market capitaliza on segments b. Offers dual benefits of growth and tax savings a.iden fies the hidden growth poten al of mid cap sized companies b. Por olio exhibits higher vola lity than large caps however tends to have a larger return base c. Buy and hold strategy a. Stands for winning investment ideas across the mid & small cap range offering decent growth trajectory over the medium to long term horizon b. Buy and hold strategy c. Riskier than a large cap fund but offers faster growth rate since it has a smaller base d. 15% 20% alloca on to large cap opportuni es as tac cal plays a. Iden fies "flow related" companies These benefit from spending from government, private and household (in terms of proper es). They are not asset owners. b. Focus on high quality companies exhibi ng superior ROE, posi ve cash flow, low leverage in an otherwise challenging environment a. Equity por on: Mul cap strategy to iden fy outstanding companies having well managed and durable businesses with predictable earnings power b. Debt por on: Ac vely managed with medium to long term maturity c. er vola lity than a pure equity or debt fund a. Discovers arbitrage opportuni es by simultaneously entering transac ons of long posi on in cash and exactly off se ng short posi on in futures b. Equity posi on is completely hedged Conserva ve por olio with a blend of: a. Income genera on through arbitrage opportuni es & debt investment b. Growth poten al through moderate par cipa on in equity markets c. Tax efficiency through equity orienta on Incep on Date 29 Dec Jul Sep Sep Nov Feb Mar Feb Nov Sep Oct 14 Mr. Harish Krishnan Mr. Deepak Gupta Mr. Harsha Upadhyaya Mr. Harsha Upadhyaya Mr. Harsha Upadhyaya Mr. Pankaj Tibrewal Mr. Pankaj Tibrewal Mr. Harish Krishnan Mr. Pankaj Tibrewal & Mr. Abhishek Bisen Mr. Deepak Gupta Mr. Deepak Gupta & Mr. Abhishek Bisen Ni y 50 Ni y 100 Ni y 500 Ni y 200 Ni y 500 Ni y Midcap 100 S&P BSE Mid Small Cap S&P BSE 100 Crisil Balanced Fund Ni y 50 Arbitrage Index 75% of Ni y 50 Arbitrage Index + 25% of Ni y 50 Monthly AAUM (Rs. Crs) 1, , , , , Mcap (%) 79.94% Large Cap 17.17% Mid Cap 0.00% Small Cap 2.89% Cash 92.34% Large Cap 6.56% Mid Cap 0.00% Small Cap 1.10% Cash 69.29% Large Cap 23.59% Mid Cap 2.08% Small Cap 5.04% Cash 74.28% Large Cap 17.70% Mid Cap 0.26% Small Cap 7.76% Cash 64.64% Large Cap 29.72% Mid Cap 3.24% Small Cap 2.40% Cash 3.33% Large Cap 80.12% Mid Cap 7.2% Small Cap 9.35% Cash 10.47% Large Cap 73.45% Mid Cap 8.21% Small Cap 7.87% Cash N/A 54.83% Large Cap 34.25% Mid Cap 7.01% Small Cap 3.91% Cash N/A N/A Overweight 1. FMCG 2. Cement & Cement Products 3. Media 1. Metal & Metal Products 2. U li es 3. Informa on technology 1. Oil & Gas 2. Cement & Cement Products 3. Auto & Auto Ancillary 1. Cement & Cement Products 2. Oil & Gas 3. Capital Goods & Engineering 1. Cement & Cement Products 2. Oil & Gas 3. Capital Goods & Engineering 1. Banking & Finance 2. Media 3. Capital Goods & Engineering 1. Capital Goods & Engineering 2. Media 3. Durables N/A N/A N/A N/A Underweight 1. Banking & Finance 2. Telecom 3. U li es 1. Banking & Finance 2. FMCG 3. Capital Goods & Engineering 1. Informa on technology 2. FMCG 3. Banking & Finance 1. Informa on technology 2. Pharmaceu cal 3. U li es 1. Informa on technology 2. FMCG 3. U li es 1. U li es 2. Pharmaceu cal 3. Transporta on & Logis cs 1. U li es 2. Metal & Metal Products 3. Oil & Gas N/A N/A N/A N/A Beta Sharpe Standard Devia on 14.54% 14.07% 15.14% 15.52% 16.33% Details provided are as on February 28, Ratio Source: ICRA MFI Explorer. Risk rate assumed to be 6.05% (FBIL Overnight MIBOR rate as on February 28, 2017). *For Kotak Midcap Fund & Kotak Emerging Equity Fund the stocks falling within the mcap range in Nifty Midcap 100 & S&P BSE Mid Small Cap, respectively, would be considered as midcap stocks. Any stock which would have mcap above the highest mcap of these benchmarks would be considered as largecap, and any stock would have mcap below the lowest mcap would be considered as smallcap. Mcap breakup of Kotak Balance portfolio is for the equity component only. N/A: Field not applicable to the scheme owing to its investment theme. Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Continuous offer of units of all schemes available at NAV based prices. * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. All equity schemes have 1% exit load within 1 year & nil after 1 year. Exceptions are as follows - Kotak Classic Equity: Nil; Kotak Tax Saver: Nil (subject to 3 year lock-in); Kotak Equity Arbitrage Fund: 0.25% within 30 days, Nil after 30 days; Kotak Balance & Kotak Equity Savings Fund: Withdrawal up to 10% of investment amt within 1 year: Nil, Within 1 year: 1% (if >above limit), After 1 year: Nil Large cap (>22,490 crs)* Mid cap (22,490 to 1,779 crs)* Small cap (<1,779 crs)* 17.65% 17.35% 19.94% 11.43% 0.52% 3.52%

32 DEBT SCHEMES Debt Fund Ready Reckoner (as on February 28, 2017) Kotak Liquid Kotak Floater Short Term Kotak Treasury Advantage # Kotak Dura on Fund Kotak Corporate Bond Fund Kotak Banking & PSU Debt Fund Kotak Bond Short Term Kotak Flexi Debt Kotak Income Opportuni es Fund Kotak Medium Term Kotak Bond Fund Kotak Gilt Investment Current Posi oning Liquid Conserva ve Liquid Aggressive UST^ Conserva ve UST^ Aggressive UST^ Aggressive Banking and PSU STP^^ Conserva ve Dynamic STP Accrual Accrual Income Aggressive Gilt Aggressive Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index CRISIL Liquid Fund CRISIL Composite Bond Fund Crisil Short Term Bond Fund Index Crisil Short Term Bond Fund CRISIL Composite Bond Crisil Short Term Bond Fund CRISIL Composite Bond Fund Crisil Composite Bond Fund ISEC Composite Monthly Avg. AUM (Rs crores) , , , , , , , , Current Por olio Quality** 99.64% AAA 0.36% AA 99.99% AAA 0.01%AA 80.35% AAA 19.65% AA 28.33% AAA 60.65% AA 82.07% AAA 17.93% AA 68.35% AAA, 7.03% Gilt 20.76% AA 82.70% AAA, 17.19% Gilt 0.11% AA 27.67% AAA 61.42% Gilt 10.91% AA 25.09% AAA 60.84% AA 1.17% Gilt 31.74% AAA, 59.31% AA, 0.44% Gilt 14.74% AAA 76.80% Gilt 7.41% AA 100% Gilt Ideal Investment Horizon 1 15 days 1 15 days 1 3 Months 1 3 Months 6 Months and above 6 Months and above 6 Months and above 6 Months and above 1 Year and above 2.5 Years and above 1 Year and above 1 Year and above Key Differen ator Maturity < 91 days Maturity < 91 days Modified dura on < 6 months Modified dura on between 6 12 months % corporate bond exposure quality Banking & PSU assets Avg Mat between 1 3 years Dynamic strategy, dura on has never gone above 5 years. Upto 65% in > 1 yr papers, try to capitalize on mispriced credits Avg Mat between 3 7 years Dynamic strategy, no cap on dura on Dynamic strategy, no cap on dura on YTM % Average Maturity (years) Modified Dura on (years) Exit Load Nil Nil Nil Nil Nil Nil Nil Nil Withdrawal up to 10% of investment amt within 1 yr: Nil Within 1 year : 1%, A er 1 year : Nil Withdrawal up to 15% of investment amt within 1 yr: Nil Within 18 months : 2%, A er 18 months : Nil Nil Nil Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Con nuous Offer of units of all schemes available at NAV based prices. Note: Note: ^UST = Ultra Short Term plan, ^^STP= Short Term plan. **AAA also includes A1+,A1+(SO), AAA(SO), IND AAA, Net current, CBLO, Term Deposit and Rev repo. For Kotak Gilt Fund: Cash and Cash Equivalent is included under Gilt. For Liquid schemes ( Kotak Liquid and Kotak Floater Short Term ) and Liquid plus schemes (Kotak Treasury Advantage and Kotak Dura on) T bill is included in AAA. AA includes AA,AA+,AA.

33 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 2.61%, Modified Duration: 2.89yrs, Portfolio Yield: 8.58% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%. iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.70% Direct: 0.90% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Vedanta Ltd. CRISIL AA Vodafone Mobile Services Ltd. CRISIL AA 5.05 Reliance Jio Infocomm Limited CRISIL AAA 4.43 Piramal Finance Limited ICRA AA 4.10 HPCL Mittal Energy Ltd. ICRA AA 4.04 Dalmia Cement (Bharat) Ltd ICRA AA 3.70 Nirchem Cement Ltd. CRISIL AA 3.46 Tata Power Company Ltd. CRISIL AA Reliance Ports And Terminals Limited CRISIL AAA 3.04 Indiabulls Housing Finance Limited CARE AAA 2.91 K Raheja IT Park (Hyderabad) Ltd. FITCH IND AAA(SO) 2.84 HDFC Ltd. CRISIL AAA 2.70 HPCL Mittal Pipelines Ltd. ICRA AA 2.63 Birla Corporation Ltd. CARE AA 2.56 AXIS Bank Ltd. CRISIL AA 2.52 ECL Finance Limited CARE AA 2.41 ECL Finance Limited ICRA AA 2.32 Prestige Estates Projects Limited ICRA A Reliance Utilities And Power Private Limited CRISIL AAA 2.05 Tata Steel Limited BRICKWORK BWR AA 2.05 Tata Steel Limited CARE AA 1.85 The Indian Hotels Company Ltd. CARE AA Tata Motors Ltd. CARE AA Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.40 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 1.24 Janalakshami Financial Services Ltd. ICRA A India Infoline Housing Finance Ltd. ICRA AA 1.14 Intime Properties Ltd. FITCH IND AAA 1.07 Equitas Micro Finance Ltd. CARE A Bajaj Finance Limited CARE AAA 0.99 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.99 Tata Power Renewable Energy Ltd. CARE AA(SO) 0.98 Tata Power Company Ltd. ICRA AA 0.85 Au Financiers (India) Limited FITCH IND A SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA East-North Interconnection Company Limited CRISIL AAA(SO) 0.71 Shriram Transport Finance Co Ltd. FITCH IND AA Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.29 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.29 Muthoot Finance Ltd CRISIL AA 0.28 Edelweiss Housing Finance Limited ICRA AA 0.26 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.26 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.18 Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 2.90 Union Bank of India CARE AA 1.75 Bank of India CRISIL A IDBI Bank Ltd ICRA A 1.39 Canara Bank CRISIL AAA 0.73 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA State Bank of Travancore CRISIL AAA 0.32 Bank Of Baroda CARE AA 0.29 Allahabad Bank CRISIL AA Konkan Railway Corporation Ltd. ICRA AAA 0.15 Bank Of Baroda CARE AA Power Finance Corporation Ltd. CRISIL AAA 0.06 Public Sector Undertakings - Total Government Dated Securities 1.44% Central Government SOV 0.44 Government Dated Securities - Total 0.44 Collateral Borrowing & Lending obligation 0.16 Net Current /(Liabilities) 3.42 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.74 years Kotak Medium Term Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). Net Current Debentures and Bonds CBLO & Term Deposits & Rev.Repo Government Dated Securities 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 RATING PROFILE AA+, IND AA+, AA, AA(SO), BWR AA, AA-, BWR AA- AAA, AAA(SO), IND AAA, IND AAA(SO), SOV A+, IND A+, A Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 30

34 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 7.53% Modified Duration: 7.03 yrs Portfolio Yield: 7.60% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.73% Direct: 0.84% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Ports And Terminals Limited CRISIL AAA 2.92 AXIS Bank Ltd. CRISIL AA 2.51 Reliance Capital Ltd. CARE AAA 1.80 Muthoot Finance Ltd CRISIL AA 1.35 East-North Interconnection Company Limited CRISIL AAA(SO) 1.00 ICICI Home Finance Company Limited ICRA AAA 0.15 HDFC Ltd. CRISIL AAA 0.03 Vedanta Ltd. CRISIL AA Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 9.80 Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 2.61 State Bank Of India. CRISIL AA Syndicate Bank CARE AA IDBI Bank Ltd ICRA A 1.06 Union Bank of India CARE AA 0.21 Public Sector Undertakings - Total 7.18 Government Dated Securities 6.79% Central Government SOV % Central Government SOV % Central Government SOV 5.04 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certi cate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Issuer/Instrument Industry/ % to Net Rating 7.73% State Government SOV % State Government SOV 0.03 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Tata Capital Financial Services Limited ICRA A Corporate Debt/Financial Institutions - Total 0.03 Collateral Borrowing & Lending obligation 2.76 Net Current /(Liabilities) A AA+, AA, AA- Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), SOV Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 8.43%, B) PF & Trust Plan: 8.43%, Modified Duration: 7.44 yrs, Portfolio Yield:7.34% 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 `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 7.61% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV 0.09 Issuer/Instrument Industry/ % to Net Rating 8.39% State Government SOV 0.08 Government Dated Securities - Total Collateral Borrowing & Lending obligation 3.43 Net Current /(Liabilities) 1.63 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Gilt Investment Fund NAV as on February 28, 2017: ` (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 Investors understand that their principal will be at moderate risk SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

36 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 5.61% Modified Duration: 4.50 yrs Portfolio Yield: 7.50% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.31% Direct: 1.51% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.90 Tata Motors Ltd. Auto 1.04 Bata India Ltd. Consumer Durables 1.00 Sun TV Limited. Media and Entertainment 0.94 IFB Industries Ltd. Consumer Durables 0.93 Infosys Ltd. Software 0.93 Tata Communications Ltd Telecom - Services 0.84 Bombay Burmah Trading Corporation Ltd. Consumer Non Durables 0.83 ICICI Bank Ltd. Banks 0.80 Tech Mahindra Ltd. Software 0.74 State Bank Of India Banks 0.72 India Cements Ltd. Cement 0.68 Phillips Carbon Black Ltd. Chemicals 0.68 Maruti Suzuki India Limited Auto 0.65 Bharat Forge Ltd. Industrial Products 0.46 Coromandel International Ltd. Fertilisers 0.45 GAIL (India) Ltd. Gas 0.45 Godfrey Phillips India Ltd. Consumer Non Durables 0.45 Axis Bank Ltd Banks 0.44 Bank Of Baroda Banks 0.43 Mcleod Russel India Ltd Consumer Non Durables 0.38 Yes Bank Ltd Banks 0.38 GP Petroleums Limited Petroleum Products 0.37 HDFC Bank Ltd. Banks 0.37 Manpasand Beverages Ltd. Consumer Non Durables 0.35 Motherson Sumi Systems Ltd. Auto Ancillaries 0.34 ICICI Prudential Life Insurance Company Ltd Finance 0.32 The Ramco Cements Ltd Cement 0.32 MindTree Ltd. Software 0.31 Equitas Holdings Ltd Finance 0.23 IndusInd Bank Ltd. Banks 0.17 Persistent Systems Limited Software 0.17 Bharat Petroleum Corporation Ltd. Petroleum Products 0.16 Tata Motors Ltd - DVR Auto 0.16 Strides Shasun Ltd. Pharmaceuticals 0.10 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating HDFC Ltd. Warrants Finance 0.04 Colgate Palmolive (India ) Ltd Call Option - March Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Public Sector Undertakings Syndicate Bank CARE AA State Bank Of India. CRISIL AA Andhra Bank CRISIL AA Canara Bank CRISIL AAA 2.24 Rural Electrification Corporation Ltd. CRISIL AAA 0.05 Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV 3.80 Government Dated Securities - Total TERM DEPOSITS HDFC Bank Ltd AXIS Bank Ltd Term Deposits - Total 0.27 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.76 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 6.78 years. Kotak Monthly Income Plan Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Derivatives Investors understand that their principal will be at moderate risk RATING PROFILE Derivatives AA+, AA- Net Current CBLO & Term Deposits & Rev.Repo AAA, SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) ` AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.26%, Modified Duration: 2.39yrs, Portfolio Yield: 7.29% 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:2.42% Direct: 0.31% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.22 Bharat Petroleum Corporation Ltd. Petroleum Products 0.80 Tata Steel Limited. Ferrous Metals 0.70 Power Grid Corporation Of India Ltd Power 0.69 ITC Ltd. Consumer Non Durables 0.67 Yes Bank Ltd Banks 0.63 Infosys Ltd. Software 0.62 IndusInd Bank Ltd. Banks 0.61 National Thermal Power Corporation Limited Power 0.60 Grasim Industries Ltd. Cement 0.59 Hindalco Industries Ltd Non - Ferrous Metals 0.55 Biocon Ltd. Pharmaceuticals 0.43 Hero MotoCorp Ltd. Auto 0.43 Reliance Industries Ltd. Petroleum Products 0.42 Asian Paints Ltd. Consumer Non Durables 0.41 Bajaj Finance Limited Finance 0.40 Laurus Labs Ltd Pharmaceuticals 0.39 Ultratech Cement Ltd. Cement 0.38 Tata Motors Ltd. Auto 0.36 Hindustan Unilever Ltd. Consumer Non Durables 0.34 Petronet LNG Ltd. Gas 0.32 GAIL (India) Ltd. Gas 0.31 Zee Entertainment Enterprises Ltd Media and Entertainment 0.31 JSW Steel Ltd. Ferrous Metals 0.28 The Ramco Cements Ltd Cement 0.27 Maruti Suzuki India Limited Auto 0.26 Axis Bank Ltd Banks 0.24 Eicher Motors Ltd Auto 0.22 ICICI Bank Ltd. Banks 0.22 Tata Consultancy Services Ltd. Software 0.20 Vedanta Ltd. Non - Ferrous Metals 0.16 Larsen And Toubro Ltd. Construction Project 0.15 HDFC Ltd. Finance 0.14 Bajaj Finserv Ltd. Finance 0.13 State Bank Of India Banks 0.12 Tata Motors Ltd - DVR Auto 0.12 Wipro Ltd. Software 0.11 HCL Technologies Ltd. Software 0.10 Lupin Ltd. Pharmaceuticals 0.09 Oil & Natural Gas Corporation Ltd. Oil 0.09 Dr Reddys Laboratories Ltd Pharmaceuticals 0.06 Hindustan Petroleum Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Corporation Ltd Petroleum Products 0.06 Indraprastha Gas Ltd. Gas 0.06 Tech Mahindra Ltd. Software 0.05 Adani Port and Special Economic Zone Limited Transportation 0.04 Cipla Ltd. Pharmaceuticals 0.04 Tata Communications Ltd Telecom - Services 0.04 Piramal Enterprises Limited Pharmaceuticals 0.03 Hindustan Zinc Ltd. Non - Ferrous Metals 0.02 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.01 UPL Ltd Pesticides 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 9.13 Mutual Fund Units - Total 9.13 Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 4.58 Government Dated Securities 8.45% State Government SOV % State Government SOV % State Government SOV Government Dated Securities - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 1.36 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 1.80 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 3.11 years. Kotak Multi Asset Allocation Fund NAV as on February 28, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) Government Dated Securities Mutual Fund Units Net Current Investors understand that their principal will be at moderate risk Debentures and Bonds AA SOV Mutual Fund Units 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. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

38 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on February Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Corporate Solutions Private Limited ( Guaranteed by a Piramal Group Company ) 0.11 Adani Ports and Special Economic Zone Limited 0.07 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) 0.71 Adani Transmission Ltd 0.07 Aditya Birla Finance Ltd Airports Authority of India 0.04 Allahabad Bank 0.06 Altico Capital India Pvt Ltd 0.10 Andhra Bank 0.49 Asirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.08 Aspire Home Finance Corporation Ltd 0.11 Au Financiers (India) Limited 0.19 BMW India Financial Services Private Limited 0.15 Bahadur Chand Investments Private Limited 0.19 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.11 Bajaj Finance Limited 1.89 Bank Of Baroda 0.44 Bank of India 0.18 Bank of Maharashtra 0.03 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.07 Bharat Aluminum Co. Ltd Bharti Airtel Ltd Bharti Enterprises (Holding) Pvt. Ltd Birla Corporation Ltd CBLO/REVERSE REPO 7.93 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.33 Canara Bank 0.20 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.33 Corporation Bank 0.15 DLF Emporio Ltd 0.15 Dalmia Cement (Bharat) Ltd 0.29 Dena Bank 0.15 Deutsche Bank 2.24 Dewan Housing Finance Corporation Ltd ECL Finance Limited 0.43 East-North Interconnection Company Limited 0.10 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) 0.43 Edelweiss Commodities Services Ltd Edelweiss Housing Finance Limited 0.30 Edisons Utility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.17 Emami Enclave Makers Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.07 Equitas Micro Finance Ltd Essel Lucknow Raebareli Toll Roads Limited 0.07 Essel Mining & Industries Ltd Export-Import Bank of India FAMILY CREDIT LTD 0.84 Ford Credit India Pvt. Ltd Fullerton India Credit Co. Ltd Grand View Estates Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.28 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.13 Hindalco Industries Ltd Hinduja Leyland Finance Ltd ICICI Bank Ltd ICICI Home Finance Company Limited 0.45 IDBI Bank Ltd 0.12 IDFC Bank Limited 0.76 IIFL Wealth Finance Ltd IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.11 IOT Utkal Energy Services Ltd India Infoline Finance Limited 0.78 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.13 Indian Oil Corporation Ltd Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.22 IndusInd Bank Ltd Innovador Traders Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal Fund Management Pvt Ltd) 0.46 Issuer Name %age of Exposure to Debt AUM Intime Properties Ltd JM Financial Asset Reconstruction Co. Pvt. Ltd 0.07 Janalakshami Financial Services Ltd K Raheja IT Park (Hyderabad) Ltd Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.55 Kolte-Patil Developers Limited 0.06 Konkan Railway Corporation Ltd Kotak Mahindra Bank Ltd Kotak Mahindra Investments Ltd Kotak Mahindra Prime Ltd L & T Infrastructure Development Project Ltd LIC Housing Finance Ltd MA MULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.11 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 0.92 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.21 Muthoot Finance Ltd 2.04 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.84 National Bank for Agriculture & Rural Development 1.15 National Housing Bank 0.34 Nirchem Cement Ltd Nirma Ltd ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.18 PNB Housing Finance Ltd Peninsula Land Limited 0.07 Piramal Enterprises Limited 0.35 Piramal Finance Limited 1.94 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.03 Prestige Estates Projects Limited 0.30 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.13 Punjab National Bank 0.05 RBL Bank Ltd 0.07 Reliance Capital Ltd Reliance Infrastructure Ltd 0.04 Reliance Jio Infocomm Limited 1.44 Reliance Ports And Terminals Limited 0.49 Reliance Utilities And Power Private Limited 0.11 Rural Electrification Corporation Ltd S D Corporation Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.72 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.07 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.13 Sadbhav Engineering Ltd Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.27 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.09 Shapoorji Pallonji and Company Private Limited 0.21 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.06 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.03 Standard Chartered Investment & Loan India Ltd State Bank Of India State Bank of Travancore 0.07 State Government 2.86 Steel Authority of India Ltd Sun Pharma Laboratories Limited 0.44 Sundaram BNP Paribas Home Finance Ltd 0.07 Sundaram Finance Ltd Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.33 Syndicate Bank 0.19 Tata Capital Financial Services Limited 0.20 Tata Capital Housing Finance Ltd; 0.54 Tata Motors Finance Ltd 0.98 Tata Motors Ltd Tata Power Company Ltd Tata Power Renewable Energy Ltd Tata Sons Ltd Tata Steel Limited 0.45 The Indian Hotels Company Ltd Ultratech Cement Ltd Union Bank of India 0.29 Vedanta Ltd Vodafone Mobile Services Ltd Total Industry / Sector %age of Exposure to Debt AUM BANK CASH(CBLO/REVERSE REPO) 7.93 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 1.54 Total Includes Hybrid schemes - debt schemes having equity exposure 35

39 FUND OF FUNDS KOTAK ASSET ALLOCATOR FUND An Open Ended Fund of Funds (Earlier known as Kotak Equity FOF ) (As on Febraury 28, 2017) 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) `30.50 AUM (` In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Regular Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) 1% if exit before 1 year from date of allotment. II) Nil if exit after 1 year from the date of allotment. Exit Load shall be applicable incase of switch from Regular Plan (where broker code is mentioned) to Direct Plan Exit Load shall not be applicable: Incase of switch from Regular Plan (where no broker code is mentioned) to Direct Plan In case of switch from Direct Plan to Regular Plan. III) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.55% Direct: 1.04% 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 Treasury Advantage Fund Direct Growth Debt 9.46 Kotak Liquid Plan A Debt 8.79 Mutual Fund Units - Total Net Current /(Liabilities) 0.79 Kotak Asset Allocator Fund NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

40 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas (As on Febraury 28, 2017) 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) ` 5.25 AUM (` In Crores) AUM as on February 28, 2017: ` 5.14 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:1.40% Direct: 0.61% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 2.35 Kotak US Equity Fund NAV as on February 28, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) 2.35 Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

41 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity (As on Febraury 28, 2017) INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. However, there is no assurance that the objective of the scheme will be realized. September 26, 2007 s Mr. Deepak Gupta (Dedicated fund manager for s overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) `28.22 AUM (` In Crores) AUM as on February 28, 2017: `27.74 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: 1.92% Direct: 0.79% 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) 1.55 Kotak Global Emerging Market Fund NAV as on February 28, 2017: `13.507(Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Others Overseas Mutual Fund 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. * For experience, please refer page For scheme performance, please refer page no

42 FUND OF FUNDS KOTAK WORLD GOLD FUND (formerly known as PineBridge World Gold Fund ) An Open Ended Fund of Funds (As on Febraury 28, 2017) 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) `50.97 AUM (` In Crores) AUM as on February 28, 2017:`45.99 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.90% Direct: 1.12% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 3.04 Net Current /(Liabilities) Kotak World Gold Fund NAV as on February 28, 2017: `7.933(Dividend Option), `8.193 (Direct Dividend Option), `9.570 (Growth Option), `9.864 (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 39 * For experience, please refer page For scheme performance, please refer page no

43 ETF SCHEMES KOTAK GOLD ETF An Open Ended Gold Exchange Traded Fund The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error. However, there is no assurance that the investment objective of the will be realized July 27, 2007 Mr. Abhishek Bisen* Price of Gold AAUM (`In Crores) ` AUM (`In Crores) AUM as on February 28, 2017: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on February 28, 2017: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no