April 30, se investment ke returns ko miley hain full marks.

Transcription

1 April 30, 2016 se investment ke returns ko miley hain full marks.

2 EXPERT SPEAK Mr. Nilesh Shah April 30, 2016 Dear Friends, Investing in equities is a positive sum game. In simple terms, it means that over a long period of time, a steady investor has a far higher possibility of positive payoffs than negative. In fact, if history is any indicator, then with a 15 year time horizon, the possibility of negative returns is almost zero. In other words, a 15 year investor in Sensex would have never lost his capital and may have also made (averagely) a return of around 14.5%. Risk Return Tradeoff of Sensex Particulars 5 yr returns 10 yr returns 15 year returns Positive Returns nos of days Negative Returns nos of days Total Opportunities Average Return Return-Risk Tradeoff % % N.A Source: ICRA. Returns Annualised Yet still, on a bad market day (or month), the complainants of equity market far overwhelm the main discourse. That is because the reason behind the issue is more behavioural and psychological. Humans tend to grieve more for a loss than to rejoice over a similar amount of gain. In other words, fear tends to be a stronger emotion than greed for a similar figure. Though this behaviour came in handy surviving in the wild Savannah and Serengeti millions of years ago, it is not appropriate for the Wall and Dalal street of today. For that reason, successful investing is increasing being seen as a Zen practice. A fund manager has to increasingly look inward to ascertain the emotion driving the logic. A whole new stream of investing discipline has opened up, called as behavioural finance. This discipline seeks to combine psychology with finance. If one were to adhere to the teaching of successful fund managers such as Warren Buffet, Charles Munger, Seth Klarman, one would conclude that investing is increasingly like a Zen practice. In his recent letter to his investors, Klarman went ahead and furnished the mental discipline required for investing success. As per him, a fund manager is expected to bring in hardwork, endless discipline, steely resolve and high patience to the job. Success still remains unguaranteed but odds can be improved if the investor has the right philosophy, right mind-set, right process, right team, right investors, and right culture at the table. To state paradoxically, a fund manager is to have an arrogance of action and the humility of a student. Having been a fund manager myself, I can say this with some degree of confidence that these prescriptions are more than true. At fund manager level, almost everybody has a high level of IQ. But what differentiates a winner from the average is EQ (Emotional quotient) & SQ (spiritual quotient). But we underappreciate this investment function. For a thought experiment, remove the fund manager and AMC business from the society and imagine the investing scene. In such a scenario everybody is expected to be his/her own direct fund manager. Imagine the scale of stress, confusion, costly mistakes and missed opportunities. This would lead to very few wealth stories and a large impoverishment. The point is that an AMC and a fund manager serve a critical social and economic function. A fund manager, for a few basis points, assumes a hard professional responsibility, a regulatory and auditory oversight, and fiduciary risk of his investors. In turn, this fund manager provides wealth creating potential and relative social opportunity to the investor. Not a hard bargain I say. Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW INDIA: Macro remains strong; global cues drive markets I Indian equity markets continued their up-move in the month of April 2016 even while a part of the gains were eroded as the Bank of Japan kept its monetary stimulus package unchanged. As we discussed in the report last month, the rally in oil prices and the related weakening in the US Dollar, have been the key reasons for the transition from a global risk off to risk on trade since mid-february. The large cap Nifty 50 rose 1.43% while the Nifty Midcap 100 Index rose 3.47% (INR terms). FIIs (Foreign Institutional Investors) were net buyers in Indian equity markets to the tune of USD1.3Bn. One trend to watch out for will be the quantum of flows from the Domestic Institutional investors (DIIs) who have been supporting the market for most of the last calendar year. In the month of April, the DIIs were net sellers to the tune of USD86mn. We are constructive on the domestic macro economic and earnings recovery cycle over FY17-18E. The market is keenly watching the Q4FY16 earnings season which is underway and has been largely encouraging so far with numbers slightly above estimates on an aggregate basis. Retail private sector banks have reported strong numbers with loan growth significantly above industry average. Companies linked to the rural economy have also shown initial signs of pick up in activity. Corporate banks continue to see asset quality stress and this would be a key factor to watch out for in FY17. Technology companies have however been grappling with slowdown in growth (in a seasonally weak fourth quarter) along with pressures on margins (despite INR weakness), which we believe is reflective of changing business dynamics in the sector. Overall, we remain positive on equity markets on the back of improvement in macro economic growth (with the initial forecast of a normal monsoon), lower interest rates and improvement in corporate earnings trajectory. However, the run up in stock prices in the last couple of months imply that valuations for the market are now in fair zone and earnings growth trajectory has to improve from here on. The Nifty is now trading at 17.4xFY17E EPS and 14.4xFY18E EPS (free float basis). Passage of key legislation could provide a positive trigger On the domestic front, the Union Parliament is in session (April 20-May 8th) and the focus is on the passage of key legislation. The Parliament passed the MMDR (Mines and Minerals Development and Regulation) Act which paves the way for transfer of captive mines in the country without the need for auction. The Joint Parliamentary Committee on Insolvency and Bankruptcy Code has submitted its report, which would lead to the clearance of the Bankruptcy bill by the Parliament. The bill adds to measures initiated by the government to deal with the problem of NPAs (Non Performing ) of banks. The Sarfaesi (Securitisation and Reconstruction of Financial and Enforcement of Security Interest) Act and Debt Recovery Tribunal (DRT) Act have also been amended to make recovery process more efficient. RBI changes liquidity stance; to remain accommodative in FY17; expect a further 25bps cut in policy rates While RBI cut key policy rates at the Monetary Policy meeting (held on April 5th) by 25bps largely in line with expectations, the key highlight was the change in stance on liquidity. We believe that the revised liquidity framework paves way for easier liquidity conditions and smoother monetary policy transmission over the medium term. Further, the reduction in cash balances of the central government with the RBI would also help in easing liquidity. We expect another 25 bps cut in policy rates, likely in H2CY16. This would however be dependent on the monsoon and the inflation trajectory. RBI announced a few key changes in its liquidity management framework. These include: Moving liquidity deficit towards neutral: RBI seeks to lower the average liquidity deficit in the system closer to neutral. This is a significant shift in RBI s stance and we believe that as this is achieved over time, it will help in reducing the banks cost of funding at the margin and help in better transmission in the form of lower lending rates. Narrowing the policy rate corridor: The policy rate corridor (repo-reverse repo spread) reduced to 50 bps from 100 bps with repo rate at 6.5%. With the MSF (Marginal Standing Facility) rate at 7% and reverse repo at 6%, this spread is reduced to 100 bps from 200 bps earlier. These steps should ensure that the weighted average call rate is more aligned to the repo rate. Short-term liquidity and durable liquidity management: RBI clarified that it intends to meet requirements of durable liquidity (through reserve money creation) first and then fine-tune short-term liquidity (through term repos/reverse repo). This brings back the focus on the use of OMOs (Open Market Operations) along with FX intervention strategies. This is in contrast to the strategy adopted by the central bank so far. Daily CRR maintenance: Reduction of the minimum daily CRR maintenance to 90% from 95% of the requirement. This will help banks in managing daily liquidity needs better and avoid resorting to market borrowings at the margin. Global monetary policy at the forefront; BoJ surprises by keeping asset purchase target unchanged The month of April 2016 saw almost all the large central banks meeting. While the actions by the US Federal Reserve and the ECB (European Central Bank) were largely along anticipated lines, the BoJ (Bank of Japan) surprised by keeping its asset purchase programme unchanged. The US Federal Reserve voted to keep the policy rates unchanged while maintaining the accommodative stance, thereby supporting further improvement in labour market conditions and a return to 2% inflation. It also mentioned that economic conditions would likely evolve in a manner, which would warrant gradual increases in the policy rate. The FOMC would also closely monitor indicators and global economic and financial developments. The recent soft economic data from the US has renewed the expectations of a continued dovish stance by the US Fed and the probability of a US Fed rate hikes in CY2016 has reduced considerably. At this point we are building in 2 rate hikes in the second half of the year. The ECB left its benchmark rates unchanged at 0%, deposit rates at (-)0.4% and asset purchases of EUR80Bn on a monthly basis at its meeting, in line with market expectations. ECB President stated that interest rates are expected to be at present levels or lower for extended period of time even beyond QE (Quantitative Easing) horizon. QE will run until at least Mar 2017 and until sustained inflation adjustment is seen. While expectations were that that the Bank of Japan would provide more monetary stimulus, they decided against it. The Bank of Japan (BoJ) kept its asset purchase target unchanged at JPY80Trn a year and continued with the (-)0.1% rate charged on some commercial bank deposits. The only change in the policy was provision of aid to areas devastated by the recent quakes. The thought process was that it is better to assess the impact of negative rates on the economy. While this was initially a dampener for markets, it does not rule out any further expansionary monetary policy if the situation so demands. Normal monsoon expectations bode well for equity markets The Indian Meteorological Department (IMD) forecasts that s the June-September monsoon would be at 106% of LPA (Long Period Average), which qualifies as above normal southwest monsoons. The IMD noted that El Niño conditions will likely weaken towards the first half of the monsoons. SkyMet, an independent agency, has forecast monsoon at 105% of LPA with 35% probability of above normal rainfall, 30% of normal rainfall, 20% of excess rainfall, 10% of below normal rainfall, and 5% of drought. While it is premature to conclude on effects of normal monsoons on growth and prices, but after two consecutive weak monsoons, a normal monsoon will provide much respite to the rural sector. This together with the steps being taken by the government to boost the rural economy augurs well for rural consumption, which has been stagnating. Overall we do expect that consumption would be a key driver of GDP growth recovery (from an aggregate expenditure side) in FY17/18E. The fillip to urban consumption as an outcome of the 7th Pay Commission would aid the economic recovery. At this point, we are building in real GDP growth at 7.3%/7.6% in FY16E/FY17E. A normal monsoon could boost agricultural growth (visà-vis our projections) and boost overall GDP in FY17E. Key Variables Short - term Economy Medium - term Remarks Improving growth, falling inflation Corporate Earnings FII Flow DII Flow Supply of paper Interest Rates Policy/Reform Initiative Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY17) India stands out among global asset classes, with faster EPS growth & improving macro-economic variables, however it is over-owned by FII and any near-term risk-off environment impacts Indian flows Focus on improving financial savings of households er disinvestment target and repair of leveraged balance sheet to create supply in markets Fall in interest rates to help revive demand and reduce stress for companies with significant debt GST is key reform for government to focus on; if it gets passed, can provide a significant fillip 2

4 DEBT VIEW Items Apr-16 Mar-16 Change Reverse Repo 6.00% 5.75% 25bps Repo 6.50% 6.75% -25bps CRR 4% 4% Nil SLR 21.25% 21.50% -25 bps Mibor Overnight 6.57% 9.00% -243 bps Call(O/N) 6.55% 9.36% -281 bps CBLO 5.37% 7.38% -201 bps 1 yr T Bill 6.88% 7.06% -18 bps 10 G Sec 7.44% 7.46% -2 bps 5 Year AAA 8.08% 8.31% -23 bps USD/INR paise Source: RBI; ICRAonline. Key Events: RBI cut its key interest rate the repo rate-- to a five-year low of 6.5%, a move that should eventually lead to lower borrowing cost. RBI has stated its intention to bring the liquidity deficit in the system to neutral - implying an infusion of around Rs 70, ,000 crs over a period of time CPI inflation softened to a six-month low of 4.8% in March 2016 from 5.3% in February 2016, driven by lower food and fuel price inflation. India's annual wholesale inflation rose a tad to (-) 0.85% for March from (-)0.91% in the month before, while still remaining in the negative zone for the 17th straight month. India's exports declined for the 16th month running in March to US22.72 billion, down 5.47% on YoY basis, whereas imports have also declined to US27.78 billion down 21.56% Y-o-Y. The trade deficit for March was at record low of US 5.07 billion v/s US billion reported during the corresponding month of IIP (Index of industrial production) data bounced back into positive zone in February reversing 3 month of contraction, reporting 2% growth, compared to - 1.5% in January. Electricity, gems and jewellery and minerals aided the overall industrial performance growth. Oil prices climbs and closed at 48.3/barrel from ~39.6 up by almost 22% on MoM on weaker dollar and optimism that a global oil glut will ease. The European Central Bank left all its interest rates unchanged at its rate call. It had started to expand the monthly purchases under its asset-purchase program to 80 billion (90.8 billion) The Federal Reserve left interest rates unchanged, noting that it will continue to "closely monitor" inflation indicators and global economic and financial developments. Bank of Japan chose to keep policy on hold with no additional stimulus defying market expectations for action. Debt Outlook Long Term Curve : We have Monetary policy review scheduled at 5th of April 2016 We believe that the expectation of a good monsoon, benign inflation outlook and conducive global environment may create room for additional rate cut of bps Having said that, the RBI s stated intention to reduce liquidity deficit to zero implies an OMO of arund Rs 1 lakh crore into the system. This creates downward bias of around 25 bps on the long term yield curve. For above stated reasons, we believe that the 10 year gilt may trend downward and hover in the range of % within next few months Investors may use this opportunity to invest in duration funds with a 18 month horizon Short-Term Curve (3m -24 m): The near term yield curve (less than 2 yr maturities) has steepened When RBI infuses significant liquidity or cuts the rate - the yield curve may flatten with a softening bias. Key variables & their impact on interest rates: Key Variables Short - term Medium - term Inflation Rupee Credit Demand Government Borrowing RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Liquidity Denotes fall in interest rates 3 3

5 GOLD VIEW For the month, spot gold closed at per ounce, up per ounce or 3.32%. During the month gold prices have managed to hold up well, supported by continuing strong investor and fund buying. Gold prices started the month with an unclear trend as US Federal Chief Yellen s speech cooled down the bullion market while the US Non-Farm Payroll (NFP) dragged it back down. The Chair of the FOMC voiced her concern over the global economic growth that could eventually adversely impact the progress of the U.S. economy. This news was enough to pull up gold prices until the NFP report was released. It showed a bit higher than expected gain in jobs which slightly revived a possible rate hike in June During the month European Central Bank (ECB) policy meeting concluded with no change to policy, even though the Euro has slightly devaluated against the USD. The USD has also gained some strength against the Japanese yen. The stronger USD may have contributed to the modest fall of gold prices. Going forward Gold prices could face selloffs if the FOMC were to surprise and release a more hawkish than expected statement. But if the upcoming U.S. economic reports mainly US GDP and Personal consumption expenditures (PCE) disappoint and the FOMC were to maintain a dovish or even a balanced statement, the market is likely to react in favor, which will drive back up gold prices. 4

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 45.66% Beta: 1.06 ## Sharpe : 0.51 Standard Deviation : 16.57% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.20% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.04 Infosys Ltd. Software 8.81 ICICI Bank Ltd. Banks 4.74 IndusInd Bank Ltd. Banks 4.50 Reliance Industries Ltd. Petroleum Products 4.46 Axis Bank Ltd Banks 3.79 ITC Ltd. Consumer Non Durables 3.69 Larsen And Toubro Ltd. Construction Project 3.66 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.45 Maruti Suzuki India Limited Auto 3.27 Tata Consultancy Services Ltd. Software 2.50 Mahindra & Mahindra Ltd. Auto 2.22 HDFC Ltd. Finance 2.15 Ultratech Cement Ltd. Cement 2.13 Tata Motors Ltd - DVR Auto 2.09 Bharat Petroleum Corporation Ltd. Petroleum Products 1.96 HCL Technologies Ltd. Software 1.95 Hero MotoCorp Ltd. Auto 1.82 Britannia Industries Ltd. Consumer Non Durables 1.55 Lupin Ltd. Pharmaceuticals 1.55 Shree Cement Ltd. Cement 1.54 Power Grid Corporation Of India Ltd Power 1.42 The Ramco Cements Ltd Cement 1.38 Grasim Industries Ltd. Cement 1.32 State Bank Of India Banks 1.19 Kajaria Ceramics Ltd. Construction 1.16 Persistent Systems Limited Software 1.16 Asian Paints Ltd. Consumer Non Durables 1.13 Jubilant Foodworks Limited Consumer Non Durables 1.12 MRF Limited Auto Ancillaries 1.09 Cadila Healthcare Ltd. Pharmaceuticals 1.06 Equitas Holdings Ltd Finance 1.06 Indraprastha Gas Ltd. Gas 1.03 Siemens Ltd. Industrial Capital Goods 1.01 Tech Mahindra Ltd. Software 0.98 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.96 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Mar 31, 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 0.96 Sanofi India Ltd. Pharmaceuticals 0.92 Alstom India Limited Industrial Capital Goods 0.85 Bharat Electronics Ltd Industrial Capital Goods 0.81 Supreme Industries Limited Industrial Products 0.76 Dabur India Ltd Consumer Non Durables 0.75 Adani Port and Special Economic Zone Limited Transportation 0.58 HDFC Ltd. Warrants Finance 0.39 DR.Lal Pathlabs Ltd Healthcare Services 0.34 Bank Of Baroda Banks 0.26 Fag Bearings India Ltd. Industrial Products 0.16 Listed/Awaiting Listing on Stock Exchange - Total Futures Tata Motors Ltd.-MAY Maruti Suzuki India Limited-MAY Futures (Market value represents Notional Value) - Total 0.00 Reverse Repo 4.49 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 1.22 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 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 April 29, 2016: ` (Dividend Option), `34.436(Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Construction Project Petroleum Products Finance CBLO & Term Deposits & Rev.Repo Others 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 2,080, , , ,048 1,274,163 2,129,545 12,152, , , ,998 1,110,053 1,825,804 6,932, , , ,196 1,093,213 1,787,924 7,009, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 5 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.87 ## Sharpe : 0.42 Standard Deviation : 14.06% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.70% Direct: 1.30% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 7.11 HDFC Bank Ltd. Banks 5.67 Reliance Industries Ltd. Petroleum Products 4.53 Grasim Industries Ltd. Cement 3.49 Zee Entertainment Enterprises Ltd Media and Entertainment 3.40 Bharat Petroleum Corporation Ltd. Petroleum Products 3.07 Hero MotoCorp Ltd. Auto 2.77 Asian Paints Ltd. Consumer Non Durables 2.73 Hindustan Unilever Ltd. Consumer Non Durables 2.71 Tata Consultancy Services Ltd. Software 2.18 Tata Motors Ltd. Auto 2.11 HDFC Ltd. Finance 1.92 Bajaj Auto Ltd. Auto 1.70 Lupin Ltd. Pharmaceuticals 1.58 ITC Ltd. Consumer Non Durables 1.44 Bajaj Finance Limited Finance 1.43 Mahindra & Mahindra Ltd. Auto 1.37 Ultratech Cement Ltd. Cement 1.35 Dr Reddys Laboratories Ltd Pharmaceuticals 1.34 DR.Lal Pathlabs Ltd Healthcare Services 1.30 Power Grid Corporation Of India Ltd Power 1.29 Eicher Motors Ltd Auto 1.28 Britannia Industries Ltd. Consumer Non Durables 1.20 Axis Bank Ltd Banks 1.03 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.89 HCL Technologies Ltd. Software 0.89 HDFC Ltd. Warrants Finance 0.88 Bajaj Finserv Ltd. Finance 0.84 Alkem Laboratories Ltd Pharmaceuticals 0.80 GAIL (India) Ltd. Gas 0.80 Wipro Ltd. Software 0.77 Equitas Holdings Ltd Finance 0.73 Petronet LNG Ltd. Gas 0.70 Marico Ltd. Consumer Non Durables 0.65 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Divi s Laboratories Limited Pharmaceuticals 0.62 JSW Steel Ltd. Ferrous Metals 0.58 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.58 Larsen And Toubro Ltd. Construction Project 0.50 National Thermal Power Corporation Limited Power 0.50 Ashok Leyland Ltd. Auto 0.49 IndusInd Bank Ltd. Banks 0.48 Tata Steel Limited. Ferrous Metals 0.47 Maruti Suzuki India Limited Auto 0.46 Bosch Limited Auto Ancillaries 0.41 Cummins India Ltd. Industrial Products 0.28 Titan Company Ltd. Consumer Durables 0.25 Oracle Financial Services Software Ltd Software 0.24 TVS Motors Company Ltd Auto 0.24 Just Dial Limited Software 0.18 Cadila Healthcare Ltd. Pharmaceuticals 0.11 Dish TV India Ltd. Media and Entertainment 0.10 Aurobindo Pharma Ltd. Pharmaceuticals 0.09 IDFC Bank Limited Banks 0.09 Bharti Airtel Ltd. Telecom - Services 0.07 Listed/Awaiting Listing on Stock Exchange - Total Futures CNX NIFTY-MAY ITC Ltd.-MAY IndusInd Bank Ltd.-MAY Maruti Suzuki India Limited-MAY Yes Bank Ltd-MAY ICICI Bank Ltd.-MAY Bajaj Auto Ltd.-MAY Bharat Heavy Electricals Ltd.-MAY Larsen And Toubro Ltd.-MAY Futures (Market value represents Notional Value) -Total Reverse Repo TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 6.12 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,290, , , ,643 1,206,498 2,034,785 2,301, , , ,958 1,140,909 1,893,325 2,167, , , ,998 1,110,053 1,825,804 2,092, 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 April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Cement Consumer Non Durables Pharmaceuticals Derivatives Petroleum Products Others CBLO&Term Deposits&Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 29.46% Beta: 0.96 ## Sharpe :0.72 Standard Deviation : 15.78% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.37% Direct: 1.22% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 6.61 HDFC Bank Ltd. Banks 5.27 Bajaj Finance Limited Finance 3.73 Shree Cement Ltd. Cement 3.16 Hero MotoCorp Ltd. Auto 3.13 ICICI Bank Ltd. Banks 2.82 Axis Bank Ltd Banks 2.81 Maruti Suzuki India Limited Auto 2.66 Larsen And Toubro Ltd. Construction Project 2.64 Bharat Petroleum Corporation Ltd. Petroleum Products 2.61 Hindustan Petroleum Corporation Ltd Petroleum Products 2.51 Ultratech Cement Ltd. Cement 2.44 IndusInd Bank Ltd. Banks 2.43 UPL Ltd Pesticides 2.27 State Bank Of India Banks 2.12 Britannia Industries Ltd. Consumer Non Durables 2.11 Torrent Pharmaceuticals Ltd. Pharmaceuticals 2.11 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.10 Reliance Industries Ltd. Petroleum Products 2.07 Tech Mahindra Ltd. Software 1.85 Tata Motors Ltd. Auto 1.81 Indraprastha Gas Ltd. Gas 1.69 HCL Technologies Ltd. Software 1.58 The Ramco Cements Ltd Cement 1.58 Petronet LNG Ltd. Gas 1.57 Dalmia Bharat Ltd Cement 1.49 Lupin Ltd. Pharmaceuticals 1.48 MRF Limited Auto Ancillaries 1.42 ITC Ltd. Consumer Non Durables 1.37 Ashok Leyland Ltd. Auto 1.35 Max Financial Services Ltd. Finance 1.30 Persistent Systems Limited Software 1.25 Va Tech Wabag Limited Engineering Services 1.21 Healthcare Global Enterprises Ltd Healthcare Services 1.18 Mahindra & Mahindra Ltd. Auto 1.12 Bank Of Baroda Banks 1.11 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Mar 31, 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 April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), `82.04 (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement Industrial Products Construction Project * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,390, , , ,459 1,334,306 2,281,954 3,311, , , ,407 1,152,523 1,884,147 2,527, , , ,998 1,110,020 1,825,771 2,493, Multi Commodity Exchange of India Limited Finance 1.11 Arvind Ltd Textile Products 1.09 Fag Bearings India Ltd. Industrial Products 1.06 AIA Engineering Limited Industrial Capital Goods 1.04 DR.Lal Pathlabs Ltd Healthcare Services 1.03 Cummins India Ltd. Industrial Products 0.99 Whirlpool of India Ltd. Consumer Durables 0.97 Container Corporation of India Ltd. Transportation 0.95 JK Cement Ltd. Cement 0.91 CESC Ltd. Power 0.83 National Buildings Construction Corporation Limited Construction 0.82 Techno Electric & Engineering Co Ltd. Construction Project 0.73 MBL Infrastructures Ltd. Construction 0.72 Federal Bank Ltd. Banks 0.64 Equitas Holdings Ltd Finance 0.59 Prestige Estates Projects Limited Construction 0.59 D-Link (India) Ltd Hardware 0.58 Bharat Forge Ltd. Industrial Products 0.56 HDFC Ltd. Warrants Finance 0.55 SKF India Ltd Industrial Products 0.53 Swaraj Engines Ltd Industrial Products 0.46 Max India Limited Healthcare Services Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Max Ventures and Industries Limited Industrial Products 0.01 Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo 2.67 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.49 Net Current /(Liabilities) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 25.51% Beta: 1.00 ## Sharpe : 0.85 Standard Deviation : 16.27% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.02% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.11 Infosys Ltd. Software 5.19 Reliance Industries Ltd. Petroleum Products 4.89 Ultratech Cement Ltd. Cement 4.11 The Ramco Cements Ltd Cement 3.66 Hero MotoCorp Ltd. Auto 3.44 IndusInd Bank Ltd. Banks 3.44 Shree Cement Ltd. Cement 3.30 Larsen And Toubro Ltd. Construction Project 2.72 Axis Bank Ltd Banks 2.71 Maruti Suzuki India Limited Auto 2.68 Bharat Electronics Ltd Industrial Capital Goods 2.34 Britannia Industries Ltd. Consumer Non Durables 2.26 Bajaj Finance Limited Finance 2.24 ICICI Bank Ltd. Banks 2.21 Indraprastha Gas Ltd. Gas 2.01 Hindustan Petroleum Corporation Ltd Petroleum Products 2.00 Petronet LNG Ltd. Gas 1.97 Tata Motors Ltd. Auto 1.93 Bharat Petroleum Corporation Ltd. Petroleum Products 1.88 HCL Technologies Ltd. Software 1.87 Max Financial Services Ltd. Finance 1.87 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.85 State Bank Of India Banks 1.77 Lupin Ltd. Pharmaceuticals 1.73 Ashok Leyland Ltd. Auto 1.70 Arvind Ltd Textile Products 1.49 Godrej Consumer Products Ltd. Consumer Non Durables 1.49 MRF Limited Auto Ancillaries 1.36 Container Corporation of India Ltd. Transportation 1.31 Colgate Palmolive (India ) Ltd. Consumer Non Durables 1.24 ITC Ltd. Consumer Non Durables 1.18 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) SYSTEMATIC INVESTMENT PLAN (SIP) Equitas Holdings Ltd Finance 1.16 Tech Mahindra Ltd. Software 1.12 Bajaj Finserv Ltd. Finance 1.06 Cadila Healthcare Ltd. Pharmaceuticals 1.01 Jk Lakshmi Cement Ltd. Cement 1.01 Solar Industries India Limited Chemicals 0.92 Federal Bank Ltd. Banks 0.91 Bank Of Baroda Banks 0.90 Techno Electric & Engineering Co Ltd. Construction Project 0.83 AIA Engineering Limited Industrial Capital Goods 0.79 Kec International Ltd. Power 0.62 Max India Limited Healthcare Services 0.60 Navkar Corporation Limited Transportation 0.54 Whirlpool of India Ltd. Consumer Durables 0.47 HDFC Ltd. Warrants Finance 0.36 CESC Ltd. Power 0.34 IFB Industries Ltd. Consumer Durables 0.34 Bayer Cropscience Ltd. Pesticides 0.24 Kirloskar Oil Engines Ltd. Industrial Products 0.24 Max Ventures and Industries Limited Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.02 Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo 3.99 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.56 Collateral Borrowing & Lending obligation 0.10 Net Current /(Liabilities) 1.89 Systematic Investment Plan (SIP) If you had invested `10,000 every month Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) Inception : - September 11, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Select Focus Fund NAV as on April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Gas Auto Pharmaceuticals Finance Consumer Non Durables Cement CBLO & Term Deposits & Rev.Repo Others 1 year 3 years 5 years Since Inception 120, , , , , , ,364 1,303, , , ,196 1,033, , , ,998 1,011, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 17.85% Beta: 1.06 ## Sharpe : 0.56 Standard Deviation : 17.59% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.30 Infosys Ltd. Software 6.24 Reliance Industries Ltd. Petroleum Products 4.38 Shree Cement Ltd. Cement 3.28 Bajaj Finance Limited Finance 3.23 Whirlpool of India Ltd. Consumer Durables 3.21 IndusInd Bank Ltd. Banks 3.16 Axis Bank Ltd Banks 3.00 ICICI Bank Ltd. Banks 2.93 Britannia Industries Ltd. Consumer Non Durables 2.77 Ultratech Cement Ltd. Cement 2.72 Bharat Petroleum Corporation Ltd. Petroleum Products 2.63 Maruti Suzuki India Limited Auto 2.45 State Bank Of India Banks 2.22 Tech Mahindra Ltd. Software 2.22 Hero MotoCorp Ltd. Auto 2.18 Hindustan Petroleum Corporation Ltd Petroleum Products 2.15 ITC Ltd. Consumer Non Durables 1.99 SKF India Ltd Industrial Products 1.96 Larsen And Toubro Ltd. Construction Project 1.89 Tata Motors Ltd. Auto 1.85 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.75 Lupin Ltd. Pharmaceuticals 1.73 Techno Electric & Engineering Co Ltd. Construction Project 1.68 Solar Industries India Limited Chemicals 1.64 Ashok Leyland Ltd. Auto 1.61 MRF Limited Auto Ancillaries 1.45 The Ramco Cements Ltd Cement 1.45 Cadila Healthcare Ltd. Pharmaceuticals 1.41 UPL Ltd Pesticides 1.39 Federal Bank Ltd. Banks 1.32 HCL Technologies Ltd. Software 1.29 Bank Of Baroda Banks 1.27 Arvind Ltd Textile Products 1.19 Dalmia Bharat Ltd Cement 1.19 Container Corporation of India Ltd. Transportation 1.16 Multi Commodity Exchange of India Limited Finance 1.14 AIA Engineering Limited Industrial Capital Goods 1.07 Max Financial Services Ltd. Finance 1.06 Cummins India Ltd. Industrial Products 1.05 Blue Dart Express Ltd. Transportation 1.03 Navneet Education Ltd. Media and Entertainment 0.97 Thermax Ltd. Industrial Capital Goods 0.91 Hawkins Cooker Ltd Household Appliances 0.87 Bharat Forge Ltd. Industrial Products 0.86 MBL Infrastructures Ltd. Construction 0.79 SRF Ltd. Textile Products 0.78 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 0.73 KSB Pump Ltd Industrial Products 0.57 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.54 Kewal Kiran Clothing Limited. Textile Products 0.46 Max India Limited Healthcare Services Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Max Ventures and Industries Limited Industrial Products 0.02 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.03 Corporate Debt/Financial Institutions - Total 0.03 Reverse Repo 2.84 Net Current /(Liabilities) 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: 2.47% Direct: 1.27% 9 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) 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 April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Pharmaceuticals Consumer Non Durables Petroleum Products Cement Finance Construction Project Industrial Products Others * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,250, , , ,412 1,271,431 2,041,971 2,176, , , ,407 1,152,644 1,884,267 2,015, , , ,998 1,110,053 1,825,804 1,962, Auto Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 52.25% Beta: 1.04 ## Sharpe : 0.91 Standard Deviation : 19.96% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.52% Direct: 1.27% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Whirlpool of India Ltd. Consumer Durables 3.43 The Ramco Cements Ltd Cement 3.17 Persistent Systems Limited Software 3.10 Finolex Cables Ltd. Industrial Products 2.97 Techno Electric & Engineering Co Ltd. Construction Project 2.84 Solar Industries India Limited Chemicals 2.76 Hawkins Cooker Ltd Household Appliances 2.69 Fag Bearings India Ltd. Industrial Products 2.60 DB Corp Limited Media and Entertainment 2.52 Mahindra & Mahindra Financial Services Ltd. Finance 2.49 IndusInd Bank Ltd. Banks 2.47 ICICI Bank Ltd. Banks 2.20 Federal Bank Ltd. Banks 2.15 Va Tech Wabag Limited Engineering Services 2.15 Strides Arcolab Ltd. Pharmaceuticals 2.11 Hindustan Petroleum Corporation Ltd Petroleum Products 2.08 SRF Ltd. Textile Products 2.06 Kewal Kiran Clothing Limited. Textile Products 1.97 Divi s Laboratories Limited Pharmaceuticals 1.93 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.82 JK Cement Ltd. Cement 1.79 Britannia Industries Ltd. Consumer Non Durables 1.78 Motherson Sumi Systems Ltd. Auto Ancillaries 1.77 HSIL Ltd. Consumer Durables 1.69 MRF Limited Auto Ancillaries 1.61 PVR Ltd. Media and Entertainment 1.57 Atul Ltd. Chemicals 1.56 Adani Port and Special Economic Zone Limited Transportation 1.50 Arvind Ltd Textile Products 1.45 Axis Bank Ltd Banks 1.45 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Nifty Midcap 100 (Rs)# Nifty Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) NIIT Technologies Ltd Software 1.45 Jubilant Foodworks Limited Consumer Non Durables 1.40 Pennar Engineered Building Systems Limited Ferrous Metals 1.39 Bajaj Finance Limited Finance 1.37 Jk Lakshmi Cement Ltd. Cement 1.37 Bharat Forge Ltd. Industrial Products 1.36 Voltas Ltd. Construction Project 1.34 Havells India Ltd. Consumer Durables 1.33 UPL Ltd Pesticides 1.33 Cadila Healthcare Ltd. Pharmaceuticals 1.23 Kansai Nerolac Paints Ltd Consumer Non Durables 1.19 Navneet Education Ltd. Media and Entertainment 1.17 WPIL Ltd Industrial Products 1.16 Supreme Industries Limited Industrial Products 1.15 Zuari Agro Chemicals Ltd Fertilisers 1.15 Sundaram Finance Ltd. Finance 1.11 Bharat Petroleum Corporation Ltd. Petroleum Products 1.09 Alkem Laboratories Ltd Pharmaceuticals 0.98 Power Mech Projects Ltd Power 0.92 Shriram Transport Finance Co Ltd. Finance 0.90 Bank Of Baroda Banks 0.89 SKF India Ltd Industrial Products 0.88 Tech Mahindra Ltd. Software 0.88 Balrampur Chini Mills Ltd Consumer Non Durables 0.86 Union Bank Of India Banks 0.21 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 1.22 Net Current /(Liabilities) 4.99 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 April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Others Pharmaceuticals Cement Consumer Non Durables Textile Products Finance Consumer Durables Media & Entertainment Software Industrial Products Midcap and Small cap stocks as a % age of Net : 76.43% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,340, , ,467 1,012,638 1,624,092 2,672,052 3,259, , , ,488 1,315,004 2,222,148 2,741, , , ,998 1,110,053 1,825,804 2,284, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 46.49% Beta: 1.00 ## Sharpe :1.08 Standard Deviation : 19.70% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.30% Direct: 1.10% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Whirlpool of India Ltd. Consumer Durables 4.03 The Ramco Cements Ltd Cement 3.53 Solar Industries India Limited Chemicals 3.11 V-Guard Industries Ltd. Industrial Capital Goods 3.10 Persistent Systems Limited Software 2.99 Finolex Cables Ltd. Industrial Products 2.96 Fag Bearings India Ltd. Industrial Products 2.71 Hawkins Cooker Ltd Household Appliances 2.69 Mahindra & Mahindra Financial Services Ltd. Finance 2.66 IndusInd Bank Ltd. Banks 2.57 SRF Ltd. Textile Products 2.54 Strides Arcolab Ltd. Pharmaceuticals 2.25 DB Corp Limited Media and Entertainment 2.23 ICICI Bank Ltd. Banks 2.11 Federal Bank Ltd. Banks 2.10 PVR Ltd. Media and Entertainment 1.96 Va Tech Wabag Limited Engineering Services 1.93 Motherson Sumi Systems Ltd. Auto Ancillaries 1.91 Atul Ltd. Chemicals 1.87 Jk Lakshmi Cement Ltd. Cement 1.85 Kewal Kiran Clothing Limited. Textile Products 1.79 Shriram City Union Finance Ltd. Finance 1.79 Navneet Education Ltd. Media and Entertainment 1.77 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.61 Jubilant Foodworks Limited Consumer Non Durables 1.57 Ramkrishna Forgings Ltd. Industrial Products 1.57 Indraprastha Gas Ltd. Gas 1.55 Divi s Laboratories Limited Pharmaceuticals 1.51 SKF India Ltd Industrial Products 1.50 PNC INFRATECH LIMITED Construction Project 1.49 Finolex Industries Ltd. Industrial Products 1.47 Sundaram Finance Ltd. Finance 1.47 Britannia Industries Ltd. Consumer Non Durables 1.46 Pennar Engineered Building Systems Limited Ferrous Metals 1.46 D-Link (India) Ltd Hardware 1.37 Supreme Industries Limited Industrial Products 1.36 Carborundum Universal Ltd. Industrial Products 1.28 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Axis Bank Ltd Banks 1.23 Bajaj Finance Limited Finance 1.20 WPIL Ltd Industrial Products 1.20 Alkem Laboratories Ltd Pharmaceuticals 1.19 Greaves Cotton Ltd. Industrial Products 1.18 Power Mech Projects Ltd Power 1.11 Oberoi Realty Ltd Construction 1.08 Zuari Agro Chemicals Ltd Fertilisers 1.06 KPIT Technologies LImited Software 1.04 Coromandel International Ltd. Fertilisers 1.01 Equitas Holdings Ltd Finance 1.01 Maharashtra Seamless Ltd. Ferrous Metals 0.99 Max Financial Services Ltd. Finance 0.99 GMM Pfaudler Ltd. Engineering 0.78 IDFC Bank Limited Banks 0.75 IFB Industries Ltd. Consumer Durables 0.75 Kirloskar Brothers Ltd. Industrial Products 0.70 Kec International Ltd. Power 0.65 Multi Commodity Exchange of India Limited Finance 0.59 Bank Of Baroda Banks 0.58 Engineers India Ltd. Construction Project 0.55 Blue Dart Express Ltd. Transportation 0.53 Max India Limited Healthcare Services 0.32 Max Ventures and Industries Limited Industrial Products 0.02 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.01 Corporate Debt/Financial Institutions - Total 0.01 Reverse Repo 5.65 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.30 Net Current /(Liabilities) Inception : - March 30, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Emerging Equity NAV as on April 29, 2016: `20.48 (Dividend Option), ` (Direct Dividend Option), `26.407(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Pharmaceuticals Banks Consumer Durables Finance Cement Media and Entertainment CBLO & Term Deposits & Rev.Repo Chemicals Textile Products Others Midcap and Small cap stocks as a % age of Net : 91.75% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years Since Inception 120, , , ,000 1,090, , ,415 1,058,886 1,669,231 2,354, , , ,064 1,264,267 1,800, , , ,998 1,110,053 1,584, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. There is no assurance that the investment objective of the will be achieved. However, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 55.29% Beta: 1.18 ## Sharpe : 0.73 Standard Deviation : 21.68% Source: ICRAMFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.63% Direct: 1.23% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 7.80 Ultratech Cement Ltd. Cement 7.16 Larsen And Toubro Ltd. Construction Project 6.09 Indraprastha Gas Ltd. Gas 6.08 SKF India Ltd Industrial Products 6.08 Bharti Airtel Ltd. Telecom - Services 5.72 Thermax Ltd. Industrial Capital Goods 5.12 Kirloskar Oil Engines Ltd. Industrial Products 4.96 KSB Pump Ltd Industrial Products 4.71 Fag Bearings India Ltd. Industrial Products 4.33 Cummins India Ltd. Industrial Products 3.48 Container Corporation of India Ltd. Transportation 3.09 Power Grid Corporation Of India Ltd Power 3.07 AIA Engineering Limited Industrial Capital Goods 3.04 Total amount invested (Rs) Total Value as on Mar 31, 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 3.00 Gateway Distriparks Ltd. Transportation 2.91 Mahindra & Mahindra Financial Services Ltd. Finance 2.74 Siemens Ltd. Industrial Capital Goods 2.44 Adani Port and Special Economic Zone Limited Transportation 2.36 Solar Industries India Limited Chemicals 2.33 MRF Limited Auto Ancillaries 2.29 Kajaria Ceramics Ltd. Construction 2.09 Gujarat Gas Company Ltd Gas 1.39 CESC Ltd. Power 1.15 Bharat Electronics Ltd Industrial Capital Goods 1.06 Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo 5.62 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 April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project CBLO & Term Deposits & Rev.Repo Finance Others 1 year 3 years 5 years 7 years Since Inception 120, , , , , , , ,173 1,334,163 1,674, , , ,955 1,113,922 1,408, , , ,998 1,110,053 1,399, Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 56.88% Beta: 1.05 ## Sharpe : 0.42 Standard Deviation : 11.71% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.55% Direct: 1.35% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 4.39 HDFC Bank Ltd. Banks 4.27 ICICI Bank Ltd. Banks 4.11 Larsen And Toubro Ltd. Construction Project 2.62 Maruti Suzuki India Limited Auto 2.47 IndusInd Bank Ltd. Banks 2.19 Reliance Industries Ltd. Petroleum Products 2.15 Axis Bank Ltd Banks 2.00 Whirlpool of India Ltd. Consumer Durables 2.00 ITC Ltd. Consumer Non Durables 1.89 The Ramco Cements Ltd Cement 1.86 Solar Industries India Limited Chemicals 1.81 Tata Motors Ltd. Auto 1.79 SRF Ltd. Textile Products 1.76 Mahindra & Mahindra Ltd. Auto 1.61 JK Cement Ltd. Cement 1.50 HDFC Ltd. Finance 1.40 Ultratech Cement Ltd. Cement 1.40 Tata Consultancy Services Ltd. Software 1.39 Va Tech Wabag Limited Engineering Services 1.39 Finolex Cables Ltd. Industrial Products 1.37 Fag Bearings India Ltd. Industrial Products 1.30 HCL Technologies Ltd. Software 1.25 Hindustan Petroleum Corporation Ltd Petroleum Products 1.22 Mahindra & Mahindra Financial Services Ltd. Finance 1.12 State Bank Of India Banks 1.10 Engineers India Ltd. Construction Project 1.05 Ramkrishna Forgings Ltd. Industrial Products 1.04 Adani Port and Special Economic Zone Limited Transportation 1.03 Motherson Sumi Systems Ltd. Auto Ancillaries 0.99 UPL Ltd Pesticides 0.99 Strides Arcolab Ltd. Pharmaceuticals 0.94 Jubilant Foodworks Limited Consumer Non Durables 0.91 DB Corp Limited Media and Entertainment 0.88 Oil & Natural Gas Corporation Ltd. Oil 0.87 Navkar Corporation Limited Transportation 0.78 Havells India Ltd. Consumer Durables 0.72 Total amount invested (Rs) Total Value as on Mar 31, 2016 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Cement 4.76 Banks Software Finance Government Dated Securities Petroleum Products Auto Industrial Products Construction Project Others Consumer Non Durables SYSTEMATIC INVESTMENT PLAN (SIP) HDFC Ltd. Warrants Finance 0.69 Equitas Holdings Ltd Finance 0.68 Voltas Ltd. Construction Project 0.65 Coal India Ltd. Minerals/Mining 0.62 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.60 Bank Of Baroda Banks 0.59 Bharat Forge Ltd. Industrial Products 0.59 Pennar Engineered Building Systems Limited Ferrous Metals 0.55 Lupin Ltd. Pharmaceuticals 0.50 Balrampur Chini Mills Ltd Consumer Non Durables 0.49 Federal Bank Ltd. Banks 0.46 Arvind Ltd Textile Products 0.44 Tech Mahindra Ltd. Software 0.43 IDFC Bank Limited Banks 0.42 Divi s Laboratories Limited Pharmaceuticals 0.20 The Indian Hotels Company Ltd. Hotels 0.05 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions LIC Housing Finance Ltd. CRISIL AAA 0.20 Tata Sons Ltd. CRISIL AAA 0.08 Corporate Debt/Financial Institutions - Total 0.28 Public Sector Undertakings Bank of India ICRA AA Public Sector Undertakings - Total 0.35 Government Dated Securities 7.59% Central Government SOV % Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % Central Government SOV 0.04 Government Dated Securities - Total Net Current /(Liabilities) 9.60 Systematic Investment Plan (SIP) If you had invested `10,000 every month 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 April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) year 3 years 5 years 7 years 10 years Since Inception 120, , , ,000 1,200,000 1,970, , , ,821 1,138,152 1,882,343 7,037, , , ,944 1,132,882 1,871,004 NA NA 115, , ,998 1,110,053 1,825,804 6,137, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.72 ## Sharpe : 2.09 Standard Deviation : 0.60% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including STP/SWP) within 90 days from the date of allotment of units, irrespective of the amount of investment: 0.50% II) For redemptions/switch outs (including STP/SWP) after 90 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans), (w.e.f. April 8, 2013) Regular: 1.10% Direct: 0.60% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged HDFC Bank Ltd. Banks Reliance Industries Ltd. Petroleum Products Britannia Industries Ltd. Consumer Non Durables Indiabulls Housing Finance Ltd. Finance Maruti Suzuki India Limited Auto Adani Port and Special Economic Zone Limited Transportation Infosys Ltd. Software Aurobindo Pharma Ltd. Pharmaceuticals Tata Motors Ltd. Auto HDFC Ltd. Finance Cipla Ltd. Pharmaceuticals Coal India Ltd. Minerals/Mining Vedanta Ltd. Minerals/Mining Shriram Transport Finance Co Ltd. Finance Ashok Leyland Ltd. Auto Hindustan Petroleum Corporation Ltd Petroleum Products United Spirits Ltd. Consumer Non Durables Power Finance Corporation Ltd. Finance Tech Mahindra Ltd. Software Reliance Capital Ltd. Finance SKS Microfinance Limited Finance Grasim Industries Ltd. Cement LIC Housing Finance Ltd. Finance Adani Power Ltd Power Reliance Power Ltd Power L&T Finance Holdings Ltd Finance IDFC Limited Finance MRF Limited Auto Ancillaries Tata Elxsi Ltd. Software Castrol (India ) Ltd. Petroleum Products Bharti Infratel Ltd. Telecom - Equipment & Accessories Rural Electrification Corporation Ltd Finance Tata Global Beverages Limited Consumer Non Durables Asian Paints Ltd. Consumer Non Durables Aditya Birla Nuvo Limited Services NCC Limited Construction Project Pidilite Industries Ltd. Chemicals Reliance Communications Ltd. Telecom - Services Tata Communications Ltd Telecom - Services TV18 Broadcast Ltd Media and Entertainment Dewan Housing Finance Corporation Ltd. Finance Housing Development and Infrastructure Limited Construction India Cements Ltd. Cement Hindalco Industries Ltd Non - Ferrous Metals Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Century Textiles & Industries Ltd. Cement GMR Infrastructure Ltd. Construction Project IRB Infrastructure Developers Ltd Construction Cairn India Limited Oil Indian Oil Corporation Ltd Petroleum Products Oracle Financial Services Software Ltd Software Dish TV India Ltd. Media and Entertainment * 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 United Breweries Ltd. Consumer Non Durables Karnataka Bank Ltd Banks Larsen And Toubro Ltd. Construction Project Wipro Ltd. Software HCL Technologies Ltd. Software Amara Raja Batteries Ltd. Auto Ancillaries Bajaj Finance Limited Finance Bharat Earth Movers Ltd. Industrial Capital Goods Axis Bank Ltd Banks Siemens Ltd. Industrial Capital Goods Sun TV Limited. Media and Entertainment ACC Ltd. Cement Ambuja Cements Ltd Cement Dr Reddys Laboratories Ltd Pharmaceuticals Jain Irrigation Systems Ltd. Industrial Products Tata Chemicals Ltd. Chemicals Mahindra & Mahindra Ltd. Auto NMDC Ltd. Minerals/Mining Oil & Natural Gas Corporation Ltd. Oil Punjab National Bank Banks DLF Limited Construction IFCI Ltd. Finance Jindal Steel & Power Ltd. Ferrous Metals NHPC Limited Power The South Indian Bank Ltd. Banks UPL Ltd Pesticides ITC Ltd. Consumer Non Durables Tata Consultancy Services Ltd. Software Glenmark Pharmaceuticals Ltd Pharmaceuticals Biocon Ltd. Pharmaceuticals Power Grid Corporation Of India Ltd Power Indraprastha Gas Ltd. Gas Torrent Pharmaceuticals Ltd. Pharmaceuticals Wockhardt Ltd. Pharmaceuticals Jet Airways (India) Ltd. Transportation Reliance Infrastructure Ltd Power Federal Bank Ltd. Banks Indiabulls Real Estate Ltd Construction Tata Motors Ltd - DVR Auto Eicher Motors Ltd Auto JSW Steel Ltd. Ferrous Metals Ultratech Cement Ltd. Cement Lupin Ltd. Pharmaceuticals National Thermal Power Corporation Limited Power Adani Enterprises Ltd Trading Hero MotoCorp Ltd. Auto TVS Motors Company Ltd Auto Hindustan Unilever Ltd. Consumer Non Durables Zee Entertainment Enterprises Ltd Media and Entertainment Andhra Bank Banks Container Corporation of India Ltd. Transportation Cummins India Ltd. Industrial Products Granules India Ltd. Pharmaceuticals Oil India Limited Oil Oriental Bank of Commerce Banks

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives SRF Ltd. Textile Products Apollo Hospitals Enterprises Ltd. Healthcare Services Crompton Greaves Ltd. Industrial Capital Goods Godrej Consumer Products Ltd. Consumer Non Durables Bosch Limited Auto Ancillaries Dabur India Ltd Consumer Non Durables ICICI Bank Ltd. Banks Indo Count Industries Ltd. Textiles - Cotton Jubilant Foodworks Limited Consumer Non Durables Petronet LNG Ltd. Gas Apollo Tyres Ltd. Auto Ancillaries Bharat Petroleum Corporation Ltd. Petroleum Products Jaiprakash Associates Ltd Construction Kotak Mahindra Bank Ltd. Banks KPIT Technologies LImited Software Strides Arcolab Ltd. Pharmaceuticals Cadila Healthcare Ltd. Pharmaceuticals Divi s Laboratories Limited Pharmaceuticals Engineers India Ltd. Construction Project JSW Energy Ltd. Power Kaveri Seed Company Ltd. Consumer Non Durables Tata Power Co. Ltd. Power Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Liquid Plan A 4.81 Kotak Floater Short Term Direct Growth 1.86 Mutual Fund Units - Total 6.67 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Edelweiss Housing Finanance Limited CRISIL A Tata Motors Finance Ltd ICRA A JM Financial Products Limited ICRA A Corporate Debt/Financial Institutions - Total 6.05 Reverse Repo 0.59 TERM DEPOSITS Kotak Mahindra Bank Ltd IndusInd Bank Ltd Ratnakar Bank Ltd 1.50 Term Deposits - Total Collateral Borrowing & Lending obligation 0.07 Net Current /(Liabilities) 3.34 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Banks Pharmaceuticals Finance Petroleum Products Unrated Consumer Non Durables Software Others Auto CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Crisil Liquid Fund & 25% in Nifty 50 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Beta: 0.85 ## Sharpe : Standard Deviation : 3.73% Source: ICRA MFI Explorer. ## Risk Free rate assumed to be 6.57% (FBIL Overnight Mibor rate as on 29th April 2016). Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For exit within 1 year from date of allotment of units: 1%; ii) For exit after 1year from the date of allotment of units: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the. iii) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.60% Direct: 1.00% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge Infosys Ltd. Software 1.88 HDFC Bank Ltd. Banks 1.51 Maruti Suzuki India Limited Auto 1.01 Reliance Industries Ltd. Petroleum Products 1.01 HDFC Ltd. Warrants Finance 0.90 ITC Ltd. Consumer Non Durables 0.84 Zee Entertainment Enterprises Ltd Media and Entertainment 0.83 Bharat Petroleum Corporation Ltd. Petroleum Products 0.80 Lupin Ltd. Pharmaceuticals 0.78 Grasim Industries Ltd. Cement 0.74 Bajaj Auto Ltd. Auto 0.73 Hindustan Unilever Ltd. Consumer Non Durables 0.72 IndusInd Bank Ltd. Banks 0.72 Asian Paints Ltd. Consumer Non Durables 0.67 Hero MotoCorp Ltd. Auto 0.66 Equitas Holdings Ltd Finance 0.61 Yes Bank Ltd Banks 0.49 Bajaj Finance Limited Finance 0.48 Adani Port and Special Economic Zone Limited Transportation 0.45 Tata Consultancy Services Ltd. Software 0.44 Britannia Industries Ltd. Consumer Non Durables 0.42 Dr Reddys Laboratories Ltd Pharmaceuticals 0.40 Power Grid Corporation Of India Ltd Power 0.39 Axis Bank Ltd Banks 0.38 Tata Motors Ltd. Auto 0.38 ICICI Bank Ltd. Banks 0.34 Eicher Motors Ltd Auto 0.33 Mahindra & Mahindra Ltd. Auto 0.33 Alkem Laboratories Ltd Pharmaceuticals 0.31 Bajaj Finserv Ltd. Finance 0.30 Geometric Software Solutions Co Ltd Software 0.30 S H Kelkar and Company Ltd Consumer Non Durables 0.29 Larsen And Toubro Ltd. Construction Project 0.28 Ultratech Cement Ltd. Cement 0.27 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.26 Bosch Limited Auto Ancillaries 0.21 GAIL (India) Ltd. Gas 0.20 Marico Ltd. Consumer Non Durables 0.18 Petronet LNG Ltd. Gas 0.18 Wipro Ltd. Software 0.18 Divi s Laboratories Limited Pharmaceuticals 0.15 Ashok Leyland Ltd. Auto 0.14 JSW Steel Ltd. Ferrous Metals 0.14 Dish TV India Ltd. Media and Entertainment 0.13 HDFC Ltd. Finance 0.13 Bank Of Baroda Banks 0.12 National Thermal Power Corporation Limited Power 0.12 Tata Steel Limited. Ferrous Metals 0.12 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.11 Aurobindo Pharma Ltd. Pharmaceuticals 0.10 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.08 Cadila Healthcare Ltd. Pharmaceuticals 0.07 HCL Technologies Ltd. Software 0.07 Cummins India Ltd. Industrial Products 0.06 Emami Ltd. Consumer Non Durables 0.06 Titan Company Ltd. Consumer Durables 0.06 TVS Motors Company Ltd Auto 0.06 Bharti Airtel Ltd. Telecom - Services 0.05 CNX NIFTY Call Option - December Just Dial Limited Software 0.05 UPL Ltd Pesticides 0.04 Coal India Ltd. Minerals/Mining 0.03 Indian Oil Corporation Ltd Petroleum Products 0.03 Bharat Electronics Ltd Industrial Capital Goods 0.02 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Tech Mahindra Ltd. Software 0.02 Shree Cement Ltd. Cement 0.01 Non-Hedged- Total Hedged GMR Infrastructure Ltd. Construction Project Reliance Capital Ltd. Finance Tata Motors Ltd. Auto Maruti Suzuki India Limited Auto India Cements Ltd. Cement Ashok Leyland Ltd. Auto Vedanta Ltd. Minerals/Mining Tata Communications Ltd Telecom - Services Karnataka Bank Ltd Banks HDFC Bank Ltd. Banks Jain Irrigation Systems Ltd. Industrial Products Dish TV India Ltd. Media and Entertainment ITC Ltd. Consumer Non Durables Infosys Ltd. Software Housing Development and Infrastructure Limited Construction HDFC Ltd. Finance NCC Limited Construction Project Hindustan Petroleum Corporation Ltd Petroleum Products Century Textiles & Industries Ltd. Cement Castrol (India ) Ltd. Petroleum Products IRB Infrastructure Developers Ltd Construction Wockhardt Ltd. Pharmaceuticals L&T Finance Holdings Ltd Finance Aurobindo Pharma Ltd. Pharmaceuticals MRF Limited Auto Ancillaries SKS Microfinance Limited Finance Reliance Industries Ltd. Petroleum Products Tech Mahindra Ltd. Software Reliance Power Ltd Power * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 44-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives Indiabulls Housing Finance Ltd. Finance Reliance Communications Ltd. Telecom - Services IFCI Ltd. Finance Adani Power Ltd Power Cipla Ltd. Pharmaceuticals Glenmark Pharmaceuticals Ltd Pharmaceuticals Rural Electrification Corporation Ltd Finance Bharat Petroleum Corporation Ltd. Petroleum Products DLF Limited Construction LIC Housing Finance Ltd. Finance Punjab National Bank Banks Amara Raja Batteries Ltd. Auto Ancillaries Dewan Housing Finance Corporation Ltd. Finance HCL Technologies Ltd. Software Wipro Ltd. Software Indiabulls Real Estate Ltd Construction Indian Oil Corporation Ltd Petroleum Products Jet Airways (India) Ltd. Transportation Shriram Transport Finance Co Ltd. Finance UPL Ltd Pesticides Hindalco Industries Ltd Non - Ferrous Metals Aditya Birla Nuvo Limited Services Tata Chemicals Ltd. Chemicals United Spirits Ltd. Consumer Non Durables Sun TV Limited. Media and Entertainment Ambuja Cements Ltd Cement Coal India Ltd. Minerals/Mining Power Finance Corporation Ltd. Finance Adani Enterprises Ltd Trading Federal Bank Ltd. Banks Strides Arcolab Ltd. Pharmaceuticals Tata Elxsi Ltd. Software TV18 Broadcast Ltd Media and Entertainment IDFC Limited Finance Tata Global Beverages Limited Consumer Non Durables Asian Paints Ltd. Consumer Non Durables Cairn India Limited Oil Larsen And Toubro Ltd. Construction Project National Thermal Power Corporation Limited Power Oracle Financial Services Software Ltd Software Reliance Infrastructure Ltd Power SRF Ltd. Textile Products ACC Ltd. Cement Bharti Infratel Ltd. Telecom - Equipment & Accessories Hindustan Unilever Ltd. Consumer Non Durables NMDC Ltd. Minerals/Mining Pidilite Industries Ltd. Chemicals Lupin Ltd. Pharmaceuticals Oil & Natural Gas Corporation Ltd. Oil Power Grid Corporation Of India Ltd Power Axis Bank Ltd Banks Tata Consultancy Services Ltd. Software Bharat Earth Movers Ltd. Industrial Capital Goods CESC Ltd. Power Grasim Industries Ltd. Cement Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Jaiprakash Associates Ltd Construction Oriental Bank of Commerce Banks Tata Motors Ltd - DVR Auto Torrent Pharmaceuticals Ltd. Pharmaceuticals Zee Entertainment Enterprises Ltd Media and Entertainment Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Government Dated Securities 8.48% State Government SOV % State Government SOV 1.27 Government Dated Securities - Total 3.00 Reverse Repo 5.66 TERM DEPOSITS Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.74 Term Deposits - Total Collateral Borrowing & Lending obligation 0.12 Net Current /(Liabilities) 8.38 Kotak Equity Savings Fund NAV as on April 29, 2016: ` (Growth Option), ` (Monthly Dividend Option), ` (Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Banks Finance Software Pharmaceuticals Consumer Non Durables Cement Construction Project Petroleum Products Others Investors understand that their principal will be at moderately high risk Income from arbitrage opportunities in the equity market & long term capital growth Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 18

20 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. There is no assurance or guarantee that the investment objective of the scheme will be achieved. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software HDFC Bank Ltd. Banks 9.32 ICICI Bank Ltd. Banks 7.09 IndusInd Bank Ltd. Banks 6.12 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 5.57 Reliance Industries Ltd. Petroleum Products 5.13 Axis Bank Ltd Banks 5.03 Maruti Suzuki India Limited Auto 5.00 Larsen And Toubro Ltd. Construction Project 4.99 Ultratech Cement Ltd. Cement 4.17 Tata Motors Ltd - DVR Auto 4.09 Britannia Industries Ltd. Consumer Non Durables 4.01 Hero MotoCorp Ltd. Auto 3.98 Shree Cement Ltd. Cement 3.24 Persistent Systems Limited Software 3.16 Oracle Financial Services Software Ltd Software 3.07 Power Grid Corporation Of India Ltd Power 2.95 Jubilant Foodworks Limited Consumer Non Durables 2.72 Kajaria Ceramics Ltd. Construction 2.72 Equitas Holdings Ltd Finance 2.60 Listed/Awaiting Listing on Stock Exchange - Total Reverse Repo 2.71 Net Current /(Liabilities) 2.05 Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % The scheme is a close ended scheme. The units of the scheme can be traded on the stock exchange. Entry Load: Nil. Exit Load: Nil. Regular: 2.52% Direct: 2.02% Kotak India Growth Fund Series I NAV as on April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project Construction Others Construction Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity and equity related securities across market capitalisation and sectors * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 19

21 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003; Plan A - November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` Plans: a) Regular & b) Institutional (discontinued for further subscriptions w.e.f. October 1, 2012) c) Plan A (Previously known as Institutional Premium Plan) d) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.20%, Modified Duration: 0.10 yrs, Portfolio Yield: 7.59% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.11% Direct: 0.07% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Indiabulls Housing Finance Limited CARE AAA 2.41 Dewan Housing Finance Corporation Ltd. CARE AAA 1.57 Corporate Debt/Financial Institutions - Total 3.98 Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 0.55 Public Sector Undertakings - Total 0.55 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Idea Cellular Ltd. CARE A Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Reliance Retail Limited CARE A Tata Steel Limited FITCH IND A HDFC Ltd. ICRA A Edelweiss Commodities Services Ltd. CRISIL A Piramal Enterprises Limited ICRA A AXIS Bank Ltd. CRISIL A Mahindra & Mahindra Financial Services Ltd. CRISIL A Aditya Birla Finance Ltd. ICRA A Ultratech Cement Ltd. CRISIL A ECL Finance Limited CRISIL A Adani Port and Special Economic Zone Limited ICRA A Grasim Industries Ltd. CARE A Tata Motors Finance Ltd ICRA A ONGC Manglore Petrochemicals Ltd. ICRA A CESC Ltd. CARE A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL A National Bank for Agriculture and Rural Development CRISIL A Punjab & Sind Bank CRISIL A Rural Electrification Corporation Ltd. FITCH IND A Indian Railway Finance Corporation Ltd. CRISIL A IDBI Bank Ltd. CRISIL A Power Finance Corporation Ltd. CRISIL A PNB Housing Finance Ltd. CRISIL A Andhra Bank CRISIL A Steel Authority of India Ltd. CARE A Oriental Bank of Commerce CRISIL A Public Sector Undertakings - Total Reverse Repo 0.29 Net Current /(Liabilities) 0.33 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.10 years Kotak Liquid Plan A Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, IND A1+ Net Current RATING PROFILE CBLO & Term Deposits & Rev.Repo Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no

22 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` 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: 0.16%, Modified Duration:0.12 yrs, Portfolio Yield: 7.78% 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: 0.29% Direct: 0.23% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA HDFC Ltd. CRISIL AAA 1.44 Dewan Housing Finance Corporation Ltd. CARE AAA 0.88 Corporate Debt/Financial Institutions - Total 5.28 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Bharti enterprises (Holding) Pvt. Ltd. CRISIL A India Infoline Finance Limited ICRA A Reliance Jio Infocomm Limited CARE A HDFC Bank Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 6.20 Tata Steel Limited FITCH IND A Gruh Finance Ltd ICRA A Piramal Enterprises Limited ICRA A HDFC Ltd. ICRA A Manappuram Finance Ltd ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Sadbhav Engineering Ltd. CARE A Au Financiers (India) Limited FITCH IND A Ultratech Cement Ltd. ICRA A Tata Power Company Ltd. ICRA A RHC Finance Private Limited FITCH IND A Adani Port and Special Economic Zone Limited ICRA A HDFC Ltd. CRISIL A Reliance Capital Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Indian Railway Finance Corporation Ltd. CRISIL A Power Finance Corporation Ltd. CRISIL A Steel Authority of India Ltd. FITCH IND A Export-Import Bank of India. CRISIL A Steel Authority of India Ltd. CARE A Punjab & Sind Bank CRISIL A Public Sector Undertakings - Total Reverse Repo 2.11 TERM DEPOSITS YES Bank Ltd Term Deposits - Total 1.25 Collateral Borrowing & Lending obligation 0.04 Net Current /(Liabilities) 0.11 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.12 years Kotak Floater Short Term Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) RATING PROFILE (%) Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds A1+, A1+(SO), AAA, IND A CBLO & Term Deposits & Rev.Repo AA- Net Current Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 21 Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

23 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` 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: 0.48%, Modified Duration: 0.53 yrs, Portfolio Yield:7.92% 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: 0.73% Direct: 0.38% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd.^ CRISIL AAA 4.82 Kotak Mahindra Prime Ltd. CRISIL AAA 4.65 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 4.20 Shriram Transport Finance Co Ltd. CRISIL AA Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Shriram Transport Finance Co Ltd. FITCH IND AA Reliance Jio Infocomm Limited^ CRISIL AAA 2.12 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 1.49 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.53 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.42 Nabha Power Ltd. ICRA AAA(SO) 0.32 Tata Capital Financial Services Limited CRISIL AA Tata Capital Housing Finance Ltd; CRISIL AA Tata Motors Finance Ltd CRISIL AA 0.15 L & T Finance Limited ICRA AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India. CRISIL AAA 2.35 Steel Authority of India Ltd. CARE AA Small Industries Development Bank Of India. CARE AAA 0.95 National Bank for Agriculture and Rural Development CRISIL AAA 0.03 Public Sector Undertakings - Total 4.38 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Note:^ Partly blocked against Interest Rate Swap(IRS) HDFC Bank Ltd. ICRA A AXIS Bank Ltd. CRISIL A Piramal Enterprises Limited ICRA A HDFC Ltd. ICRA A Au Financiers (India) Limited FITCH IND A IL & FS Financial Services Ltd. ICRA A ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Canara Bank CRISIL A National Bank for Agriculture and Rural Development CRISIL A Corporation Bank CRISIL A IDBI Bank Ltd. CRISIL A Export-Import Bank of India. CRISIL A Power Finance Corporation Ltd. CRISIL A Rural Electrification Corporation Ltd. CARE A Steel Authority of India Ltd. CARE A Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 0.32 Net Current /(Liabilities) 0.12 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.57 years. K o t a k Tre a s u r y A d v a n t a g e F u n d N AV a s o n A p r i l 2 9, : ` ( D a i l y D i v i d e n d O p t i o n ), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) CBLO & Term Deposits & Rev. Repo Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Net Current 19.2 RATING PROFILE AA+, IND AA+, AA, AA A1+, AAA, AAA(SO), IND A1+, IND AAA CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

24 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 0.61%, Debt Instruments Debentures and Bonds Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA State Bank Of India. CRISIL AAA Rural Electrification Corporation Ltd. CRISIL AAA 8.43 Vijaya Bank CARE AA Punjab National Bank CRISIL AAA 4.13 Public Sector Undertakings - Total Government Dated Securities 8.47% State Government SOV Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A HDFC Bank Ltd. ICRA A ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Development CRISIL A Public Sector Undertakings - Total Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 0.90 years. Kotak Banking And PSU Debt Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Modified Duration: 0.82 yrs, Portfolio Yield: 7.63% 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:0.54% Direct: 0.13% Commercial Paper (CP)/Certificate of Deposits (CD) Net Current Debentures and Bonds Government Dated Securities AAA, A1+, SOV Net Current AA Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 23 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` 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: 0.45%, Modified Duration: 0.50 yrs, Portfolio Yield: 9.30% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.13% Direct: 0.37% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA A1+(SO) 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 Muthoot Fincorp Ltd. CRISIL A 5.24 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 4.61 Emami Realty Ltd ( Secured by Equity shares of Emami Ltd ) BRICKWORK BWR AA-(SO) 2.87 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 2.85 Janalakshami Financial Services Ltd. ICRA A 2.64 Sterlite Industries (India) Ltd CRISIL AA Piramal Enterprises Limited ICRA AA 2.11 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 1.85 HPCL Mittal Energy Ltd. ICRA AA Tata Capital Financial Services Limited CRISIL AA Shriram Transport Finance Co Ltd. CRISIL AA Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 0.79 Indostar Capital Finance Private Limited CARE AA Muthoot Finance Ltd ICRA AA HPCL Mittal Energy Ltd. ICRA AA Muthoot Finance Ltd CRISIL AA Tata Motors Finance Ltd CRISIL AA 0.26 Aspire Home Finance Corporation Ltd ICRA AA HDB Financial Services Ltd. CARE AAA 0.07 Corporate Debt/Financial Institutions - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A HDFC Bank Ltd. ICRA A RHC Finance Private Limited FITCH IND A Aditya Birla Money Ltd CRISIL A AXIS Bank Ltd. CRISIL A JM Financial Products Limited ICRA A Piramal Enterprises Limited ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings IDBI Bank Ltd. CRISIL A Export-Import Bank of India. CRISIL A Small Industries Development Bank Of India. CARE A Corporation Bank CRISIL A Bank of Maharashtra CRISIL A National Bank for Agriculture and Rural Development CRISIL A Power Finance Corporation Ltd. CRISIL A Canara Bank CRISIL A Public Sector Undertakings - Total Reverse Repo 1.81 Collateral Borrowing & Lending obligation 0.08 Net Current /(Liabilities) 2.14 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.58 years Kotak Duration Fund NAV as on April 29, 2016: ` (Retail Plan-Growth Option), ` (Retail plan Weekly Dividend),` (Retail Plan-Monthly Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) RATING PROFILE A1+, A1+(SO), AAA, IND A1+ A+, A, BWR A(SO) AA+, IND AA+, AA, AA-, BWR AA-(SO) Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 1.08%, Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 8.24 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 6.49 Dewan Housing Finance Corporation Ltd. CARE AAA 5.22 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 4.88 Fullerton India Credit Co. Ltd. CARE AAA 4.36 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 4.36 HDB Financial Services Ltd. CRISIL AAA 4.10 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 3.40 Kotak Mahindra Prime Ltd. CRISIL AAA 2.79 HDFC Ltd. CRISIL AAA 2.65 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.84 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.76 Bajaj Finance Limited FITCH IND AAA 0.03 IDFC Bank Limited ICRA AAA 0.03 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.03 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 4.41 National Bank for Agriculture and Rural Development CRISIL AAA 1.84 Rural Electrification Corporation Ltd. CRISIL AAA 1.33 Issuer/Instrument Industry/ % to Net Rating State Bank Of India. CRISIL AAA 1.23 Export-Import Bank of India. CRISIL AAA 0.42 Steel Authority of India Ltd. FITCH IND AA 0.35 Public Sector Undertakings - Total 9.58 Government Dated Securities 8.4% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.33 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 5.70 Public Sector Undertakings Bank of Maharashtra CRISIL A Power Finance Corporation Ltd. CRISIL A Export-Import Bank of India. CRISIL A Punjab & Sind Bank CRISIL A IDBI Bank Ltd. CRISIL A National Bank for Agriculture and Rural Development CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 8.99 Reverse Repo 5.46 Treasury Bills 91 Days Treasury Bill 07/07/2016 SOV 5.15 Treasury Bills - Total 5.15 Collateral Borrowing & Lending obligation 0.03 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.54 years. Kotak Bond Short Term Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) Modified Duration: 2.02 yrs, Portfolio Yield: 8.12% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth - `5000 & above (ii) Dividend Payout (Monthly Dividend) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 6 months & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 0.25% ii) For redemptions / switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Total Expense Ratio Regular: 1.35%; Direct: 0.26% 25 SECTOR ALLOCATION (%) 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 Treasury Bills A1+, AAA, AAA(SO), IND AAA, SOV Net Current CBLO & Term Deposits & Rev.Repo IND AA Debentures and Bonds Government Dated Securities CBLO & Term Deposits & Rev.Repo Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 23

27 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular (discontinued for further subscriptions w.e.f. October 1, 2012) b) Plan A (Previously known as Institutional Plan) c) Direct Plan / Options: Dividend Payout, Dividend Reinvestment, Growth & Bonus Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 2.58%, Modified Duration: 2.13 yrs, Portfolio Yield: 7.89% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 1.00%, ii) For redemptions/ switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: NIL, iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.14% Direct: 0.41% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 7.92 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 2.60 LIC Housing Finance Ltd. CRISIL AAA 1.51 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 1.30 Tata Capital Housing Finance Ltd; CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.40 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 2.40 Export-Import Bank of India. CRISIL AAA 0.40 Rural Electrification Corporation Ltd. CRISIL AAA 0.11 Public Sector Undertakings - Total 2.91 Government Dated Securities 8.4% Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV 0.39 Government Dated Securities - Total Reverse Repo Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.97 years Kotak Flexi Debt Plan A Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) Investors understand that their principal will be at moderately low risk RATING PROFILE AAA, AAA(SO), SOV Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds Net Current 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. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` 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: 0.83%, Modified Duration: 1.59yrs, Portfolio Yield: 9.87% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemptions/ switch outs (including SIP/ STP) within 1 year from the date of allotment of units,irrespective of the amount of investment: 1%. II) For redemptions/ switch outs (including SIP/ STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.62% Direct:0.56% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions DLF Emporio Ltd CRISIL AA 6.87 Janalakshami Financial Services Ltd. ICRA A 6.81 Sterlite Industries (India) Ltd CRISIL AA Au Financiers (India) Limited FITCH IND A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 6.43 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 Reliance Jio Infocomm Limited CRISIL AAA 4.90 HPCL Mittal Energy Ltd. ( ) ICRA AA Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Equitas Micro Finance Ltd. CARE A 2.68 Dalmia Bharat Ltd ICRA AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 1.70 Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 1.67 Shriram Transport Finance Co Ltd. FITCH IND AA Haldhar Developers Private Limited ( backed by unconditional and Issuer/Instrument Industry/ % to Net Rating irrevocable undertaking by Piramal ) ICRA LAA-(SO) 1.55 HPCL Mittal Pipelines Ltd. ICRA AA Peninsula Land Limited ICRA A 1.26 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A HDB Financial Services Ltd. CRISIL AAA 0.20 Tata Capital Housing Finance Ltd; CRISIL AA HDFC Ltd. CRISIL AAA 0.08 LIC Housing Finance Ltd. CRISIL AAA 0.06 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Indian Overseas Bank CARE CARE BBB 2.22 Bank of India BRICKWORK BWR AA Tamil Nadu Generation & Distribution Corporation L ( backed by unconditional and irrevocable guarantee of Tamilnadu State Government ) ICRA A-(SO) 0.59 Public Sector Undertakings - Total 3.47 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A HDFC Bank Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. FITCH IND A Corporation Bank CRISIL A Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 4.95 Reverse Repo 3.51 Collateral Borrowing & Lending obligation 0.13 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 : 1.95 years. Kotak Income Opportunities Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), `10.73 (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual). SECTOR ALLOCATION (%) Net Current Debentures and Bonds CBLO & Term Deposits & Rev.Repo Commercial Paper (CP)/Certificate of Deposits (CD) AA+, IND AA+, AA, AA-, BWR AA-, LAA-(SO) A+, IND A+, A, A-(SO) CBLO & Term Deposits & Rev.Repo A1+, AAA, IND A1+ CARE BBB Net Current Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` Plans: a) Regular & b) Direct Plan Options: Dividend Payout, Dividend Reinvestment and Growth (applicable for all plans) Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.17%, Modified Duration: 2.28 yrs, Portfolio Yield: 8.16% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1for purchase and for `0.01 for switches. Ideal Investment Horizon: 1 Year & Above Entry Load: Nil. Exit Load: 1) For redemptions / switch outs (including SIP/STP) within 3 months from the date of allotment of units, irrespective of the amount of investment 2.00%; 2) For redemptions / switch outs (including SIP/STP) after 3 months from the date of allotment of units, irrespective of the amount of investment Nil Regular: 0.50% Direct: 0.30% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 8.87 Bajaj Finance Limited FITCH IND AAA 8.86 HDFC Ltd. CRISIL AAA 8.38 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 6.96 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 6.91 Reliance Ports And Terminals Limited CRISIL AAA 6.80 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 5.56 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 4.92 Reliance Jio Infocomm Limited CRISIL AAA 4.92 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.79 Inox Air Products Ltd. CRISIL AA 0.99 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.98 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 6.99 Rural Electrification Corporation Ltd. CRISIL AAA 5.94 Small Industries Development Bank Of India. CARE AAA 4.91 Export-Import Bank of India. CRISIL AAA 1.74 Airports Authority of India CRISIL AAA 0.99 National Bank for Agriculture and Rural Development CRISIL AAA 0.94 Steel Authority of India Ltd. FITCH IND AA 0.78 Public Sector Undertakings - Total Reverse Repo 5.72 Net Current /(Liabilities) 4.06 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.84 years Kotak Corporate Bond Fund NAV as on April 29, 2016: ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend),` (Standard Plan-Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Standard Plan-Daily Dividend), ` (Retail Plan-Growth Option), ` (Retail Plan- Weekly Dividend), ` (Retail Plan- Monthly Dividend), ` (Retail Plan-Daily Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend), ` (Institutional Plan-Growth Option) Debentures and Bonds Investors understand that their principal will be at moderately low risk AAA, AAA(SO), IND AAA AA+, AA, IND AA Net Current CBLO & Term Deposits & Rev.Repo Regular income over short term Income by investing in fixed income securities of varying maturities & credit * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

30 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 1.28%, Modified Duration: 2.09 yrs, Portfolio Yield: 9.71% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For exit on or within 18 months from date of allotment of units: 2%, ii) For exit after 18 months from the date of allotment of units: Nil (applicable for all plans) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.69% Direct: 0.55% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA HPCL Mittal Energy Ltd. ICRA AA Prestige Estates Projects Limited ICRA A Muthoot Finance Ltd ICRA AA ECL Finance Limited CARE AA 4.53 Ashirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) CARE A SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Janalakshami Financial Services Ltd. ICRA A 2.95 Peninsula Land Limited ICRA A 2.80 Intime Properties Ltd. FITCH IND AAA 2.79 Equitas Micro Finance Ltd. CARE A 2.56 Tata Power Company Ltd. CRISIL AA Dalmia Bharat Ltd ICRA AA Au Financiers (India) Limited FITCH IND A Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) BRICKWORK BWR AA Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA 1.60 Shriram Transport Finance Co Ltd. FITCH IND AA Sterlite Industries (India) Ltd CRISIL AA Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA LAA-(SO) 1.30 HPCL Mittal Energy Ltd. ( ) ICRA AA Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 0.96 India Infoline Finance Limited CARE AA 0.95 Reliance Ports And Terminals Limited CRISIL AAA 0.93 HDFC Ltd. CRISIL AAA 0.73 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.68 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.64 IOT Utkal Energy Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 1.99 Bank of India BRICKWORK BWR AA Rural Electrification Corporation Ltd. CRISIL AAA 0.39 Public Sector Undertakings - Total 4.00 Government Dated Securities 1.44% Central Government SOV 1.03 Government Dated Securities - Total 1.03 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Bank Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Ultratech Cement Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 4.88 Public Sector Undertakings Export-Import Bank of India. CRISIL A Steel Authority of India Ltd. FITCH IND A Corporation Bank CRISIL A Public Sector Undertakings - Total Reverse Repo 1.50 Collateral Borrowing & Lending obligation 0.14 Net Current /(Liabilities) 2.89 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.79 years Kotak Medium Term Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Government Dated Securities Investors understand that their principal will be at moderate risk RATING PROFILE A1+, AAA, AAA(SO), IND A1+, IND AAA, SOV IND AA+, AA, AA-, BWR AA-, LAA-(SO) A+, IND A+, A, A- Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Deposit (discontinued for further subscriptions w.e.f. October 1, 2012) B) Plan A (Previously known as Regular Plan) C) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 4.39% Modified Duration: 8.19 yrs Portfolio Yield: 8.09% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.77% Direct: 0.97% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Energy Ltd. ICRA AA India InfraDebt Ltd CRISIL AAA 1.21 Shriram Transport Finance Co Ltd. CRISIL AA HDFC Ltd. CRISIL AAA 0.44 India Infoline Finance Limited CARE AA 0.12 Kotak Mahindra Prime Ltd. CRISIL AAA 0.12 Tata Sons Ltd. CRISIL AAA 0.07 LIC Housing Finance Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total 4.24 Public Sector Undertakings Canara Bank CRISIL AAA 7.83 Bank of India BRICKWORK BWR AA Rural Electrification Corporation Ltd. CRISIL AAA 0.02 Power Grid Corporation of India Ltd. CRISIL AAA 0.01 Public Sector Undertakings - Total 9.36 Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % Central Government SOV 0.01 Government Dated Securities - Total Money Market Instruments Issuer/Instrument Industry/ % to Net Rating Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Enterprises Limited ICRA A HDFC Ltd. ICRA A Corporate Debt/Financial Institutions - Total 0.17 Public Sector Undertakings Small Industries Development Bank Of India. CRISIL A IDBI Bank Ltd. CRISIL A Steel Authority of India Ltd. FITCH IND A Public Sector Undertakings - Total 1.31 Reverse Repo 0.24 Net Current /(Liabilities) 3.02 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Plan A Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan) SECTOR ALLOCATION (%) Government Dated Securities Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Net Current A1+, AAA, IND A1+, SOV AA+, AA, AA-, BWR AA- Net Current CBLO & Term Deposits & Rev.Repo Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

32 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 4.61%, B) PF & Trust Plan: 4.60%, Modified Duration: 8.46 yrs, Portfolio Yield: 7.90% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: (a) Regular Plan - Entry: Nil. (b) PF & Trust Plan - Entry: Nil. (applicable for all plans) Exit Load: (a) Regular Plan - Exit: Nil. (b) PF&Trust Plan - Exit: Nil. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.40% Direct: 0.40% Issuer/Instrument Industry/ % to Net Rating Government Dated Securities 7.59% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 2.32 Issuer/Instrument Industry/ % to Net Rating 8.24% Central Government SOV % State Government SOV 0.11 Government Dated Securities - Total Treasury Bills 364 Days Treasury Bill 04/08/2016 SOV 0.89 Treasury Bills - Total 0.89 Collateral Borrowing & Lending obligation 1.01 Net Current /(Liabilities) 1.36 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 April 29, 2016: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) Treasury Bills CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

33 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 5.87% Modified Duration:4.80yrs Portfolio Yield: 7.82% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load Regular: 1.91% Direct: 1.41% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.63 Tata Motors Ltd. Auto 1.48 Infosys Ltd. Software 0.95 ICICI Bank Ltd. Banks 0.90 HDFC Bank Ltd. Banks 0.82 Larsen And Toubro Ltd. Construction Project 0.81 Britannia Industries Ltd. Consumer Non Durables 0.69 Hindustan Petroleum Corporation Ltd Petroleum Products 0.68 Whirlpool of India Ltd. Consumer Durables 0.66 Tata Communications Ltd Telecom - Services 0.63 Dish TV India Ltd. Media and Entertainment 0.61 The Ramco Cements Ltd Cement 0.58 Motherson Sumi Systems Ltd. Auto Ancillaries 0.57 Equitas Holdings Ltd Finance 0.56 IFB Industries Ltd. Consumer Durables 0.46 Maruti Suzuki India Limited Auto 0.46 Hawkins Cooker Ltd Household Appliances 0.44 State Bank Of India Banks 0.42 Dalmia Bharat Ltd Cement 0.39 Hindalco Industries Ltd Non - Ferrous Metals 0.39 IndusInd Bank Ltd. Banks 0.38 Shoppers Stop Ltd. Retailing 0.38 Marksans Pharma Ltd Pharmaceuticals 0.37 Tata Steel Limited. Ferrous Metals 0.37 Axis Bank Ltd Banks 0.34 Yes Bank Ltd Banks 0.34 Engineers India Ltd. Construction Project 0.33 Steel Authority of India Ltd. Ferrous Metals 0.31 Sun TV Limited. Media and Entertainment 0.30 Tech Mahindra Ltd. Software 0.27 Century Textiles & Industries Ltd. Cement 0.26 Techno Electric & Engineering Co Ltd. Construction Project 0.25 Finolex Cables Ltd. Industrial Products 0.23 Bharat Petroleum Corporation Ltd. Petroleum Products 0.21 Hero MotoCorp Ltd. Auto 0.20 Issuer/Instrument Industry/ % to Net Rating HSIL Ltd. Consumer Durables 0.19 Pennar Engineered Building Systems Limited Ferrous Metals 0.14 Federal Bank Ltd. Banks 0.13 HDFC Ltd. Warrants Finance 0.08 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 0.08 Public Sector Undertakings - Total 0.08 Government Dated Securities 7.59% Central Government SOV % State Government SOV % State Government SOV 8.19 Government Dated Securities - Total Reverse Repo 6.35 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.48 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments :7.65 years. Kotak Monthly Income Plan Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk RATING PROFILE CBLO & Term Deposits & Rev.Repo AAA, SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

34 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.17%, Modified Duration:2.75 yrs, Portfolio Yield: 8.13% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `10000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: i) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil. iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.45% Direct: 2.05% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.26 Infosys Ltd. Software 1.21 Reliance Industries Ltd. Petroleum Products 0.65 IndusInd Bank Ltd. Banks 0.62 Lupin Ltd. Pharmaceuticals 0.59 Bharat Petroleum Corporation Ltd. Petroleum Products 0.58 Zee Entertainment Enterprises Ltd Media and Entertainment 0.58 ITC Ltd. Consumer Non Durables 0.56 Maruti Suzuki India Limited Auto 0.56 Hindustan Unilever Ltd. Consumer Non Durables 0.52 Grasim Industries Ltd. Cement 0.49 Bajaj Auto Ltd. Auto 0.47 Asian Paints Ltd. Consumer Non Durables 0.46 Hero MotoCorp Ltd. Auto 0.39 Bajaj Finance Limited Finance 0.36 Tata Consultancy Services Ltd. Software 0.36 Dr Reddys Laboratories Ltd Pharmaceuticals 0.33 Equitas Holdings Ltd Finance 0.33 Tata Motors Ltd. Auto 0.33 Britannia Industries Ltd. Consumer Non Durables 0.30 ICICI Bank Ltd. Banks 0.26 Yes Bank Ltd Banks 0.26 Axis Bank Ltd Banks 0.25 Eicher Motors Ltd Auto 0.25 Larsen And Toubro Ltd. Construction Project 0.25 Ultratech Cement Ltd. Cement 0.23 Bajaj Finserv Ltd. Finance 0.22 HCL Technologies Ltd. Software 0.21 Power Grid Corporation Of India Ltd Power 0.21 Bosch Limited Auto Ancillaries 0.20 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.18 Mahindra & Mahindra Ltd. Auto 0.18 Ashok Leyland Ltd. Auto 0.13 Wipro Ltd. Software 0.13 GAIL (India) Ltd. Gas 0.12 Petronet LNG Ltd. Gas 0.12 Dish TV India Ltd. Media and Entertainment 0.11 Marico Ltd. Consumer Non Durables 0.11 HDFC Ltd. Finance 0.10 JSW Steel Ltd. Ferrous Metals 0.10 Divi s Laboratories Limited Pharmaceuticals 0.09 National Thermal Power Corporation Limited Power 0.09 Sun Pharmaceuticals Issuer/Instrument Industry/ % to Net Rating Industries Ltd. Pharmaceuticals 0.08 Tata Steel Limited. Ferrous Metals 0.08 Sun Pharma Advance Research Co.Ltd Pharmaceuticals 0.07 Aurobindo Pharma Ltd. Pharmaceuticals 0.06 Bharti Airtel Ltd. Telecom - Services 0.06 Cadila Healthcare Ltd. Pharmaceuticals 0.06 Bank Of Baroda Banks 0.05 Cummins India Ltd. Industrial Products 0.05 Emami Ltd. Consumer Non Durables 0.05 Titan Company Ltd. Consumer Durables 0.04 Just Dial Limited Software 0.03 TVS Motors Company Ltd Auto 0.03 UPL Ltd Pesticides 0.03 Coal India Ltd. Minerals/Mining 0.02 Indian Oil Corporation Ltd Petroleum Products 0.02 Cipla Ltd. Pharmaceuticals 0.01 Hindustan Petroleum Corporation Ltd Petroleum Products 0.01 IDFC Bank Limited Banks 0.01 Oracle Financial Services Software Ltd Software 0.01 Tech Mahindra Ltd. Software 0.01 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.55 Mutual Fund Units - Total 8.55 Futures CNX NIFTY-MAY Futures (Market value represents Notional Value) - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Hindalco Industries Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total 2.89 Government Dated Securities 8.53% State Government SOV % State Government SOV Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 3.61 Collateral Borrowing & Lending obligation 3.97 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 3.63 years. Kotak Multi Asset Allocation Fund NAV as on April 29, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Debentures and Bonds Government Dated Securities Net Current Derivatives Mutual Fund Units Investors understand that their principal will be at moderate risk Mutual Fund Units AA Derivatives SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on 30 April 2016 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Developers and Constructions Private Limited ( Guaranteed by a Piramal Group Company ) 0.16 Adani Port and Special Economic Zone Limited 0.24 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd ) 0.31 Aditya Birla Finance Ltd Aditya Birla Money Ltd 0.06 Airports Authority of India 0.06 Andhra Bank 0.25 Ashirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.11 Aspire Home Finance Corporation Ltd 0.16 Au Financiers (India) Limited 0.74 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.17 Bajaj Finance Limited 0.90 Bank of India 0.22 Bank of Maharashtra 0.22 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.10 Bharti enterprises (Holding) Pvt. Ltd CBLO/REVERSE REPO 1.95 CESC Ltd Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.50 Canara Bank 1.79 Central Government 9.41 Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.23 Corporation Bank 0.88 DLF Emporio Ltd 0.23 Dalmia Bharat Ltd 0.23 Dewan Housing Finance Corporation Ltd ECL Finance Limited 0.53 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.18 Edelweiss Housing Finanance Limited 0.12 Edisons Untility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.23 Emami Enclave Markets Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.10 Emami Realty Ltd ( Secured by Equity shares of Emami Ltd ) 0.25 Equitas Micro Finance Ltd Export-Import Bank of India Fullerton India Credit Co. Ltd Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.42 Grasim Industries Ltd Gruh Finance Ltd 0.90 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) 0.13 Hero Realty Ltd ( Guaranteed by a Hero Group company ) 0.23 Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.05 Hindalco Industries Ltd Hinduja Leyland Finance Ltd ICICI Bank Ltd ICICI Home Finance Company Limited 0.24 IDBI Bank Ltd IDFC Bank Limited 0.20 IL & FS Financial Services Ltd IOT Utkal Energy Services Ltd Idea Cellular Ltd India Infoline Finance Limited 1.73 India Infoline Housing Finance Ltd India InfraDebt Ltd 0.11 Indiabulls Housing Finance Limited 0.45 Indian Oil Corporation Ltd Indian Overseas Bank 0.08 Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.17 Infrastructure Leasing & Financial Services Limite 0.02 Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) 0.52 Inox Air Products Ltd Intime Properties Ltd Issuer Name %age of Exposure to Debt AUM JM Financial Products Limited 0.06 Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.07 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.84 Kotak Mahindra Bank Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.34 LIC Housing Finance Ltd MA MAULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.17 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 0.60 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.40 Muthoot Finance Ltd 0.22 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.49 National Bank for Agriculture and Rural Developmen 4.23 National Housing Bank 0.30 ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.01 PNB Housing Finance Ltd Peninsula Land Limited 0.13 Piramal Enterprises Limited 2.15 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.05 Prestige Estates Projects Limited 0.46 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.20 Punjab & Sind Bank 1.24 Punjab National Bank 0.03 RHC Finance Private Limited 0.23 Raymond Ltd Reliance Capital Ltd Reliance Jio Infocomm Limited 2.97 Reliance Ports And Terminals Limited 0.05 Reliance Retail Limited 1.12 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.20 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.24 Sadbhav Engineering Ltd Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.23 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.14 Shivprasad Realty Pvt Ltd ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.12 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.08 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.05 State Bank Of India State Government 4.78 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.39 Sundaram BNP Paribas Home Finance Ltd 0.10 Sundaram Finance Ltd Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.60 Tamil Nadu Generation & Distribution Corporation L ( backed by unconditional and irrevocable guarantee of Tamilnadu State Government ) 0.02 Tata Capital Financial Services Limited 0.50 Tata Capital Housing Finance Ltd; 0.80 Tata Motors Finance Ltd 0.21 Tata Power Company Ltd Tata Sons Ltd Tata Steel Limited 2.24 Ultratech Cement Ltd Vijaya Bank 0.09 Vizag General Cargo Berth Private Limited ( backed by unconditional and irrevocable guarantee of Vedanta Ltd ) 0.02 YES Bank Ltd TOTAL Industry / Sector %age of Exposure to Debt AUM BANK CASH(CBLO/REVERSE REPO) 1.95 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.69 TOTAL Includes Hybrid schemes - debt scheme schemes having equity exposure 34

36 FUND OF FUNDS KOTAK ASSET ALLOCATOR FUND An Open Ended Fund of Funds (Earlier known as Kotak Equity FOF ) Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate long-term capital appreciation from a portfolio created by investing in specified open-ended equity, and debt schemes of Kotak Mahindra Mutual Fund. However, there is no assurance that the investment objective of the will be realized. August 9, 2004 Mr. Deepak Gupta* Crisil Balanced Fund AAUM (` In Crores) AAUM as on Apr 30, 2016: ` AUM (` In Crores) AUM as on Apr 30, 2016: `27.17 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: 1.50% Direct:1.35% 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 Liquid Plan A Debt Kotak Floater Long Term Direct Growth Debt 7.74 Mutual Fund Units - Total Collateral Borrowing & Lending obligation 1.84 Net Current /(Liabilities) 0.80 Kotak Asset Allocator Fund NAV as on April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt Others CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 35 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the scheme is to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity related securities of companies having assets, products or operations in the United States. However, there is no assurance that the investment objective of the will be realized. December 20, 2013 Mr. Deepak Gupta* Standard & Poor's 500 Total Return Net Index in USD is the benchmark of the underlying scheme. The same converted into INR using RBI reference rate will be the benchmark for the scheme. AAUM (` In Crores) AAUM as on Apr 30, 2016: `4.90 AUM (` In Crores) AUM as on Apr 30, 2016: `4.90 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.40% Direct: 0.65% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 2.24 Kotak US Equity Fund NAV as on April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), `11.79 (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund 2.24 Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

38 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation by investing in an overseas mutual fund scheme that invest in a diversified portfolio of securities as prescribed by SEBI from time to time in global emerging markets. However, there is no assurance that the objective of the scheme will be realized. September 26, 2007 s Mr. Deepak Gupta (Dedicated fund manager for s overseas investment) & Mr.Abhishek Bisen* MSCI Emerging Market AAUM (` In Crores) AAUM as on Apr 30, 2016: `29.61 AUM (` In Crores) AUM as on Apr 30, 2016: `29.15 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: 1.89% Direct: 1.39% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units MGF Asian Small Equity Fund Class I Overseas Mutual Fund ishares MSCI Emerging Markets ETF Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 4.80 Net Current /(Liabilities) 0.25 Kotak Global Emerging Market Fund NAV as on April 29, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Investment in overseas mutual fund schemes that invest in a diversified portfolio of securities in global emerging markets * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

39 FUND OF FUNDS KOTAK WORLD GOLD FUND (formerly known as PineBridge World Gold Fund ) An Open Ended Fund of Funds INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the is to provide long term capital appreciation by investing predominantly in units of Falcon Gold Equity Fund. The may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes. The may also invest a certain portion of its corpus in debt and money market securities and/or units of debt/liquid schemes of Mutual Funds, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the will be realized. June 6, 2008 Mr. Deepak Gupta* Financial Times Gold Mines Total Price Index, in USD is the benchmark of Falcon Gold Equity Fund. The above translated to INR using the RBI Reference Rate will be the benchmark of Kotak World Gold Fund. AAUM (` In Crores) AAUM as on Apr 30, 2016: `44.29 AUM (` In Crores) AUM as on Apr 30, 2016: `48.28 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.89% Direct: 1.29% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Falcon Gold Equity ASIA Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 3.62 Net Current /(Liabilities) Kotak World Gold Fund NAV as on April 29, 2016: `8.359 (Dividend Option), `8.566 (Direct Dividend Option), `10.084(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund Others CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no

40 ETF SCHEMES KOTAK GOLD ETF An Open Ended Gold Exchange Traded Fund The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error. July 27, 2007 Mr. Abhishek Bisen* Physical Gold AAUM (`In Crores) AAUM as on Apr 30, 2016: ` AUM (`In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on April 29, 2016: ` Tracking Error: 0.06 NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 39 * For experience, please refer page For scheme performance, please refer page no 44-53

41 ETF SCHEMES KOTAK NIFTY ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the CNX Nifty subject to tracking errors. February 2, 2010 Mr. Deepak Gupta* Nifty 50 AAUM (`In Crores) AAUM as on Apr 30, 2016: ` AUM (`In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 30.78% Tracking Error: 0.09% Through Exchange:1 Unit, Through AMC: 5000 Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular:0.10% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software 8.42 HDFC Bank Ltd. Banks 7.78 ITC Ltd. Consumer Non Durables 6.38 HDFC Ltd. Finance 5.99 Reliance Industries Ltd. Petroleum Products 5.66 ICICI Bank Ltd. Banks 4.80 Tata Consultancy Services Ltd. Software 4.71 Larsen And Toubro Ltd. Construction Project 3.59 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.06 Tata Motors Ltd. Auto 2.76 Axis Bank Ltd Banks 2.75 Kotak Mahindra Bank Ltd. Banks 2.57 Hindustan Unilever Ltd. Consumer Non Durables 2.16 Mahindra & Mahindra Ltd. Auto 2.13 State Bank Of India Banks 2.05 IndusInd Bank Ltd. Banks 1.78 Maruti Suzuki India Limited Auto 1.76 Bharti Airtel Ltd. Telecom - Services 1.72 HCL Technologies Ltd. Software 1.48 Asian Paints Ltd. Consumer Non Durables 1.36 Dr Reddys Laboratories Ltd Pharmaceuticals 1.36 Oil & Natural Gas Corporation Ltd. Oil 1.36 Lupin Ltd. Pharmaceuticals 1.34 Coal India Ltd. Minerals/Mining 1.27 Hero MotoCorp Ltd. Auto 1.27 Wipro Ltd. Software 1.24 Bajaj Auto Ltd. Auto 1.21 National Thermal Power Corporation Limited Power 1.20 NAV Issuer / Instrument Industry/ % to Net Rating Ultratech Cement Ltd. Cement 1.12 Power Grid Corporation Of India Ltd Power 1.10 Yes Bank Ltd Banks 1.08 Tech Mahindra Ltd. Software 1.05 Cipla Ltd. Pharmaceuticals 0.95 Grasim Industries Ltd. Cement 0.92 Bharat Petroleum Corporation Ltd. Petroleum Products 0.89 Eicher Motors Ltd Auto 0.85 Tata Steel Limited. Ferrous Metals 0.82 Zee Entertainment Enterprises Ltd Media and Entertainment 0.79 Adani Port and Special Economic Zone Limited Transportation 0.76 Aurobindo Pharma Ltd. Pharmaceuticals 0.71 Bharti Infratel Ltd. Telecom - Equipment & Accessories 0.69 Bosch Limited Auto Ancillaries 0.62 Ambuja Cements Ltd Cement 0.60 GAIL (India) Ltd. Gas 0.59 Bank Of Baroda Banks 0.52 Tata Motors Ltd - DVR Auto 0.52 ACC Ltd. Cement 0.47 Idea Cellular Ltd. Telecom - Services 0.46 Tata Power Co. Ltd. Power 0.45 Hindalco Industries Ltd Non - Ferrous Metals 0.43 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.40 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.05 Kotak Nifty ETF NAV as on April 29, 2016 : ` Sector Allocation (%) Investors understand that their principal will be at moderate risk Banks Software Consumer Non Durables Auto Pharmaceuticals Finance Petroleum Products Construction Project Cement Power Others Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

42 ETF SCHEMES KOTAK SENSEX ETF An Open Ended Exchange Traded Fund [Eligible scheme under Rajiv Gandhi Equity Savings (RGESS)] The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the BSE SENSEX subject to tracking errors. June 6, 2008 Mr. Deepak Gupta* S&P BSE SENSEX AAUM (`In Crores) AAUM as on Apr 30, 2016: ` AUM (`In Crores) AUM as on Apr 30, 2016: ` A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 23.75% Tracking Error: 0.12% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 0.25% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Infosys Ltd. Software HDFC Bank Ltd. Banks 9.64 ITC Ltd. Consumer Non Durables 7.89 HDFC Ltd. Finance 7.42 Reliance Industries Ltd. Petroleum Products 7.01 ICICI Bank Ltd. Banks 5.94 Tata Consultancy Services Ltd. Software 5.60 Larsen And Toubro Ltd. Construction Project 4.44 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 3.79 Axis Bank Ltd Banks 3.44 Tata Motors Ltd. Auto 3.37 Hindustan Unilever Ltd. Consumer Non Durables 2.67 Mahindra & Mahindra Ltd. Auto 2.64 State Bank Of India Banks 2.60 Bharti Airtel Ltd. Telecom - Services 2.20 Maruti Suzuki India Limited Auto 2.18 Dr Reddys Laboratories Ltd Pharmaceuticals 1.71 Asian Paints Ltd. Consumer Non Durables 1.69 Oil & Natural Gas Kotak Sensex ETF NAV as on April 29, 2016 : ` NAV Issuer / Instrument Industry/ % to Net Rating Corporation Ltd. Oil 1.69 Lupin Ltd. Pharmaceuticals 1.66 Coal India Ltd. Minerals/Mining 1.57 Wipro Ltd. Software 1.54 Hero MotoCorp Ltd. Auto 1.53 Bajaj Auto Ltd. Auto 1.46 National Thermal Power Corporation Limited Power 1.24 Cipla Ltd. Pharmaceuticals 1.17 Tata Steel Limited. Ferrous Metals 1.01 Adani Port and Special Economic Zone Limited Transportation 0.94 GAIL (India) Ltd. Gas 0.73 Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.49 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.29 Sector Allocation (%) Banks Software Auto Consumer Non Durables Pharmaceuticals Finance Petroleum Products Construction Project Telecom - Services Others Oil Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 41 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

43 ETF SCHEMES KOTAK BANKING ETF An Open Ended Exchange Traded Fund The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of stocks as represented by the CNX Bank Index subject to tracking errors. There can be no assurance or guarantee that the investment objective of the plan will be achieved. December 04, 2014 Mr. Deepak Gupta* Nifty Bank AAUM (`In Crores) AAUM as on Apr 30, 2016: ` AUM (`In Crores) AUM as on Apr 30, 2016: ` Option - Dividend Payout Ratios Portfolio Turnover: 35.62% Tracking Error: 0.10% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular:0.20% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks ICICI Bank Ltd. Banks Axis Bank Ltd Banks Kotak Mahindra Bank Ltd. Banks State Bank Of India Banks 8.52 IndusInd Bank Ltd. Banks 7.43 Yes Bank Ltd Banks 4.49 Bank Of Baroda Banks 2.17 Kotak Banking ETF NAV as on April 29, 2016: ` NAV Issuer / Instrument Industry/ % to Net Rating Federal Bank Ltd. Banks 1.15 Punjab National Bank Banks 0.94 Canara Bank Banks 0.42 Bank of India Banks 0.33 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.02 Sector Allocation (%) Banks Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

44 ETF SCHEMES KOTAK PSU BANK ETF An Open Ended Exchange Traded Fund The investment objective of the scheme is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors. November 8, 2007 Mr. Deepak Gupta* Nifty PSU Bank AAUM (`In Crores) AAUM as on Apr 30, 2016: ` AUM (`In Crores) AUM as on Apr 30, 2016: `15.11 A) Regular Plan B) Direct Plan Ratios Portfolio Turnover: 72.52% Tracking Error: 0.26% Through Exchange:1 Unit, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Total Regular:0.49% Direct: NA Issuer / Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) State Bank Of India Banks Bank Of Baroda Banks Punjab National Bank Banks 6.67 Union Bank Of India Banks 3.33 Canara Bank Banks 2.99 Industrial Development Bank of India Ltd. Banks 2.71 Bank of India Banks 2.32 Kotak PSU Bank ETF NAV as on April 29, 2016: ` NAV Issuer / Instrument Industry/ % to Net Rating Syndicate Bank Banks 1.47 Allahabad Bank. Banks 1.33 Andhra Bank Banks 1.33 Oriental Bank of Commerce Banks 1.15 Indian Overseas Bank Banks 1.05 Listed/Awaiting Listing on Stock Exchange - Total Net Current /(Liabilities) 0.02 Sector Allocation (%) Banks Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in stocks comprising the underlying index and endeavours to track the benchmark index * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 43 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58