February 2017 FUND UPDATE YOUR INVESTMENT PERFORMANCE

Transcription

1 February 2017 FUND UPDATE YOUR INVESTMENT PERFORMANCE

2 CONTENTS INDIVIDUAL FUNDS Click on the Fund Name for details MARKET OUTLOOK 2 FUND PERFORMANCE OF ULIP FUNDS 5 PRODUCT - FUND MATRIX 8 CLASSIC OPPORTUNITIES FUND (ULIF /12/09-CLAOPPFND-107) 10 FRONTLINE EQUITY FUND (ULIF /12/09-FRLEQUFND-107) 11 DYNAMIC FLOOR FUND II (ULIF /12/09-DYFLRFND2-107) 12 BALANCED FUND (ULIF /12/09-BALKFND-107) 13 KOTAK OPPORTUNITIES FUND (ULIF /10/08-OPPFND-107) 14 KOTAK AGGRESSIVE GROWTH FUND (ULIF /09/04-AGRGWTFND-107) 15 GUARANTEE FUND (ULIF /02/10-GRTFND-107) 16 MONEY MARKET FUND (ULIF /01/10-MNMKKFND-107) 17 KOTAK DYNAMIC GROWTH FUND (ULIF /06/03-DYGWTFND-107) 18 DYNAMIC FLOOR FUND (ULIF /11/06-DYFLRFND-107) 19 KOTAK DYNAMIC BALANCED FUND (ULIF /06/03-DYBALFND-107) 20 KOTAK DYNAMIC BOND FUND (ULIF /04/04-DYBNDFND-107) 21 KOTAK DYNAMIC GILT FUND (ULIF /06/03-DYGLTFND-107) 22 KOTAK DYNAMIC FLOATING RATE FUND (ULIF /12/04-DYFLTRFND-107) 23 KOTAK GUARANTEED GROWTH FUND (ULIF /06/03-GRTGWTFND-107) 25 KOTAK GUARANTEED BALANCED FUND (ULIF /06/03-GRTBALFND-107) 26 PENSION CLASSIC OPPORTUNITIES FUND (ULIF /01/10-PNCLAOPFND-107) 27 KOTAK PENSION OPPORTUNITIES FUND (ULIF /07/09-PNOPPFND-107) 28 PENSION FRONTLINE EQUITY FUND (ULIF /01/10-PNFRLEQFND-107) 29 PENSION GUARANTEE FUND (ULIF /12/09-PNGRTFND-107) 30 KOTAK PENSION GROWTH FUND (ULIF /01/09-PNGWTFND-107) 31 KOTAK PENSION FLOOR FUND (ULIF /07/09-PNFLRFND-107) 32 PENSION FLOOR FUND II (ULIF /01/10-PNFLRKFND2-107 ) 33 KOTAK PENSION BALANCED FUND (ULIF /06/03-PNBALFND-107 ) 34 PENSION BALANCED FUND II (ULIF /01/10-PNBALFND2-107) 35 KOTAK PENSION BOND FUND (ULIF /04/04-PNBNDFND-107) 36 KOTAK PENSION GILT FUND (ULIF /06/03-PNGLTFND-107) 37 KOTAK PENSION FLOATING RATE FUND (ULIF /12/04-PNFLTRFND-107) 38 PENSION MONEY MARKET FUND II (ULIF /12/09-PNMNMKFND-107) 39 KOTAK ADVANTAGE MULTIPLIER FUND II (ULIF /04/06-ADVMULFND2-107) 40 DISCONTINUED POLICY FUND (ULIF /03/11-DISPOLFND-107) 41 PEAK GUARANTEE FUND I (ULIF /02/10-PKGRTFND1-107) 24 GROUP FUNDS Click on the Fund Name for details KOTAK GROUP DYNAMIC FLOOR FUND (ULGF /01/10-DYFLRFND-107) 43 KOTAK GROUP BALANCED FUND (ULGF /06/03-BALFND-107) 44 KOTAK GROUP SECURE CAPITAL FUND (ULGF /04/11-SECCAPFND-107) 49 KOTAK GROUP SHORT TERM BOND FUND (ULGF /12/13-SHTRMBND-107) 50 KOTAK GROUP BOND FUND (ULGF /04/04-BNDFND-107) 45 ANNEXURE 51 KOTAK GROUP GILT FUND (ULGF /06/03-GLTFND-107) 46 DISCLAIMER 57 KOTAK GROUP FLOATING RATE FUND (ULGF /12/04-FLTRFND-107) 47 KOTAK GROUP MONEY MARKET FUND (ULGF /06/03-MNMKFND-107) 48 01

3 MARKET OUTLOOK MARKET OUTLOOK Month Gone By Markets In January, Indian equities have recovered sharply (Sensex up 3.9%) from December lows supported by receding concerns over a potential growth shock due to demonetization, expectations of an expansionary Budget and better global risk appetite. On Domestic front, GST Council finally resolved the contentious issue of dual control in Januray. The GST rollout date is set to be 1 Jul 2017, a quarter later than the original implementation date of April, The Election Commission announced the dates for assembly elections in five states - Uttar Pradesh, Punjab, Uttrakhand, Goa and Manipur and results of the same will be announced together on March 11. The 10 year benchmark yield declined by 11bps in January. This comes after a meaningful increase seen in Dec (27bps) as expectations of rate cut were belied. Crude prices corrected by 3% in January as rising US output offsets production cuts by OPEC producers FOMC minutes indicate less aggressive stance on policy tightening GST council resolve dual control issue, implementation delayed to Jul % 6.50% Election date for 5 major states announced Economic survey released. Budget session kicks off 6.45% Trump inaugration ceremony Inflation prints remain soft, Nov and speech IIP surprised positively at 5.7% Dec Jan Jan Jan Jan Jan Jan-17 Sensex 10 yr Gsec 6.40% 6.35% Source: Bloomberg In January, the INR remained largely stable (vs. USD). Foreign Institutional Investors (FIIs) selling reduced substantially in January with net outflows of USD 152mn. Domestic Institutional Investors (DIIs) continued to be buyers in the month, with net inflows of USD 697mn. Among DIIs, Mutual Funds led the buying with USD 803mn of inflows while Insurance companies accounted for USD 106mn of outflows. FIIs sold Indian debt worth USD 451mn in January. Economy Index of Industrial Production (IIP) surged sharply to 5.7% in November vs -1.8% in October, partly led by base. Within manufacturing, capital goods recorded growth (+15%) after several months of contraction. Mining rose to 3.9% while electricity picked up to 8.9%. Consumer Price Index (CPI) came in at a 2 year low with December CPI at 3.4% led by lower food inflation. Core CPI inflation fell in December (4.7% vs 4.8%), however decline in core CPI was driven by Miscellaneous-Personal care segment which fell due to sharp correction in gold/silver and ornaments. In contrast, the Wholesale Price Inflation (WPI) moved up to 3.39% vs 3.15% in November led by fuel & power inflation (8.65%) while the food inflation remained subdued (-0.7%). December trade deficit declined to USD 10.4bn vs USD13bn in November, led by a correction in gold imports (USD 2bn vs USD 4.4bn in November) as well as a recovery in exports. Export growth rebounded to 5.7%YoY from 2.3% last month with strong growth in the non-oil exports segment. 70 Exchange Rate (INR/USD) Source: Bloomberg 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 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 Source : MOSL and Citi CPI WPI 02

4 MARKET OUTLOOK Market Outlook 8.1 Net FII Flows (USD b) Net DII Flows (USD b) Deal activity moderated in January with 5 deals albeit of small ticket size amounting to USD 261mn. This was largely led by the BSE IPO (USD 220mn). In secondary market, Lakshmi Vilas Bank s QIP (USD 25mn) was the notable one. YTD FIIs are marginal sellers to the tune of 152mn while DIIs were buyers to the tune of USD 697mn. CY06 CY07 CY08 CY09 Source : MOSL and Citi On the domestic front Indian equities had a strong start into the new year with better than expected Q3 earnings season despite demonetisation. Budget- The FY18 budget does a fine balancing act in maintaining the glide path to fiscal consolidation (3.0% of GDP by FY19 a key positive)while sustaining the spending momentum in key flagship schemes and rural infra and housing segments to support equitable growth. Overall, given the many moving parts (no separate railways budget, doing away with the nomenclature of plan and nonplan and the implementation of GST) and the extraordinary macro environment (impact of demonetisation and global policy headwinds), the budget has steered clear of any negative surprises while building in realistic growth assumptions for tax collections. Government s FY2018 GFD/GDP target of 3.2% looks achievable given modest increase in spending on infrastructure and rural sectors and broadly unchanged corporate and individual tax rates.there are potential upsides to the government s revenue projections from additional tax revenues from the ongoing income tax declaration scheme (IDS-II) and unexplained bank deposits; 0.15 mn bank accounts have seen cash deposits of a staggering Rs5 tn. However, potential slippages to the government s fiscal target can come from lower-than-estimated divestment revenues and higher-than-expected crude oil prices Strong growth in household financial savings (including equities) in the medium term is expected on the back of (1) a favorable monetary policy for financial savings in the form of positive real interest rates, (2) favorable government policy on financial inclusion and (3) unfavorable government policy towards black money including the recent action of demonetization, which will likely divert household savings into financial savings, away from physical savings over a period of time. On the global front, CY10 CY11 CY12 There is also a growing belief that global central banks and governments may explore non-monetary means to revive demand as the policies of low interest rates and QE programmes (Quantitative Easing) have yielded limited success. Equities can react in the coming months based on following events:- CY13 CY14 CY15 CY16 CY17 There have been some remarks by the new US President regarding the US dollar being too Strong. If any effort were to be made to ensure that the US Dollar does not rise much from here, it could be good news for the emerging markets in general, due to which foreign flows into India could also see uptick Unexpected global and domestic events derailed earnings in FY Valuations for the broad market look more reasonable in the context of earnings growth and bond yields. 60% of the net profits of the Nifty-50 Index does not depend on India s GDP growth as their revenues, profits and profitability largely depend on global factors and/or regulations (1) global GDP growth in the case of IT, (2) global commodity prices or profitability in the case of metals and oil & gas and (3) regulations in the case of regulated utilities. Any major negative surprises in the case of earnings of the aforementioned sectors is not anticipated. Corporate earnings growth trajectory would be key factor to determine the path of domestic markets, especially after the Demonetisation impact. With RBI cutting another 25 bps, it is believed that India s cost of capital (COC) will also progressively reduce especially as seen from bond yields. The consequent expansion in the ROCE-COC spread could be one of the drivers of the next leg of re-rating in Indian equities.operating leverage will likely support earnings once India crosses its potential GDP growth, which will get more accentuated post FY17 03

5 MARKET OUTLOOK 27 Sensex P/E (x) Peak(x) Avg(x) Median(x) Min(x) Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Source: MOSL Market Outlook The Union Budget stuck to the path of fiscal consolidation, albeit at a less aggressive pace. The fiscal deficit was pegged at 3.2% for FY18 compared to 3.5% in FY17. The new fiscal road map will target reduction of government debt. to GDP to be lowered to 60% of GDP by 2023 compared with 66% currently. Government has set a target of 3% fiscal deficit for FY19 and FY20. Governement is focussed on higher spending on rural, agriculture and infrastructure sectors. The budget initiated measures to boost digital payments, affordable housing. Tax breaks provided for the middle class and the medium and small enterprises should boost incomes and consumption. Government recognises growing external threats to macro-stability for EMs and gradual US rate hikes, rise in crude oil prices in the future could pose a risk to fiscal health and economic growth. Rise in crude oil prices and INR would be a key risk to inflation and inturn bond yields. However, if RBI induces liquidity to maintain its durable liquidity framework through OMO purchases, G-sec will remain supported and lead to excess demand as the net supply is lower next FY. There is an expectation that RBI might cut repo rate by 25 bps on 8th of February as a prudent path of fiscal consolidation was adopted in the budget. It is widely expected that inflation would be undershooting the near term inflation target of 5% in March Market will expect RBI to continue its accomodative policy stance given the external situation. 10 year benchmark yields may trade between 6.25%-6.50% in the near term Jan-07 Jan Jan Jan-10 Jan-11 Jan-12 Jan Year India G-Sec Yield Jan-14 Jan-15 Jan-16 Jan-17 Source: Bloomberg 04

6 FUND PERFORMANCE OF ULIP FUNDS Funds available with insurance plans launched on & post Sept. 1, Returns As On 31st Jan 2017 Classic Opportunities Fund (AUM: ` 2,04, Frontline Fund (AUM: ` 47, Dynamic Floor Fund II (AUM: ` 62, Balanced Fund (AUM: ` 6, Guarantee Fund (AUM: ` 3, Kotak Dynamic Bond Fund (AUM: ` 1,04, Kotak Dynamic Gilt Fund (AUM: ` 5, Kotak Dynamic Floating Rate Fund (AUM: ` 1, Money Market Fund (AUM: ` 21, month months months year years years years years years n.a 7 years n.a n.a 10 years n.a n.a n.a n.a n.a n.a n.a Inception Discontinued Policy Fund (AUM: ` 19, Funds available with insurance plans launched Prior to Sept. 1, Returns As On 31st Jan 2017 Kotak Opportunities Fund (AUM: ` 1,04, Kotak Aggressive Growth Fund (AUM: ` 30, Kotak Dynamic Growth Fund (AUM: ` 6, Dynamic Floor Fund (AUM: ` 1,02, Kotak Dynamic Balanced Fund (AUM: ` 2, month months months year years years years years years years years n.a Inception Returns As On 31st Jan 2017 Peak Guarantee Fund I (AUM: ` 1, Kotak Guaranteed Growth Fund (AUM: ` 1,01, Kotak Guaranteed Balanced Fund (AUM: ` 8, Pension Classic Opportunities Fund (AUM: ` 12, Kotak Pension Opportunities Fund (AUM: ` 2, Pension Frontline Fund (AUM: ` 2, Pension Guarantee Fund (AUM: ` 9, month months months year years years years years years years n.a years n.a n.a n.a n.a n.a Inception

7 FUND PERFORMANCE OF ULIP FUNDS Funds available with insurance plans launched Prior to Sept. 1, Returns As On 31st Jan 2017 Kotak Pension Growth Fund (AUM: ` 1, Kotak Pension Floor Fund (AUM: `4, Pension Floor Fund II (AUM: ` 7, Kotak Pension Balanced Fund (AUM: `22, Pension Balanced Fund II (AUM: ` Kotak Pension Bond Fund (AUM: ` 6, Kotak Pension Gilt Fund (AUM: ` Kotak Pension Floating Rate Fund (AUM: ` Pension Money Market Fund II (AUM: ` month months months year years years years years years years years n.a n.a n.a 8.5 n.a n.a Inception

8 FUND PERFORMANCE OF ULIP FUNDS KOTAK GROUP PLANS Returns As On 31st Jan 2017 Kotak Group Dynamic Floor Fund (AUM: ` Kotak Group Balanced Fund (AUM: ` 42, Kotak Group Bond Fund (AUM: ` 1,11, Kotak Group Gilt Fund (AUM: ` 3, Kotak Group Floating Rate Fund (AUM: ` 1, Kotak Group Money Market Fund (AUM: ` 6.83 Kotak Group Secure Capital (AUM: ` 15, month months months year years years years n.a years n.a years n.a n.a 7 years n.a n.a 10 years n.a n.a n.a Inception KOTAK FIXED MATURITY PLANS Returns As On 31st Jan 2017 Kotak Group Short Term Bond Fund (AUM: ` 5, month months months year years n.a 3 years n.a 4 years n.a 5 years n.a 6 years n.a 7 years n.a 10 years n.a Inception 8.6 KOTAK PRIVILEDEGE ASSURANCE PLANS Returns As On 31st Jan 2017 Kotak Advantage Multiplier Fund II (AUM: ` month months months year years years years years years years years 4.7 Inception 5.2 Returns less than or equal to a year are absolute. Returns greater than a year are compounded annualised. NO. OF FUNDS MANAGED BY FUND MANAGER Sr No. Balanced 1 Rohit Agarwal 7 NA 18 2 Kunal Shah NA Mr. Rohit Agarwal Mr. Rohit Agarwal has over 10 years of experience in capital markets, looks at the Unit Linked funds at Kotak Life Insurance. Before joining Kotak in 2011, Mr. Agarwal was associated with JP Morgan for about 6 years. Rohit is a Bachelor of Commerce (2001) and has done PGDBM, Symbiosis Pune (2005). Mr. Kunal Shah Mr. Kunal Shah has overall experience of over a decade and has been associated with the Kotak Life Insurance since May His key responsibilities include management of fixed income portfolios in Unit Linked and managing alternative investments for the company. Kunal is a Bachelor of Commerce (2001), MBA (Finance), Sinhgad Institute, Pune (2004) and CFA (CFA Institute, USA) 07

9 PRODUCT - FUND MATRIX* Kotak Wealth Insurance Kotak Ace Investment Kotak Single Invest Advantage Kotak Headstart Child Assure Kotak Platinum Kotak Invest Maxima Classic Opportunities Fund ü ü ü ü ü ü Frontline Fund ü ü ü ü ü ü Balanced Fund ü ü r ü ü ü Funds Dynamic Bond Fund ü ü ü ü ü ü Dynamic Floating Rate Fund ü ü r ü ü r Money Market Fund ü ü ü ü ü ü Dynamic Gilt Fund ü ü ü ü ü r Discontinued Policy Fund ü ü ü ü ü ü *currently active plans 08

10 S CLASSIC OPPORTUNITIES FUND FRONTLINE EQUITY FUND DYNAMIC FLOOR FUND II BALANCED FUND KOTAK OPPORTUNITIES FUND KOTAK AGGRESSIVE GROWTH FUND GUARANTEE FUND MONEY MARKET FUND KOTAK DYNAMIC GROWTH FUND DYNAMIC FLOOR FUND KOTAK DYNAMIC BALANCED FUND KOTAK DYNAMIC BOND FUND KOTAK DYNAMIC GILT FUND KOTAK DYNAMIC FLOATING RATE FUND PEAK GUARANTEE FUND I KOTAK GUARANTEED GROWTH FUND KOTAK GUARANTEED BALANCED FUND PENSION CLASSIC OPPORTUNITIES FUND KOTAK PENSION OPPORTUNITIES FUND PENSION FRONTLINE EQUITY FUND PENSION GUARANTEE FUND KOTAK PENSION GROWTH FUND KOTAK PENSION FLOOR FUND PENSION FLOOR FUND II KOTAK PENSION BALANCED FUND PENSION BALANCED FUND II KOTAK PENSION BOND FUND KOTAK PENSION GILT FUND KOTAK PENSION FLOATING RATE FUND PENSION MONEY MARKET FUND II KOTAK ADVANTAGE MULTIPLIER FUND II DISCONTINUED POLICY FUND 09

11 CLASSIC OPPORTUNITIES FUND (ULIF /12/09-CLAOPPFND-107) Aims to maximize opportunity for you through long-term capital growth, by holding a significant portion in a diversified and flexible mix of large / medium sized company equities 16 th December ,406 1,420 Ratings Profile A1+ : Rohit Agarwal : Kunal Shah 1,96, Fixed Deposit - 100% (BSE 200) & Money Modified Approved Duration Actual Gsec / Classic Opportunities Fund 1 month months months year years years years years years years years n.a n.a Inception Holdings % to Fund EQUITY HDFC Bank Ltd 5.78 Infosys Ltd 4.86 Tata Motors Ltd 4.16 IndusInd Bank Limited 4.03 Maruti Suzuki India Ltd 3.99 Kotak Banking ETF - Dividend Payout Option 3.98 ICICI Bank Ltd 3.50 I T C Ltd 3.34 Larsen And Toubro Ltd 3.20 Britannia Industries Ltd 2.98 YES BANK LTD 2.72 Axis Bank Ltd 2.05 R Shares Banking ETF 1.95 Shree Cement Ltd 1.84 Zee Entertainment Enterprises Ltd 1.78 Bharat Petroleum Corporation Ltd 1.72 Indian Oil Corporation Ltd 1.63 HCL Technologies Ltd 1.53 UltraTech Cement Ltd 1.52 Sun Pharmaceuticals Ltd Corporate % HDFC Bank FD NSE % HDFC Bank FD NSE % HDFC Bank FD BSE MMI Sector Allocation as per Mfg of motor vehicles, trailers and semi-trailers Computer programming, consultancy and related Mfg of other non-metallic mineral products Civil engineering Mfg of coke and refined petroleum products Mfg of tobacco products Mfg of other transport equipment Warehousing and support for transportation

12 FRONTLINE EQUITY FUND (ULIF /12/09-FRLEQUFND-107) Aims for a high level of capital growth for you, by holding a significant portion in large sized company equities Ratings Profile 17 th December , : Rohit Agarwal : Kunal Shah 44, Fixed Deposit - 100% (BSE 100) & Money Frontline Fund 1 month months months year years years years years years years years n.a n.a Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY HDFC Bank Ltd 7.10 I T C Ltd 6.01 Infosys Ltd 5.69 ICICI Bank Ltd 4.39 IndusInd Bank Limited 4.39 Tata Motors Ltd 4.15 Maruti Suzuki India Ltd 3.24 Larsen And Toubro Ltd 2.95 R Shares Banking ETF 2.95 Kotak Banking ETF - Dividend Payout Option 2.85 UltraTech Cement Ltd 2.85 Zee Entertainment Enterprises Ltd 2.72 YES BANK LTD 2.66 Bharat Petroleum Corporation Ltd 2.43 Hero Honda Motors Ltd 2.30 Mahindra & Mahindra Ltd 2.19 Sun Pharmaceuticals Ltd 1.98 Tech Mahindra Ltd 1.96 HCL Technologies Ltd 1.92 Hindustan Petroleum Corporation Ltd Corporate % HDFC Bank FD NSE % HDFC Bank FD NSE % HDFC Bank FD BSE MMI Sector Allocation as per Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Mfg of tobacco products Mfg of other non-metallic mineral products Mfg of coke and refined petroleum products Mfg of other transport equipment Warehousing and support for transportation Civil engineering

13 DYNAMIC FLOOR FUND II (ULIF /12/09-DYFLRFND2-107) Aims to provide you with stable long-term inflation beating growth over medium to long-term and defend your capital against short-term capital shocks. Ratings Profile 17 th December ,422 23, AAA AA+ AA : : % (Nifty); % (Crisil Bond) & Money Rohit Agarwal Kunal Shah 6.30 Modified Approved Duration Actual Gsec / Dynamic Floor Fund II 1 month months months year years years years years years years years n.a n.a Inception ,516 Holdings % to Fund EQUITY HDFC Bank Ltd 2.59 I T C Ltd 2.40 Infosys Ltd 2.27 ICICI Bank Ltd 1.81 Tata Motors Ltd 1.69 IndusInd Bank Limited 1.66 Kotak Banking ETF - Dividend Payout Option 1.44 R Shares Banking ETF 1.39 Maruti Suzuki India Ltd 1.32 Larsen And Toubro Ltd 1.18 UltraTech Cement Ltd 1.10 Zee Entertainment Enterprises Ltd 1.07 YES BANK LTD 1.03 Bharat Petroleum Corporation Ltd 1.02 Hero Honda Motors Ltd 0.93 Mahindra & Mahindra Ltd 0.87 Tech Mahindra Ltd 0.80 Sun Pharmaceuticals Ltd 0.79 HCL Technologies Ltd 0.77 Shree Cement Ltd G-Sec % GOI % GOI % GOI % GOI % NABARD % INFLATION INDEX GS % GOI % NABARD % GJ SDL % KA SDL Corporate % NTPC % HDFC Bank % PGC % KMPL % HDFC % Axis Bank Infrastructure Bonds % REC % Mahindra and Mahindra Financial Services Ltd % L&T Finance Ltd % Tata Sons MMI Sector Allocation as per Electricity, gas, steam and air conditioning supply Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Mfg of other non-metallic mineral products Mfg of tobacco products State Development Loan A1+ Fixed Deposit

14 BALANCED FUND (ULIF /12/09-BALKFND-107) Aims for moderate growth for you by holding a diversified mix of equities and fixed interest instruments. Ratings Profile 21 st December , AAA AA+ : Rohit Agarwal : Kunal Shah 3, AA Fixed Deposit - 60% (BSE 100); - 40% (Crisil Bond) & Money Balanced Fund 1 month months months year years years years years years years years n.a n.a Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY HDFC Bank Ltd 3.74 I T C Ltd 3.45 Infosys Ltd 3.36 ICICI Bank Ltd 2.58 IndusInd Bank Limited 2.47 Tata Motors Ltd 2.42 Maruti Suzuki India Ltd 1.89 UltraTech Cement Ltd 1.67 Larsen And Toubro Ltd 1.63 Zee Entertainment Enterprises Ltd 1.60 Kotak Banking ETF - Dividend Payout Option 1.55 YES BANK LTD 1.54 R Shares Banking ETF 1.44 Bharat Petroleum Corporation Ltd 1.34 Hero Honda Motors Ltd 1.25 Mahindra & Mahindra Ltd 1.19 Sun Pharmaceuticals Ltd 1.16 Tech Mahindra Ltd 1.15 HCL Technologies Ltd 1.13 Hindustan Petroleum Corporation Ltd G-Sec % GOI % GOI % GOI % GOI % GOI % NABARD % GOI % GOI % MP SDL % GOI Corporate % NTPC % HDFC Bank % HDFC % PGC % KMPL % Axis Bank Infrastructure Bonds % REC % HDFC % HDFC P % HDFC P MMI Sector Allocation as per Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Electricity, gas, steam and air conditioning supply Mfg of tobacco products Mfg of other non-metallic mineral products Warehousing and support for transportation Mfg of coke and refined petroleum products

15 KOTAK OPPORTUNITIES FUND (ULIF /10/08-OPPFND-107) Aims to maximize opportunity for long term capital growth, by holding a significant portion in a diversified and flexible mix of large/medium sized company equities. 02 nd October , Ratings Profile : Rohit Agarwal : Kunal Shah 1,02, Fixed Deposit - 100% (BSE 200) & Money Opportunities Fund 1 month months months year years years years years years years years n.a n.a Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY HDFC Bank Ltd 5.85 Infosys Ltd 4.96 Tata Motors Ltd 4.18 IndusInd Bank Limited 4.08 Maruti Suzuki India Ltd 4.05 Kotak Banking ETF - Dividend Payout Option 4.04 ICICI Bank Ltd 3.54 I T C Ltd 3.38 Larsen And Toubro Ltd 3.23 Britannia Industries Ltd 3.01 YES BANK LTD 2.72 Axis Bank Ltd 2.05 R Shares Banking ETF 1.98 Shree Cement Ltd 1.87 Zee Entertainment Enterprises Ltd 1.79 Bharat Petroleum Corporation Ltd 1.77 Indian Oil Corporation Ltd 1.64 Sun Pharmaceuticals Ltd 1.57 HCL Technologies Ltd 1.55 UltraTech Cement Ltd Corporate % HDFC Bank FD NSE % HDFC Bank FD NSE % HDFC Bank FD BSE MMI Sector Allocation as per Mfg of motor vehicles, trailers and semi-trailers Computer programming, consultancy and related Mfg of other non-metallic mineral products Civil engineering Mfg of coke and refined petroleum products Mfg of other transport equipment Mfg of tobacco products Warehousing and support for transportation

16 KOTAK AGGRESSIVE GROWTH FUND (ULIF /09/04-AGRGWTFND-107) Aims for a high level of capital growth by holding a significant portion in large sized company equities. Ratings Profile 13 th September : Rohit Agarwal : Kunal Shah 29, Fixed Deposit - 100% (BSE 100) & Money Aggressive Growth Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY HDFC Bank Ltd 6.89 I T C Ltd 6.64 Infosys Ltd 6.11 IndusInd Bank Limited 4.48 Tata Motors Ltd 4.31 ICICI Bank Ltd 4.26 R Shares Banking ETF 4.09 Larsen And Toubro Ltd 3.57 Maruti Suzuki India Ltd 3.46 Kotak Banking ETF - Dividend Payout Option 3.00 UltraTech Cement Ltd 2.95 Bharat Petroleum Corporation Ltd 2.83 Zee Entertainment Enterprises Ltd 2.72 YES BANK LTD 2.68 Hindustan Petroleum Corporation Ltd 2.35 Mahindra & Mahindra Ltd 2.33 Hero Honda Motors Ltd 2.33 Shree Cement Ltd 2.17 Sun Pharmaceuticals Ltd 2.16 Tech Mahindra Ltd Corporate % HDFC Bank FD NSE % HDFC Bank FD NSE % HDFC Bank FD BSE MMI Sector Allocation as per Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Mfg of tobacco products Mfg of other non-metallic mineral products Mfg of coke and refined petroleum products Mfg of other transport equipment Warehousing and support for transportation Civil engineering

17 GUARANTEE FUND (ULIF /02/10-GRTFND-107) Fund Investment Strategy Objective of The Fund Aims to provide stable, long-term inflation beating growth over medium to long-term and defend capital against short-term capital shocks Ratings Profile 05 th February , AAA AA+ : : % (Nifty); % (Crisil Bond) & Money Rohit Agarwal Kunal Shah Guarantee Fund 1 month months months year years years years years years years n.a n.a 10 years n.a n.a Inception Modified Approved Duration Actual Gsec / ,735 Holdings % to Fund EQUITY I T C Ltd 3.72 HDFC Bank Ltd 3.38 Infosys Ltd 3.06 Reliance Industries Ltd 2.94 Housing Development Finance Corp. Ltd 2.83 Larsen And Toubro Ltd 2.15 ICICI Bank Ltd 2.04 Tata Consultancy Services Ltd 1.96 Tata Motors Ltd 1.75 Maruti Suzuki India Ltd 1.38 Sun Pharmaceuticals Ltd 1.28 Hindustan Unilever Ltd 1.25 Oil & Natural Gas Corporation Ltd 1.07 State Bank of India 1.06 Axis Bank Ltd 1.03 Mahindra & Mahindra Ltd 1.02 Bharti Airtel Ltd 0.97 Power Grid Corporation of India Ltd 0.94 Asian Paints Ltd 0.90 National Thermal Power Corporation Ltd G-Sec % GOI % GOI % GOI % NABARD % GOI % GJ SDL % INFLATION INDEX GS % GOI % NABARD % GJ SDL Corporate % NTPC % HDFC Bank % L&T Finance Ltd % PGC % KMPL % Axis Bank Infrastructure Bonds % REC % HDFC Bank CALL % REC % State Bank of Patiala CALL MMI Sector Allocation as per Computer programming, consultancy and related Electricity, gas, steam and air conditioning supply Mfg of motor vehicles, trailers and semi-trailers Mfg of tobacco products Mfg of coke and refined petroleum products Mfg of chemicals and chemical products Mfg of other transport equipment AA Fixed Deposit

18 MONEY MARKET FUND (ULIF /01/10-MNMKKFND-107) Aims to protect your capital and not have downside risks Ratings Profile 05 th January A : Kunal Shah 21, % (NA); - 100% (Crisil Liquid) Holdings % to Fund MMI Sector Allocation as per & Money Modified Approved Duration Actual Money Market Fund 1 month months months year years years years years years years Mfg of basic metals Mfg of motor vehicles, trailers and semi-trailers Undifferentiated goods & services-producing of private years n.a n.a Inception

19 KOTAK DYNAMIC GROWTH FUND (ULIF /06/03-DYGWTFND-107) Aims for a high level of capital growth by holding a significant portion in large sized company equities. 27 th June : : - 80% (BSE 100); - 20% (Crisil Bond) & Money Rohit Agarwal Kunal Shah Kotak Dynamic Growth Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec / ,530 Holdings 51 4,869 % to Fund EQUITY HDFC Bank Ltd 5.24 I T C Ltd 4.76 Infosys Ltd 4.45 ICICI Bank Ltd 3.55 IndusInd Bank Limited 3.49 Tata Motors Ltd 3.30 Kotak Banking ETF - Dividend Payout Option 2.64 R Shares Banking ETF 2.61 Maruti Suzuki India Ltd 2.59 Larsen And Toubro Ltd 2.38 UltraTech Cement Ltd 2.31 Zee Entertainment Enterprises Ltd 2.11 YES BANK LTD 2.04 Bharat Petroleum Corporation Ltd 1.98 Hero Honda Motors Ltd 1.81 Mahindra & Mahindra Ltd 1.76 Tech Mahindra Ltd 1.57 Sun Pharmaceuticals Ltd 1.56 HCL Technologies Ltd 1.51 Shree Cement Ltd G-Sec % GOI % GOI % GOI % GOI % GOI % GOI % GOI % TN SDL % GOI % MAH SDL Corporate % REC % IDFC Bank % HDFC Bank CALL % PFC % REC % PFC % Shriram Transport Finance Co Ltd % REC % REC % HDFC Bank FD NSE MMI Ratings Profile Sector Allocation as per Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Mfg of other non-metallic mineral products Mfg of tobacco products Mfg of coke and refined petroleum products Mfg of other transport equipment Civil engineering AAA AA+ Fixed Deposit

20 DYNAMIC FLOOR FUND (ULIF /11/06-DYFLRFND-107) Aims to provide you with stable long-term inflation beating growth over medium to long-term and defend your capital against short-term capital shocks. Ratings Profile 14 th November ,557 2,433 38, AAA AA+ AA : : % (Nifty); % (Crisil Bond) & Money Rohit Agarwal Kunal Shah Dynamic Floor Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY HDFC Bank Ltd 2.57 I T C Ltd 2.40 Infosys Ltd 2.27 ICICI Bank Ltd 1.81 Tata Motors Ltd 1.69 IndusInd Bank Limited 1.67 Kotak Banking ETF - Dividend Payout Option 1.35 Maruti Suzuki India Ltd 1.32 UltraTech Cement Ltd 1.18 Larsen And Toubro Ltd 1.17 R Shares Banking ETF 1.16 Zee Entertainment Enterprises Ltd 1.07 YES BANK LTD 1.00 Bharat Petroleum Corporation Ltd 0.98 Hero Honda Motors Ltd 0.91 Mahindra & Mahindra Ltd 0.86 Tech Mahindra Ltd 0.80 Sun Pharmaceuticals Ltd 0.79 HCL Technologies Ltd 0.77 Shree Cement Ltd G-Sec % GOI % GOI % GOI % GOI % NABARD % INFLATION INDEX GS % GOI % NABARD % GJ SDL % KA SDL Corporate % NTPC % HDFC Bank % KMPL % PGC % Axis Bank Infrastructure Bonds % HDFC % REC % Mahindra and Mahindra Financial Services Ltd % Shriram Transport Finance Co Ltd % L&T Finance Ltd MMI Sector Allocation as per Electricity, gas, steam and air conditioning supply Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Mfg of other non-metallic mineral products Mfg of tobacco products State Development Loan A1+ Fixed Deposit

21 KOTAK DYNAMIC BALANCED FUND (ULIF /06/03-DYBALFND-107) Aims for moderate growth by holding a diversified mix of equities and fixed interest instruments. Ratings Profile 27 th June AAA AA+ : Rohit Agarwal : Kunal Shah 1,008 1, AA Fixed Deposit - 60% (BSE 100); - 40% (Crisil Bond) & Money Dynamic Balanced Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY HDFC Bank Ltd 3.53 Infosys Ltd 3.20 I T C Ltd 3.19 ICICI Bank Ltd 2.38 IndusInd Bank Limited 2.31 Tata Motors Ltd 2.22 Maruti Suzuki India Ltd 1.73 Kotak Banking ETF - Dividend Payout Option 1.73 R Shares Banking ETF 1.73 Zee Entertainment Enterprises Ltd 1.56 Larsen And Toubro Ltd 1.55 UltraTech Cement Ltd 1.54 YES BANK LTD 1.42 Bharat Petroleum Corporation Ltd 1.29 Hero Honda Motors Ltd 1.23 Mahindra & Mahindra Ltd 1.15 Sun Pharmaceuticals Ltd 1.08 HCL Technologies Ltd 1.08 Tech Mahindra Ltd 1.06 Hindustan Petroleum Corporation Ltd G-Sec % GOI % GOI % GOI % GOI % GOI % INFLATION INDEX GS % MP SDL % NABARD % NABARD % GOI Corporate % PGC % NTPC % HDFC P % HDFC Bank % KMPL % PGC % REC % HDFC % REC % LIC Housing Finance MMI Sector Allocation as per Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Electricity, gas, steam and air conditioning supply Mfg of other non-metallic mineral products Mfg of tobacco products Warehousing and support for transportation Mfg of coke and refined petroleum products

22 KOTAK DYNAMIC BOND FUND (ULIF /04/04-DYBNDFND-107) Aims to preserve capital and minimize downside risk, with investment in debt and government instruments. Ratings Profile 15 th April , AAA AA : Kunal Shah 1,01, A1+ AA - 100% (Crisil Bond) & Money Dynamic Bond Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec Holdings % to Fund G-Sec % GOI % GOI % GOI % GOI % NABARD % GOI % INFLATION INDEX GS % NABARD % KA SDL % HR SPL SDL Corporate % NTPC % HDFC Bank % PGC % Axis Bank Infrastructure Bonds % KMPL % HDFC % REC % Mahindra and Mahindra Financial Services Ltd % Shriram Transport Finance Co Ltd % HDFC P MMI Sector Allocation as per Electricity, gas, steam and air conditioning supply Warehousing and support for transportation State Development Loan Mfg of basic metals

23 KOTAK DYNAMIC GILT FUND (ULIF /06/03-DYGLTFND-107) Aims to preserve your capital and minimize your downside risk, with investment in debt and government instruments. Ratings Profile 27 th June : Kunal Shah 5, % (IBEX) Holdings % to Fund G-Sec Sector Allocation as per 8.30% GOI % GOI & Money % GOI % MP SDL % GOI % TN SDL % MP SDL % MH SDL Modified Approved Duration Actual 8.63% MH SDL Gsec % GJ SDL MMI 3.13 State Development Loan Dynamic Gilt Fund 1 month months months year years years years years years years years Inception

24 KOTAK DYNAMIC FLOATING RATE FUND (ULIF /12/04-DYFLTRFND-107) Aims to preserve capital and minimize downside risk, with investment in debt and government instruments. Ratings Profile 07 th December A AA+ : Kunal Shah 1, % (Crisil Liquid) & Money Dynamic Floating Rate Fund 1 month months Modified Approved Duration Actual Gsec Holdings % to Fund G-Sec GOI FRB % GOI % GOI % OMC GOI Special Bond % GOI % MAH SDL % GOI FCI Bonds % GOI % GOI % PN SDL Corporate L&T Finance Ltd NSE Mibor +2% Shriram Transport Finance Co Ltd Floater MMI Sector Allocation as per State Development Loan Mfg of motor vehicles, trailers and semi-trailers months year years years years years years Undifferentiated goods & services-producing of private years years Inception

25 PEAK GUARANTEE FUND I (ULIF /02/10-PKGRTFND1-107) Aims for a high level of capital growth by holding a significant portion in large sized company equities. Ratings Profile 14 th February AAA AA+ : Rohit Agarwal : Kunal Shah AA Fixed Deposit % (Nifty); % (Crisil Bond) & Money Peak Guarantee Fund I 1 month months months year years years years years years years n.a n.a 10 years n.a n.a Inception Modified Approved Duration Actual Gsec / Holdings % to Fund EQUITY I T C Ltd 3.55 HDFC Bank Ltd 3.24 Infosys Ltd 2.92 Reliance Industries Ltd 2.81 Housing Development Finance Corp. Ltd 2.71 Larsen And Toubro Ltd 2.05 ICICI Bank Ltd 1.96 Tata Consultancy Services Ltd 1.87 Tata Motors Ltd 1.67 Maruti Suzuki India Ltd 1.32 Sun Pharmaceuticals Ltd 1.23 Hindustan Unilever Ltd 1.20 Oil & Natural Gas Corporation Ltd 1.02 State Bank of India 1.01 Axis Bank Ltd 0.99 Mahindra & Mahindra Ltd 0.97 Bharti Airtel Ltd 0.92 Power Grid Corporation of India Ltd 0.90 Asian Paints Ltd 0.86 National Thermal Power Corporation Ltd G-Sec % GOI % GOI % GJ SDL % GOI % GOI % INFLATION INDEX GS % GOI % NABARD % NABARD % GJ SDL Corporate % NTPC % L&T Finance Ltd % PGC % HDFC Bank % KMPL % PGC % HDFC % Tata Sons % REC % PFC MMI Sector Allocation as per Computer programming, consultancy and related Electricity, gas, steam and air conditioning supply Mfg of motor vehicles, trailers and semi-trailers State Development Loan Mfg of tobacco products Mfg of coke and refined petroleum products medicinal chemical & Mfg of chemicals and chemical products

26 KOTAK GUARANTEED GROWTH FUND (ULIF /06/03-GRTGWTFND-107) Aims for a high level of capital growth by holding a significant portion in large sized company equities. 27 th June : : - 40% (BSE 100); - 60% (Crisil Bond) & Money Rohit Agarwal Kunal Shah Guaranteed Growth Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec / ,324 Holdings 1,773 55,454 % to Fund EQUITY HDFC Bank Ltd 3.81 I T C Ltd 3.39 Infosys Ltd 3.22 ICICI Bank Ltd 2.60 IndusInd Bank Limited 2.43 Tata Motors Ltd 2.35 R Shares Banking ETF 1.95 Kotak Banking ETF - Dividend Payout Option 1.90 Maruti Suzuki India Ltd 1.90 Larsen And Toubro Ltd 1.76 UltraTech Cement Ltd 1.58 Zee Entertainment Enterprises Ltd 1.51 Bharat Petroleum Corporation Ltd 1.51 YES BANK LTD 1.47 Mahindra & Mahindra Ltd 1.33 Hero Honda Motors Ltd 1.32 Tech Mahindra Ltd 1.15 Shree Cement Ltd 1.11 HCL Technologies Ltd 1.08 Sun Pharmaceuticals Ltd G-Sec % GOI % GOI % GOI % GOI % INFLATION INDEX GS % NABARD % GOI % NABARD % PN SDL % KA SDL Corporate % HDFC Bank % NTPC % KMPL % PGC % Axis Bank Infrastructure Bonds % REC % Mahindra and Mahindra Financial Services Ltd % Shriram Transport Finance Co Ltd % HDFC % HDFC P MMI Ratings Profile AAA AA+ Sector Allocation as per Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Electricity, gas, steam and air conditioning supply Mfg of other non-metallic mineral products Warehousing and support for transportation Mfg of tobacco products Mfg of coke and refined petroleum products Fixed Deposit AA

27 KOTAK GUARANTEED BALANCED FUND (ULIF /06/03-GRTBALFND-107) Aims for moderate growth by holding a diversified mix of equities and fixed interest instruments. 27 th June : : - 30% (BSE 100); - 70% (Crisil Bond) & Money Rohit Agarwal Kunal Shah Guaranteed Balanced Fund 1 month months months year years years years years years years years Inception Modified Approved Duration Actual Gsec / , ,873 Ratings Profile Holdings % to Fund Sector Allocation as per EQUITY HDFC Bank Ltd 3.05 I T C Ltd 2.77 Infosys Ltd 2.61 ICICI Bank Ltd 2.10 IndusInd Bank Limited 1.96 Tata Motors Ltd 1.91 Kotak Banking ETF - Dividend Payout Option 1.59 Maruti Suzuki India Ltd 1.53 R Shares Banking ETF 1.47 Larsen And Toubro Ltd 1.40 UltraTech Cement Ltd 1.27 Zee Entertainment Enterprises Ltd 1.23 Bharat Petroleum Corporation Ltd 1.21 YES BANK LTD 1.20 Hero Honda Motors Ltd 1.07 Mahindra & Mahindra Ltd 1.04 Tech Mahindra Ltd 0.93 Sun Pharmaceuticals Ltd 0.92 Shree Cement Ltd 0.88 HCL Technologies Ltd G-Sec % GOI % GOI % GOI % GOI % INFLATION INDEX GS % NABARD % GOI % NABARD % PN SDL % GJ SDL Corporate % NTPC % HDFC Bank % Axis Bank Infrastructure Bonds % PGC % KMPL % Mahindra and Mahindra Financial Services Ltd % Shriram Transport Finance Co Ltd % REC % Tata Sons % HDFC P MMI AAA AA+ Electricity, gas, steam and air conditioning supply Computer programming, consultancy and related Mfg of motor vehicles, trailers and semi-trailers Warehousing and support for transportation Mfg of other non-metallic mineral products Mfg of tobacco products State Development Loan Fixed Deposit AA