January 31, For scheme speci c risk factors please refer page 9

Transcription

1 January 31, 2017 For scheme speci c risk factors please refer page 9

2 EXPERT SPEAK Mr. Nilesh Shah January 31, 2017 Dear Friends, The Finance Minister like Harry Potter waved his magic wand to present a very pragmatic budget for FY 18. On 29th Feb 2016 when finance minister assured market that he will follow the path of fiscal prudence, FIIs which were selling before budget turned buyers, Sensex made a bottom which couldn't be shaken by Brexit, Demonetization and Trump election. This year he maintained the path of fiscal prudence despite demonetization related short term pain. He set a target of 3.2 % fiscal deficit for FY18 and 3 % for FY19. More importantly he also set a target of containing Debt to GDP ratio at 60% by Such reassurance can change the perception of moody rating agencies who have demonstrated poor standards while rating India in the past. Finance Minister weaved the magic by cutting taxes at the base and leaving money in the hands of tax payer to give consumption boost to economy. He allocated more money to infrastructure for roads, railway and transport sector. He at the same time contained the fiscal deficit. The execution is a key challenge. To raise budgeted resources government will have to do strategic divestment, list insurance and railway undertakings. Finance minister held a mirror in front of us by showing how non compliant we are in payment of taxes. It looks like that majority of Indians are still practising non cooperation movement without realising that Britishers have left India in 1947 and it is our own government. Majority of cash has been deposited in bank accounts courtesy demonetisation. Data analytics can be used to ensure that all those deposit pass through the tax net. Concern of FIIs on taxation arising from indirect transfer provisions has been addressed. Extension of concessional withholding tax of 5 % on ECB & Masala Bonds can turn around debt outflows. Benefits given to affordable housing sector can create supply necessary to keep real estate prices under check, provide employment to unskilled labor and create demand for local materials from cement to tiles. Banks will be able to deploy credit in safe retail housing loans. Rs 10,000 crore allocation to PSU bank recapitalization looks low considering the focus on improving credit flows to accelerate growth. However, new laws to improve section 138 for cheque bouncing, seizure of local assets of absconders and illegal public deposits by Ponzi schemes will go a long way in improving NPA situation. The Budget has focused on improving productivity. Through MNREGA, Government has deepened 10 lac ponds and made composite posts. It is far more beneficial than digging holes and filling it. Fasal Bima Yojna, Soil Health cards, combined spot and derivatives in commodities market and Electronic market place (E NAM) will improve the efficiency in Agriculture and Rural sectors. From a debt market point of view, contained gross and net borrowing program will allow RBI to cut rates later in the week. Adequate liquidity, stable inflation and positive direction from RBI can keep interest rates on the softer side unless US Fed raises rates far more aggressively. Debt markets in CY 17 will see range bound pendulum movement of rates unlike sustained softness witnessed from Mid From equity market perspective, this budget focuses on reviving consumption and rural economy post-demonetisation. Continued impetus on infrastructure creation augurs well. The market has witnessed relief rally as possibility of introduction of long term capital gains tax on equites has been allayed. Currently domestic flows especially from mutual funds have been very strong. This is driven by the faith of retail investors and work of distributors on the long term growth potential of India. The relative unattractiveness of other asset class like debt and gold is also fuelling flows in equity. The post tax return on 1 year bank deposit going forward is likely to be less than what we saw in many stocks on the budget day. One good days stock return is better than one year's post tax FD return. There are events like credit policy on Feb 8 th, Mid March UP election and Earnings recovery over next 4 quarters which will impact the market. Globally how US fed raises rates, how trump administration takes action and EU debt crisis along with China credit bubble will cast its shadow on market over rest of CY 17. Overall, the FY18 budget is ahead of expectations with more money in the hands of consumer, higher tax revenue through better tax compliance, more resources for capex and maintaining path of fiscal prudence which bodes well for market. For retail investors systematic and long term investment with the discipline to withstand volatility will be crucial to make money in CY 17. Regards, Nilesh Shah Managing Director 1

3 DEBT VIEW Items Jan-17 Dec -16 Change Reverse Repo 5.75% 5.75% Nil Repo 6.25% 6.25% Nil CRR 4.00% 4.00% Nil SLR 20.50% 20.75% 25bps Mibor Overnight 6.25% 6.25% 0 bps Call(O/N) 6.02% 6.10% -8 bps CBLO 6.17% 6.23% -6 bps 1 yr T Bill 6.17% 6.32% -15 bps 10 G Sec 6.40% 6.52% -12 bps 5 Year AAA 7.13% 7.25% -12 bps USD/INR paise Source: RBI; Bloomberg. Key Events: Donald Trump has begun his presidency with a series of policy interventions ushering in a new period of American protectionism. Adhering to the fiscal consolidation roadmap, finance minister Arun Jaitley said that the government will target to bring down the fiscal deficit to 3.2% of the GDP in the fiscal Election Commission announced the dates & phases of elections in 5 states - Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa. Goa & Punjab to kick start the elections on 4 Feb GST Council made progress in Jan after Centre made notable concessions to get the states on board. The states to administer taxes on 90% of the taxpayers (incl service) with annual turnover up to Rs1.5cr and the Centre to control the remaining 10%. On taxpayers above the threshold, Centre & States to equally share the power. In addition, the GST rollout date is set to be 1 Jul 2017 IIP surged sharply to 5.7% in Nov vs -1.8% in Oct, partly led by base effect and inventory stocking with the demonetisation impact yet to be reflected. Within manufacturing, capital goods recorded growth (+15%) after several months of contraction. Mining rose to 3.9% while electricity picked up to 8.9% Retail inflation fell further to 3.4% vs 3.6% in Nov led by lower food inflation and core inflation. India's Merchandise exports rose 5.72% YoY to billion, imports remained flat at billion, leading to a sharp fall in trade deficit to billion, down from billion in December 2015 and 13 billion in November Debt Outlook The month of February/March will be full of events i.e Union Budget, Monetary policy and Elections, and therefore surprises leading to volatility The Headline CPI is expected to be in line or undershoot the RBI target of 5% by march 2017 The exact computation of total currency demonetized is unknown yet.. However this is a long-term phenomena and will definitely impact the economy positively in terms of non inflationary growth The Fiscal Deficit was in line with FRBM Target at 3.2% of GDP and the gross and net borrowing was 5.8 and 4.23 lac cr respectively, this helps the monetary policy and RBI might go for a cut and keep liquidity easy which will support the bonds rally The FII have been given tax exemption till 2020 which will help the FII flow The government has maintained credibility by sticking the FRBM target and setting credible medium term target of debt reduction and improving debt to GDP ratio in medium term this will be seen as a big positive by the global rating agencies. Easy liquidity will help compression of term spreads in the sovereign curve which might lead to underperformance of 10 year benchmark which will change Chase of assets is likely to continue and will lead to spread compression in corporate bonds The 3m to 12m curve will move down to the extent of rate cut delivered directly or indirectly through liquidity, this yield curve will remain stable or fall from current levels Given the cut in MCLR the 12-36m, Corporate bond spreads are likely to compress with falling yields Key Variables & their Impact On Interest Rates Key Variables Inflation Rupee Credit Demand Government Borrowing Short - term (3-6 month) Medium term (6month 2 years) RBI Policy Global Event Risk Corporate bond Spread Debt FII flow Liquidity Denotes fall in interest rates 3 2

4 EQUITY VIEW Indian equity markets saw a strong up-move in January 2017 in the run up to the Union Budget which was presented on February 1 (a departure from the earlier norm of presenting the budget on February 28th each year). The large cap Nifty Index rose 5.30% while the Nifty Midcap index rose 8.13% in the month (both in USD terms) even as the market shrugged off concerns over the impact of demonetization. Markets were supported by the Domestic Institutional Investors (DIIs) who were net buyers of equity to the tune of USD806mn in January '17. Flows from Foreign Institutional Investors (FIIs) remained weak as they were sellers in the equity markets to the tune of USD173mn. With the Union Budget behind us, its time to look ahead. As global markets remain volatile, India will also not be immune to the same. The events that are likely to shape the near term trajectory of the markets are the RBI policy meeting (Feb 8th), the outcome of the state elections especially in Uttar Pradesh and Punjab, data from the US economy and also policies that are likely to be adopted by President Trump. The timeline for the implementation of the Goods and Services Tax (GST) would also be closely watched along with the announcement of the rates under the GST regime. We are in the middle of the Q3FY17 earnings season as well and so far the numbers reported have been by and large in line with expectations or marginally ahead of expectations. Smaller private sector and retail banks have shown healthy numbers on both loan growth and asset quality. The technology sector earnings have been muted as per expectations given that Q3 is a seasonally weak quarter with lower number of working days and furloughs. Sectors such as cement and automobiles wherein there was an expectation of very weak numbers as a fall out of demonetization, have reported decent trends in the tough macro economic backdrop. In this regard we expect Nifty earnings growth to revive in FY18 with growth led by sectors such as automobiles, private sector banks and cement. Valuations are currently in the fair zone with the Nifty trading at 19.8xFY17E EPS and 16.4xFY18E EPS (on a free float basis). Union Budget FY18: Walking the tightrope balancing fiscal prudence and rural growth The Union Budget presented on February 1, 2017 was one which drew a fine balance between the Government's medium term objectives of economic growth, fiscal consolidation and improved compliance and governance. While the government achieved the FY17 fiscal deficit target of 3.5% of GDP, it marginally deviated from the FY18 target (set at 3% earlier) and announced a new target of 3.2% of GDP. The commitment however remains to move towards a path of fiscal consolidation and the target for FY19 fiscal deficit is set at 3% of GDP for the center. The key themes of the Union Budget were : Rural and agriculture focus: The budget focuses on the revival of the rural and agricultural sectors and gives a boost to social sector spend; MNERGA (a rural employment guarantee scheme) allocation increased to INR480bn from INR380Bn (FY17BE) Affordable housing: Allocation to social housing (PMAY-Pradhan Mantri Awas Yojna) has been raised by 39% YoY to INR290Bn; There have been more concessions granted to the housing schemes including extending benefits under interest subsidy schemes. Infrastructure thrust: Public spend on infrastructure (mainly in the areas of road and railways). This could have a huge multiplier effect on GDP growth (Total spend on infrastructure stood at INR3961Bn in FY18BE) Tax simplification and compliance: The budget seeks to simplify the tax structure and also increase overall compliance so as to increase in the tax/gdp of the country. The budget also focussed on incentivizing digital payments and ban on cash transactions above INR300,000 Fiscal consolidation: Government has stuck to a reasonable tight fiscal target- 3.2% of GDP in FY18BE; Target for FY19 at 3% of GDP; Long-term fiscal target set in terms of debt to GDP ratio- FY23 target set at 60% of GDP (40% for centre and 20% for state) Nominal GDP growth and tax assumptions appears realistic: Assumes a nominal GDP growth of 11.8% in FY18E; Net tax revenue growth at 12.7% on the back of the same; capital expenditure growth at 11% YoY Some of the key challenges that we see ahead are : Non tax revenue assumptions: Total divestment target set at INR725Bn (INR 455Bn in FY17); Any shortfall could be offset by likely gains from demonetization and higher tax revenues Re-capitalization outlays for PSU banks maintained at INR100Bn; Government will provide more if the demand arise GST implementation: Nothing new mentioned; Targeted implementation by July 1, 2017 Monetary policy to remain accommodative; Room for RBI to cut policy rates by 25-50bps in Cy17 The Indian central bank, RBI, is scheduled to announce its next monetary policy decision on February 8th With the Budget adhering to the path of fiscal consolidation, the likelihood of a 25bps rate cut in the meeting remains high. Inflation as measured by the Consumer Price Index (CPI) is likely to remain benign over the next few months and the possibility is that the inflation for March 2017 would undershoot the target of 5% set by RBI. This, we believe would give room for the central bank to further cut rates. We are building in inflation averaging ~4.6% in FY17 and ~4.5%-5% in FY18E. An accommodative monetary policy together with a manageable supply of government bonds would help keep G-Sec yields low which bodes well for equity market valuations. As per the budget, the net market borrowing for FY18 (adjusted for the buybacks) would largely be similar to the levels in FY17. The key risks are: a) Any faster than expected hike in US interest rates b) Sharp increase in protectionism in the US 3

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

6 EQUITY SCHEMES KOTAK 50 An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go up to 59 companies but will not exceed 59 at any point in time. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Harish Krishnan* Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 70.03% Beta: 1.00 ## Sharpe :0.79 Standard Deviation : 14.49% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.20% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.10 Infosys Ltd. Software 6.02 ITC Ltd. Consumer Non Durables 5.59 ICICI Bank Ltd. Banks 4.66 IndusInd Bank Ltd. Banks 4.51 Maruti Suzuki India Limited Auto 3.98 Hero MotoCorp Ltd. Auto 3.55 Axis Bank Ltd Banks 3.35 Reliance Industries Ltd. Petroleum Products 3.25 Tata Motors Ltd - DVR Auto 3.10 Larsen And Toubro Ltd. Construction Project 2.99 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.93 Ultratech Cement Ltd. Cement 2.73 Bharat Petroleum Corporation Ltd. Petroleum Products 2.21 GAIL (India) Ltd. Gas 2.04 Britannia Industries Ltd. Consumer Non Durables 2.02 Tata Consultancy Services Ltd. Software 1.98 The Ramco Cements Ltd Cement 1.77 Shree Cement Ltd. Cement 1.52 HCL Technologies Ltd. Software 1.48 Supreme Industries Limited Industrial Products 1.44 Equitas Holdings Ltd Finance 1.36 Bank Of Baroda Banks 1.33 Kajaria Ceramics Ltd. Construction 1.31 Fag Bearings India Ltd. Industrial Products 1.24 Bayer Cropscience Ltd. Pesticides 1.19 Tech Mahindra Ltd. Software 1.16 Bharat Electronics Ltd Industrial Capital Goods 1.15 DB Corp Limited Media and Entertainment 1.15 Persistent Systems Limited Software 1.12 National Thermal Power Corporation Limited Power 1.11 State Bank Of India Banks 1.08 Sanofi India Ltd. Pharmaceuticals 1.07 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no SYSTEMATIC INVESTMENT PLAN (SIP) Strides Shasun Ltd. Pharmaceuticals 1.04 Nestle India Ltd. Consumer Non Durables 1.03 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.02 Arvind Ltd Textile Products 1.00 Indraprastha Gas Ltd. Gas 0.97 Lupin Ltd. Pharmaceuticals 0.97 Mahindra & Mahindra Financial Services Ltd. Finance 0.95 Mahindra & Mahindra Ltd. Auto 0.92 Cadila Healthcare Ltd. Pharmaceuticals 0.87 ICICI Prudential Life Insurance Company Ltd Finance 0.85 GE Power India Limited Industrial Capital Goods 0.84 MRF Limited Auto Ancillaries 0.81 Shriram Transport Finance Co Ltd. Finance 0.79 Zee Entertainment Enterprises Ltd Media and Entertainment 0.76 RBL Bank Ltd Banks 0.67 Asian Paints Ltd. Consumer Non Durables 0.48 Solar Industries India Limited Chemicals 0.44 HDFC Ltd. Warrants Finance 0.42 Castrol (India ) Ltd. Petroleum Products 0.23 Laurus Labs Ltd Pharmaceuticals 0.16 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS AXIS Bank Ltd HDFC Bank Ltd Term Deposits - Total 0.42 Collateral Borrowing & Lending obligation 3.60 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 21,70,000 1,20,444 3,99,105 8,06,535 12,29,528 20,72,811 1,25,98, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 74,22, ,20,762 3,69,670 7,15,738 10,70,187 17,62,502 74,53, Inception : - December 29, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak 50 NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Petroleum Products Others Finance Gas CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Deepak Gupta* Nifty 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.96 ## Sharpe :0.63 Standard Deviation : 14.00% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.70% Direct: 1.25% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.97 Infosys Ltd. Software 6.12 ITC Ltd. Consumer Non Durables 4.43 Power Grid Corporation Of India Ltd Power 4.14 Tata Consultancy Services Ltd. Software 3.67 Hero MotoCorp Ltd. Auto 3.28 National Thermal Power Corporation Limited Power 3.23 Hindalco Industries Ltd Non - Ferrous Metals 3.07 Grasim Industries Ltd. Cement 3.06 Tata Steel Limited. Ferrous Metals 2.66 Asian Paints Ltd. Consumer Non Durables 2.33 Tata Motors Ltd - DVR Auto 2.28 Ultratech Cement Ltd. Cement 1.96 GAIL (India) Ltd. Gas 1.93 Reliance Industries Ltd. Petroleum Products 1.74 Hindustan Unilever Ltd. Consumer Non Durables 1.64 Tech Mahindra Ltd. Software 1.64 Zee Entertainment Enterprises Ltd Media and Entertainment 1.60 Oil & Natural Gas Corporation Ltd. Oil 1.58 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.57 Biocon Ltd. Pharmaceuticals 1.51 Yes Bank Ltd Banks 1.48 State Bank Of India Banks 1.47 HCL Technologies Ltd. Software 1.35 Wipro Ltd. Software 1.34 Lupin Ltd. Pharmaceuticals 1.28 Petronet LNG Ltd. Gas 1.21 ACC Ltd. Cement 1.09 RBL Bank Ltd Banks 1.03 JSW Steel Ltd. Ferrous Metals 1.02 Bajaj Finserv Ltd. Finance 0.94 HDFC Ltd. Warrants Finance 0.89 The Ramco Cements Ltd Cement 0.88 Laurus Labs Ltd Pharmaceuticals 0.83 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Mahindra & Mahindra Ltd. Auto 0.78 Axis Bank Ltd Banks 0.74 Hindustan Zinc Ltd. Non - Ferrous Metals 0.62 Dr Reddys Laboratories Ltd Pharmaceuticals 0.61 Adani Port and Special Economic Zone Limited Transportation 0.57 HDFC Ltd. Finance 0.57 Vedanta Ltd. Non - Ferrous Metals 0.51 BSE Ltd Finance 0.49 Indraprastha Gas Ltd. Gas 0.48 Bajaj Finance Limited Finance 0.42 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.40 ICICI Bank Ltd. Banks 0.39 Tata Communications Ltd Telecom - Services 0.37 IndusInd Bank Ltd. Banks 0.30 Cipla Ltd. Pharmaceuticals 0.29 Piramal Enterprises Limited Pharmaceuticals 0.29 Maruti Suzuki India Limited Auto 0.21 Bharat Petroleum Corporation Ltd. Petroleum Products 0.08 Ambuja Cements Ltd Cement 0.06 Listed/Awaiting Listing on Stock Exchange - Total Options Infosys Ltd Call Option - February Options (Market value prepresents Notiona Value)- Total 0.04 Futures Bharat Petroleum Corporation Ltd.-FEB IndusInd Bank Ltd.-FEB ICICI Bank Ltd.-FEB Maruti Suzuki India Limited-FEB Axis Bank Ltd-FEB Ambuja Cements Ltd-FEB Vedanta Ltd.-FEB Bajaj Finance Limited-FEB Futures (Market value represents Notional Value) - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 2.91 Collateral Borrowing & Lending obligation 0.29 Net Current /(Liabilities) Inception : - July 27,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Classic Equity NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), `37.88 (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Pharmaceuticals Cement Consumer Non Durables Power Derivatives Non - Ferrous Metals Others Ferrous Metals * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 13,80,000 1,23,563 3,94,204 7,90,471 12,10,793 20,83,682 26,25, ,21,526 3,82,741 7,50,997 11,27,860 18,88,118 24,08, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 23,02, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 6

8 EQUITY SCHEMES KOTAK OPPORTUNITIES An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. September 9, 2004 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 48.52% Beta: 0.99 ## Sharpe :1.05 Standard Deviation :15.13% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular:2.23% Direct: 1.07% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.64 Reliance Industries Ltd. Petroleum Products 4.06 ITC Ltd. Consumer Non Durables 4.01 Hero MotoCorp Ltd. Auto 3.52 IndusInd Bank Ltd. Banks 3.33 Maruti Suzuki India Limited Auto 3.14 Hindustan Petroleum Corporation Ltd Petroleum Products 2.90 Larsen And Toubro Ltd. Construction Project 2.89 Infosys Ltd. Software 2.88 Shree Cement Ltd. Cement 2.76 GAIL (India) Ltd. Gas 2.62 Bharat Petroleum Corporation Ltd. Petroleum Products 2.32 Max Financial Services Ltd. Finance 2.13 UPL Ltd Pesticides 2.13 Britannia Industries Ltd. Consumer Non Durables 2.11 Dalmia Bharat Ltd Cement 2.06 ICICI Bank Ltd. Banks 2.06 Petronet LNG Ltd. Gas 2.02 Axis Bank Ltd Banks 2.00 Ultratech Cement Ltd. Cement 1.99 Indraprastha Gas Ltd. Gas 1.90 Mahindra & Mahindra Ltd. Auto 1.70 Healthcare Global Enterprises Ltd Healthcare Services 1.66 The Ramco Cements Ltd Cement 1.61 Bajaj Finance Limited Finance 1.52 Tata Motors Ltd. Auto 1.51 Coromandel International Ltd. Fertilisers 1.49 ICICI Prudential Life Insurance Company Ltd Finance 1.46 Arvind Ltd Textile Products 1.43 State Bank of Bikaner and Jaipur Banks 1.33 Zee Entertainment Enterprises Ltd Media and Entertainment 1.27 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.23 Equitas Holdings Ltd Finance 1.22 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.18 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Inception : - September 09, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Opportunities NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Finance Auto Construction Project Consumer Non Durables Cement Gas CBLO & Term Deposits & Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month SRF Ltd. Textile Products 1.17 State Bank Of India Banks 1.17 HCL Technologies Ltd. Software 1.05 Lupin Ltd. Pharmaceuticals 1.04 MRF Limited Auto Ancillaries 1.02 Linde India Ltd. Chemicals 1.00 AIA Engineering Limited Industrial Products 0.96 National Buildings Construction Corporation Limited Construction 0.96 Techno Electric & Engineering Co Ltd. Construction Project 0.96 Multi Commodity Exchange of India Limited Finance 0.91 JK Cement Ltd. Cement 0.84 Bank Of Baroda Banks 0.80 Ashok Leyland Ltd. Auto 0.79 Whirlpool of India Ltd. Consumer Durables 0.77 Persistent Systems Limited Software 0.72 Va Tech Wabag Limited Engineering Services 0.71 Cummins India Ltd. Industrial Products 0.67 Fag Bearings India Ltd. Industrial Products 0.65 Container Corporation of India Ltd. Transportation 0.60 DR.Lal Pathlabs Ltd Healthcare Services 0.42 Swaraj Engines Ltd Industrial Products 0.37 HDFC Ltd. Warrants Finance 0.35 SKF India Ltd Industrial Products Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.10 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.30 Collateral Borrowing & Lending obligation 4.28 Net Current /(Liabilities) year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,80,000 1,26,352 4,28,972 8,91,717 13,69,596 23,70,318 38,59, ,21,935 3,90,507 7,73,863 11,53,437 19,08,890 28,24, ,21,038 3,75,662 7,28,382 10,91,651 18,05,065 27,26, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 32.60% Beta: 1.03 ## Sharpe : 1.13 Standard Deviation : 15.49% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.99% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6.15 Reliance Industries Ltd. Petroleum Products 4.14 ITC Ltd. Consumer Non Durables 4.11 Hero MotoCorp Ltd. Auto 3.85 Ultratech Cement Ltd. Cement 3.77 Maruti Suzuki India Limited Auto 3.57 The Ramco Cements Ltd Cement 3.36 IndusInd Bank Ltd. Banks 3.35 State Bank Of India Banks 2.91 Shree Cement Ltd. Cement 2.72 GAIL (India) Ltd. Gas 2.66 ICICI Bank Ltd. Banks 2.48 Infosys Ltd. Software 2.48 Larsen And Toubro Ltd. Construction Project 2.39 Axis Bank Ltd Banks 2.38 Hindustan Petroleum Corporation Ltd Petroleum Products 2.32 Indraprastha Gas Ltd. Gas 2.27 Petronet LNG Ltd. Gas 2.24 Max Financial Services Ltd. Finance 2.18 Bharat Electronics Ltd Industrial Capital Goods 2.16 Britannia Industries Ltd. Consumer Non Durables 2.09 Mahindra & Mahindra Ltd. Auto 2.09 Bajaj Finance Limited Finance 1.98 Arvind Ltd Textile Products 1.97 Bharat Petroleum Corporation Ltd. Petroleum Products 1.65 Tata Motors Ltd. Auto 1.47 ICICI Prudential Life Insurance Company Ltd Finance 1.41 Godrej Consumer Products Ltd. Consumer Non Durables 1.21 Equitas Holdings Ltd Finance 1.19 MRF Limited Auto Ancillaries 1.17 HCL Technologies Ltd. Software 1.14 Bayer Cropscience Ltd. Pesticides 1.05 RBL Bank Ltd Banks 1.05 Lupin Ltd. Pharmaceuticals 1.04 Bajaj Finserv Ltd. Finance 1.03 Sun Pharmaceuticals * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Industries Ltd. Pharmaceuticals 1.01 Ashok Leyland Ltd. Auto 0.87 Federal Bank Ltd. Banks 0.77 Jk Lakshmi Cement Ltd. Cement 0.71 Techno Electric & Engineering Co Ltd. Construction Project 0.71 Container Corporation of India Ltd. Transportation 0.65 AIA Engineering Limited Industrial Products 0.61 Cadila Healthcare Ltd. Pharmaceuticals 0.61 Solar Industries India Limited Chemicals 0.55 Bank Of Baroda Banks 0.53 Kec International Ltd. Construction Project 0.43 Max India Limited Finance 0.40 Laurus Labs Ltd Pharmaceuticals 0.39 Whirlpool of India Ltd. Consumer Durables 0.34 Navkar Corporation Limited Transportation 0.28 HDFC Ltd. Warrants Finance 0.21 Kirloskar Oil Engines Ltd. Industrial Products Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.02 IFB Industries Ltd. Consumer Durables 0.02 Listed/Awaiting Listing on Stock Exchange - Total Futures CNX NIFTY-FEB Hindustan Petroleum Corporation Ltd-FEB Larsen And Toubro Ltd.-FEB Futures (Market value represents Notional Value) - Total 2.36 TERM DEPOSITS HDFC Bank Ltd AXIS Bank Ltd Term Deposits - Total 0.51 Collateral Borrowing & Lending obligation 8.04 Net Current /(Liabilities) Inception : - September 11, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Select Focus Fund NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Petroleum Products Gas Auto Finance Consumer Non Durables Construction Project Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 NA 8,80,000 1,25,488 4,33,573 9,31,837 14,62,272 NA 15,61, NA ,21,745 3,86,002 7,59,371 11,32,347 NA 12,00, NA ,21,038 3,75,662 7,28,382 10,91,651 NA 11,58, NA Others Cement CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 8

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 52.02% Beta: 1.05 ## Sharpe : 1.02 Standard Deviation : 16.27% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `500 and in multiple of `500 Investment: `500 & in multiples of `500 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Exit Load is not applicable for Kotak Tax Saver. (applicable for all plans) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 2.45% Direct: 1.20% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.53 Reliance Industries Ltd. Petroleum Products 4.19 ITC Ltd. Consumer Non Durables 4.02 Infosys Ltd. Software 3.60 Shree Cement Ltd. Cement 3.60 Hindustan Petroleum Corporation Ltd Petroleum Products 3.54 IndusInd Bank Ltd. Banks 3.40 Bharat Petroleum Corporation Ltd. Petroleum Products 3.17 Hero MotoCorp Ltd. Auto 3.08 ICICI Bank Ltd. Banks 3.00 Mahanagar Gas Ltd Gas 2.88 Ultratech Cement Ltd. Cement 2.87 Axis Bank Ltd Banks 2.67 State Bank of Bikaner and Jaipur Banks 2.63 Dalmia Bharat Ltd Cement 2.32 RBL Bank Ltd Banks 2.26 Tata Motors Ltd. Auto 2.14 Britannia Industries Ltd. Consumer Non Durables 2.06 Techno Electric & Engineering Co Ltd. Construction Project 2.06 The Ramco Cements Ltd Cement 2.04 Larsen And Toubro Ltd. Construction Project 1.96 Whirlpool of India Ltd. Consumer Durables 1.94 SKF India Ltd Industrial Products 1.75 Maruti Suzuki India Limited Auto 1.71 UPL Ltd Pesticides 1.69 GAIL (India) Ltd. Gas 1.63 Solar Industries India Limited Chemicals 1.51 SRF Ltd. Textile Products 1.50 Max Financial Services Ltd. Finance 1.48 Arvind Ltd Textile Products 1.43 Lupin Ltd. Pharmaceuticals 1.43 Cadila Healthcare Ltd. Pharmaceuticals 1.36 Multi Commodity Exchange of India Limited Finance 1.36 Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) AIA Engineering Limited Industrial Products 1.31 Bajaj Finance Limited Finance 1.31 HCL Technologies Ltd. Software 1.26 Ashok Leyland Ltd. Auto 1.23 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.22 Federal Bank Ltd. Banks 1.18 Bank Of Baroda Banks 1.12 Linde India Ltd. Chemicals 1.04 Navneet Education Ltd. Media and Entertainment 0.98 Mahindra & Mahindra Ltd. Auto 0.96 Container Corporation of India Ltd. Transportation 0.92 Thermax Ltd. Industrial Capital Goods 0.86 Laurus Labs Ltd Pharmaceuticals 0.85 Hawkins Cooker Ltd Household Appliances 0.81 Blue Dart Express Ltd. Transportation 0.71 LIC Housing Finance Ltd. Finance 0.54 Cummins India Ltd. Industrial Products 0.49 KSB Pump Ltd Industrial Products % Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Blue Dart Express Ltd ICRA AA 0.03 Corporate Debt/Financial Institutions - Total 0.03 Collateral Borrowing & Lending obligation 1.82 Net Current /(Liabilities) Inception : - November 23, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Tax Saver NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Consumer Non Durables Petroleum Products Auto Cement Finance Construction Project Banks Gas Software Others Pharmaceuticals * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 13,40,000 1,24,679 4,22,345 8,56,815 12,92,850 21,30,926 25,22, ,21,935 3,90,507 7,73,863 11,53,437 19,09,020 22,70, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 21,64, Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 50.87% Beta: 0.98 ## Sharpe : 1.31 Standard Deviation : 17.56% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.45% Direct: 1.16% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Techno Electric & Engineering Co Ltd. Construction Project 2.90 IndusInd Bank Ltd. Banks 2.63 Strides Shasun Ltd. Pharmaceuticals 2.56 Fag Bearings India Ltd. Industrial Products 2.50 Solar Industries India Limited Chemicals 2.35 Atul Ltd. Chemicals 2.25 ICICI Bank Ltd. Banks 2.22 Hindustan Petroleum Corporation Ltd Petroleum Products 2.20 The Ramco Cements Ltd Cement 2.17 Finolex Cables Ltd. Industrial Products 2.14 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.09 Hawkins Cooker Ltd Household Appliances 2.09 Federal Bank Ltd. Banks 2.08 Shriram City Union Finance Ltd. Finance 1.97 Persistent Systems Limited Software 1.96 DB Corp Limited Media and Entertainment 1.93 RBL Bank Ltd Banks 1.93 SRF Ltd. Textile Products 1.93 Bajaj Finserv Ltd. Finance 1.89 V.S.T Tillers Tractors Ltd Auto 1.87 Supreme Industries Limited Industrial Products 1.86 JK Cement Ltd. Cement 1.85 Mahindra & Mahindra Financial Services Ltd. Finance 1.70 Arvind Ltd Textile Products 1.66 Motherson Sumi Systems Ltd. Auto Ancillaries 1.65 Castrol (India ) Ltd. Petroleum Products 1.61 Divi s Laboratories Limited Pharmaceuticals 1.60 Bharat Forge Ltd. Industrial Products 1.57 Shriram Transport Finance Co Ltd. Finance 1.51 Va Tech Wabag Limited Engineering Services 1.49 ICICI Prudential Life Insurance Company Ltd Finance 1.45 Navneet Education Ltd. Media and Entertainment 1.45 Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) Nifty Free Float Midcap 100 (Rs)# Nifty Free Float Midcap 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Cadila Healthcare Ltd. Pharmaceuticals 1.44 UPL Ltd Pesticides 1.44 Alkem Laboratories Ltd Pharmaceuticals 1.43 NIIT Technologies Ltd Software 1.42 Whirlpool of India Ltd. Consumer Durables 1.41 BSE Ltd Finance 1.37 Britannia Industries Ltd. Consumer Non Durables 1.34 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.34 Thermax Ltd. Industrial Capital Goods 1.30 Sundaram Finance Ltd. Finance 1.22 Axis Bank Ltd Banks 1.21 SKF India Ltd Industrial Products 1.21 PVR Ltd. Media and Entertainment 1.18 Havells India Ltd. Consumer Durables 1.08 Bank Of Baroda Banks 1.07 Zuari Agro Chemicals Ltd Fertilisers 1.05 Bajaj Finance Limited Finance 0.99 MRF Limited Auto Ancillaries 0.99 Pennar Engineered Building Systems Limited Ferrous Metals 0.99 Kewal Kiran Clothing Limited. Textile Products 0.97 Voltas Ltd. Construction Project 0.97 Jk Lakshmi Cement Ltd. Cement 0.90 Sheela Foam Ltd Consumer Durables 0.89 Laurus Labs Ltd Pharmaceuticals 0.84 Bharat Petroleum Corporation Ltd. Petroleum Products 0.76 WPIL Ltd Industrial Products 0.76 Kansai Nerolac Paints Ltd Consumer Non Durables 0.74 Power Mech Projects Ltd Construction Project 0.20 CNX NIFTY Put Option - February Listed/Awaiting Listing on Stock Exchange - Total Options CNX NIFTY Put Option - February Options - Total 0.10 Collateral Borrowing & Lending obligation 6.39 Net Current /(Liabilities) Inception : - February 24,2005. The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak Mid-cap NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` Direct Growth Option) SECTOR ALLOCATION (%) Banks Finance 4.92 Textile Products Chemicals Others Cement Industrial Products Pharmaceuticals Petroleum Products Media & Entertainment CBLO & Term Deposits & Rev.Repo Midcap and Small cap stocks as a % age of Net : 82.20% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,30,000 1,24,432 4,56,170 10,07,883 15,82,979 27,85,948 37,43, ,24,103 4,32,410 8,94,727 13,28,804 23,05,464 31,74, ,21,038 3,75,662 7,28,382 10,91,651 18,05,099 25,04, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid cap stocks. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 10

12 EQUITY SCHEMES KOTAK EMERGING EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies. However, there is no assurance that the objective of the scheme will be realized. March 30, 2007 Mr. Pankaj Tibrewal* S&P BSE MID SMALL CAP AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 35.76% Beta: 0.94 ## Sharpe :1.54 Standard Deviation : 17.32% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:2.18% Direct: 0.98% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) IndusInd Bank Ltd. Banks 3.40 Fag Bearings India Ltd. Industrial Products 3.01 V-Guard Industries Ltd. Industrial Capital Goods 2.94 Atul Ltd. Chemicals 2.81 The Ramco Cements Ltd Cement 2.77 Solar Industries India Limited Chemicals 2.56 Finolex Cables Ltd. Industrial Products 2.53 Strides Shasun Ltd. Pharmaceuticals 2.38 Persistent Systems Limited Software 2.29 Whirlpool of India Ltd. Consumer Durables 2.24 Apollo Hospitals Enterprises Ltd. Healthcare Services 2.13 Motherson Sumi Systems Ltd. Auto Ancillaries 2.13 Navneet Education Ltd. Media and Entertainment 2.13 Hawkins Cooker Ltd Household Appliances 2.05 Federal Bank Ltd. Banks 2.03 DB Corp Limited Media and Entertainment 2.02 SRF Ltd. Textile Products 2.01 Supreme Industries Limited Industrial Products 1.92 Mahindra & Mahindra Financial Services Ltd. Finance 1.91 Kirloskar Oil Engines Ltd. Industrial Products 1.86 Alkem Laboratories Ltd Pharmaceuticals 1.84 ICICI Bank Ltd. Banks 1.78 Shriram City Union Finance Ltd. Finance 1.77 Equitas Holdings Ltd Finance 1.75 Sundaram Finance Ltd. Finance 1.70 Va Tech Wabag Limited Engineering Services 1.68 Carborundum Universal Ltd. Industrial Products 1.65 Finolex Industries Ltd. Industrial Products 1.65 SKF India Ltd Industrial Products 1.63 Divi s Laboratories Limited Pharmaceuticals 1.62 Ramkrishna Forgings Ltd. Industrial Products 1.59 Kewal Kiran Clothing Limited. Textile Products 1.58 Castrol (India ) Ltd. Petroleum Products 1.51 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.49 PVR Ltd. Media and Entertainment 1.44 Oberoi Realty Ltd Construction 1.41 Shriram Transport Finance Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Co Ltd. Finance 1.26 ICICI Prudential Life Insurance Company Ltd Finance 1.25 PNC INFRATECH LIMITED Construction 1.21 D-Link (India) Ltd Hardware 1.18 Zuari Agro Chemicals Ltd Fertilisers 1.18 Coromandel International Ltd. Fertilisers 1.11 Indraprastha Gas Ltd. Gas 1.11 Jk Lakshmi Cement Ltd. Cement 1.10 Kajaria Ceramics Ltd. Construction 1.08 Bajaj Finance Limited Finance 1.02 Britannia Industries Ltd. Consumer Non Durables 1.02 Bank Of Baroda Banks 0.98 Maharashtra Seamless Ltd. Ferrous Metals 0.98 Pennar Engineered Building Systems Limited Ferrous Metals 0.97 Sheela Foam Ltd Consumer Durables 0.96 Max Financial Services Ltd. Finance 0.93 Zee Entertainment Enterprises Ltd Media and Entertainment 0.86 Kirloskar Brothers Ltd. Industrial Products 0.76 WPIL Ltd Industrial Products 0.68 Kec International Ltd. Construction Project 0.55 RBL Bank Ltd Banks 0.52 Multi Commodity Exchange of India Limited Finance 0.50 Power Mech Projects Ltd Construction Project 0.50 Listed/Awaiting Listing on Stock Exchange - Total Options CNX NIFTY Put Option - February Options - Total 0.11 TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.19 Collateral Borrowing & Lending obligation 6.14 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 January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Banks Construction Finance Cement Media and Entertainment CBLO & Term Deposits & Rev.Repo Chemicals Textile Products Others Pharmaceuticals Midcap and Small cap stocks as a % age of Net : 86.60% * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 NA 11,80,000 1,26,182 4,74,977 10,84,538 17,07,816 NA 28,45, NA ,23,647 4,29,223 8,88,039 13,03,230 NA 21,40, NA ,21,038 3,75,662 7,28,382 10,91,651 NA 17,64, NA Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities predominantly in mid & small cap companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 11

13 EQUITY SCHEMES KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND (formerly known as PineBridge Infrastructure & Economic Reform Fund ) An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the is to generate long-term capital appreciation f ro m a d i v e r s i f i e d p o r t f o l i o o f predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms.however, there is no assurance that the objective of the scheme will be realized. February 25, 2008 Mr. Harish Krishnan S&P BSE 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 44.35% Beta: 1.18 ## Sharpe :1.13 Standard Deviation : 20.10% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.59% Direct: 1.12% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 6.84 Ultratech Cement Ltd. Cement 6.51 Indraprastha Gas Ltd. Gas 5.48 Larsen And Toubro Ltd. Construction Project 5.47 Kirloskar Oil Engines Ltd. Industrial Products 5.42 SKF India Ltd Industrial Products 5.36 Bharti Airtel Ltd. Telecom - Services 4.59 Container Corporation of India Ltd. Transportation 4.56 Thermax Ltd. Industrial Capital Goods 4.26 Fag Bearings India Ltd. Industrial Products 3.90 KSB Pump Ltd Industrial Products 3.72 Cummins India Ltd. Industrial Products 3.53 AIA Engineering Limited Industrial Products 3.24 Solar Industries India Limited Chemicals 3.14 Mahanagar Gas Ltd Gas 2.97 GAIL (India) Ltd. Gas 2.86 Supreme Industries Limited Industrial Products 2.86 National Thermal Power Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Corporation Limited Power 2.26 Gujarat Gas Company Ltd Gas 2.06 Mahindra & Mahindra Financial Services Ltd. Finance 2.00 Kajaria Ceramics Ltd. Construction 1.93 The Ramco Cements Ltd Cement 1.93 Gateway Distriparks Ltd. Transportation 1.87 MRF Limited Auto Ancillaries 1.77 Linde India Ltd. Chemicals 1.68 Jk Lakshmi Cement Ltd. Cement 1.66 GE Power India Limited Industrial Capital Goods 1.31 Power Grid Corporation Of India Ltd Power 1.20 Shriram Transport Finance Co Ltd. Finance 1.17 Bharat Electronics Ltd Industrial Capital Goods 1.14 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 3.45 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 January 31, 2017: ` (Dividend Option), `18.193(Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Others Industrial Capital Goods Telecom - Services Gas Transportation Construction Project Power CBLO & Term Deposits & Rev.Repo Chemicals 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 NA 10,70,000 1,24,616 4,35,188 9,19,192 13,52,387 NA 19,49, NA ,21,484 3,79,812 7,40,761 11,06,033 NA 15,95, NA ,21,038 3,75,662 7,28,382 10,91,651 NA 15,68, NA Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. For last three dividends, please refer page no For scheme performance, please refer page no

14 EQUITY SCHEMES KOTAK BALANCE An Open - Ended Balanced Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt &money market instruments. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 s Mr. Pankaj Tibrewal and Mr. Abhishek Bisen* Crisil Balanced Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover: 26.90% Beta: 1.15 ## Sharpe : 0.77 Standard Deviation : 11.40% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemption/switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or alter 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. v) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ICICI Bank Ltd. Banks 2.08 Maruti Suzuki India Limited Auto 1.98 GAIL (India) Ltd. Gas 1.93 IndusInd Bank Ltd. Banks 1.87 V.S.T Tillers Tractors Ltd Auto 1.86 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.83 Fag Bearings India Ltd. Industrial Products 1.79 JK Cement Ltd. Cement 1.60 Tata Motors Ltd. Auto 1.54 Zee Entertainment Enterprises Ltd Media and Entertainment 1.46 Techno Electric & Engineering Co Ltd. Construction Project 1.45 Atul Ltd. Chemicals 1.43 Larsen And Toubro Ltd. Construction Project 1.42 ICICI Prudential Life Insurance Company Ltd Finance 1.41 State Bank Of India Banks 1.33 Strides Shasun Ltd. Pharmaceuticals 1.33 Axis Bank Ltd Banks 1.29 Bajaj Finserv Ltd. Finance 1.27 HDFC Ltd. Finance 1.27 Divi s Laboratories Limited Pharmaceuticals 1.25 Reliance Industries Ltd. Petroleum Products 1.24 Kajaria Ceramics Ltd. Construction 1.22 Mahindra & Mahindra Financial Services Ltd. Finance 1.19 DB Corp Limited Media and Entertainment 1.15 The Ramco Cements Ltd Cement 1.12 Havells India Ltd. Consumer Durables 1.11 HCL Technologies Ltd. Software 1.09 Motherson Sumi Systems Ltd. Auto Ancillaries 1.03 Equitas Holdings Ltd Finance 1.02 Persistent Systems Limited Software 1.01 Tata Consultancy Services Ltd. Software 1.01 Hindustan Petroleum Corporation Ltd Petroleum Products 0.97 Federal Bank Ltd. Banks 0.96 ITC Ltd. Consumer Non Durables 0.95 Arvind Ltd Textile Products 0.92 Solar Industries India Limited Chemicals 0.90 Bank Of Baroda Banks 0.87 Mahindra & Mahindra Ltd. Auto 0.87 Shriram Transport Finance Co Ltd. Finance 0.86 SRF Ltd. Textile Products 0.85 Cipla Ltd. Pharmaceuticals 0.80 HDFC Bank Ltd. Infosys Ltd. Banks Software Total amount invested (Rs) Total Value as on Dec 30, 2016 (Rs) Returns (%) CRISIL Balanced Fund SECTOR ALLOCATION (%) Cement 6.25 Regular: 2.38% Finance Pharmaceuticals Banks Software Direct: 1.15% Media and Entertainment Auto Debentures and Bonds Government Dated Securities Others Industrial Products 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Aggressive Index (Rs)# CRISIL Balanced Fund Aggressive Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Sun TV Limited. Media and Entertainment 0.76 Ultratech Cement Ltd. Cement 0.72 RBL Bank Ltd Banks 0.68 Whirlpool of India Ltd. Consumer Durables 0.63 Finolex Cables Ltd. Industrial Products 0.62 Kirloskar Oil Engines Ltd. Industrial Products 0.61 Mcleod Russel India Ltd Consumer Non Durables 0.61 Va Tech Wabag Limited Engineering Services 0.61 Laurus Labs Ltd Pharmaceuticals 0.59 Ramkrishna Forgings Ltd. Industrial Products 0.56 Bharat Forge Ltd. Industrial Products 0.49 Navkar Corporation Limited Transportation 0.44 Carborundum Universal Ltd. Industrial Products 0.43 GNA Axles Ltd Auto Ancillaries 0.40 Thermax Ltd. Industrial Capital Goods 0.35 Pennar Engineered Building Systems Limited Ferrous Metals 0.29 HDFC Ltd. Warrants Finance 0.25 BSE Ltd Finance 0.14 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Bank Ltd. CRISIL AAA 1.49 LIC Housing Finance Ltd. CRISIL AAA 0.07 Tata Sons Ltd. CRISIL AAA 0.03 Corporate Debt/Financial Institutions - Total 1.59 Public Sector Undertakings Syndicate Bank CARE AA State Bank Of India. CRISIL AA Power Finance Corporation Ltd. CRISIL AAA 1.36 Konkan Railway Corporation Ltd. ICRA AAA 0.71 Public Sector Undertakings - Total 8.38 Government Dated Securities 6.79% Central Government SOV % Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.01 Government Dated Securities - Total Collateral Borrowing & Lending obligation 1.11 Net Current /(Liabilities) 6.97 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 January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 20,60,000 1,26,325 4,13,376 8,01,800 12,28,678 20,61,880 83,70, ,23,695 3,94,781 7,51,141 11,36,062 18,77,878 NA NA 1,21,038 3,75,662 7,28,382 10,91,651 18,05,099 65,81, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Nifty 50 Arbitrage AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Fortnightly (Every alternate Monday from the 1st record date), Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.52 ## Sharpe : 1.92 Standard Deviation : 0.52% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on 31st January 2017) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including SIP/STP) within 30 days from the date of allotment of units, irrespective of the amount of investment: 0.25% II) For redemptions/switch outs (including SIP/STP) after 30 days from the date of allotment of units, irrespective of the amount of investment: Nil Note - 1) Any exit load charged (net off Service Tax, if any ) shall be credited back to the. 2) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans) Regular: 1.12% Direct: 0.61% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged HDFC Bank Ltd. Banks Reliance Industries Ltd. Petroleum Products Asian Paints Ltd. Consumer Non Durables HDFC Ltd. Finance JSW Steel Ltd. Ferrous Metals Cairn India Limited Oil Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Shriram Transport Finance Co Ltd. Finance Indiabulls Housing Finance Ltd. Finance Tata Motors Ltd - DVR Auto Divi s Laboratories Limited Pharmaceuticals Ashok Leyland Ltd. Auto Federal Bank Ltd. Banks IDFC Limited Finance Bharat Electronics Ltd Industrial Capital Goods Eicher Motors Ltd Auto Bharat Financial Inclusion Limited Finance ICICI Bank Ltd. Banks Bharti Infratel Ltd. Telecom - Equipment & Accessories Motherson Sumi Systems Ltd. Auto Ancillaries Petronet LNG Ltd. Gas Britannia Industries Ltd. Consumer Non Durables Dewan Housing Finance Corporation Ltd. Finance Bharat Forge Ltd. Industrial Products ITC Ltd. Consumer Non Durables Castrol (India ) Ltd. Petroleum Products Aditya Birla Nuvo Limited Services Tata Global Beverages Limited Consumer Non Durables Tata Communications Ltd Telecom - Services LIC Housing Finance Ltd. Finance Reliance Capital Ltd. Finance Marico Ltd. Consumer Non Durables Yes Bank Ltd Banks Hindalco Industries Ltd Non - Ferrous Metals Mahindra & Mahindra Ltd. Auto Tata Consultancy Services Ltd. Software Indraprastha Gas Ltd. Gas Glenmark Pharmaceuticals Ltd Pharmaceuticals Maruti Suzuki India Limited Auto IDFC Bank Limited Banks Dr Reddys Laboratories Ltd Pharmaceuticals Tata Power Co. Ltd. Power CESC Ltd. Power Adani Power Ltd Power Sun TV Limited. Media and Entertainment UPL Ltd Pesticides Karnataka Bank Ltd Banks NCC Limited Construction Project Grasim Industries Ltd. Cement United Spirits Ltd. Consumer Non Durables JSW Energy Ltd. Power Century Textiles & Industries Ltd. Cement Dish TV India Ltd. Media and Entertainment HCL Technologies Ltd. Software Jain Irrigation Systems Ltd. Industrial Products The South Indian Bank Ltd. Banks Bharat Heavy Electricals Ltd. Industrial Capital Goods Infosys Ltd. Software Engineers India Ltd. Construction Project IRB Infrastructure Developers Ltd Construction Zee Entertainment Enterprises Ltd Media and Entertainment Bosch Limited Auto Ancillaries Jindal Steel & Power Ltd. Ferrous Metals Reliance Power Ltd Power Apollo Tyres Ltd. Auto Ancillaries Hero MotoCorp Ltd. Auto * 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 % to Net Derivatives GMR Infrastructure Ltd. Construction Project Lupin Ltd. Pharmaceuticals TV18 Broadcast Ltd Media and Entertainment IndusInd Bank Ltd. Banks Larsen And Toubro Ltd. Construction Project PTC India Ltd. Power Sintex Industries Ltd. Industrial Products ACC Ltd. Cement Hexaware Technologies Ltd. Software Oracle Financial Services Software Ltd Software Kaveri Seed Company Ltd. Consumer Non Durables Adani Enterprises Ltd Trading Indiabulls Real Estate Ltd Construction Tata Motors Ltd. Auto United Breweries Ltd. Consumer Non Durables Bharat Earth Movers Ltd. Industrial Capital Goods Oil India Limited Oil Apollo Hospitals Enterprises Ltd. Healthcare Services Granules India Ltd. Pharmaceuticals NHPC Limited Power India Cements Ltd. Cement Development Credit Bank Ltd. Banks Exide Industries Ltd Auto Ancillaries Hindustan Unilever Ltd. Consumer Non Durables Housing Development and Infrastructure Limited Construction Tech Mahindra Ltd. Software Torrent Power Ltd Power Tata Elxsi Ltd. Software SRF Ltd. Textile Products Torrent Pharmaceuticals Ltd. Pharmaceuticals Aurobindo Pharma Ltd. Pharmaceuticals Cadila Healthcare Ltd. Pharmaceuticals Indo Count Industries Ltd. Textiles - Cotton NMDC Ltd. Minerals/Mining IFCI Ltd. Finance Jet Airways (India) Ltd. Transportation Adani Port and Special Economic Zone Limited Transportation Industrial Development Bank of India Ltd. Banks National Thermal Power Corporation Limited Power Tata Steel Limited. Ferrous Metals Andhra Bank Banks L&T Finance Holdings Ltd Finance Oriental Bank of Commerce Banks Pidilite Industries Ltd. Chemicals Reliance Communications Ltd. Telecom - Services Reliance Infrastructure Ltd Power KPIT Technologies LImited Software NIIT Technologies Ltd Software Tata Chemicals Ltd. Chemicals Colgate Palmolive (India ) Ltd. Consumer Non Durables Mcleod Russel India Ltd Consumer Non Durables Wockhardt Ltd. Pharmaceuticals Bajaj Auto Ltd. Auto Indian Oil Corporation Ltd Petroleum Products Siemens Ltd. Industrial Capital Goods Strides Shasun Ltd. Pharmaceuticals Syndicate Bank Banks Biocon Ltd. Pharmaceuticals GAIL (India) Ltd. Gas Godrej Consumer Products Ltd. Consumer Non Durables Ajanta Pharma Ltd. Pharmaceuticals Amara Raja Batteries Ltd. Auto Ancillaries Cipla Ltd. Pharmaceuticals Jaiprakash Associates Ltd Cement Power Finance Corporation Ltd. Finance Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives Government Dated Securities Hedged 7.88% Central Government SOV Hedged - Total Government Dated Securities - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 3.56 Kotak Mahindra Prime Ltd. CRISIL AAA 3.31 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 2.68 LIC Housing Finance Ltd. CARE AAA 0.80 Corporate Debt/Financial Institutions - Total TERM DEPOSITS IndusInd Bank Ltd AXIS Bank Ltd HDFC Bank Ltd Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 0.87 Term Deposits - Total Collateral Borrowing & Lending obligation 1.68 Net Current /(Liabilities) 1.65 Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option), ` (Bimonthly Option), ` (Direct Bimonthly Option) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Auto Others Power Pharmaceuticals Banks Finance Consumer Non Durables Debentures and Bonds Petroleum Products Government Dated Securities Investors understand that their principal will be at moderately low risk Income from arbitrage opportunities in the equity market Investment in arbitrage opportunities in the cash & derivatives segment of the equity market. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 16

18 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments. However, there is no assurance that the objective of the scheme will be realized. October 13, 2014 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% of Nifty 50 Arbitrage index and 25% in Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.49% Direct: 0.90% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge CNX NIFTY-FEB HDFC Bank Ltd. Banks 1.66 ITC Ltd. Consumer Non Durables 1.31 Bharat Petroleum Corporation Ltd. Petroleum Products 1.28 Power Grid Corporation Of India Ltd Power 1.16 IndusInd Bank Ltd. Banks 1.05 Hindalco Industries Ltd Non - Ferrous Metals 0.94 National Thermal Power Corporation Limited Power 0.94 Tata Steel Limited. Ferrous Metals 0.94 HDFC Ltd. Warrants Finance 0.91 Tata Motors Ltd - DVR Auto 0.87 Yes Bank Ltd Banks 0.86 Varun Beverages Ltd Consumer Non Durables 0.82 Grasim Industries Ltd. Cement 0.80 Asian Paints Ltd. Consumer Non Durables 0.78 Infosys Ltd. Software 0.73 Hero MotoCorp Ltd. Auto 0.70 Zee Entertainment Enterprises Ltd Media and Entertainment 0.66 Bajaj Finance Limited Finance 0.64 Biocon Ltd. Pharmaceuticals 0.62 Hindustan Unilever Ltd. Consumer Non Durables 0.58 Reliance Industries Ltd. Petroleum Products 0.54 Axis Bank Ltd Banks 0.51 JSW Steel Ltd. Ferrous Metals 0.50 Laurus Labs Ltd Pharmaceuticals 0.49 Petronet LNG Ltd. Gas 0.49 The Ramco Cements Ltd Cement 0.49 Ultratech Cement Ltd. Cement 0.49 Maruti Suzuki India Limited Auto 0.36 Bata India Ltd. Consumer Durables Dr Reddys Laboratories Ltd Pharmaceuticals 0.22 GAIL (India) Ltd. Gas 0.22 HDFC Ltd. Finance 0.22 Larsen And Toubro Ltd. Construction Project 0.22 ICICI Bank Ltd. Banks 0.20 Mahindra & Mahindra Ltd. Auto 0.19 State Bank Of India Banks 0.19 Tata Consultancy Services Ltd. Software 0.17 Bajaj Finserv Ltd. Finance 0.15 Tata Motors Ltd. Auto 0.15 BSE Ltd Finance 0.14 RBL Bank Ltd Banks 0.14 Wipro Ltd. Software 0.13 Lupin Ltd. Pharmaceuticals 0.12 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.08 Ambuja Cements Ltd Cement 0.02 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 ACC Ltd. Cement 0.01 Non-Hedged- Total Hedged Geometric Software Solutions Co Ltd Software 6.51 HCL Technologies Ltd.- FEB Cairn India Limited Oil Vedanta Ltd.- FEB GMR Infrastructure Ltd. Construction Project HDFC Bank Ltd. Banks Jain Irrigation Systems Ltd. Industrial Products IDFC Limited Finance Tata Communications Ltd Telecom - Services Reliance Capital Ltd. Finance Dish TV India Ltd. Media and Entertainment JSW Steel Ltd. Ferrous Metals Reliance Mutual Fund CPSE ETF Mutual Fund Units 1.13 Bharat Electronics Ltd Industrial Capital Goods Coal India Ltd.-FEB Container Corporation of India Ltd.-FEB Engineers India Ltd.- FEB Indian Oil Corporation Ltd-FEB Oil & Natural Gas Corporation Ltd.- FEB Oil India Limited - FEB Power Finance Corporation Ltd.-FEB Rural Electrification Corporation Ltd-FEB Reliance Industries Ltd. Petroleum Products Aurobindo Pharma Ltd. Pharmaceuticals Century Textiles & Industries Ltd. Cement HDFC Ltd. Finance UPL Ltd Pesticides Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Divi s Laboratories Limited Pharmaceuticals Ashok Leyland Ltd. Auto Glenmark Pharmaceuticals Ltd Pharmaceuticals Aditya Birla Nuvo Limited Services Indiabulls Housing Finance Ltd. Finance Yes Bank Ltd Banks Housing Development and Infrastructure Limited Construction Wockhardt Ltd. Pharmaceuticals Dewan Housing Finance Corporation Ltd. Finance ICICI Bank Ltd. Banks Bharat Financial Inclusion Limited Finance IRB Infrastructure Developers Ltd Construction Castrol (India ) Ltd. Petroleum Products * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

19 EQUITY SCHEMES KOTAK EQUITY SAVINGS FUND An Open Ended Equity Fund % to Net - Derivatives India Cements Ltd. Cement Bharat Electronics Ltd Industrial Capital Goods Shriram Transport Finance Co Ltd. Finance Mahindra & Mahindra Ltd. Auto Infosys Ltd. Software NCC Limited Construction Project Tata Motors Ltd. Auto Petronet LNG Ltd. Gas Adani Power Ltd Power Indiabulls Real Estate Ltd Construction ITC Ltd. Consumer Non Durables Sun TV Limited. Media and Entertainment Tata Motors Ltd - DVR Auto Vedanta Ltd. Non - Ferrous Metals HCL Technologies Ltd. Software Tata Elxsi Ltd. Software Asian Paints Ltd. Consumer Non Durables Jindal Steel & Power Ltd. Ferrous Metals Britannia Industries Ltd. Consumer Non Durables Reliance Infrastructure Ltd Power IFCI Ltd. Finance Federal Bank Ltd. Banks LIC Housing Finance Ltd. Finance GAIL (India) Ltd. Gas JSW Energy Ltd. Power Tata Global Beverages Limited Consumer Non Durables Zee Entertainment Enterprises Ltd Media and Entertainment Tata Chemicals Ltd. Chemicals Reliance Power Ltd Power Eicher Motors Ltd Auto Engineers India Ltd. Construction Project Exide Industries Ltd Auto Ancillaries Lupin Ltd. Pharmaceuticals Motherson Sumi Systems Ltd. Auto Ancillaries Oil India Limited Oil Oracle Financial Services Software Ltd Software Pidilite Industries Ltd. Chemicals Tata Steel Limited. Ferrous Metals NIIT Technologies Ltd Software Granules India Ltd. Pharmaceuticals KPIT Technologies LImited Software Tata Power Co. Ltd. Power TV18 Broadcast Ltd Media and Entertainment Wipro Ltd. Software Apollo Hospitals Enterprises Ltd. Healthcare Services CESC Ltd. Power Oil & Natural Gas Corporation Ltd. Oil Bharat Heavy Electricals Ltd. Industrial Capital Goods Colgate Palmolive (India ) Ltd. Consumer Non Durables Maruti Suzuki India Limited Auto National Thermal Power Corporation Limited Power Axis Bank Ltd Banks Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Government Dated Securities 8.53% State Government SOV 0.74 Government Dated Securities - Total 0.74 TERM DEPOSITS AXIS Bank Ltd HDFC Bank Ltd Kotak Mahindra Bank Ltd IndusInd Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 3.19 Net Current /(Liabilities) Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Savings Fund NAV as on January 31, 2017: ` (Growth Option), ` (Monthly Dividend Option), ` Quarterly Dividend Option), ` (Direct Growth Option), ` (Direct Monthly Dividend Option), ` (Direct Quarterly Dividend Option) 18

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

21 EQUITY SCHEMES KOTAK INDIA GROWTH FUND SERIES I 3 years Close- Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity & equity related instruments across market capitalisation and sectors. However, there is no assurance that the objective of the scheme will be realized. May 06, 2015 Mr. Harish Krishnan Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.17 Infosys Ltd. Software 7.27 ICICI Bank Ltd. Banks 7.25 IndusInd Bank Ltd. Banks 6.98 Maruti Suzuki India Limited Auto 6.78 Tata Motors Ltd - DVR Auto 5.61 Hero MotoCorp Ltd. Auto 5.27 Reliance Industries Ltd. Petroleum Products 4.92 Britannia Industries Ltd. Consumer Non Durables 4.87 Larsen And Toubro Ltd. Construction Project 4.87 Axis Bank Ltd Banks 4.84 Ultratech Cement Ltd. Cement 4.61 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 4.58 Shree Cement Ltd. Cement 3.97 Equitas Holdings Ltd Finance 3.11 Note: Term Deposit as provided above is towards margin for derivatives transactions Persistent Systems Limited Software 3.01 Kajaria Ceramics Ltd. Construction 3.00 Laurus Labs Ltd Pharmaceuticals 2.09 GAIL (India) Ltd. Gas 1.89 Power Grid Corporation Of India Ltd Power 0.81 Sheela Foam Ltd Consumer Durables 0.52 ICICI Prudential Life Insurance Company Ltd Finance 0.40 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 0.52 Collateral Borrowing & Lending obligation 0.10 Net Current /(Liabilities) 3.56 Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 20.19% 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 January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Finance Others Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project 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. 20

22 DEBT SCHEMES KOTAK LIQUID An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt markets. However, there is no assurance that the objective of the scheme will be realized. November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` Plans: a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.24%, Modified Duration: 0.09yrs, Portfolio Yield: 6.61% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.06% Direct: 0.01% Debt Instruments Debentures and Bonds Public Sector Undertakings HDFC Ltd. CRISIL AAA 3.72 Corporate Debt/Financial Institutions - Total 3.72 Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 0.27 Public Sector Undertakings - Total 0.27 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Finance Limited ICRA A Reliance Jio Infocomm Limited CARE A Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Edelweiss Commodities Services Ltd. CRISIL A Gruh Finance Ltd ICRA A Ultratech Cement Ltd. CRISIL A Bharti Airtel Ltd. ICRA A IIFL FACILITY ICRA A Aditya Birla Finance Ltd. ICRA A Tata Capital Housing Finance Ltd; CRISIL A AXIS Bank Ltd. CRISIL A Muthoot Finance Ltd CRISIL A Nirma Ltd. CRISIL A Vedanta Ltd. CRISIL A Tata Capital Financial Services Limited ICRA A Bajaj Finance Limited CRISIL A Adani Ports and Special Economic Zone Limited ICRA A CESC Ltd. CARE A HDFC Ltd. ICRA A L & T Infrastructure Development Project Ltd. CRISIL A Note: Term Deposit as provided above is towards margin for derivatives transactions Tata Motors Ltd. ICRA A Essel Mining & Industries Ltd. ICRA A India Infoline Finance Limited ICRA A Standard Chartered Investment & Loan India Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Small Industries Development Bank Of India. CARE A IDBI Bank Ltd CRISIL A National Bank for Agriculture & Rural Development CRISIL A Andhra Bank CARE A Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 7.92 Reverse Repo 4.08 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Cash Management Treasury Bill SOV Days Cash Management Treasury Bill SOV Days Treasury Bill SOV Days Treasury Bill 16/03/2017 SOV Days Cash Management Treasury Bill SOV 0.01 Treasury Bills - Total TERM DEPOSITS Deutsche Bank 5.00 Term Deposits - Total 5.00 Collateral Borrowing & Lending obligation 5.64 Net Current /(Liabilities) 2.73 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.09 years Kotak Liquid Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Treasury Bills Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Net Current A1+, AAA, SOV RATING PROFILE CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk 21 * For experience, please refer page For scheme performance, please refer page no

23 DEBT SCHEMES KOTAK FLOATER SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives. However, there is no assurance that the objective of the scheme will be realized. July 14, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.23%, Modified Duration:0.10 yrs, Portfolio Yield: 6.72% 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: 0.07% Direct: 0.02% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 2.18 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR A The Indian Hotels Company Ltd. ICRA AA 0.12 HDB Financial Services Ltd. CRISIL AAA 0.11 Corporate Debt/Financial Institutions - Total 2.81 Government Dated Securities 8.42% State Government SOV 0.04 Government Dated Securities - Total 0.04 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 6.76 Muthoot Finance Ltd CRISIL A Bharti Airtel Ltd. ICRA A India Infoline Finance Limited ICRA A Bajaj Finance Limited CRISIL A LIC Housing Finance Ltd. CRISIL A Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Bharat Aluminum Co. Ltd. CRISIL A1+(SO) 2.97 Edelweiss Financial Services Limited CRISIL A ECL Finance Limited CRISIL A Gruh Finance Ltd ICRA A Reliance Jio Infocomm Limited CARE A Piramal Finance Limited ICRA A HDFC Ltd. ICRA A Aditya Birla Finance Ltd. ICRA A Tata Power Company Ltd. ICRA A Tata Steel Limited FITCH A1+(IND) 1.39 Edelweiss Commodities Services Ltd. CRISIL A Hero FinCorp Ltd. CRISIL A Indostar Capital Finance Private Limited CRISIL A AXIS Bank Ltd. CRISIL A Note: Term Deposit as provided above is towards margin for derivatives transactions Tata Capital Financial Services Limited ICRA A Vedanta Ltd. CRISIL A Adani Transmission Ltd FITCH A1+(IND) 0.40 ICICI Bank Ltd. CRISIL A Standard Chartered Investment & Loan India Ltd. CRISIL A Ford Credit India Pvt. Ltd. CRISIL A Gruh Finance Ltd CRISIL A Mahindra & Mahindra Financial Services Ltd. CRISIL A IndusInd Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. FITCH IND A Corporation Bank CRISIL A Andhra Bank CARE A National Bank for Agriculture & Rural Development CRISIL A Punjab & Sind Bank CRISIL A Indian Railway Finance Corporation Ltd. CRISIL A Public Sector Undertakings - Total 4.43 Reverse Repo 0.95 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Treasury Bill 09/02/2017 SOV Days Cash Management Treasury Bill 06/03/2017 SOV Days Treasury Bill 02/03/2017 SOV Days Cash Management Treasury Bill 14/03/2017 SOV Days Treasury Bill 09/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Cash Management Treasury Bill 03/03/2017 SOV Days Treasury Bill 02/02/2017 SOV 0.20 Treasury Bills - Total TERM DEPOSITS Deutsche Bank 7.98 Term Deposits - Total 7.98 Collateral Borrowing & Lending obligation 0.87 Net Current /(Liabilities) 0.14 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.10 years Kotak Floater Short Term Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) SECTOR ALLOCATION (%) Treasury Bills CBLO & Term Deposits & Rev.Repo Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Net Current Government Dated Securities AA RATING PROFILE (%) A1+, A1+(IND), A1+(SO), AAA, BWR A1+, IND A1+, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in floating rate securities, debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

24 DEBT SCHEMES KOTAK TREASURY ADVANTAGE FUND (Formerly Known as Kotak Floater Long Term ) An Open Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. August 13, 2004 Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation:0.55%, Modified Duration:0.52 yrs, Portfolio Yield: 7.30% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth- `5000 & above (ii) Dividend Payout (Weekly) - `1,00,00,000 & above Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.60% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bharti Enterprises (Holding) Pvt. Ltd. CRISIL A HDFC Ltd. CRISIL AAA 4.08 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR A L & T Finance Limited(^) CARE AA Kotak Mahindra Prime Ltd. CRISIL AAA 3.39 Shriram Transport Finance Co Ltd.(^) CRISIL AA Tata Motors Finance Ltd CRISIL AA 2.73 Fullerton India Credit Co. Ltd.(^) CARE AAA 2.04 Nirma Ltd. CRISIL AA 2.04 AXIS Bank Ltd. CRISIL AA 1.94 LIC Housing Finance Ltd. CRISIL AAA 1.87 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 1.80 Shriram Transport Finance Co Ltd. FITCH IND AA Indiabulls Housing Finance Limited CARE AAA 1.71 Kotak Mahindra Investments Ltd.(^) CRISIL AAA 1.70 Kotak Mahindra Prime Ltd.(^) CRISIL AAA 1.69 Tata Motors Ltd. CARE AA Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 1.01 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA India Infoline Housing Finance Ltd. ICRA AA 0.85 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.43 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.22 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) FITCH IND AA Tata Power Company Ltd. ICRA AA 0.17 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.16 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.09 India Infoline Finance Limited CARE AA 0.09 East-North Interconnection Company Limited CRISIL AAA(SO) 0.05 L & T Finance Limited CARE AA Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AA(SO) 0.05 Tata Capital Housing Finance Ltd; CRISIL AA Tata Sons Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL AAA 3.20 Rural Electrification Corporation Ltd. CRISIL AAA 2.29 Power Finance Corporation Ltd.(^) CRISIL AAA 2.14 National Bank for Agriculture & Rural Development CRISIL AAA 1.77 National Housing Bank CRISIL AAA 1.69 Small Industries Development Bank Of India. CRISIL AAA 1.53 Small Industries Development Bank Of India. CARE AAA 0.85 Canara Bank CRISIL AAA 0.74 Power Finance Corporation Ltd. CRISIL AAA 0.37 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.11 Power Grid Corporation of India Ltd. CRISIL AAA 0.09 Public Sector Undertakings - Total Government Dated Securities 7.61% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV 0.13 Government Dated Securities - Total 7.11 Futures GS CG 6.97% 06/09/2026-FEB GS CG 7.61% 09/05/2030-FEB Futures (Market value represents Notional Value) - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IDFC Bank Limited ICRA A IndusInd Bank Ltd. CRISIL A Piramal Enterprises Limited ICRA A Bahadur Chand Investments Private Limited ICRA A Manappuram Finance Ltd ICRA A AXIS Bank Ltd. CRISIL A ICICI Bank Ltd. CRISIL A Vedanta Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CRISIL A Andhra Bank CARE A Punjab & Sind Bank CRISIL A IDBI Bank Ltd CRISIL A Steel Authority of India Ltd. CRISIL A Corporation Bank CRISIL A Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 4.41 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV Days Treasury Bill 30/03/2017 SOV Days Treasury Bill 09/02/2017 SOV Days Treasury Bill 09/03/2017 SOV 0.03 Treasury Bills - Total 4.57 Net Current /(Liabilities) 1.45 Notes: ^ Fully or Party blocked against Interest Rate Swap (IRS), Hedging Position through Interest Rate Swaps as on 31 Jan 2017 is 8.47% of the net assets.. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.57 years. Kotak Treasury Advantage Fund NAV as on January 31, 2017: ` (Daily Dividend Option), ` (Daily Dividend - Direct), ` (Growth Option), ` (Monthly Dividend Option), ` (Weekly Dividend Option), ` (Monthly Dividend - Direct), ` (Weekly Dividend - Direct), ` (Growth - Direct Option) SECTOR ALLOCATION (%) Derivatives Treasury Bills Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Government Dated Securities Net Current RATING PROFILE AA+, IND AA+, AA, AA(SO), AA-, IND AA- A1+, AAA, AAA(SO), BWR A1+, IND AAA, SOV Derivatives Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 23 Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* CRISIL Liquid Fund (w.e.f February 1, 2017 the benchmark of the scheme is changed to CRISIL Short Term Bond Fund Index) AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 1.87%, Modified Duration: 2.41yrs, Portfolio Yield: 7.53% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Dividend Payout, Dividend Re-investment & Growth `5000 & above. Investment: `1000 & in multiples of `1. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular:0.50% Direct: 0.15% Debt Instruments Debentures and Bonds AXIS Bank Ltd. CRISIL AA 3.40 Corporate Debt/Financial Institutions - Total 3.40 Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 9.66 Power Finance Corporation Ltd. CRISIL AAA 6.67 National Bank for Agriculture & Rural Development CRISIL AAA 5.67 State Bank Of India. CRISIL AA Bank Of Baroda CARE AA 4.35 Rural Electrification Corporation Ltd. CRISIL AAA 3.72 State Bank of Travancore CRISIL AAA 3.01 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 2.89 State Bank Of India. CRISIL AAA 2.65 Canara Bank CRISIL AAA 2.62 Punjab National Bank CARE AA 2.59 Union Bank of India CARE AA 2.21 Union Bank of India CRISIL AAA 2.18 Andhra Bank CRISIL AA Oriental Bank of Commerce ICRA A Export-Import Bank of India. CRISIL AAA 1.92 Bank of Maharashtra CRISIL A Power Finance Corporation Ltd. ICRA AAA 1.78 Bank Of Baroda CARE AA Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.16 National Housing Bank CRISIL AAA 0.69 Steel Authority of India Ltd. FITCH IND AA 0.34 Public Sector Undertakings - Total Government Dated Securities 6.84% Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV 0.43 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. ICRA A IndusInd Bank Ltd. CRISIL A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 7.13 Public Sector Undertakings Andhra Bank CARE A Public Sector Undertakings - Total 1.02 Collateral Borrowing & Lending obligation 0.63 Net Current /(Liabilities) 9.00 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 3.00 years. Kotak Banking And PSU Debt Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual Dividend) Debentures and Bonds Government Dated Securities Net Current CBLO & Term Deposits & Rev.Repo Commercial Paper (CP)/Certi cate of Deposits (CD) AA+, AA, IND AA, AA- Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), IND AAA, SOV A+, A- Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

26 DEBT SCHEMES KOTAK DURATION FUND (Formerly known as PineBridge India Short Term Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The primary objective of the is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized. March 6, 2008 Mr. Deepak Agrawal * CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.77%, Modified Duration: 1.03 yrs, Portfolio Yield: 8.08% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.00% Direct: 0.25% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Tata Power Company Ltd. ICRA AA Vedanta Ltd. CRISIL AA Manappuram Finance Ltd ICRA AA Indiabulls Housing Finance Limited CARE AAA 5.37 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) BRICKWORK BWR AA-(SO) 4.75 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 4.24 HDFC Ltd. CRISIL AAA 3.97 Tata Motors Ltd. CARE AA Shriram Transport Finance Co Ltd. FITCH IND AA Bharti Enterprises (Holding) Pvt. Ltd. CRISIL A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Nirchem Cement Ltd. CRISIL AA 2.17 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 2.09 Vodafone Mobile Services Ltd. CRISIL AA 1.81 AXIS Bank Ltd. CRISIL AA 1.66 Altico Capital India Pvt Ltd IND AA Janalakshami Financial Services Ltd. ICRA A Peninsula Land Limited BRICKWORK BWR A 1.19 HPCL Mittal Energy Ltd. ICRA AA 1.04 Piramal Finance Limited ICRA AA 0.99 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.96 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.82 Muthoot Fincorp Ltd. CRISIL A Indostar Capital Finance Private Limited CARE AA Intime Properties Ltd. FITCH IND AAA 0.55 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 0.45 Kotak Mahindra Prime Ltd. CRISIL AAA 0.45 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) FITCH IND AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.26 ECL Finance Limited CARE AA 0.14 HDB Financial Services Ltd. CRISIL AAA 0.12 Aspire Home Finance Corporation Ltd ICRA AA LIC Housing Finance Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Oriental Bank of Commerce ICRA A Bank Of Baroda CARE AA 2.18 Andhra Bank CRISIL AA Canara Bank CRISIL AAA 0.77 National Bank for Agriculture & Rural Development CRISIL AAA 0.72 Rural Electrification Corporation Ltd. CRISIL AAA 0.13 Public Sector Undertakings - Total 7.77 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IDFC Bank Limited ICRA A AXIS Bank Ltd. ICRA A IndusInd Bank Ltd. CRISIL A Manappuram Finance Ltd ICRA A AXIS Bank Ltd. CRISIL A HDFC Ltd. ICRA A ICICI Bank Ltd. ICRA A Adani Ports and Special Economic Zone Limited ICRA A Sadbhav Engineering Ltd. CARE A Corporate Debt/Financial Institutions - Total Collateral Borrowing & Lending obligation 1.34 Net Current /(Liabilities) 1.10 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.18 years Kotak Duration Fund NAV as on January 31, 2017: ` (Normal Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) Debentures and Bonds RATING PROFILE A1+, AAA, IND AAA A+, A, BWR A, BWR A(SO), A- Net Current AA+, IND AA+, AA, AA(SO), AA-, AA-(IND), BWR AA-(SO), IND AA- Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk 25 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

27 DEBT SCHEMES KOTAK BOND SHORT TERM An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the is to provide reasonable returns and high level of liquidity by investing in debt instruments such as bonds, debentures and Government securities; and money market i n s t r u m e n t s s u c h a s t r e a s u r y bills,commercial papers, certificates of deposit, including repos in permitted securities of different maturities, so as to spread the risk across different kinds of issuers in the debt markets. The may invest in the call money/termmoney market in terms of RBI guidelines in this respect. To reduce the risk of the portfolio, the may also use various derivative and hedging products from time to time, in the manner permitted by SEBI. Subject to the maximum amount permitted from time to time, the may invest in offshore securities in the manner allowed by SEBI/RBI, provided such investments are in conformity with the investment objective of the and the prevailing guidelines and Regulations. However, there is no assurance that the objective of the scheme will be realized. May 2, 2002 Mr. Deepak Agrawal* Crisil Short - Term Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 1.98%, Modified Duration: 2.33 yrs, Portfolio Yield: 7.23% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth - `5000 & above (ii) Dividend Payout (Monthly Dividend) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Total Expense Ratio Regular: 1.09%; Direct: 0.25% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 7.51 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 5.98 LIC Housing Finance Ltd. CRISIL AAA 5.96 HDFC Ltd. CRISIL AAA 5.41 Kotak Mahindra Prime Ltd. CRISIL AAA 4.92 Reliance Jio Infocomm Limited CRISIL AAA 4.35 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 2.47 Indiabulls Housing Finance Limited CARE AAA 1.97 Bajaj Finance Limited FITCH IND AAA 1.93 Dewan Housing Finance Corporation Ltd. CARE AAA 1.84 HDB Financial Services Ltd. CRISIL AAA 1.49 ICICI Home Finance Company Limited ICRA AAA 1.45 Fullerton India Credit Co. Ltd. CARE AAA 1.23 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.49 East-North Interconnection Company Limited CRISIL AAA(SO) 0.06 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 6.88 National Bank for Agriculture & Rural Development CRISIL AAA 5.49 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 4.74 Small Industries Development Bank Of India. CARE AAA 4.00 Rural Electrification Corporation Ltd. CRISIL AAA 2.32 Export-Import Bank of India. CRISIL AAA 2.15 PNB Housing Finance Ltd. CARE AAA 2.09 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.16 Issuer/Instrument Industry/ % to Net Rating Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.77 years. Kotak Bond Short Term Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certi cate of Deposits (CD) Net Current Treasury Bills A1+, AAA, AAA(SO), IND AAA, SOV Debentures and Bonds Government Dated Securities IND AA Net Current Steel Authority of India Ltd. FITCH IND AA 0.12 Public Sector Undertakings - Total Government Dated Securities 7.68% Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % Central Government SOV 0.02 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. ICRA A HDFC Ltd. ICRA A Corporate Debt/Financial Institutions - Total 4.78 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV 0.54 Treasury Bills - Total 0.54 Net Current /(Liabilities) Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` a) Regular Plan b) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 4.20%, Modified Duration: 4.56yrs, Portfolio Yield: 7.38% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Regular:0.90% Direct: 0.35% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited CARE AAA 8.74 Mahindra & Mahindra Financial Services Ltd. CARE AAA 4.24 Reliance Ports And Terminals Limited CRISIL AAA 3.57 Reliance Jio Infocomm Limited CRISIL AAA 2.42 AXIS Bank Ltd. CRISIL AA 1.53 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.29 LIC Housing Finance Ltd. CRISIL AAA 1.05 Indiabulls Housing Finance Limited CARE AAA 0.26 HDFC Ltd. CRISIL AAA 0.19 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.08 Shriram Transport Finance Co Ltd. CRISIL AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings State Bank Of India. CRISIL AA Bank Of Baroda CARE AA 3.93 PNB Housing Finance Ltd. CARE AAA 2.39 Power Finance Corporation Ltd. CRISIL AAA 1.38 Export-Import Bank of India. CRISIL AAA 0.08 Rural Electrification Corporation Ltd. CRISIL AAA 0.02 Public Sector Undertakings - Total Government Dated Securities 7.68% Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.08 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.91 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 : 6.13 years Kotak Flexi Debt Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Net Current Government Dated Securities Debentures and Bonds Net Current AAA, SOV RATING PROFILE CBLO & Term Deposits & Rev.Repo AA+, AA Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 27 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

29 DEBT SCHEMES KOTAK INCOME OPPORTUNITIES FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. However, there is no assurance that the objective of the scheme will be realized. May 11, 2010 s Mr. Deepak Agrawal* Crisil Short Term Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annual (12th of March). Ratios Standard Deviation: 1.90%, Modified Duration: 2.29yrs, Portfolio Yield: 8.45% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: I) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. II) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Pipelines Ltd. ICRA AA 6.10 Tata Power Company Ltd. ICRA AA 5.76 Reliance Jio Infocomm Limited CRISIL AAA 5.50 HPCL Mittal Energy Ltd. ICRA AA 4.90 Indiabulls Housing Finance Limited CARE AAA 3.56 Janalakshami Financial Services Ltd. ICRA A DLF Emporio Ltd CRISIL AA 3.18 Vodafone Mobile Services Ltd. CRISIL AA 3.12 Au Financiers (India) Limited FITCH IND A Vedanta Ltd CRISIL AA Nirchem Cement Ltd. CRISIL AA 2.83 Piramal Finance Limited ICRA AA 2.64 Nirma Ltd. CRISIL AA 2.46 Tata Power Company Ltd. CRISIL AA ECL Finance Limited ICRA AA 2.34 Prestige Estates Projects Limited ICRA A Bharti Enterprises (Holding) Pvt. Ltd. CRISIL A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Tata Steel Limited BRICKWORK BWR AA 2.28 India Infoline Housing Finance Ltd. ICRA AA 2.15 Reliance Ports And Terminals Limited CRISIL AAA 1.84 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.54 LIC Housing Finance Ltd. CARE AAA 1.54 AXIS Bank Ltd. CRISIL AA 1.38 Tata Power Renewable Energy Ltd. CARE AA(SO) 1.28 Equitas Micro Finance Ltd. CARE A Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Dalmia Cement (Bharat) Ltd ICRA AA 1.04 ECL Finance Limited CARE AA 0.99 Indiabulls Housing Finance Limited CARE AA Vedanta Ltd. CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.79 Kolte-Patil Developers Limited CRISIL A Manappuram Finance Ltd CRISIL AA Shriram Transport Finance Co Ltd. FITCH IND AA Regular: 1.60% Direct: 0.90% Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no Issuer/Instrument Industry/ % to Net Rating Bhanu Vyapaar Private Limited ( Secured by Equity shares of by a Kalyani Group company ) ICRA AA HDFC Ltd. CRISIL AAA 0.64 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) BRICKWORK BWR A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.47 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 0.45 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.26 Indostar Capital Finance Private Limited CARE AA LIC Housing Finance Ltd. CRISIL AAA 0.03 HDB Financial Services Ltd. CRISIL AAA 0.02 Emami Ltd ) SBK Properties Pvt Ltd. ( Guaranteed FITCH IND AA Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 0.77 Syndicate Bank CARE AA Power Finance Corporation Ltd. CRISIL AAA 0.31 Bank of India BRICKWORK BWR AA Konkan Railway Corporation Ltd. ICRA AAA 0.16 National Bank for Agriculture & Rural Development CRISIL AAA 0.09 Union Bank of India Bank of India CARE AA CRISIL A Public Sector Undertakings - Total 5.58 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Manappuram Finance Ltd ICRA A AXIS Bank Ltd. CRISIL A HDFC Ltd. ICRA A Corporate Debt/Financial Institutions - Total 3.57 Public Sector Undertakings Dena Bank CRISIL A Public Sector Undertakings - Total 0.44 Treasury Bills 91 Days Treasury Bill 23/03/2017 SOV 1.22 Treasury Bills - Total 1.22 Collateral Borrowing & Lending obligation 0.27 Net Current /(Liabilities) 2.64 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.85 years. Kotak Income Opportunities Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). SECTOR ALLOCATION (%) 4.01 Debentures and Bonds Treasury Bills CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certi cate of Deposits (CD) AA+, IND AA+, AA, AA(SO), BWR AA, AA-, BWR AA-, IND AA- Net Current A1+, AAA, SOV CBLO & Term Deposits & Rev.Repo A+, BWR A+, IND A+ Income over a medium term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 28

30 DEBT SCHEMES KOTAK CORPORATE BOND FUND (Formerly known as PineBridge India Total Return Bond Fund) An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The Fund seeks to generate income and capital appreciation largely through a focus on investments in corporate debt securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. September 21, 2007 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.52%, Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 8.25 Reliance Jio Infocomm Limited CRISIL AAA 7.44 Bajaj Finance Limited FITCH IND AAA 5.22 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 3.98 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 3.42 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 3.26 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 2.85 ECL Finance Limited CARE AA 2.28 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.02 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.57 LIC Housing Finance Ltd. CRISIL AAA 0.35 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 5.99 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 5.20 National Housing Bank CRISIL AAA 4.56 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 4.12 National Bank for Agriculture & Rural Development CRISIL AAA 2.93 Power Finance Corporation Ltd. CRISIL AAA 2.56 Export-Import Bank of India. CRISIL AAA 1.00 Airports Authority of India CRISIL AAA 0.57 Steel Authority of India Ltd. FITCH IND AA 0.46 Public Sector Undertakings - Total Collateral Borrowing & Lending obligation Net Current /(Liabilities) 6.81 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.16 years Kotak Corporate Bond Fund NAV as on January 31, 2017: ` (Standard Plan-Growth Option), ` (Standard Plan- Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend) Modified Duration: 0.99yrs, Portfolio Yield: 6.92% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1for purchase and for `0.01 for switches. Ideal Investment Horizon: 1 Year & Above Entry Load: Nil. Exit Load: Nil Regular: 0.50% Direct: 0.30% Debentures and Bonds AAA, AAA(SO), IND AAA Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo AA+, AA, IND AA Net Current Regular income over short term Income by investing in fixed income securities of varying maturities & credit * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 29 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

31 EQUITY SCHEMES Equity Fund Ready Reckoner (as on January 31, 2017) Kotak 50 Kotak Classic Equity Kotak Opportuni es Kotak Select Focus Fund Kotak Tax Saver Kotak Midcap Kotak Emerging Equity Kotak Infrastructure & Economic Reform Fund Kotak Balance Fund Kotak Equity Arbitrage Fund Kotak Equity Savings Fund Investment Theme Large cap Large cap Diversified Mul Cap ELSS Mid cap Mid and Small Cap Thema c: Infrastructure Balanced Equity Arbitrage Equity Savings Product Posi oning Invest with industry leaders Long term wealth creators Spo ng the hidden gems Focus on few selected sectors Tax advantage with poten al equity growth Spot them young, watch them grow Emerging leaders True to label Best of both worlds: equity & debt Arbitrage opportuni es MIP with equity tax efficiency Key Features a. Favours industry leaders in cost,innova on, brand, competence, etc with a proven execu on track record across cycles. b. convic on and long term calls taken a. Focus on sustainable large cap stories which can withstand market shocks b. These are companies with pricing power for their compe ve advantage or entry barriers Iden fies investment opportuni es across market capitalisa on and sectors a. Invests in a few sectors as the various sectors of the economy tend to perform differently at different points of me b. Flexibility to move across market caps depending on their a rac veness during the economic phase a. Por olio is diversified across sectors and market capitaliza on segments b. Offers dual benefits of growth and tax savings a.iden fies the hidden growth poten al of mid-cap sized companies b. Por olio exhibits higher vola lity than large caps however tends to have a larger return base c. Buy and hold strategy a. Stands for winning investment ideas across the mid & small cap range offering decent growth trajectory over the medium to long term horizon b. Buy and hold strategy c. Riskier than a large cap fund but offers faster growth rate since it has a smaller base d. 15%-20% alloca on to large cap opportuni es as tac cal plays a. Iden fies "flow related" companies - These benefit from spending from government, private and household (in terms of proper es). They are not asset owners. b. Focus on high quality companies exhibi ng superior ROE, posi ve cash flow, low leverage in an otherwise challenging environment a. Equity por on: Mul cap strategy to iden fy outstanding companies having well managed and durable businesses with predictable earnings power b. Debt por on: Ac vely managed with medium to long term maturity c. er vola lity than a pure equity or debt fund a. Discovers arbitrage opportuni es by simultaneously entering transac ons of long posi on in cash and exactly off-se ng short posi on in futures b. Equity posi on is completely hedged Conserva ve por olio with a blend of: a. Income genera on - through arbitrage opportuni es & debt investment b. Growth poten al - through moderate par cipa on in equity markets c. Tax efficiency - through equity orienta on Incep on Date 29-Dec Jul Sep Sep Nov Feb Mar Feb Nov Sep Oct-14 Mr. Harish Krishnan Mr. Deepak Gupta# Mr. Harsha Upadhyaya Mr. Harsha Upadhyaya Mr. Harsha Upadhyaya Mr. Pankaj Tibrewal Mr. Pankaj Tibrewal Mr. Harish Krishnan Mr. Pankaj Tibrewal & Mr. Abhishek Bisen Mr. Deepak Gupta Mr. Deepak Gupta & Mr. Abhishek Bisen Ni y 50 Ni y 100 Ni y 500 Ni y 200 Ni y 500 Ni y Midcap 100 S&P BSE Mid Small Cap S&P BSE 100 Crisil Balanced Fund Ni y 50 Arbitrage Index 75% of Ni y 50 Arbitrage Index + 25% of Ni y 50 Monthly AAUM (Rs. Crs) Mcap (%) 79.30% Large Cap 18.80% Mid Cap 0.00% Small Cap 1.90% Cash 93.64% Large Cap 4.28% Mid Cap 0.00% Small Cap 2.08% Cash 69.37% Large Cap 21.87% Mid Cap 2.08% Small Cap 6.68% Cash 74.55% Large Cap 17.39% Mid Cap 0.70% Small Cap 7.36% Cash 65.67% Large Cap 29.21% Mid Cap 3.29% Small Cap 1.83% Cash 3.43% Large Cap 79.04% Mid Cap 7.17% Small Cap 10.36% Cash 9.89% Large Cap 73.63% Mid Cap 10.43% Small Cap 6.05% Cash N/A 54.62% Large Cap 36.72% Mid Cap 7.19% Small Cap 1.47% Cash N/A N/A Overweight 1. Cement & Cement Products 2. FMCG 3. Auto & Auto Ancillary 1. Metal & Metal Products 2. Cement & Cement Products 3. U li es 1. Oil & Gas 2. Cement & Cement Products 3. Auto & Auto Ancillary 1. Cement & Cement Products 2. Oil & Gas 3. Capital Goods & Engineering 1. Cement & Cement Products 2. Oil & Gas 3. Capital Goods & Engineering 1. Banking & Finance 2. Capital Goods & Engineering 3. Chemicals 1. Capital Goods & Engineering 2. Media 3. Durables N/A N/A N/A N/A Underweight 1. Banking & Finance 2. Telecom 3. U li es 1. Banking & Finance 2. FMCG 3. Capital Goods & Engineering 1. Informa on technology 2. Banking & Finance 3. FMCG 1. Informa on technology 2. Pharmaceu cal 3. U li es 1. Informa on technology 2. FMCG 3. U li es 1. U li es 2. Pharmaceu cal 3. Transporta on & Logis cs 1. U li es 2. Metal & Metal Products 3. Oil & Gas N/A N/A N/A N/A Beta Sharpe Standard Devia on 14.49% 14.00% 15.13% 15.49% 16.27% 17.56% 17.32% 20.10% 11.40% 0.52% 3.59% Details provided are as on January 31, Ratio Source: ICRA MFI Explorer. Risk rate assumed to be 6.25% (FBIL Overnight MIBOR rate as on January 31, 2017). *For Kotak Midcap Fund & Kotak Emerging Equity Fund the stocks falling within the mcap range in Nifty Midcap 100 & S&P BSE Mid Small Cap, respectively, would be considered as midcap stocks. Any stock which would have mcap above the highest mcap of these benchmarks would be considered as largecap, and any stock would have mcap below the lowest mcap would be considered as smallcap. Mcap breakup of Kotak Balance portfolio is for the equity component only. N/A: Field not applicable to the scheme owing to its investment theme. Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Continuous offer of units of all schemes available at NAV based prices. # With effect from 1st January, 2017, the fund management responsibilities of Kotak Classic Equity Fund was changed from Mr. Harish Krishnan to Mr. Deepak Gupta. Large cap Mid cap Small cap (>21,584 crs)* (21,584 to 1,670 crs)* (<1,670 crs)*

32 DEBT SCHEMES Debt Fund Ready Reckoner (as on January 31, 2017) Kotak Liquid Kotak Floater Short Term Kotak Treasury Advantage # Kotak Dura on Fund Kotak Corporate Bond Fund Kotak Banking & PSU Debt Fund Kotak Bond Short Term Kotak Flexi Debt Kotak Income Opportuni es Fund Kotak Medium Term Kotak Bond Fund Kotak Gilt Investment Current Posi oning Liquid-Conserva ve Liquid-Aggressive UST^-Conserva ve UST^-Aggressive UST^-Aggressive Banking and PSU STP^^-Conserva ve Dynamic STP Accrual Accrual Income-Aggressive Gilt-Aggressive Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index CRISIL Liquid Fund CRISIL Composite Bond Fund Crisil Short Term Bond Fund Index # Crisil Short - Term Bond Fund CRISIL Composite Bond Crisil Short Term Bond Fund CRISIL Composite Bond Fund Crisil Composite Bond Fund ISEC Composite Monthly Avg. AUM (Rs crores) Current Por olio Quality** 100% AAA 99.88% AAA 0.12%AA 81.13% AAA 18.87% AA 34.48% AAA 53.70% AA 96.12% AAA 3.88% AA 62.41% AAA, 12.98% Gilt 20.66% AA 80.36% AAA, 19.51% Gilt 0.12% AA 27.99% AAA 61.29% Gilt 10.72% AA 25.66% AAA 59.62% AA 1.21% Gilt 29.43% AAA, 60.30% AA, 0.46% Gilt 23.80% AAA 64.50% Gilt 9.75% AA 100% Gilt Ideal Investment Horizon 1-15 days 1-15 days 1-3 Months 1-3 Months 6 Months and above 6 Months and above 6 Months and above 6 Months and above 1 Year and above 2.5 Years and above 1 Year and above 1 Year and above Key Differen ator Maturity < 91 days Maturity < 91 days Modified dura on < 6 months Modified dura on between 6 12 months % corporate bond exposure quality Banking & PSU assets Avg Mat between 1-3 years Dynamic strategy, dura on has never gone above 5 years. Upto 65% in > 1 yr papers, try to capitalize on mispriced credits Avg Mat between 3-7 years Dynamic strategy, no cap on dura on Dynamic strategy, no cap on dura on YTM % Average Maturity (years) Modified Dura on (years) Exit Load Nil Nil Nil Nil Nil Nil Nil Nil Withdrawal up to 10% of investment amt within 1 yr: Nil Within 1 year : 1%, A er 1 year : Nil Withdrawal up to 15% of investment amt within 1 yr: Nil Within 18 months : 2%, A er 18 months : Nil Nil Nil Risk Factor: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Con nuous Offer of units of all schemes available at NAV based prices. Note: ^UST = Ultra Short Term plan, ^^STP= Short Term plan. **AAA also includes A1+,A1+(SO), AAA(SO), IND AAA, Net current, CBLO, Term Deposit and Rev repo. For Kotak Gilt Fund: Cash and Cash Equivalent is included under Gilt. For Liquid schemes ( Kotak Liquid and Kotak Floater Short Term ) and Liquid plus schemes (Kotak Treasury Advantage and Kotak Dura on) T-bill is included in AAA. AA includes AA,AA+,AA-.# With effect from February 1, 2017 the benchmark of Kotak Banking & PSU Debt Fund was changed from CRISIL Liquid Fund Index to CRISIL Short Term Bond Fund Index..

33 DEBT SCHEMES KOTAK MEDIUM TERM FUND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium The investment objective of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. March 21, 2014 Mr. Deepak Agrawal* CRISIL Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 2.39%, Modified Duration: 3.05yrs, Portfolio Yield: 8.47% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Purchase: `5,000/- and in multiples of 1 for purchases and for `0.01 for switches. Purchase: `1000 & in multiples of `1.for purchases and for `0.01 for switches. Ideal Investment Horizon: 2.5 years & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%. iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.70% Direct: 0.90% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 6.49 Vodafone Mobile Services Ltd. CRISIL AA 5.23 Tata Steel Limited BRICKWORK BWR AA 4.86 Piramal Finance Limited ICRA AA 4.23 HPCL Mittal Energy Ltd. ICRA AA 4.20 Dalmia Cement (Bharat) Ltd ICRA AA 3.87 Nirchem Cement Ltd. CRISIL AA 3.62 Tata Power Company Ltd. CRISIL AA Reliance Ports And Terminals Limited CRISIL AAA 3.23 Indiabulls Housing Finance Limited CARE AAA 2.98 Vedanta Ltd CRISIL AA HDFC Ltd. CRISIL AAA 2.79 HPCL Mittal Pipelines Ltd. ICRA AA 2.75 Birla Corporation Ltd. CARE AA 2.68 AXIS Bank Ltd. CRISIL AA 2.64 ECL Finance Limited CARE AA 2.47 ECL Finance Limited ICRA AA 2.24 Prestige Estates Projects Limited ICRA A Reliance Utilities And Power Private Limited CRISIL AAA 2.15 Tata Steel Limited CARE AA 1.92 The Indian Hotels Company Ltd. CARE AA Tata Motors Ltd. CARE AA Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) CARE AA(SO) 1.45 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 1.29 Janalakshami Financial Services Ltd. ICRA A India Infoline Housing Finance Ltd. ICRA AA 1.18 Intime Properties Ltd. FITCH IND AAA 1.11 Essel Lucknow Raebareli Toll Roads Limited CARE AAA 1.05 Equitas Micro Finance Ltd. CARE A Bajaj Finance Limited CARE AAA 1.03 Tata Power Renewable Energy Ltd. CARE AA(SO) 1.01 Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CARE A Tata Power Company Ltd. ICRA AA 0.88 Au Financiers (India) Limited FITCH IND A SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA East-North Interconnection Company Limited CRISIL AAA(SO) 0.75 Shriram Transport Finance Co Ltd. FITCH IND AA Asirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.30 Piramal Enterprises Limited ICRA AA 0.30 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.29 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.28 Edelweiss Housing Finance Limited ICRA AA 0.27 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.19 Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 3.00 Union Bank of India CARE AA 1.83 Bank of India CRISIL A IDBI Bank Ltd ICRA A Canara Bank CRISIL AAA 0.78 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA State Bank of Travancore CRISIL AAA 0.34 Bank Of Baroda CARE AA 0.30 Konkan Railway Corporation Ltd. ICRA AAA 0.15 Power Finance Corporation Ltd. CRISIL AAA 0.06 Public Sector Undertakings - Total Government Dated Securities 1.44% Central Government SOV 0.46 Government Dated Securities - Total 0.46 Net Current /(Liabilities) 1.19 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.93 years Kotak Medium Term Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). Net Current Debentures and Bonds Government Dated Securities Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no RATING PROFILE AA+, IND AA+, AA, AA(SO), BWR AA, AA-, BWR AA- AAA, AAA(SO), IND AAA, SOV A+, IND A+ Net Current Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 30

34 DEBT SCHEMES KOTAK BOND An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized. November 25, 1999 Mr. Abhishek Bisen* Crisil Composite Bond Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec), Half Yearly (20th of Mar/Sept), Annual (12th of Mar) Ratios Standard Deviation: 6.15% Modified Duration: 6.90 yrs Portfolio Yield: 7.25% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.78% Direct: 0.98% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL AA 4.29 Reliance Capital Ltd. CARE AAA 2.71 Reliance Ports And Terminals Limited CRISIL AAA 2.69 East-North Interconnection Company Limited CRISIL AAA(SO) 0.91 HDFC Ltd. CRISIL AAA 0.03 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Power Finance Corporation Ltd. CRISIL AAA 6.70 National Bank for Agriculture & Rural Development CRISIL AAA 2.72 State Bank Of India. CRISIL AA IDBI Bank Ltd ICRA A Syndicate Bank CARE AA Union Bank of India CARE AA 1.10 Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV 0.03 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend) SECTOR ALLOCATION (%) Issuer/Instrument Industry/ % to Net Rating Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Aditya Birla Finance Ltd. ICRA A Tata Capital Financial Services Limited ICRA A Corporate Debt/Financial Institutions - Total 6.34 Collateral Borrowing & Lending obligation 0.39 Net Current /(Liabilities) 1.32 Commercial Paper (CP)/Certi cate of Deposits (CD) A Net Current CBLO & Term Deposits & Rev.Repo AA+, AA, AA- CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Net Current A1+, AAA, AAA(SO), SOV Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

35 DEBT SCHEMES KOTAK GILT INVESTMENT An Open - Ended Dedicated Gilt Unit INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate risk-free returns through investments in sovereign securities issued by the Central and /or State Government(s) and/ or reverse repos in such securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Mr. Abhishek Bisen* ISEC Composite AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 6.94%, B) PF & Trust Plan: 6.94%, Modified Duration: 8.45 yrs, Portfolio Yield: 6.93% 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 6.79% Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV 0.36 Issuer/Instrument Industry/ % to Net Rating 8.43% State Government SOV % State Government SOV % State Government SOV 0.07 Government Dated Securities - Total Collateral Borrowing & Lending obligation 2.16 Net Current /(Liabilities) 1.45 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 January 31, 2017: ` (Regular-Growth), ` (Regular-Growth-Direct), ` (Regular-Dividend), ` (Regular-Dividend-Direct), ` (PF & Trust-Growth), ` (PF & Trust-Growth Direct), ` (PF & Trust-Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk SOV Net Current CBLO & Term Deposits & Rev.Repo Income over a long investment horizon Investments in sovereign securities issued by the Central and/or State Government(s) and / or reverse repos in such securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

36 DEBT SCHEMES KOTAK MONTHLY INCOME PLAN An Open Ended Income. Monthly Income is not assured & is subject to availability of distributable surplus Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium To enhance returns over a portfolio of Debt Instruments with a moderate exposure in Equity and Equity related Instruments. However, there is no assurance that the objective of the scheme will be realized. December 02, 2003 s Mr. Devender Singhal & Mr. Abhishek Bisen* CRISIL MIP Blended AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 6.12% Modified Duration: 4.26 yrs Portfolio Yield: 7.30% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth and Dividend Payout (Quarterly) - `5000 & above (ii) Dividend Payout (Monthly) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon - 1 year & above Entry Load: Nil. Exit Load: i) For redemption / switch out of upto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil. ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%. iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil. iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.34% Direct: 1.51% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.99 Tata Motors Ltd. Auto 1.07 Infosys Ltd. Software 1.00 Bata India Ltd. Consumer Durables 0.98 IFB Industries Ltd. Consumer Durables 0.94 Sun TV Limited. Media and Entertainment 0.81 Tech Mahindra Ltd. Software 0.78 Maruti Suzuki India Limited Auto 0.75 ICICI Bank Ltd. Banks 0.70 Tata Communications Ltd Telecom - Services 0.69 State Bank Of India Banks 0.68 Bombay Burmah Trading Corporation Ltd. Consumer Non Durables 0.64 India Cements Ltd. Cement 0.60 Phillips Carbon Black Ltd. Chemicals 0.54 Godfrey Phillips India Ltd. Consumer Non Durables 0.52 Coromandel International Ltd. Fertilisers 0.50 Sheela Foam Ltd Consumer Durables 0.50 Ashok Leyland Ltd. Auto 0.48 Yes Bank Ltd Banks 0.43 HDFC Bank Ltd. Banks 0.40 The Ramco Cements Ltd Cement 0.40 GP Petroleums Limited Petroleum Products 0.36 ICICI Prudential Life Insurance Company Ltd Finance 0.35 Manpasand Beverages Ltd. Consumer Non Durables 0.35 MindTree Ltd. Software 0.35 Balrampur Chini Mills Ltd Consumer Non Durables 0.29 Equitas Holdings Ltd Finance 0.25 Axis Bank Ltd Banks 0.24 Britannia Industries Ltd. Consumer Non Durables 0.24 GAIL (India) Ltd. Gas 0.24 Tata Motors Ltd - DVR Auto 0.22 Bharat Petroleum Corporation Ltd. Petroleum Products 0.19 Dalmia Bharat Ltd Cement 0.19 IndusInd Bank Ltd. Banks 0.19 Persistent Systems Limited Software 0.18 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Zee Entertainment Enterprises Ltd Media and Entertainment 0.15 Ramkrishna Forgings Ltd. Industrial Products 0.12 Strides Shasun Ltd. Pharmaceuticals 0.11 HDFC Ltd. Warrants Finance 0.05 Listed/Awaiting Listing on Stock Exchange - Total Options Infosys Ltd Call Option - February Options - Total 0.02 Debt Instruments Debentures and Bonds Public Sector Undertakings Syndicate Bank CARE AA State Bank Of India. CRISIL AA Andhra Bank CRISIL AA Canara Bank CRISIL AAA 2.64 Rural Electrification Corporation Ltd. CRISIL AAA 0.05 Public Sector Undertakings - Total Government Dated Securities 6.79% Central Government SOV % State Government SOV % State Government SOV % State Government SOV 4.50 Government Dated Securities - Total TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.31 Collateral Borrowing & Lending obligation 5.50 Net Current /(Liabilities) 7.19 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 6.22 years. Kotak Monthly Income Plan Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Derivatives Investors understand that their principal will be at moderate risk RATING PROFILE Derivatives AA+, AA- Net Current CBLO & Term Deposits & Rev.Repo AAA, SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related Instruments. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 33 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

37 DEBT SCHEMES KOTAK MULTI ASSET ALLOCATION FUND An Open - Ended Debt Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate income by investing predominantly in debt and money market securities, to generate growth by taking moderate exposure to equity and equity related instruments and provide diversification by investing in Gold ETFs. However, there is no assurance that the objective of the scheme will be realized. January 21, 2011 s Mr. Deepak Gupta & Mr. Abhishek Bisen* 75% CRISIL Short Term Bond Fund, 15% Nifty 50 and 10% Price of Gold. AAUM (` In Crores) ` AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.39%, Modified Duration: 2.48yrs, Portfolio Yield: 7.22% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `10000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: i) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil. iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular:2.42% Direct: 0.44% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.28 Bharat Petroleum Corporation Ltd. Petroleum Products 0.92 Power Grid Corporation Of India Ltd Power 0.83 Tata Steel Limited. Ferrous Metals 0.78 Laurus Labs Ltd Pharmaceuticals 0.77 ITC Ltd. Consumer Non Durables 0.76 National Thermal Power Corporation Limited Power 0.72 Grasim Industries Ltd. Cement 0.65 Yes Bank Ltd Banks 0.65 Hindalco Industries Ltd Non - Ferrous Metals 0.63 IndusInd Bank Ltd. Banks 0.61 Tata Motors Ltd. Auto 0.54 Infosys Ltd. Software 0.52 Hero MotoCorp Ltd. Auto 0.51 Asian Paints Ltd. Consumer Non Durables 0.47 Bajaj Finance Limited Finance 0.46 Ultratech Cement Ltd. Cement 0.45 Biocon Ltd. Pharmaceuticals 0.43 Hindustan Unilever Ltd. Consumer Non Durables 0.41 Reliance Industries Ltd. Petroleum Products 0.38 Zee Entertainment Enterprises Ltd Media and Entertainment 0.37 JSW Steel Ltd. Ferrous Metals 0.36 The Ramco Cements Ltd Cement 0.35 Petronet LNG Ltd. Gas 0.34 GAIL (India) Ltd. Gas 0.30 Axis Bank Ltd Banks 0.26 ICICI Bank Ltd. Banks 0.25 Eicher Motors Ltd Auto 0.21 Larsen And Toubro Ltd. Construction Project 0.20 Maruti Suzuki India Limited Auto 0.19 HDFC Ltd. Finance 0.17 Vedanta Ltd. Non - Ferrous Metals 0.16 Dr Reddys Laboratories Ltd Pharmaceuticals 0.13 State Bank Of India Banks 0.12 Tata Consultancy Services Ltd. Software 0.11 Bajaj Finserv Ltd. Finance 0.10 Lupin Ltd. Pharmaceuticals 0.10 HCL Technologies Ltd. Software 0.08 Wipro Ltd. Software 0.08 Tata Motors Ltd - DVR Auto 0.06 Listed/Awaiting Listing on Stock Exchange - Total Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.97 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating Mutual Fund Units - Total 8.97 Futures CNX NIFTY-FEB 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 4.64 Government Dated Securities 8.45% State Government SOV % State Government SOV % State Government SOV Government Dated Securities - Total TERM DEPOSITS AXIS Bank Ltd Term Deposits - Total 1.36 Collateral Borrowing & Lending obligation 4.34 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 3.20 years. Kotak Multi Asset Allocation Fund NAV as on January 31, 2017: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Government Dated Securities Mutual Fund Units Debentures and Bonds Net Current Derivatives Investors understand that their principal will be at moderate risk Derivatives AA SOV Mutual Fund Units Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

38 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on January Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Corporate Solutions Private Limited ( Guaranteed by a Piramal Group Company ) 0.11 Adani Ports and Special Economic Zone Limited 0.23 Adani Power Ltd ( Secured by Equity shares of Adani Ports and SEZ Ltd, Adani Transmission and Adani Enterprises) 0.74 Adani Transmission Ltd 0.08 Aditya Birla Finance Ltd Airports Authority of India 0.04 Altico Capital India Pvt Ltd 0.10 Andhra Bank 0.52 Asirvad Microfinance Private Limited ( 85% subsidiary of Manappuram Finance Ltd ) 0.14 Aspire Home Finance Corporation Ltd 0.11 Au Financiers (India) Limited 0.20 Bahadur Chand Investments Private Limited 0.20 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.12 Bajaj Finance Limited 2.07 Bank Of Baroda 0.38 Bank of India 0.19 Bank of Maharashtra 0.03 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.07 Bharat Aluminum Co. Ltd Bharti Airtel Ltd Bharti enterprises (Holding) Pvt. Ltd Birla Corporation Ltd CBLO/REVERSE REPO 3.34 CESC Ltd Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.35 Canara Bank 0.22 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.35 Corporation Bank 0.15 DLF Emporio Ltd 0.16 Dalmia Cement (Bharat) Ltd 0.30 Dena Bank 0.15 Deutsche Bank 2.34 Dewan Housing Finance Corporation Ltd ECL Finance Limited 0.96 East-North Interconnection Company Limited 0.11 Edelweiss Agri Value Chain Limited ( Unconditional and irrevocable guarantee from Edelweiss Financial Services Limited) 0.45 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.54 Edelweiss Housing Finance Limited 0.31 Edisons Utility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.17 Emami Enclave Makers Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.07 Equitas Micro Finance Ltd Essel Lucknow Raebareli Toll Roads Limited 0.08 Essel Mining & Industries Ltd Export-Import Bank of India Ford Credit India Pvt. Ltd Fullerton India Credit Co. Ltd Grand View Estates Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.30 Gruh Finance Ltd 1.00 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Hero FinCorp Ltd Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.13 Hindalco Industries Ltd Hinduja Leyland Finance Ltd ICICI Bank Ltd ICICI Home Finance Company Limited 0.37 IDBI Bank Ltd 0.42 IDFC Bank Limited 1.35 IIFL FACILITY 0.28 IIFL Wealth Finance Ltd IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.11 IOT Utkal Energy Services Ltd India Infoline Finance Limited 1.25 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.17 Indian Oil Corporation Ltd Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.38 IndusInd Bank Ltd Intime Properties Ltd JM Financial Asset Reconstruction Co. Pvt. Ltd 0.07 Issuer Name %age of Exposure to Debt AUM Janalakshami Financial Services Ltd Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.58 Kolte-Patil Developers Limited 0.06 Konkan Railway Corporation Ltd Kotak Mahindra Bank Ltd Kotak Mahindra Investments Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.53 L & T Infrastructure Development Project Ltd LIC Housing Finance Ltd MA MULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.12 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 1.00 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.22 Muthoot Finance Ltd 1.47 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.88 National Bank for Agriculture & Rural Development 1.72 National Housing Bank 0.35 Nirchem Cement Ltd Nirma Ltd ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.19 PNB Housing Finance Ltd Peninsula Land Limited 0.08 Piramal Enterprises Limited 0.40 Piramal Finance Limited 2.02 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and I rrevocable guarantee by Powergrid Corp ) 0.03 Prestige Estates Projects Limited 0.32 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100% subsidiary of Tata Sons ) 0.14 Punjab & Sind Bank 0.08 Punjab National Bank 0.05 Reliance Capital Ltd Reliance Jio Infocomm Limited 2.39 Reliance Ports And Terminals Limited 0.53 Reliance Utilities And Power Private Limited 0.11 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.08 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.13 Sadbhav Engineering Ltd Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.28 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.10 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.06 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.03 Standard Chartered Investment & Loan India Ltd State Bank Of India State Bank of Travancore 0.07 State Government 2.88 Steel Authority of India Ltd Sundaram BNP Paribas Home Finance Ltd 0.07 Sundaram Finance Ltd Suraksha Realty Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.39 Syndicate Bank 0.24 Tata Capital Financial Services Limited 0.61 Tata Capital Housing Finance Ltd; 0.61 Tata Motors Finance Ltd 0.25 Tata Motors Ltd Tata Power Company Ltd Tata Power Renewable Energy Ltd Tata Sons Ltd Tata Steel Limited 0.82 The Indian Hotels Company Ltd Ultratech Cement Ltd Union Bank of India 0.35 Vedanta Ltd Vodafone Mobile Services Ltd YES Bank Ltd Total Industry / Sector %age of Exposure to Debt AUM BANK CASH(CBLO/REVERSE REPO) 3.34 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.54 Total Includes Hybrid schemes - debt scheme schemes having equity exposure 35

39 FUND OF FUNDS KOTAK ASSET ALLOCATOR FUND An Open Ended Fund of Funds (Earlier known as Kotak Equity FOF ) 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) `29.74 AUM (` In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Regular Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) 1% if exit before 1 year from date of allotment. II) Nil if exit after 1 year from the date of allotment. Exit Load shall be applicable incase of switch from Regular Plan (where broker code is mentioned) to Direct Plan Exit Load shall not be applicable: Incase of switch from Regular Plan (where no broker code is mentioned) to Direct Plan In case of switch from Direct Plan to Regular Plan. III) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 1.56% Direct: 1.01% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Select Focus Fund Direct Growth Equity Kotak Mahindra Bond Plan Debt Kotak Treasury Advantage Fund Direct Growth Debt 9.52 Kotak Liquid Regular Plan Direct Growth Debt 8.85 Mutual Fund Units - Total Collateral Borrowing & Lending obligation 1.66 Net Current /(Liabilities) 0.19 Kotak Asset Allocator Fund NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Equity Debt CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at moderate risk Long term capital growth Investment in open-ended diversified equity schemes and debt schemes of Kotak Mahindra Mutual Fund * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

40 FUND OF FUNDS KOTAK US EQUITY FUND (formerly known as PineBridge India US Equity Fund) An Open Ended Fund of Funds Investing Overseas INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The primary investment objective of the scheme is to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity related securities of companies having assets, products or operations in the United States. However, there is no assurance that the investment objective of the will be realized. December 20, 2013 Mr. Deepak Gupta* Standard & Poor's 500 Total Return Net Index in USD is the benchmark of the underlying scheme. The same converted into INR using RBI reference rate will be the benchmark for the scheme. AAUM (` In Crores) ` 5.68 AUM (` In Crores) AUM as on January 31, 2017: ` 5.68 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:1.40% Direct: 0.61% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Collateral Borrowing & Lending obligation 8.80 Net Current /(Liabilities) 1.75 Kotak US Equity Fund NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (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 PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

41 FUND OF FUNDS KOTAK GLOBAL EMERGING MARKET FUND An Open - Ended Equity 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) `27.89 AUM (` In Crores) AUM as on January 31, 2017: `28.28 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 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: 1.85% Direct: 0.69% 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 4.24 Net Current /(Liabilities) 0.10 Kotak Global Emerging Market Fund NAV as on January 31, 2017: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) * For experience, please refer page For scheme performance, please refer page no Others Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at high risk Long term capital growth Investment in overseas mutual fund schemes that invest in a diversified portfolio of securities in global emerging markets * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 38

42 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 onjanuary 31, 2017: `47.77 AUM (` In Crores) AUM as on January 31, 2017:`49.86 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: 1.13% 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 3.51 Net Current /(Liabilities) Kotak World Gold Fund NAV as on January 31, 2017: `8.234 (Dividend Option), `8.498 (Direct Dividend Option), `9.933 (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Overseas Mutual Fund CBLO & Term Deposits & Rev.Repo Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in units of Falcon Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 39 * For experience, please refer page For scheme performance, please refer page no

43 ETF SCHEMES KOTAK GOLD ETF An Open Ended Gold Exchange Traded Fund The investment objective of Kotak Gold ETF is to generate returns that are in line with the returns on investment in physical gold, subject to tracking error. However, there is no assurance that the investment objective of the will be realized July 27, 2007 Mr. Abhishek Bisen* Price of Gold AAUM (`In Crores) ` AUM (`In Crores) AUM as on January 31, 2017: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on January 31, 2017: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no