September 30, Make your dreams a reality. Start a SIP today.

Transcription

1 September 30, 2016 Make your dreams a reality. Start a SIP today.

2 EXPERT SPEAK Mr. Nilesh Shah September 30, 2016 Dear Friends, The issues surrounding India-Pakistan imbroglio in the past few weeks; and the impact emanating from the Indian surgical strike spooked the rates, rupee and equity market for a day. The experience during the 1999 Kargil invasion suggests that the market reacted negatively in the first phase of the crisis But a decisive and a deescalatory response removed the initial nervousness and apprehension and allowed market to bounce back. Sensex was up by more than 25% by the end of Kargil war. It is the nature of the market to react instinctively and be apprehensive and fearful in the beginning and later on take stock of situation with a cool mind. We have large presence of FIIs from all over the world. The decision makers in far flung places are likely to take decision based on what they read and hear in their local media. Their decision making could be different from the decision of domestic investors at least in the short term. Over a longer period of time fundamentals prevails over emotions and perceptions. The surgical strikes did take market by surprise and created initial bout of apprehension. The future course of market will be determined by how the situation evolves. Some strategists believe that the surgical strikes have the potential to bring equilibrium in relationship & de-escalate the situation. The official denial of the strike by Pakistan does indicate that equilibrium to some extent. Major economies of the world share India's concern and their media have reflected India's position and the need for Pakistan to dismantle terror network. We expect such coverage to allay the concerns of FII to a great extent. If we observe almost similar rivalries (in the past and present) between other nations in history: be it between USA & USSR, West & East Germany, South & North Korea, or Israel & Egypt, there was/is a pattern that emerges. The USA, West Germany, South Korea & Israel (FORMER group) all never lost focus from their economic growth; and infact gave an urgency to it. They had a similar growth model: market oriented, driven by technological innovation, and led by knowledge enterprise. So while the USSR, East Germany, North Korea, Egypt (LATTER group) were investing overwhelmingly for military ascendance, the 'Former' countries were investing in schools, universities, infrastructure, innovation, markets, and communication without losing out to the power balance with their competitor. The result was the GDP outperformance and knowledge growth in 'Former' countries that provided economic lead which increased the funds they could allocate to their defence (relatively painlessly) and also take generational leap in technology. Thus over a 2-4 decade period, the 'Formers' were miles ahead in technological and economic might - giving sharp teeth to their potency. On the other hand, the 'Latters' found it difficult to match the competition with their rivals as their economy could not bear the burden. These 'Latters' thus collapsed (USSR, East Germany), or normalised their relations with their rival (Egypt), or were relegated (North Korea). India too will be able to out manoeuvre Pakistan over 2-3 decades by the act of her schools, universities, factories, markets and laboratories. Pakistan knows this and is therefore trying to pull down India's economic growth. Already, India's higher GDPgrowth rate over the past 2 decades was able to close the per capita gap with Pakistan, and outdo it. We must look to double-triple our per capita ratio with Pakistan over the next decade. This will force Pakistan to follow India's path to educate and improve the lot of their masses (which invariably means pursue a rational strategy and normalise) or they get lagged behind significantly and face an overwhelming technological and economic behemoth. And Indian policy makers know this. For this reason, I remain convinced that the short term volatility in the Indian equities market is a reason to accumulate for a long term wealth creation. From the financial market viewpoint the asset quality trouble in the markets in Europe and the impending hike by US Fed may cause volatility globally. Indian investors are advised to resort to SIPs to tide over any such movements and gain from its long term compounding effect. Regards, Nilesh Shah Managing Director 1

3 EQUITY VIEW Sept '16 was a data heavy month with the key being the outcome of the meetings of the ECB (European Central Bank), the US Federal Reserve and Bank of Japan (BOJ). The US Federal Reserve kept rates unchanged and signalled gradual hikes in the near future while the ECB did not announce any fresh stimulus package and kept interest rates unchanged. Bank of Japan (BoJ) on the other hand committed to continuing stimulus until it sees a sustained rise in inflation. The markets in India did see a fair share of volatility especially towards the end of the month on the back of the announcement that the Indian Government had carried out surgical anti- terrorist raids along the India-Pakistan border. The situation with Deutsche Bank added to market worries. We however believe that the probability of an institution this size failing is fairly low and there are reports of the bank being in talks with the US Department of Justice to lower the fine imposed. While markets saw some volatility during the month, capital flows remained strong. FIIs remained buyers of Indian equities in September 2016 to the tune of USD1.6Bn. Domestic Institutional Investors (DIIs) were net buyers to the tune of USD407mn. India together with other emerging markets has been the recipient of strong capital flows. This has been on the back of a global theme which encompasses a change in positioning and preference for Emerging Markets (EM) over Developed Markets (DM). While clearly Indian markets are not immune to the global sentiments, we continue to believe in the strong macro fundamentals of the Indian economy. At present, the Nifty is trading at 19xFY17E EPS and 16xFY18E EPS (free float basis). The path of the domestic markets from hereon would be largely determined by corporate earnings growth trajectory especially as we are about to enter the Q2FY17 earnings season. The quarter has seen a sharp fall in incremental borrowing costs for corporates in India which is likely to boost corporate profitability. Consumption indicators have been strong so far indicative of the sustenance of the underlying theme of growth being largely consumption led in India in FY17. Progress on the GST (Goods and Services Tax) legislation and the trends in rural consumption growth would be some of the other key factors to watch out for. Global events such as the rhetoric around the US Presidential elections and OPEC discussions are some other events to watch out for. RBI cuts policy rates by 25bps; Room to cut rates further by another 25bps in FY17; Timing of the cut to be data dependent RBI (Reserve Bank of India) cut the policy Repo Rate by 25bps to 6.25%. Consequently, the reverse repo rate under the LAF (Liquidity Adjustment Facility) stands adjusted to 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75%. This was the first policy wherein the policy decision was taken by the Monetary Policy Committee (MPC) with the RBI Governor having the casting vote in the case of tie. All the 6 MPC members voted in favour of a rate cut. The decision to cut policy rates was on the back of a lower inflation trajectory. The MPC expects that supply management measures would further bring down food inflation and the RBI maintains their targeted CPI (Consumer Price Index) inflation at 5% by March 2017 with some risks tilted on the upside (though lower than earlier envisaged). The overall accommodative stance has been largely maintained and the stance of providing adequate liquidity remains unchanged. The transmission of the rate cuts through the bond market has been significant even while banks have not brought down lending rates as much. While the projected inflation target has been maintained, the Committee took note of potential cost push pressures on account of the 7th Pay Commission and impact of higher MSPs (Minimum Support Prices) which needs vigilance. We do believe that RBI has room to cut rates further by another 25bps. However, the timing of the same would be data dependent and as more clarity emerges on the CPI inflation trajectory going into Further, global events such as the outcome of the US Presidential election and the timing of rate hike from the US Federal Reserve would also play a part. RBI has also indicated that they would look at lowering the real interest rate band from ~150bps to ~125bps which could open up room for further cuts if inflation moderates. The next meeting of the MPC is scheduled on December 6 and 7, 2016 and its resolution will be announced on December 7, Formation of the Monetary Policy Committee: A new paradigm in Monetary Policy formulation in India The Government announced the formulation of the Monetary Policy Committee (MPC) and also nominated three of the members. The members appointed by the Government are Dr. Chetan Ghate, Dr. Pami Dua and Dr. Ravindra Dholakia- all esteemed academicians in areas of economics and finance. The MPC will be chaired by RBI Governor Dr. Urjit Patel and the other members include RBI Deputy Governor R. Gandhi (in charge of monetary policy), Executive Director Dr Michael Patra (in charge of Monetary Policy Division). The Governor will have a casting vote in case of a tie. With this, India has completed all steps for establishing an MPC-based flexible inflation-targeting framework with the mandated inflation target being 4%(+/-2%) over the next few years. US Federal Reserve: Rise in rates to be gradual and calibrated; India's external sector significantly stronger today than a few years ago The US Federal Reserve kept rates unchanged in their September meeting while indicating that there was a probability of a rate hike in the December 2016 meeting. One must however note, that the dot plot chart has been marked down, with the expectation of just one rate hike in rest of 2016 compared to 4 hikes expected a year ago. The number of rate hikes now expected in 2017 are pegged at 2 (from 3 earlier) and 3 hikes in We do believe that even if the Fed does embark on raising interest rates in December 2016, the pace of tightening in 2016 and 2017 would be gradual. In this context, India's external position remains strong. Current Account Deficit (CAD) in India stood at 0.3% of GDP for Q1FY17 and we expect that CAD for FY17 would be under control at ~1% of GDP. On the capital account side, we expect that FPI (Foreign Portfolio Investments) and FDI (Foreign Direct Investments) flows will partly offset the redemption of special Foreign Currency Non Resident or FCNR (B) deposits. The BoP (Balance of Payments) position appears to be in comfortable surplus in FY17E, with downside risks likely only if oil averages significantly above USD 50-55/bbl. In this context, we revise our USD/INR average for FY17E to 67.5 (earlier 68.0) from an average of 65.5 in Fy16 Normal monsoons and improved food grain production bodes well for rural consumption growth revival As we have been highlighting in the past few reports, we continue to believe that GDP growth would remain primarily consumption led with revival in private sector capex being some time away. In this regard, the signs of revival in rural income growth augur well for economy. One of the key factors leading to this optimism is the data on rainfall for the monsoon season. As per the IMD (Indian Meteorological Department), rainfall in the monsoon season was only 3% below normal slightly lower than official forecasts but with a good spatial and temporal distribution. On the back of normal monsoon, government expects 8.8% YoY increase in the summer crop production in its 1st Advance Estimate. We must also note that usually, the final estimates have been better than the 1st estimate. If this trend were to continue, it is widely estimated that the positive impact on rural consumption could be between % of GDP. Fiscal deficit for April August at 76% of Budget Estimates; healthy tax collections and receipts under the income declaration scheme provides cushion to non tax revenues The fiscal deficit in April-August 2016 was 76.4% of the FY17 budget estimate with gross tax collections growing 21.9% YoY, higher than the 11.9% growth budgeted in FY17 (over the provisional numbers of FY2016). Indirect tax collections grew 27% and direct taxes grew 15%. Total expenditure increased 9.5% YTD with non-plan expenditure increasing 3.6% and plan expenditure growth of 26.8%. Capital expenditure fell by 0.7% while revenue expenditure grew 10.9%. We believe that the Government would target sticking to the fiscal deficit estimates for FY17 (3.5% of GDP). While trends in non tax revenues for the period April August 2016 were muted (budgeted growth of 16% in FY17), the revenue trajectory should improve hereon. At the end of the government's income declaration scheme, total declarations in the form of cash and other assets amounted to INR652.5Bn (USD 9.7Bn, or 0.4% of GDP). At a 45% tax rate, the government will earn INR 294Bn or USD 4.4Bn (0.2% of GDP) in additional revenues. The total tax amount can be paid in three instalments: 25% by 30 November, 25% by 31 March 2017 and the remaining 50% by 30 September Further, even while there is likely to be some shortfall the upfront amount expected from the telecom auctions, we do expect a more aggressive push for disinvestments and strategic sales to meet the overall targets (INR 565Bn or USD 8.4Bn disinvestment targeted in FY17). The RBI has also transferred Rs659Bn or USD9.8Bn as dividend to the government in Aug Key Variables Short - term Economy Corporate Earnings FII Flow Medium - term Remarks Improving growth, falling inflation Improving operating leverage, falling interest costs and improvement in working capital can accelerate earnings, but a bit back-ended (FY17) India stands out among global asset classes with improving macro-economic variables and prospects of strong long term growth DII Flow Supply of paper 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 2

4 DEBT VIEW Items Sept-16 Aug-16 Change Reverse Repo 6.00% 6.00% Nil Repo 6.50% 6.50% Nil CRR 4% 4% Nil SLR 21.25% 21.25% Nil Mibor Overnight 6.50% 6.54% -4 bps Call(O/N) 6.45% 6.39% 6 bps CBLO 6.42% 6.35% 7 bps 1 yr T Bill 6.55% 6.67% - 12 bps 10 G Sec 6.82% 7.11% - 29 bps 5 Year AAA 7.45% 7.52% - 7 bps USD/INR paise Source: RBI; Bloomberg. Key Events: Rate Cut - The RBI cut the repo rate by 25bps to 6.25% and was within market expectation. The reverse repo rate under the LAF stands adjusted to 5.75 %, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 % CPI inflation eased to a five-month low 5.05% in August 2016 from the high 6.1% in July 2016, helped by softer food prices. Crude Oil prices rose to 49.06/barrel (4.29% MoM) during the month as OPEC has agreed a preliminary deal to cut production between 32.5 million and 33.0 million barrels per day for the first time in eight years. India's current account deficit (CAD) narrowed to 0.3 billion, or 0.1 % of GDP, in the first quarter of , significantly lower than 6.1 billion or 1.2 % of GDP in Q1 of on account of lower trade gap. The Union Cabinet gave its nod to merge the railway budget with the general budget from next year, putting an end to a practice that started in 1924 The government appointed three external members to the Monetary Policy Committee, which will decide the policy rates of the RBI. These members who will serve a 4-year period are academicians with reputed educational institutions of India. The other three members will be from RBI, including Governor Urjit Patel. The second meeting of the GST Council, headed by FM Arun Jaitley, has approved draft rules for GST and would be applicable under the new GST regime, expected to be rolled out from April 1, Tensions escalated in the second half of the month with Indian army conducting surgical strikes across the Line of Control (LOC) post the attack on the Indian army camp in Uri. This acted as a break in the bond rally and resulted in an unwanted spike of bps in the 10 yr benchmark bonds The new 10 year benchmark bond was auctioned and the cut-off was 6.97% this was approx. 16 bps below the old benchmark 7.59% G sec 2026 India's industrial growth fell sharply in July after rising for two months, with data suggesting that rural demand and investments are yet to pick up. Growth as measured by the Index of Industrial Production (IIP)contracted 2.4% in July Normal Monsoon - The southwest monsoon ended with a 3% rainfall deficit, which is considered near normal, leaving a wider area under cultivation and higher reservoirs levels that will help the kharif, or summer, harvest and boost planting of crops in winter. The Bank of Japan (BOJ) unveiled its new policy framework, saying it will keep its negative policy rate at minus 0.1% while modifying the framework of its bond-buying programme to guide long-term rate at around 0%. The US Federal Reserve left interest rates unchanged but strongly signalled it could still hike interest rates by the end of this year as the labour market improved further. The European Central Bank kept its stimulus programme unchanged in a sign that policy makers don't see an immediate danger to the euro-area recovery from risks including Britain's decision to leave the European Union. Debt Outlook The month of September witnessed more flattening as the 10 year benchmark gilt came off by 2 bps; the 15 year and 30 year curve came down by 10 bps As expected the new Governor Dr. Urjit Patel in the policy announcement maintained the continuity in the policy and also gave a repo rate cut 25 bps. The key point of the policy was that global growth will slow significantly which may give more room for monetary easing. CPI inflation is expected to average between for the remaining part of the year with low upside risk. This will open more space for a rate cut of at least 25 bps in the remaining part of the year and more will depend on the fundamentals which appear promising as of now. The measures taken by RBI for development of the bond market will take some time to have an impact but the measures are very positive and will have a meaningful impact on yields - particularly on bonds spreads. We expect the new 10 year gilt to inch towards 6.50% yield in the coming months. Post the new 10 year gilt, all the spread assets viz AAA/AA+ corporate bonds and SDL will appear attractive and will witness rally/compression vis-a-vis the new 10 year gilt. Therefore we are positive on various spread assets. If liquidity becomes tight post FCNR deposit maturity, we expect RBI to resume OMO, which would be positive for gilts. RBI has also indicated that they would look at lowering the real interest rate band from ~150bps to ~125bps which could open up room for further rate cuts if inflation moderates. We do believe that RBI has room to cut rates further by another 25bps. However, the timing of the same would be data dependent and as more clarity emerges on the CPI inflation trajectory going into The 18 month -36 month segment remains the best bet on the short term curve, since this segment is in a bull steepening mode driven by liquidity. 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 3 Liquidity Denotes fall in interest rates 3

5 GOLD VIEW In the month of September, the Brent crude and gold were range bound and closed almost flat M-o-M. In the similar period, the INR appreciated over the last month only marginally. As we had highlighted in the previous note, gold has been perceived to be a safe haven currency in the time of geo political risk or excessive easing in MPR(Monitory Policy Review) particularly by FED. The Fed decided to keep rates on hold and pushed the possible rate hike to December, this resulted in gold being range bound. Inflation as expected came down sharply in month of September and is like to drop to close to 4% mark before rising in December March The monsoon needs no certificate for the performance and the benefits will be seen in the coming quarter. It will support GDP and in turn may support INR in medium to long term. Therefore a large part of the gold return which used to come from currency depreciation will be capped and may also probably act otherwise. The CAD for Q2 was almost surplus and going forward the situation is likely to be same. The currency wars will keep gold supportive in dollar terms but the impending Fed rate hike will keep it range bound. India story is unfolding and it has a long way to go. Therefore equities can be a better play followed by bonds then gold bonds and then gold for the 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 September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 69.05% Beta: 1.02 ## Sharpe :0.95 Standard Deviation : 15.52% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Total Expense Ratio ** Regular:2.19% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 8.74 Infosys Ltd. Software 6.32 Reliance Industries Ltd. Petroleum Products 4.53 IndusInd Bank Ltd. Banks 4.20 ICICI Bank Ltd. Banks 4.17 ITC Ltd. Consumer Non Durables 3.95 Maruti Suzuki India Limited Auto 3.85 Axis Bank Ltd Banks 3.76 Hero MotoCorp Ltd. Auto 2.96 Larsen And Toubro Ltd. Construction Project 2.96 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 2.94 Tata Motors Ltd - DVR Auto 2.54 Ultratech Cement Ltd. Cement 2.39 Britannia Industries Ltd. Consumer Non Durables 2.19 Mahindra & Mahindra Ltd. Auto 2.18 Bharat Petroleum Corporation Ltd. Petroleum Products 2.03 HCL Technologies Ltd. Software 1.96 Tata Consultancy Services Ltd. Software 1.81 Shree Cement Ltd. Cement 1.59 The Ramco Cements Ltd Cement 1.43 Kajaria Ceramics Ltd. Construction 1.42 Lupin Ltd. Pharmaceuticals 1.38 State Bank Of India Banks 1.33 Bayer Cropscience Ltd. Pesticides 1.30 Asian Paints Ltd. Consumer Non Durables 1.22 DB Corp Limited Media and Entertainment 1.20 Indraprastha Gas Ltd. Gas 1.20 Cadila Healthcare Ltd. Pharmaceuticals 1.14 Nestle India Ltd. Consumer Non Durables 1.07 Sanofi India Ltd. Pharmaceuticals 1.06 Grasim Industries Ltd. Cement 1.04 Siemens Ltd. Industrial Capital Goods 1.03 Equitas Holdings Ltd Finance 1.01 Power Grid Corporation Of India Ltd Power 1.01 Strides Shasun Ltd. Pharmaceuticals 1.01 Supreme Industries Limited Industrial Products 1.01 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) Nifty 50 (Rs)# Nifty 50 Returns (%) S&P BSE SENSEX (Rs)^ S&P BSE SENSEX Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) HDFC Ltd. Finance 0.99 Bharat Electronics Ltd Industrial Capital Goods 0.98 Bank Of Baroda Banks 0.97 National Thermal Power Corporation Limited Power 0.95 Persistent Systems Limited Software 0.95 Shriram Transport Finance Co Ltd. Finance 0.92 MRF Limited Auto Ancillaries 0.88 Fag Bearings India Ltd. Industrial Products 0.85 Tech Mahindra Ltd. Software 0.85 Jubilant Foodworks Limited Consumer Non Durables 0.80 GE Power India Limited Industrial Capital Goods 0.79 LIC Housing Finance Ltd. Finance 0.78 ICICI Prudential Life Insurance Company Ltd Finance 0.59 Apollo Hospitals Enterprises Ltd. Healthcare Services 0.54 HDFC Ltd. Warrants Finance 0.49 Castrol (India ) Ltd. Petroleum Products 0.41 Solar Industries India Limited Chemicals 0.32 Bharat Forge Ltd. Industrial Products 0.24 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.41 Collateral Borrowing & Lending obligation 1.48 Net Current /(Liabilities) Inception : - December 29, The returns are calculated by XIRR approach assuming investment of `10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows and taking the time of investment into consideration. Since inception returns are assumed to be starting from the beginning of the subsequent month from the date of inception. # ; ^ Kotak 50 NAV as on September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Banks Software Auto Consumer Non Durables Cement Pharmaceuticals Construction Project Petroleum Products Finance Industrial Capital Goods Others 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 21,40,000 1,31,034 4,46,549 8,90,917 13,45,887 22,71,734 1,34,31, ,29,332 4,07,234 7,87,459 11,70,648 19,37,072 77,77, ,27,797 3,97,282 7,68,802 11,40,206 18,78,236 77,69, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 5 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

7 EQUITY SCHEMES KOTAK CLASSIC EQUITY An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. July 27, 2005 Mr. Harish Krishnan* Nifty 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: % Beta: 0.90 ## Sharpe :0.83 Standard Deviation : 13.85% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: Nil., (w.e.f December 01, 2014) Regular: 2.70% Direct: 1.14% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 7.89 Bharat Petroleum Corporation Ltd. Petroleum Products 5.31 Grasim Industries Ltd. Cement 5.26 Asian Paints Ltd. Consumer Non Durables 5.09 Hero MotoCorp Ltd. Auto 4.83 ITC Ltd. Consumer Non Durables 4.57 Infosys Ltd. Software 4.27 Power Grid Corporation Of India Ltd Power 3.97 National Thermal Power Corporation Limited Power 3.06 Castrol (India ) Ltd. Petroleum Products 2.34 Bajaj Finance Limited Finance 2.05 IndusInd Bank Ltd. Banks 2 Reliance Industries Ltd. Petroleum Products 1.97 Hindustan Unilever Ltd. Consumer Non Durables 1.89 ACC Ltd. Cement 1.87 Ambuja Cements Ltd Cement 1.85 Petronet LNG Ltd. Gas 1.83 Zee Entertainment Enterprises Ltd Media and Entertainment 1.77 Eicher Motors Ltd Auto 1.53 The Ramco Cements Ltd Cement 1.53 GAIL (India) Ltd. Gas 1.51 Tata Steel Limited. Ferrous Metals 1.51 JSW Steel Ltd. Ferrous Metals 1.46 Tata Motors Ltd. Auto 1.46 RBL Bank Ltd Banks 1.44 Yes Bank Ltd Banks 1.21 Bosch Limited Auto Ancillaries 1.20 HDFC Ltd. Warrants Finance 1.16 Mahindra & Mahindra Ltd. Auto 1.10 Ultratech Cement Ltd. Cement 1.03 Larsen And Toubro Ltd. Construction Project 0.93 Biocon Ltd. Pharmaceuticals 0.88 Wipro Ltd. Software 0.82 Hindalco Industries Ltd Non - Ferrous Metals 0.80 Dr Reddys Laboratories Ltd Pharmaceuticals 0.72 GNA Axles Ltd Auto Ancillaries 0.63 The Indian Hotels Company Ltd. Hotels 0.55 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) Nifty 100 (Rs)# Nifty 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Pidilite Industries Ltd. Chemicals 0.45 HDFC Ltd. Finance 0.43 ICICI Bank Ltd. Banks 0.40 Shriram Transport Finance Co Ltd. Finance 0.39 Lupin Ltd. Pharmaceuticals 0.36 Vedanta Ltd. Minerals/Mining 0.36 Axis Bank Ltd Banks 0.33 HCL Technologies Ltd. Software 0.33 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.30 Bharti Airtel Ltd. Telecom - Services 0.27 Britannia Industries Ltd. Consumer Non Durables 0.21 Tech Mahindra Ltd. Software 0.20 Mahindra & Mahindra Financial Services Ltd. Finance 0.15 Tata Consultancy Services Ltd. Software 0.14 Aditya Birla Nuvo Limited Services 0.11 Bajaj Auto Ltd. Auto 0.03 Maruti Suzuki India Limited Auto 0.01 Listed/Awaiting Listing on Stock Exchange - Total Futures IndusInd Bank Ltd.-OCT ICICI Bank Ltd.-OCT CNX NIFTY-OCT Bajaj Auto Ltd.-OCT Maruti Suzuki India Limited-OCT Futures (Market value represents Notional Value) - Total 7.84 TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 3.19 Collateral Borrowing & Lending obligation 9.35 Net Current /(Liabilities) Systematic Investment Plan (SIP) If you had invested `10,000 every month 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Auto Finance Cement Consumer Non Durables Power Derivatives Petroleum Products Others CBLO&Term Deposits&Rev.Repo 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 13,50,000 1,32,956 4,31,561 8,61,506 13,04,119 22,43,001 27,28, ,30,669 4,17,938 8,16,302 12,14,948 20,34,475 25,11, ,29,332 4,07,234 7,87,459 11,70,648 19,37,072 23,91, Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

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 September 30, 2016: ` A) Regular Plan: B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 51.01% Beta: 0.99 ## Sharpe :1.13 Standard Deviation :15.50% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular:2.31% Direct: 1.14% 7 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.14 Infosys Ltd. Software 4.30 ITC Ltd. Consumer Non Durables 3.69 Shree Cement Ltd. Cement 3.49 Reliance Industries Ltd. Petroleum Products 3.44 Maruti Suzuki India Limited Auto 3.16 Hero MotoCorp Ltd. Auto 3.15 Hindustan Petroleum Corporation Ltd Petroleum Products 3.15 Dalmia Bharat Ltd Cement 2.70 Bharat Petroleum Corporation Ltd. Petroleum Products 2.68 Ultratech Cement Ltd. Cement 2.66 Axis Bank Ltd Banks 2.65 IndusInd Bank Ltd. Banks 2.55 Larsen And Toubro Ltd. Construction Project 2.48 ICICI Bank Ltd. Banks 2.47 UPL Ltd Pesticides 2.33 State Bank Of India Banks 2.32 Britannia Industries Ltd. Consumer Non Durables 2.04 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.97 Tata Motors Ltd. Auto 1.95 Indraprastha Gas Ltd. Gas 1.88 Bajaj Finance Limited Finance 1.83 The Ramco Cements Ltd Cement 1.72 Petronet LNG Ltd. Gas 1.69 Max Financial Services Ltd. Finance 1.63 Mahindra & Mahindra Ltd. Auto 1.62 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.58 Healthcare Global Enterprises Ltd Healthcare Services 1.41 Multi Commodity Exchange of India Limited Finance 1.40 HCL Technologies Ltd. Software 1.38 MRF Limited Auto Ancillaries 1.35 Tech Mahindra Ltd. Software 1.32 Arvind Ltd Textile Products 1.31 National Buildings Construction Corporation Limited Construction 1.16 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sep 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Others Petroleum Products Auto Pharmaceuticals Finance Consumer Non Durables Cement Gas CBLO & Term Deposits & Rev.Repo * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 14,50,000 1,37,544 4,77,440 9,76,998 14,83,349 25,71,031 40,34, ,32,052 4,30,816 8,45,091 12,46,653 20,62,031 29,61, ,29,332 4,07,234 7,87,459 11,70,648 19,37,035 28,37, Lupin Ltd. Pharmaceuticals 1.12 AIA Engineering Limited Industrial Capital Goods 1.11 JK Cement Ltd. Cement 1.11 Whirlpool of India Ltd. Consumer Durables 1.09 GAIL (India) Ltd. Gas 0.97 Bank Of Baroda Banks 0.96 Va Tech Wabag Limited Engineering Services 0.95 Fag Bearings India Ltd. Industrial Products 0.90 Persistent Systems Limited Software 0.89 Cummins India Ltd. Industrial Products 0.84 Ashok Leyland Ltd. Auto 0.83 Federal Bank Ltd. Banks 0.83 Container Corporation of India Ltd. Transportation 0.80 Techno Electric & Engineering Co Ltd. Construction Project 0.69 Equitas Holdings Ltd Finance 0.60 HDFC Ltd. Warrants Finance 0.56 Prestige Estates Projects Limited Construction 0.55 SKF India Ltd Industrial Products 0.48 CESC Ltd. Power 0.46 Swaraj Engines Ltd Industrial Products 0.41 ICICI Prudential Life Insurance Company Ltd Finance Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.13 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.40 Collateral Borrowing & Lending obligation 4.74 Net Current /(Liabilities) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

9 EQUITY SCHEMES KOTAK SELECT FOCUS FUND An Open - Ended Equity INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors. However, there is no assurance that the objective of the scheme will be realized. September 11, 2009 Mr. Harsha Upadhyaya* Nifty 200 AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 39.94% Beta: 1.02 ## Sharpe : 1.25 Standard Deviation : 15.88% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.00% Direct: 1.00% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 6 Reliance Industries Ltd. Petroleum Products 4.94 ITC Ltd. Consumer Non Durables 4.36 Ultratech Cement Ltd. Cement 4.08 Hero MotoCorp Ltd. Auto 3.75 Infosys Ltd. Software 3.42 The Ramco Cements Ltd Cement 3.40 Shree Cement Ltd. Cement 3.30 IndusInd Bank Ltd. Banks 3.05 Hindustan Petroleum Corporation Ltd Petroleum Products 3 Mahindra & Mahindra Ltd. Auto 2.93 Maruti Suzuki India Limited Auto 2.80 Axis Bank Ltd Banks 2.72 Max Financial Services Ltd. Finance 2.45 Bajaj Finance Limited Finance 2.41 Britannia Industries Ltd. Consumer Non Durables 2.25 Indraprastha Gas Ltd. Gas 2.16 Larsen And Toubro Ltd. Construction Project 2.16 Petronet LNG Ltd. Gas 2.06 Arvind Ltd Textile Products 1.87 Bharat Petroleum Corporation Ltd. Petroleum Products 1.83 Bharat Electronics Ltd Industrial Capital Goods 1.76 Tata Motors Ltd. Auto 1.76 State Bank Of India Banks 1.64 ICICI Bank Ltd. Banks 1.63 MRF Limited Auto Ancillaries 1.42 HCL Technologies Ltd. Software 1.38 Godrej Consumer Products Ltd. Consumer Non Durables 1.25 Equitas Holdings Ltd Finance 1.24 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.23 Bajaj Finserv Ltd. Finance 1.21 Lupin Ltd. Pharmaceuticals 1.11 Jk Lakshmi Cement Ltd. Cement 1.06 Bayer Cropscience Ltd. Pesticides 1.05 Ashok Leyland Ltd. Auto 0.94 ICICI Prudential Life Insurance Company Ltd Finance 0.94 Container Corporation Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) Nifty 200 (Rs)# Nifty 200 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) of India Ltd. Transportation 0.93 Federal Bank Ltd. Banks 0.90 Cadila Healthcare Ltd. Pharmaceuticals 0.83 AIA Engineering Limited Industrial Capital Goods 0.72 Tech Mahindra Ltd. Software 0.67 Bank Of Baroda Banks 0.66 Techno Electric & Engineering Co Ltd. Construction Project 0.66 Solar Industries India Limited Chemicals 0.64 Max India Limited Healthcare Services 0.49 Kec International Ltd. Power 0.46 Whirlpool of India Ltd. Consumer Durables 0.45 Navkar Corporation Limited Transportation 0.38 HDFC Ltd. Warrants Finance 0.31 CESC Ltd. Power 0.27 Kirloskar Oil Engines Ltd. Industrial Products 0.23 IFB Industries Ltd. Consumer Durables Redm Preference Sh Zee Entertainment Enterprises Ltd Media and Entertainment 0.02 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS HDFC Bank Ltd Kotak Mahindra Bank Ltd Term Deposits - Total 0.55 Collateral Borrowing & Lending obligation 6.95 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Banks Software Petroleum Products Gas Auto Pharmaceuticals Finance Consumer Non Durables Cement CBLO & Term Deposits & Rev.Repo Others year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 NA 8,50,000 1,36,874 4,86,876 10,28,338 15,92,054 NA 16,18, NA ,31,427 4,23,757 8,27,530 12,21,357 NA 12,39, NA ,29,332 4,07,234 7,87,459 11,70,648 NA 11,88, NA Investors understand that their principal will be at moderately high risk Long term capital growth Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

10 EQUITY SCHEMES KOTAK TAX SAVER An Open - Ended Equity Linked Savings INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. However, there is no assurance that the objective of the scheme will be realized. November 23, 2005 Mr. Harsha Upadhyaya* Nifty 500 AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth.... Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 49.46% Beta: 1.05 ## Sharpe : 1.14 Standard Deviation : 16.50% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) 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: 2.44% Direct: 1.17% 9 Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 5.57 Reliance Industries Ltd. Petroleum Products 4.43 Infosys Ltd. Software 4.40 Shree Cement Ltd. Cement 4.04 ITC Ltd. Consumer Non Durables 3.82 IndusInd Bank Ltd. Banks 3.30 Axis Bank Ltd Banks 3.15 Ultratech Cement Ltd. Cement 3.04 Hero MotoCorp Ltd. Auto 3.03 Bharat Petroleum Corporation Ltd. Petroleum Products 3.02 Hindustan Petroleum Corporation Ltd Petroleum Products 3.01 ICICI Bank Ltd. Banks 2.86 Whirlpool of India Ltd. Consumer Durables 2.51 Dalmia Bharat Ltd Cement 2.40 Britannia Industries Ltd. Consumer Non Durables 2.26 Mahanagar Gas Ltd Gas 2.26 Tata Motors Ltd. Auto 2.23 Larsen And Toubro Ltd. Construction Project 1.98 SKF India Ltd Industrial Products 1.94 State Bank of Bikaner and Jaipur Banks 1.78 Techno Electric & Engineering Co Ltd. Construction Project 1.77 The Ramco Cements Ltd Cement 1.76 RBL Bank Ltd Banks 1.75 Multi Commodity Exchange of India Limited Finance 1.60 UPL Ltd Pesticides 1.60 SRF Ltd. Textile Products 1.58 Cadila Healthcare Ltd. Pharmaceuticals 1.53 Max Financial Services Ltd. Finance 1.48 Lupin Ltd. Pharmaceuticals 1.47 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 1.47 Solar Industries India Limited Chemicals 1.44 Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) Nifty 500 (Rs)# Nifty 500 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Federal Bank Ltd. Banks 1.42 Bajaj Finance Limited Finance 1.35 Arvind Ltd Textile Products 1.33 Tech Mahindra Ltd. Software 1.33 AIA Engineering Limited Industrial Capital Goods 1.27 HCL Technologies Ltd. Software 1.26 Bank Of Baroda Banks 1.16 Mahindra & Mahindra Ltd. Auto 1.11 Ashok Leyland Ltd. Auto 1.10 Container Corporation of India Ltd. Transportation 1.09 Maruti Suzuki India Limited Auto 1.08 Blue Dart Express Ltd. Transportation 0.92 Thermax Ltd. Industrial Capital Goods 0.92 Hawkins Cooker Ltd Household Appliances 0.89 State Bank Of India Banks 0.84 Navneet Education Ltd. Media and Entertainment 0.82 LIC Housing Finance Ltd. Finance 0.57 Cummins India Ltd. Industrial Products 0.54 Texmaco Rail & Engineering Ltd. Industrial Capital Goods 0.47 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 2.20 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Software Pharmaceuticals Consumer Non Durables Petroleum Products Cement Finance Construction Project Industrial Products Others * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 13,10,000 1,36,161 4,75,827 9,42,962 14,09,072 23,12,778 26,48, ,32,052 4,30,816 8,45,091 12,46,653 20,62,169 23,74, ,29,332 4,07,234 7,87,459 11,70,648 19,37,072 22,46, Auto Investors understand that their principal will be at moderately high risk long term capital growth with a 3 year lock in Investment in portfolio of predominantly equity & equity related securities. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

11 EQUITY SCHEMES KOTAK MID-CAP An Open - Ended Equity Growth INVESTMENT STYLE Style Value Blend Growth Size Large Mid Small To generate capital appreciation from a diversified portfolio of equity and equity related securities. However, there is no assurance that the objective of the scheme will be realized. February 24, 2005 Mr. Pankaj Tibrewal* Nifty Midcap 100 AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 57.11% Beta: 0.98 ## Sharpe : 1.60 Standard Deviation : 17.51% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.47% Direct: 1.16% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Atul Ltd. Chemicals 3.21 Finolex Cables Ltd. Industrial Products 2.74 The Ramco Cements Ltd Cement 2.72 DB Corp Limited Media and Entertainment 2.59 Strides Shasun Ltd. Pharmaceuticals 2.54 Techno Electric & Engineering Co Ltd. Construction Project 2.52 Whirlpool of India Ltd. Consumer Durables 2.46 Fag Bearings India Ltd. Industrial Products 2.41 JK Cement Ltd. Cement 2.39 Solar Industries India Limited Chemicals 2.37 IndusInd Bank Ltd. Banks 2.32 Shriram City Union Finance Ltd. Finance 2.23 Hindustan Petroleum Corporation Ltd Petroleum Products 2.22 Kewal Kiran Clothing Limited. Textile Products 2.22 Hawkins Cooker Ltd Household Appliances 2.19 SRF Ltd. Textile Products 2.09 Federal Bank Ltd. Banks 2.08 Persistent Systems Limited Software 2.08 Alkem Laboratories Ltd Pharmaceuticals 2.03 ICICI Bank Ltd. Banks 2.02 Divi s Laboratories Limited Pharmaceuticals 1.95 Castrol (India ) Ltd. Petroleum Products 1.84 Shriram Transport Finance Co Ltd. Finance 1.80 Motherson Sumi Systems Ltd. Auto Ancillaries 1.78 Bharat Forge Ltd. Industrial Products 1.74 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.70 Mahindra & Mahindra Financial Services Ltd. Finance 1.68 Britannia Industries Ltd. Consumer Non Durables 1.63 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.61 Va Tech Wabag Limited Engineering Services 1.60 MRF Limited Auto Ancillaries 1.59 Thermax Ltd. Industrial Capital Goods 1.54 Total amount invested (Rs) Total Value as on Sep 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) Bajaj Finserv Ltd. Finance 1.53 Arvind Ltd Textile Products 1.50 Bajaj Finance Limited Finance 1.40 Sundaram Finance Ltd. Finance 1.33 ICICI Prudential Life Insurance Company Ltd Finance 1.31 Pennar Engineered Building Systems Limited Ferrous Metals 1.28 PVR Ltd. Media and Entertainment 1.27 Voltas Ltd. Construction Project 1.27 RBL Bank Ltd Banks 1.26 Cadila Healthcare Ltd. Pharmaceuticals 1.25 Havells India Ltd. Consumer Durables 1.25 Navneet Education Ltd. Media and Entertainment 1.22 Jk Lakshmi Cement Ltd. Cement 1.16 Axis Bank Ltd Banks 1.12 HSIL Ltd. Consumer Durables 1.03 Kansai Nerolac Paints Ltd Consumer Non Durables 1.02 NIIT Technologies Ltd Software 1 UPL Ltd Pesticides 1 Jubilant Foodworks Limited Consumer Non Durables 0.98 Zuari Agro Chemicals Ltd Fertilisers 0.94 SKF India Ltd Industrial Products 0.88 Bank Of Baroda Banks 0.86 Bharat Petroleum Corporation Ltd. Petroleum Products 0.85 WPIL Ltd Industrial Products 0.71 Balrampur Chini Mills Ltd Consumer Non Durables 0.67 Power Mech Projects Ltd Power 0.59 Supreme Industries Limited Industrial Products 0.45 Union Bank Of India Banks 0.18 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 2.18 Net Current /(Liabilities) 0.62 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` Direct Growth Option) SECTOR ALLOCATION (%) Banks 5.81 Consumer Durables Chemicals Others Cement Textile Products Pharmaceuticals Petroleum Products Media & Entertainment Industrial Products Finance Midcap and Small cap stocks as a % age of Net : 78.84% * 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 14,00,000 1,40,327 5,36,186 11,41,764 17,76,462 30,83,609 40,14, ,38,488 4,96,570 9,97,564 14,65,594 25,40,774 33,79, ,29,332 4,07,234 7,87,459 11,70,648 19,37,072 26,04, 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 September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 46.07% Beta: 0.94 ## Sharpe :1.84 Standard Deviation : 17.08% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: i) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%. ii) For redemption/switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil. Note Any exit load charged (net off Service Tax, if any) shall be credited back to the respective scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:2.22% Direct: 1.01% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Whirlpool of India Ltd. Consumer Durables 3.29 The Ramco Cements Ltd Cement 3.10 V-Guard Industries Ltd. Industrial Capital Goods 3.10 Atul Ltd. Chemicals 3.02 Finolex Cables Ltd. Industrial Products 2.99 Fag Bearings India Ltd. Industrial Products 2.74 Solar Industries India Limited Chemicals 2.70 SRF Ltd. Textile Products 2.51 IndusInd Bank Ltd. Banks 2.47 Persistent Systems Limited Software 2.47 DB Corp Limited Media and Entertainment 2.46 Strides Shasun Ltd. Pharmaceuticals 2.40 Motherson Sumi Systems Ltd. Auto Ancillaries 2.35 Alkem Laboratories Ltd Pharmaceuticals 2.33 Hawkins Cooker Ltd Household Appliances 2.30 Federal Bank Ltd. Banks 2.27 Shriram City Union Finance Ltd. Finance 2.01 Carborundum Universal Ltd. Industrial Products 2 Kewal Kiran Clothing Limited. Textile Products 1.98 PVR Ltd. Media and Entertainment 1.90 Indraprastha Gas Ltd. Gas 1.79 Sundaram Finance Ltd. Finance 1.78 ICICI Bank Ltd. Banks 1.74 Mahindra & Mahindra Financial Services Ltd. Finance 1.67 Navneet Education Ltd. Media and Entertainment 1.67 Va Tech Wabag Limited Engineering Services 1.53 Jk Lakshmi Cement Ltd. Cement 1.51 Bajaj Finance Limited Finance 1.36 Divi s Laboratories Limited Pharmaceuticals 1.36 Finolex Industries Ltd. Industrial Products 1.35 Torrent Pharmaceuticals Ltd. Pharmaceuticals 1.34 SKF India Ltd Industrial Products 1.30 Pennar Engineered Building Systems Limited Ferrous Metals 1.28 Britannia Industries Ltd. Consumer Non Durables 1.27 Oberoi Realty Ltd Construction 1.24 PNC INFRATECH LIMITED Construction Project 1.17 Notes: Term Deposit as provided above is towards margin for derivatives transactions Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) S&P BSE MidSmallCap (Rs)# S&P BSE MidSmallCap Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Castrol (India ) Ltd. Petroleum Products 1.04 Max Financial Services Ltd. Finance 1.02 Coromandel International Ltd. Fertilisers 1 D-Link (India) Ltd Hardware 0.98 Ramkrishna Forgings Ltd. Industrial Products 0.98 Equitas Holdings Ltd Finance 0.93 IDFC Bank Limited Banks 0.92 Greaves Cotton Ltd. Industrial Products 0.90 Jubilant Foodworks Limited Consumer Non Durables 0.85 ICICI Prudential Life Insurance Company Ltd Finance 0.82 Zuari Agro Chemicals Ltd Fertilisers 0.82 Maharashtra Seamless Ltd. Ferrous Metals 0.74 WPIL Ltd Industrial Products 0.70 Apollo Hospitals Enterprises Ltd. Healthcare Services 0.69 Engineers India Ltd. Construction Project 0.67 Multi Commodity Exchange of India Limited Finance 0.67 Power Mech Projects Ltd Power 0.67 Kirloskar Brothers Ltd. Industrial Products 0.65 Supreme Industries Limited Industrial Products 0.63 Bank Of Baroda Banks 0.54 GMM Pfaudler Ltd. Engineering 0.54 Kec International Ltd. Power 0.48 IFB Industries Ltd. Consumer Durables 0.32 Listed/Awaiting Listing on Stock Exchange - Total Futures Shriram Transport Finance Co Ltd.-OCT Futures (Market value represents Notional Value) - Total 0.97 TERM DEPOSITS HDFC Bank Ltd Term Deposits - Total 0.22 Collateral Borrowing & Lending obligation 8.97 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Industrial Products Banks Consumer Durables 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 : 88.07% * 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 11,50,000 1,40,707 5,58,431 12,19,533 18,91,327 NA 30,08, NA ,37,977 4,93,306 9,90,570 14,36,115 NA 22,72, NA ,29,332 4,07,234 7,87,459 11,70,648 NA 18,25, 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 September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover:49.95% Beta: 1.12 ## Sharpe :1.23 Standard Deviation : 20.30% Source: ICRAMFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 2.60% Direct: 1.14% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Shree Cement Ltd. Cement 8.69 Ultratech Cement Ltd. Cement 7.59 Indraprastha Gas Ltd. Gas 6.29 Kirloskar Oil Engines Ltd. Industrial Products 6.14 Larsen And Toubro Ltd. Construction Project 6.06 SKF India Ltd Industrial Products 5.93 Thermax Ltd. Industrial Capital Goods 4.99 Bharti Airtel Ltd. Telecom - Services 4.30 Cummins India Ltd. Industrial Products 3.94 KSB Pump Ltd Industrial Products 3.90 Fag Bearings India Ltd. Industrial Products 3.88 AIA Engineering Limited Industrial Capital Goods 3.45 Container Corporation of India Ltd. Transportation 3.36 Mahanagar Gas Ltd Gas 3.28 Solar Industries India Limited Chemicals 3.28 Siemens Ltd. Industrial Capital Goods 2.70 Supreme Industries Limited Industrial Products 2.52 Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) S&P BSE 100 (Rs)# S&P BSE 100 Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SYSTEMATIC INVESTMENT PLAN (SIP) Kajaria Ceramics Ltd. Construction 2.41 MRF Limited Auto Ancillaries 2.21 Gateway Distriparks Ltd. Transportation 2.19 Mahindra & Mahindra Financial Services Ltd. Finance 1.92 National Thermal Power Corporation Limited Power 1.84 Adani Port and Special Economic Zone Limited Transportation 1.56 Gujarat Gas Company Ltd Gas 1.50 GE Power India Limited Industrial Capital Goods 1.28 Power Grid Corporation Of India Ltd Power 1.14 Jk Lakshmi Cement Ltd. Cement 1.04 Bharat Electronics Ltd Industrial Capital Goods 1.03 Listed/Awaiting Listing on Stock Exchange - Total Collateral Borrowing & Lending obligation 1.37 Net Current /(Liabilities) 0.21 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Systematic Investment Plan (SIP) If you had invested `10,000 every month Industrial Products Cement Power Industrial Capital Goods Telecom - Services Gas Transportation Construction Project Construction Chemicals Others 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 10,40,000 1,37,276 5,00,749 10,09,647 14,72,721 NA 20,45, NA ,30,856 4,14,851 8,05,458 11,91,530 NA 16,56, NA ,29,332 4,07,234 7,87,459 11,70,648 NA 16,20, NA 9.96 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 September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Half Yearly (25th of Mar/Sep) Ratios Portfolio Turnover:45.04% Beta: 1.08 ## Sharpe : 0.90 Standard Deviation : 11.30% Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective. iv) Units issued on reinvestment of dividends shall not be subject to exit load Regular: 2.50% Direct: 1.23% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 3.02 ICICI Bank Ltd. Banks 2.55 Infosys Ltd. Software 2.19 V.S.T Tillers Tractors Ltd Auto 2.13 Maruti Suzuki India Limited Auto 2.11 IndusInd Bank Ltd. Banks 2.05 Reliance Industries Ltd. Petroleum Products 1.97 JK Cement Ltd. Cement 1.81 Larsen And Toubro Ltd. Construction Project 1.78 DB Corp Limited Media and Entertainment 1.68 ICICI Prudential Life Insurance Company Ltd Finance 1.67 Fag Bearings India Ltd. Industrial Products 1.60 Strides Shasun Ltd. Pharmaceuticals 1.57 Tata Motors Ltd. Auto 1.55 State Bank Of India Banks 1.53 ITC Ltd. Consumer Non Durables 1.50 The Ramco Cements Ltd Cement 1.50 Shriram Transport Finance Co Ltd. Finance 1.45 Cipla Ltd. Pharmaceuticals 1.36 HDFC Ltd. Finance 1.36 SRF Ltd. Textile Products 1.33 Whirlpool of India Ltd. Consumer Durables 1.31 Apollo Hospitals Enterprises Ltd. Healthcare Services 1.28 Axis Bank Ltd Banks 1.23 Mahindra & Mahindra Ltd. Auto 1.15 Atul Ltd. Chemicals 1.10 Motherson Sumi Systems Ltd. Auto Ancillaries 1.07 Equitas Holdings Ltd Finance 1.03 Solar Industries India Limited Chemicals 1.03 Hindustan Petroleum Corporation Ltd Petroleum Products 1 Ultratech Cement Ltd. Cement 0.99 Finolex Cables Ltd. Industrial Products 0.96 Persistent Systems Limited Software 0.85 Va Tech Wabag Limited Engineering Services 0.85 Navkar Corporation Limited Transportation 0.82 Bharat Forge Ltd. Industrial Products 0.81 Zee Entertainment Enterprises Ltd Media and Entertainment 0.81 Carborundum Universal Ltd. Industrial Products 0.78 HCL Technologies Ltd. Software 0.78 Tata Consultancy Services Ltd. Software 0.78 GNA Axles Ltd Auto Ancillaries 0.77 Engineers India Ltd. Construction Project 0.74 Total amount invested (Rs) Total Value as on Sep 30, 2016 (Rs) Returns (%) Crisil Balanced Fund Index (Rs)# Crisil Balanced Fund Index Returns (%) Nifty 50 (Rs)^ Nifty 50 Returns (%) SECTOR ALLOCATION (%) Banks Cement Software Finance Construction Project Pharmaceuticals Auto Debentures and Bonds Government Dated Securities Others Industrial Products The Indian Hotels Company Ltd. Hotels 0.71 Kirloskar Oil Engines Ltd. Industrial Products 0.67 Thermax Ltd. Industrial Capital Goods 0.62 Oil & Natural Gas Corporation Ltd. Oil 0.60 UPL Ltd Pesticides 0.57 Adani Port and Special Economic Zone Limited Transportation 0.56 Voltas Ltd. Construction Project 0.54 Havells India Ltd. Consumer Durables 0.52 Ramkrishna Forgings Ltd. Industrial Products 0.51 HDFC Ltd. Warrants Finance 0.50 Pennar Engineered Building Systems Limited Ferrous Metals 0.46 Jubilant Foodworks Limited Consumer Non Durables 0.44 Bajaj Finserv Ltd. Finance 0.42 Bank Of Baroda Banks 0.42 Colgate Palmolive (India ) Ltd. Consumer Non Durables 0.40 Federal Bank Ltd. Banks 0.33 Arvind Ltd Textile Products 0.31 Lupin Ltd. Pharmaceuticals 0.27 Mahindra & Mahindra Financial Services Ltd. Finance 0.25 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Konkan Railway Corporation Ltd. ICRA AAA 3.58 Kotak Mahindra Bank Ltd. CRISIL AAA 2.49 LIC Housing Finance Ltd. CRISIL AAA 0.12 Tata Sons Ltd. CRISIL AAA 0.05 Corporate Debt/Financial Institutions - Total 6.24 Public Sector Undertakings Syndicate Bank CARE AA Andhra Bank CRISIL AA Public Sector Undertakings - Total 2.33 Government Dated Securities 7.88% Central Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % Central Government SOV 0.02 Government Dated Securities - Total Collateral Borrowing & Lending obligation 1.93 Net Current /(Liabilities) SYSTEMATIC INVESTMENT PLAN (SIP) Systematic Investment Plan (SIP) If you had invested `10,000 every month 1 year 3 years 5 years 7 years 10 years Since Inception 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 20,30,000 1,34,947 4,43,608 8,55,485 13,00,688 21,80,553 86,17, ,29,339 4,16,468 7,89,807 11,86,899 19,65,120 NA NA 1,29,332 4,07,234 7,87,459 11,70,648 19,37,072 68,92, 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 September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option) ` (Direct Growth Option) Investors understand that their principal will be at moderately high risk Long term capital growth Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 13 * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no 45-53

15 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth Style Value INVESTMENT STYLE Maturity Blend Growth Size Large Mid Small Short Medium Long Volatility Medium The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized. September 29, 2005 Mr. Deepak Gupta* Crisil Liquid Fund (w.e.f October 1, 2016 the benchmark of the scheme is changed to Nifty 50 Arbitrage) AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Monthly (Monday preceding the last Thursday of the month), Bimonthly (Monday preceding the last Thursday of the following months - January, March, May, July, September, November) Ratio Portfolio Turnover: % Beta: 0.98 ## Sharpe : 2.31 Standard Deviation : 0.55 Source: ICRA MFI Explorer. ## Risk rate assumed to be 6.50% (FBIL Overnight MIBOR rate as on 30th September 2016) Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 months & above Entry Load: Nil. Exit Load: I) For redemptions/switch outs (including 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:0.57% % to Net Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Hedged Grasim Industries Ltd. Cement HDFC Bank Ltd. Banks Axis Bank Ltd Banks HDFC Ltd. Finance Shriram Transport Finance Co Ltd. Finance United Spirits Ltd. Consumer Non Durables Reliance Industries Ltd. Petroleum Products IDFC Limited Finance Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Tata Motors Ltd - DVR Auto ICICI Bank Ltd. Banks Indiabulls Housing Finance Ltd. Finance ITC Ltd. Consumer Non Durables State Bank Of India Banks UPL Ltd Pesticides Tata Chemicals Ltd. Chemicals Aditya Birla Nuvo Limited Services Infosys Ltd. Software Pidilite Industries Ltd. Chemicals Aurobindo Pharma Ltd. Pharmaceuticals Tata Global Beverages Limited Consumer Non Durables Bharat Financial Inclusion Limited Finance Castrol (India ) Ltd. Petroleum Products Mahindra & Mahindra Ltd. Auto JSW Steel Ltd. Ferrous Metals Hero MotoCorp Ltd. Auto Ashok Leyland Ltd. Auto Britannia Industries Ltd. Consumer Non Durables IndusInd Bank Ltd. Banks Cairn India Limited Oil Exide Industries Ltd Auto Ancillaries Reliance Infrastructure Ltd Power Bharat Electronics Ltd Industrial Capital Goods Power Grid Corporation Of India Ltd Power Tata Steel Limited. Ferrous Metals Petronet LNG Ltd. Gas Tata Communications Ltd Telecom - Services Reliance Communications Ltd. Telecom - Services Reliance Power Ltd Power Bosch Limited Auto Ancillaries Sun TV Limited. Media and Entertainment Yes Bank Ltd Banks L&T Finance Holdings Ltd Finance DLF Limited Construction National Thermal Power Corporation Limited Power Tata Power Co. Ltd. Power Strides Shasun Ltd. Pharmaceuticals Ultratech Cement Ltd. Cement Zee Entertainment Enterprises Ltd Media and Entertainment Dewan Housing Finance Corporation Ltd. Finance Oracle Financial Services Software Ltd Software Karnataka Bank Ltd Banks Tata Elxsi Ltd. Software Tata Motors Ltd. Auto Asian Paints Ltd. Consumer Non Durables NCC Limited Construction Project NMDC Ltd. Minerals/Mining Adani Power Ltd Power Lupin Ltd. Pharmaceuticals Century Textiles & Industries Ltd. Cement Jain Irrigation Systems Ltd. Industrial Products Dish TV India Ltd. Media and Entertainment India Cements Ltd. Cement Bajaj Auto Ltd. Auto Reliance Capital Ltd. Finance Housing Development and Infrastructure Limited Construction * For experience, please refer page For last three dividends, please refer page no For scheme performance, please refer page no

16 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth 15 % to Net Derivatives TV18 Broadcast Ltd Media and Entertainment Indiabulls Real Estate Ltd Construction Larsen And Toubro Ltd. Construction Project The South Indian Bank Ltd. Banks Bank Of Baroda Banks Indraprastha Gas Ltd. Gas IRB Infrastructure Developers Ltd Construction Glenmark Pharmaceuticals Ltd Pharmaceuticals LIC Housing Finance Ltd. Finance Ambuja Cements Ltd Cement Dabur India Ltd Consumer Non Durables Engineers India Ltd. Construction Project Hexaware Technologies Ltd. Software GMR Infrastructure Ltd. Construction Project Granules India Ltd. Pharmaceuticals Sintex Industries Ltd. Industrial Products Bajaj Finance Limited Finance KPIT Technologies LImited Software PTC India Ltd. Power Jindal Steel & Power Ltd. Ferrous Metals NHPC Limited Power Wockhardt Ltd. Pharmaceuticals Hindustan Petroleum Corporation Ltd Petroleum Products Union Bank Of India Banks CESC Ltd. Power Hindustan Unilever Ltd. Consumer Non Durables Indo Count Industries Ltd. Textiles - Cotton Biocon Ltd. Pharmaceuticals IFCI Ltd. Finance Cadila Healthcare Ltd. Pharmaceuticals Federal Bank Ltd. Banks Vedanta Ltd. Minerals/Mining Dr Reddys Laboratories Ltd Pharmaceuticals Havells India Ltd. Consumer Durables JSW Energy Ltd. Power MRF Limited Auto Ancillaries Power Finance Corporation Ltd. Finance Ajanta Pharma Ltd. Pharmaceuticals Kaveri Seed Company Ltd. Consumer Non Durables Tech Mahindra Ltd. Software Titan Company Ltd. Consumer Durables Torrent Pharmaceuticals Ltd. Pharmaceuticals GAIL (India) Ltd. Gas Mahindra & Mahindra Financial Services Ltd. Finance SRF Ltd. Textile Products Bharti Infratel Ltd. Telecom - Equipment & Accessories Crompton Greaves Ltd. Industrial Capital Goods Mcleod Russel India Ltd Consumer Non Durables Oriental Bank of Commerce Banks Rural Electrification Corporation Ltd Finance Adani Port and Special Economic Zone Limited Transportation Andhra Bank Banks Jubilant Foodworks Limited Consumer Non Durables Motherson Sumi Systems Ltd. Auto Ancillaries Bharat Earth Movers Ltd. Industrial Capital Goods Bharat Forge Ltd. Industrial Products Cipla Ltd. Pharmaceuticals Hindalco Industries Ltd Non - Ferrous Metals Wipro Ltd. Software United Breweries Ltd. Consumer Non Durables Voltas Ltd. Construction Project Adani Enterprises Ltd Trading Coal India Ltd. Minerals/Mining Indian Oil Corporation Ltd Petroleum Products Jet Airways (India) Ltd. Transportation Maruti Suzuki India Limited Auto Syndicate Bank Banks Marico Ltd. Consumer Non Durables NIIT Technologies Ltd Software

17 EQUITY SCHEMES KOTAK EQUITY ARBITRAGE An Open - Ended Equity Growth % to Net Derivatives Container Corporation of India Ltd. Transportation Godrej Consumer Products Ltd. Consumer Non Durables Godrej Industries Ltd Consumer Non Durables Jaiprakash Associates Ltd Construction Steel Authority of India Ltd. Ferrous Metals Apollo Hospitals Enterprises Ltd. Healthcare Services Oil & Natural Gas Corporation Ltd. Oil Apollo Tyres Ltd. Auto Ancillaries Divi s Laboratories Limited Pharmaceuticals Hindustan Zinc Ltd. Non - Ferrous Metals Just Dial Limited Software Page Industries Ltd Textile Products Siemens Ltd. Industrial Capital Goods Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Kotak Mahindra Prime Ltd. CRISIL AAA 3.77 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 3.05 LIC Housing Finance Ltd. CARE AAA 0.91 Corporate Debt/Financial Institutions - Total 7.73 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A Tata Motors Finance Ltd ICRA A Muthoot Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total Treasury Bills 182 Treasury Bill SOV 0.80 Treasury Bills - Total 0.80 TERM DEPOSITS AXIS Bank Ltd IndusInd Bank Ltd Kotak Mahindra Bank Ltd Ratnakar Bank Ltd 1.21 HDFC Bank Ltd Term Deposits - Total Collateral Borrowing & Lending obligation 0.51 Net Current /(Liabilities) Notes: Term Deposit as provided above is towards margin for derivatives transactions Kotak Equity Arbitrage NAV as on September 30, 2016: ` (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 Finance Banks Cement Consumer Non Durables Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) 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 Crisil Liquid Fund & 25% in Nifty 50 AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every month) Quarterly (20th of March, June, September and December of every year) Ratios Portfolio Turnover: % 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: 1.58% Direct: 0.88% % to Net - Derivatives Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Non-Hedge CNX NIFTY-OCT HCL Technologies Ltd. Software HDFC Bank Ltd. Banks 1.79 Bharat Petroleum Corporation Ltd. Petroleum Products 1.29 Grasim Industries Ltd. Cement 1.27 IndusInd Bank Ltd. Banks 1.24 Asian Paints Ltd. Consumer Non Durables 1.23 Hero MotoCorp Ltd. Auto 1.16 Geometric Software Solutions Co Ltd Software 1.14 HDFC Ltd. Warrants Finance 1.08 Infosys Ltd. Software 1 ITC Ltd. Consumer Non Durables 1 Power Grid Corporation Of India Ltd Power 0.97 National Thermal Power Corporation Limited Power 0.74 Tata Steel Limited. Ferrous Metals 0.74 Castrol (India ) Ltd. Petroleum Products 0.65 Bajaj Finance Limited Finance 0.57 Zee Entertainment Enterprises Ltd Media and Entertainment 0.52 Yes Bank Ltd Banks 0.50 Tata Motors Ltd. Auto 0.48 ICICI Prudential Life Insurance Company Ltd Finance 0.47 Reliance Industries Ltd. Petroleum Products 0.46 Ambuja Cements Ltd Cement 0.45 ACC Ltd. Cement 0.44 Hindustan Unilever Ltd. Consumer Non Durables 0.44 Petronet LNG Ltd. Gas 0.44 Biocon Ltd. Pharmaceuticals 0.41 GAIL (India) Ltd. Gas 0.39 Hindalco Industries Ltd Non - Ferrous Metals 0.38 Eicher Motors Ltd Auto 0.37 The Ramco Cements Ltd Cement 0.37 JSW Steel Ltd. Ferrous Metals 0.36 Axis Bank Ltd Banks 0.33 ICICI Bank Ltd. Banks 0.33 Maruti Suzuki India Limited Auto 0.31 Bosch Limited Auto Ancillaries 0.30 Larsen And Toubro Ltd. Construction Project 0.27 Ultratech Cement Ltd. Cement 0.26 Mahindra & Mahindra Ltd. Auto 0.25 Bajaj Auto Ltd. Auto 0.23 HDFC Ltd. Finance 0.15 RBL Bank Ltd Banks 0.15 Wipro Ltd. Software 0.15 Dr Reddys Laboratories Ltd Pharmaceuticals 0.13 Lupin Ltd. Pharmaceuticals 0.12 The Indian Hotels Company Ltd. Hotels 0.12 Pidilite Industries Ltd. Chemicals 0.10 Shriram Transport Finance Co Ltd. Finance 0.09 Equitas Holdings Ltd Finance 0.08 Vedanta Ltd. Minerals/Mining 0.08 Alkem Laboratories Ltd Pharmaceuticals 0.05 Tech Mahindra Ltd. Software 0.05 Ashok Leyland Ltd. Auto 0.04 Aditya Birla Nuvo Limited Services 0.03 Mahindra & Mahindra Financial Services Ltd. Finance 0.03 Chennai Super Kings Cricket Ltd. Media and Entertainment 0.02 Non-Hedged- Total Hedged GMR Infrastructure Ltd. Construction Project Karnataka Bank Ltd Banks Jain Irrigation Systems Ltd. Industrial Products Aurobindo Pharma Ltd. Pharmaceuticals IDFC Limited Finance HDFC Bank Ltd. Banks Reliance Capital Ltd. Finance Infosys Ltd. Software Dish TV India Ltd. Media and Entertainment Tata Communications Ltd Telecom - Services Sun Pharmaceuticals Industries Ltd. Pharmaceuticals Indiabulls Housing Finance Ltd. Finance Century Textiles & Industries Ltd. Cement Housing Development and Infrastructure Limited Construction ICICI Bank Ltd. Banks Wockhardt Ltd. Pharmaceuticals Coal India Ltd. Minerals/Mining HDFC Ltd. Finance JSW Steel Ltd. Ferrous Metals Bharat Financial Inclusion Limited Finance L&T Finance Holdings Ltd Finance MRF Limited Auto Ancillaries Reliance Communications Ltd. Telecom - Services Tata Steel Limited. Ferrous Metals Glenmark Pharmaceuticals Ltd Pharmaceuticals India Cements Ltd. Cement Dewan Housing Finance Corporation Ltd. Finance IRB Infrastructure Developers Ltd Construction Sun TV Limited. Media and Entertainment Reliance Power Ltd Power Shriram Transport Finance Co Ltd. Finance Havells India Ltd. Consumer Durables UPL Ltd Pesticides * 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 Mahindra & Mahindra Ltd. Auto Reliance Industries Ltd. Petroleum Products Asian Paints Ltd. Consumer Non Durables NCC Limited Construction Project Pidilite Industries Ltd. Chemicals Vedanta Ltd. Minerals/Mining Aditya Birla Nuvo Limited Services Reliance Infrastructure Ltd Power ITC Ltd. Consumer Non Durables Cairn India Limited Oil Grasim Industries Ltd. Cement Indiabulls Real Estate Ltd Construction Larsen And Toubro Ltd. Construction Project LIC Housing Finance Ltd. Finance Tata Motors Ltd - DVR Auto United Spirits Ltd. Consumer Non Durables Ashok Leyland Ltd. Auto Adani Power Ltd Power Engineers India Ltd. Construction Project Tata Chemicals Ltd. Chemicals Bank Of Baroda Banks Biocon Ltd. Pharmaceuticals Petronet LNG Ltd. Gas Ultratech Cement Ltd. Cement HCL Technologies Ltd. Software IFCI Ltd. Finance JSW Energy Ltd. Power National Thermal Power Corporation Limited Power Oil & Natural Gas Corporation Ltd. Oil Power Finance Corporation Ltd. Finance Tata Global Beverages Limited Consumer Non Durables Torrent Pharmaceuticals Ltd. Pharmaceuticals Adani Port and Special Economic Zone Limited Transportation Hindustan Unilever Ltd. Consumer Non Durables NMDC Ltd. Minerals/Mining Power Grid Corporation Of India Ltd Power DLF Limited Construction Tata Elxsi Ltd. Software Britannia Industries Ltd. Consumer Non Durables Jet Airways (India) Ltd. Transportation NIIT Technologies Ltd Software Axis Bank Ltd Banks Bajaj Finance Limited Finance Oracle Financial Services Software Ltd Software Exide Industries Ltd Auto Ancillaries TV18 Broadcast Ltd Media and Entertainment Granules India Ltd. Pharmaceuticals KPIT Technologies LImited Software Union Bank Of India Banks Indraprastha Gas Ltd. Gas Tata Power Co. Ltd. Power Bharat Earth Movers Ltd. Industrial Capital Goods CESC Ltd. Power Hero MotoCorp Ltd. Auto Jaiprakash Associates Ltd Construction Lupin Ltd. Pharmaceuticals Wipro Ltd. Software Cipla Ltd. Pharmaceuticals Jubilant Foodworks Limited Consumer Non Durables Hedged - Total Listed/Awaiting Listing on Stock Exchange - Total Government Dated Securities 8.53% State Government SOV 0.63 Government Dated Securities - Total 0.63 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions HDFC Ltd. ICRA A Muthoot Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total 8.98 TERM DEPOSITS Kotak Mahindra Bank Ltd AXIS Bank Ltd Ratnakar Bank Ltd 1.69 IndusInd Bank Ltd Term Deposits - Total 9.83 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 0.43 Kotak Equity Savings Fund NAV as on September 30, 2016: ` (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 2,40,000 Total Value as on Sep 30, 2016 (Rs) 1,26,565 2,59,915 Returns (%) % Crisil Liquid Fund Index + 25% Nifty 50 (Rs)# 1,27,140 2,55,512 75% Crisil Liquid Fund Index + 25% Nifty 50 Returns (%) Nifty 50 (Rs)^ 1,29,332 2,52,362 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 Commercial Paper (CP)/Certi cate of Deposits (CD) Consumer Non Durables Cement Construction Project Pharmaceuticals Others Software Auto 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 September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout & Growth Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 9.57 Infosys Ltd. Software 7.60 ICICI Bank Ltd. Banks 6.63 Maruti Suzuki India Limited Auto 6.59 IndusInd Bank Ltd. Banks 6.37 Reliance Industries Ltd. Petroleum Products 5.16 Axis Bank Ltd Banks 4.95 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 4.85 Britannia Industries Ltd. Consumer Non Durables 4.80 Larsen And Toubro Ltd. Construction Project 4.67 Ultratech Cement Ltd. Cement 4.64 Tata Motors Ltd - DVR Auto 4.52 Hero MotoCorp Ltd. Auto 4.28 Shree Cement Ltd. Cement 3.90 Kajaria Ceramics Ltd. Construction 3.06 Persistent Systems Limited Software 3.05 Equitas Holdings Ltd Finance 2.87 Oracle Financial Services Software Ltd Software 2.66 Power Grid Corporation Of India Ltd Power 2.41 Jubilant Foodworks Limited Consumer Non Durables 2.10 ICICI Prudential Life Insurance Company Ltd Finance 0.34 Listed/Awaiting Listing on Stock Exchange - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 0.75 Collateral Borrowing & Lending obligation 4.36 Net Current /(Liabilities) Dividend Frequency Trustee s Discretion Ratios Portfolio Turnover: 17.74% The scheme is a close ended scheme. The units of the scheme can be traded on the stock exchange. Entry Load: Nil. Exit Load: Nil. Regular: 2.51% Direct: 2.01% Kotak India Growth Fund Series I NAV as on September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Banks Cement Software Auto Consumer Non Durable Petroleum Products Pharmaceuticals Construction Project CBLO & Term Deposits & Rev.Repo Finance Others 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. Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003; Plan A - November 4, 2003 s Mr. Deepak Agrawal* CRISIL Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` Plans: a) Regular & b) Institutional (discontinued for further subscriptions w.e.f. October 1, 2012) c) Plan A (Previously known as Institutional Premium Plan) d) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Weekly (Every Monday) (applicable for all plans) Ratios Standard Deviation: 0.19%, Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HDFC Ltd. CRISIL AAA 1.50 Corporate Debt/Financial Institutions - Total 1.50 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Piramal Enterprises Limited ICRA A Reliance Jio Infocomm Limited CARE A HDFC Ltd. ICRA A Tata Steel Limited FITCH A1+(IND) 7.39 IDFC Bank Limited ICRA A Adani Port and Special Economic Zone Limited ICRA A Tata Capital Financial Services Limited ICRA A ECL Finance Limited CRISIL A Manappuram Finance Ltd CRISIL A Aditya Birla Finance Ltd. ICRA A Ultratech Cement Ltd. CRISIL A Edelweiss Housing Finanance Limited CRISIL A JM Financial Products Limited ICRA A Tata Motors Finance Ltd ICRA A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Steel Authority of India Ltd. CARE A National Bank for Agriculture and Rural Developmen CRISIL A Small Industries Development Bank Of India. CARE A PNB Housing Finance Ltd. CRISIL A Rural Electrification Corporation Ltd. CARE A ONGC Manglore Petrochemicals Ltd. ICRA A Public Sector Undertakings - Total Reverse Repo 0.43 Treasury Bills 91 Days Treasury Bill 22/12/2016 SOV Days Treasury Bill 20/10/2016 SOV Days Treasury Bill 17/11/2016 SOV Days Treasury Bill 17/11/2016 SOV Days Treasury Bill 08/12/2016 SOV Days Treasury Bill 27/10/2016 SOV Treasury Bill SOV 0.05 Treasury Bills - Total Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.15 years Kotak Liquid Plan A Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend) Modified Duration: 0.15 yrs, Portfolio Yield: 6.83% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 1-15 days Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 0.05% Direct: 0.00% SECTOR ALLOCATION (%) Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds CBLO & Term Deposits & Rev.Repo Treasury Bills Net Current RATING PROFILE CBLO & Term Deposits & Rev.Repo A1+, A1+(IND), AAA, SOV 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Reinvestment & Growth (applicable for all plans Dividend Frequency Daily, Weekly (Every Monday) and Monthly (12th of every Month) Ratios Standard Deviation: 0.18%, Modified Duration:0.16 yrs, Portfolio Yield: 6.93% 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: 0.20% Direct: 0.15% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions 8.77% State Government SOV % State Government SOV 0.09 Government Dated Securities - Total 0.20 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Muthoot Finance Ltd CRISIL A HDFC Ltd. ICRA A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 5.97 Reliance Jio Infocomm Limited CARE A Bajaj Finance Limited CRISIL A Sun Pharmaceutical Industries Ltd. ICRA A Tata Capital Housing Finance Ltd CRISIL A Bharat Aluminum Co. Ltd. CRISIL A1+(SO) 3.91 Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A Dewan Housing Finance Corporation Ltd. CRISIL A Edelweiss Commodities Services Ltd. CRISIL A Hindustan Zinc Ltd ICRA A ECL Finance Limited CRISIL A Ultratech Cement Ltd. CRISIL A Tata Motors Finance Ltd ICRA A Adani Transmission Ltd FITCH IND A Aditya Birla Nuvo Limited ICRA A Vedanta Ltd. CRISIL A L & T Infrastructure Development Project Ltd. ICRA A Phoenix ARC Pvt Ltd CRISIL A Shapoorji Pallonji Finance Private Limited CRISIL A IDFC Bank Limited CRISIL A Piramal Enterprises Limited ICRA A Reliance Jio Infocomm Limited CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Developmen CRISIL A Rural Electrification Corporation Ltd. CARE A Small Industries Development Bank Of India. CARE A Power Finance Corporation Ltd. CARE A Steel Authority of India Ltd. CARE A Public Sector Undertakings - Total Reverse Repo 0.66 Treasury Bills 91 Treasury Bill SOV Days Treasury Bill 29/12/2016 SOV Days Treasury Bill 01/12/2016 SOV Days Treasury Bill 27/10/2016 SOV Treasury Bill SOV Treasury Bill SOV Days Treasury Bill 06/10/2016 SOV Days Treasury Bill 20/10/2016 SOV Days Treasury Bill 01/12/2016 SOV Days Treasury Bill SOV Days Treasury Bill 22/12/2016 SOV 0.10 Treasury Bills - Total Collateral Borrowing & Lending obligation 0.04 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 0.16 years Kotak Floater Short Term Fund NAV as on September 30, 2016: ` (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 Commercial Paper (CP)/Certificate of Deposits (CD) Net Current Government Dated Securities 0.70 RATING PROFILE (%) A1+, A1+(SO), 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) and Weekly (Every Monday) Ratios Standard Deviation:0.47%, Modified Duration: 0.54 yrs, Portfolio Yield: 7.50% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth- `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: 0.68% Direct: 0.34% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bharti enterprises (Holding) Pvt. Ltd.^ CRISIL A Tata Power Company Ltd. ^ ICRA AA 5.47 HDFC Ltd.^ CRISIL AAA 4.47 L & T Finance Limited ^ CARE AA Shriram Transport Finance Co Ltd.^ CRISIL AA Tata Motors Finance Ltd CRISIL AA 3.29 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ^ ICRA AAA 2.72 Fullerton India Credit Co. Ltd.^ CARE AAA 2.54 Shriram Transport Finance Co Ltd. FITCH IND AA Indiabulls Housing Finance Limited ^ CARE AAA 2.13 Kotak Mahindra Investments Ltd.^ CRISIL AAA 2.11 Kotak Mahindra Prime Ltd. CRISIL AAA 1.91 Karelides Traders Private Ltd. ( backed by unconditional and I rrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Tata Motors Ltd. CARE AA India Infoline Housing Finance Ltd. ICRA AA 1.05 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 0.53 SP Jammu Udhampur way Ltd. ( backed by unconditional and I rrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.48 Piramal Enterprises Limited ICRA AA 0.44 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.24 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ^ ICRA AAA(SO) 0.19 East-North Interconnection Company Limited CRISIL AAA(SO) 0.14 Cholamandalam Investment and Finance Company Ltd ICRA AA 0.11 India Infoline Finance Limited CARE AA 0.11 Shapoorji Pallonji Energy Gujarat Private Limited ICRA AA(SO) 0.06 Tata Capital Housing Finance Ltd CRISIL AA Tata Sons Ltd. CRISIL AAA 0.03 Notes: ^ Party blocked against Interest Rate Swap (IRS). Corporate Debt/Financial Institutions - Total Public Sector Undertakings Export-Import Bank of India. CRISIL AAA 2.41 Small Industries Development Bank Of India. CARE AAA 1.06 Rural Electrification Corporation Ltd. CRISIL AAA 0.70 Power Finance Corporation Ltd. CRISIL AAA 0.45 National Bank for Agriculture and Rural Developmen CRISIL AAA 0.27 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.11 Power Grid Corporation of India Ltd. CRISIL AAA 0.11 Public Sector Undertakings - Total 5.11 Government Dated Securities Government Dated Securities 8.75 % State Government SOV % State Government SOV 0.63 Government Dated Securities - Total 1.27 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Tata Power Company Ltd. ^ ICRA A Piramal Enterprises Limited ICRA A Bahadur Chand Investments Private Limited ICRA A Manappuram Finance Ltd CRISIL A ICICI Bank Ltd. CRISIL A Adani Transmission Ltd FITCH IND A Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) CARE A1+(SO) 0.73 ICICI Bank Ltd. ICRA A Muthoot Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CRISIL A Andhra Bank CARE A Corporation Bank CRISIL A State Bank of Patiala ICRA A IDBI Bank Ltd. CRISIL A Vijaya Bank CRISIL A National Bank for Agriculture and Rural Developmen CRISIL A Export-Import Bank of India. CRISIL A Public Sector Undertakings - Total 8.09 Collateral Borrowing & Lending obligation 5.95 Net Current /(Liabilities) 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 September 30, 2016: ` (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 (%) CBLO & Term Deposits & Rev. Repo Net Current Commercial Paper (CP)/Certificate of Deposits (CD) Debentures and Bonds Government Dated Securities RATING PROFILE AA+, IND AA+, AA, AA(SO), AA- A1+, A1+(SO), AAA, AAA(IND), AAA(SO), IND A1+, IND AAA, SOV CBLO & Term Deposits & Rev.Repo Net Current Income over a short term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk 23 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

25 DEBT SCHEMES KOTAK BANKING AND PSU DEBT FUND Earlier known as Kotak Mahindra Gilt Savings Savings Plan. An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To generate income by predominantly investing in debt & money market securities issued by Banks & PSUs and Reverse repos in such securities, sovereign securities issued by the Central Government and State Governments, and / or any security unconditionally guaranteed by the Govt. of India. However, there is no assurance that the objective of the scheme will be realized. December 29,1998 Mr. Deepak Agrawal* Crisil Liquid Fund AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily, Monthly (12th of every Month) & Annual Ratios Standard Deviation: 1.01%, Modified Duration: 2.69 yrs, Portfolio Yield: 7.45% 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 Public Sector Undertakings HDFC Bank Ltd. CRISIL AAA 3.65 Corporate Debt/Financial Institutions - Total 3.65 Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 9.56 National Bank for Agriculture and Rural Developmen CRISIL AAA 7.94 Canara Bank CRISIL AAA 7.47 State Bank of Travancore CRISIL AAA 5.03 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 4.82 State Bank Of India. CRISIL AAA 4.43 Power Finance Corporation Ltd. CRISIL AAA 3.25 Export-Import Bank of India. CRISIL AAA 3.22 Power Finance Corporation Ltd. ICRA AAA 2.97 Rural Electrification Corporation Ltd. CRISIL AAA 2.23 Punjab National Bank CARE AA 2.14 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 1.93 National Housing Bank CRISIL AAA 1.16 Public Sector Undertakings - Total Government Dated Securities 8.27% State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.73 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions IndusInd Bank Ltd. CRISIL A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 9.49 Collateral Borrowing & Lending obligation 2.36 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 3.49 years. Kotak Banking And PSU Debt Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Daily Dividend Reinvestment), ` (Direct Daily Dividend Reinvestment), ` (Annual Dividend), ` (Direct Annual) Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Net Current CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds A1+, AAA, AAA(SO), IND AAA, SOV AA Income over a short to medium term investment horizon Investment in debt & money market securities of PSUs, Banks & government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * 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 September 30, 2016: ` A) Regular B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth (dividend payout is available under monthly dividend only) Dividend Frequency Weekly (every Monday), Monthly (12th of every month)and Normal (as decided by Trustees) Ratios Standard Deviation: 0.50%, Modified Duration: 0.98 yrs, Portfolio Yield: 8.22% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches. Ideal Investment Horizon: 1-3 months Entry Load: Nil. Exit Load: Nil. Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular: 0.94% Direct: 0.21% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Tata Power Company Ltd. ICRA AA Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA A1+(SO) 8.39 Indiabulls Housing Finance Limited CARE AAA 8.23 Sterlite Industries (India) Ltd CRISIL AA Shriram Transport Finance Co Ltd. FITCH IND AA Nirchem Cement Ltd. ( ) CRISIL AA 3.69 Tata Motors Ltd. CARE AA Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) ICRA A 3.23 Muthoot Finance Ltd ICRA AA Altico Capital India Pvt Ltd FITCH AA-(IND) 2.38 Janalakshami Financial Services Ltd. ICRA A Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 1.87 Peninsula Land Limited BRICKWORK BWR A 1.83 HPCL Mittal Energy Ltd. ICRA AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 1.40 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 1.36 Reliance Jio Infocomm Limited CRISIL AAA 1.30 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Muthoot Fincorp Ltd. CRISIL A 1.14 Intime Properties Ltd. FITCH IND AAA 0.86 Indostar Capital Finance Private Limited CARE AA Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 0.70 Kotak Mahindra Prime Ltd. CRISIL AAA 0.70 ECL Finance Limited CARE AA 0.59 Aspire Home Finance Corporation Ltd ICRA AA Piramal Enterprises Limited ICRA AA 0.01 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Andhra Bank CRISIL AA Bank of Maharashtra CRISIL A Oriental Bank of Commerce ICRA A Rural Electrification Corporation Ltd. CRISIL AAA 0.56 Public Sector Undertakings - Total 3.21 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A ICICI Bank Ltd. ICRA A HDFC Ltd. ICRA A ICICI Bank Ltd. CRISIL A Manappuram Finance Ltd CRISIL A Piramal Enterprises Limited ICRA A Au Financiers (India) Limited CRISIL A IndusInd Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total Public Sector Undertakings Andhra Bank CARE A Vijaya Bank CRISIL A Public Sector Undertakings - Total 0.40 Reverse Repo 2.39 Treasury Bills 91 Days Treasury Bill 27/10/2016 SOV Treasury Bill SOV 0.80 Treasury Bills - Total 2.11 Collateral Borrowing & Lending obligation 0.16 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.10 years Kotak Duration Fund NAV as on September 30, 2016: ` (Retail Plan-Growth Option), ` (Retail plan Weekly Dividend),` (Retail Plan-Monthly Dividend), ` (Standard Plan-Growth Option), ` (Standard Plan-Weekly Dividend), ` (Standard Plan-Monthly Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Weekly Dividend), ` (Direct Plan- Monthly Dividend) SECTOR ALLOCATION (%) Debentures and Bonds Treasury Bills RATING PROFILE A1+, A1+(SO), AAA, IND AAA, SOV Net Current AA+, IND AA+, AA, AA(SO), AA-, AA-(IND) A+, A, BWR A, BWR A(SO) Regular income over short term Income by focusing on low duration securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Half Yearly (20th of Mar/Sept) and normal (as decided by Trustees) Ratios Standard Deviation: 1.26%, Modified Duration: 2.63yrs, Portfolio Yield: 7.64% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: (i) Dividend Reinvestment & Growth - `5000 & above (ii) Dividend Payout (Monthly Dividend) - `50,000 & above Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Total Expense Ratio Regular: 1.10%; Direct: 0.25% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 8.36 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 7.02 Kotak Mahindra Prime Ltd. CRISIL AAA 5.79 HDFC Ltd. CRISIL AAA 4.77 Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 3.27 Indiabulls Housing Finance Limited CARE AAA 2.79 Bajaj Finance Limited FITCH IND AAA 2.74 Dewan Housing Finance Corporation Ltd. CARE AAA 2.63 LIC Housing Finance Ltd. CRISIL AAA 2.34 ICICI Home Finance Company Limited ICRA AAA 2.17 HDB Financial Services Ltd. CRISIL AAA 2.12 Fullerton India Credit Co. Ltd. CARE AAA 1.76 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.71 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.19 East-North Interconnection Company Limited CRISIL AAA(SO) 0.09 Corporate Debt/Financial Institutions - Total Public Sector Undertakings National Bank for Agriculture and Rural Developmen CRISIL AAA 7.46 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 6.72 Power Finance Corporation Ltd. CRISIL AAA 5.32 Small Industries Development Bank Of India. CARE AAA 1.35 Rural Electrification Corporation Ltd. CRISIL AAA 1.29 Export-Import Bank of India. CRISIL AAA 0.62 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.22 Issuer/Instrument Industry/ % to Net Rating Notes: Term Deposit as provided above is towards margin for derivatives transactions Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.30 years. Kotak Bond Short Term Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Dividend), ` (Direct Dividend), ` (Direct Half Yearly Dividend) Treasury Bills SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Steel Authority of India Ltd. FITCH IND AA 0.17 National Housing Bank CRISIL AAA 0.07 State Bank Of India. CRISIL AAA 0.04 Public Sector Undertakings - Total Government Dated Securities 7.59% 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 % State Government SOV % Central Government SOV % Central Government SOV 0.09 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A IDFC Bank Limited CRISIL A Corporate Debt/Financial Institutions - Total 0.26 Public Sector Undertakings Export-Import Bank of India. CRISIL A Corporation Bank CRISIL A Dena Bank CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 2.90 Reverse Repo 0.48 Treasury Bills 91 Days Treasury Bill 27/10/2016 SOV Days Treasury Bill 06/10/2016 SOV Treasury Bill SOV Days Treasury Bill 22/12/2016 SOV 0.09 Treasury Bills - Total 3.21 Collateral Borrowing & Lending obligation 0.17 Net Current /(Liabilities) A1+, AAA, AAA(SO), IND AAA, SOV CBLO & Term Deposits & Rev.Repo IND AA Net Current Income over a medium term horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately low risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

28 DEBT SCHEMES KOTAK FLEXI DEBT An Open - Ended Debt INVESTMENT STYLE Maturity Short Medium Long Volatiliy Medium To maximize returns through an active management of a portfolio of debt and money market securities. However, there is no assurance that the objective of the scheme will be realized. Regular Plan- December 6, 2004 Plan A - May 26, 2008 Mr. Deepak Agrawal* CRISIL Composite Bond AAUM (` In Crores) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular (discontinued for further subscriptions w.e.f. October 1, 2012) b) Plan A (Previously known as Institutional Plan) c) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Daily Dividend Reinvestment, Weekly Dividend Reinvestment (Every Monday), Quarterly Dividend Payout and Reinvestment (20th of March, June, September and December of every year) Ratios Standard Deviation: 2.73%, Modified Duration: 3.71 yrs, Portfolio Yield: 7.66% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A - `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investment Horizon: 6 months & above Entry Load: Nil. Exit Load: Nil Regular: 0.90% Direct: 0.35% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Mahindra & Mahindra Financial Services Ltd. CARE AAA 6.65 Reliance Jio Infocomm Limited CRISIL AAA 3.77 Bajaj Finance Limited CARE AAA 2.90 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 2.41 HDFC Bank Ltd. CRISIL AAA 2.06 HDFC Ltd. CRISIL AAA 1.03 LIC Housing Finance Ltd. CRISIL AAA 0.83 Indiabulls Housing Finance Limited CARE AAA 0.41 Shriram Transport Finance Co Ltd. CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.13 Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 6.24 Power Finance Corporation Ltd. CRISIL AAA 5.03 Canara Bank CRISIL AAA 2.11 Indian Railway Finance Corporation Ltd. CRISIL AAA 0.41 National Bank for Agriculture and Rural Developmen CRISIL AAA 0.41 Export-Import Bank of India. CRISIL AAA 0.13 Rural Electrification Corporation Ltd. CRISIL AAA 0.04 Public Sector Undertakings - Total Government Dated Securities 7.59% Central Government SOV % State Government SOV % Central 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 0.12 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Muthoot Finance Ltd CRISIL A Corporate Debt/Financial Institutions - Total 1.99 Reverse Repo 0.75 Collateral Borrowing & Lending obligation 1.98 Net Current /(Liabilities) Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 5.43 years Kotak Flexi Debt Plan A Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Daily Dividend), ` (Direct Daily Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) RATING PROFILE Commercial Paper (CP)/Certi cate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo CBLO & Term Deposits & Rev.Repo Government Dated Securities Debentures and Bonds Net Current AA+ A1+, AAA, SOV 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Weekly (Every Monday), Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annual (12th of March). Ratios Standard Deviation: 1.24%, Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions HPCL Mittal Pipelines Ltd. ICRA AA Reliance Jio Infocomm Limited CRISIL AAA 6.88 HPCL Mittal Energy Ltd. ICRA AA Indiabulls Housing Finance Limited CARE AAA 4.47 Tata Power Company Ltd. CRISIL AA Janalakshami Financial Services Ltd. ICRA A DLF Emporio Ltd CRISIL AA 4.02 Au Financiers (India) Limited FITCH IND A Nirchem Cement Ltd. ( ) CRISIL AA 3.52 Piramal Enterprises Limited ICRA AA 1.28 Piramal Finance Limited ICRA AA 1.96 Prestige Estates Projects Limited ICRA A Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA Bharti enterprises (Holding) Pvt. Ltd. CRISIL A Nirma Ltd. CRISIL AA 2.91 LIC Housing Finance Ltd. CARE AAA 1.96 Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 1.94 India Infoline Housing Finance Ltd. ICRA AA 1.94 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Tata Power Renewable Energy Ltd. CARE CARE AA(SO) 1.61 Equitas Micro Finance Ltd. CARE A Indiabulls Housing Finance Limited CARE AA Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A Dalmia Cement (Bharat) Ltd ICRA AA 1.30 ECL Finance Limited CARE AA 1.26 ECL Finance Limited ICRA AA 1.17 Manappuram Finance Ltd CRISIL AA SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.99 Shriram Transport Finance Co Ltd. FITCH IND AA Peninsula Land Limited ICRA A 0.74 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Issuer/Instrument Industry/ % to Net Rating Emami Ltd ) FITCH IND AA Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) BRICKWORK BWR A Essel Lucknow Raibareli Toll Roads Limited CARE AAA 0.56 Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.39 Hero Realty Ltd ( Guaranteed by a Hero Group company ) ICRA A Indostar Capital Finance Private Limited CARE AA HDFC Ltd. CRISIL AAA 0.05 LIC Housing Finance Ltd. CRISIL AAA 0.03 HDB Financial Services Ltd. CRISIL AAA 0.02 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Public Sector Undertakings Union Bank of India CARE AA 1.96 Bank of India CRISIL A Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA Public Sector Undertakings - Total 4.78 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Manappuram Finance Ltd CRISIL A AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 2.94 Public Sector Undertakings Export-Import Bank of India. CRISIL A Corporation Bank CRISIL A Andhra Bank CARE A Public Sector Undertakings - Total 5.37 Reverse Repo 0.54 Collateral Borrowing & Lending obligation 0.66 Net Current /(Liabilities) 2.36 Modified Duration: 2.37yrs, Portfolio Yield: 8.99% 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. Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.94 years. Kotak Income Opportunities Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Weekly Dividend), ` (Direct Weekly Dividend), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend). SECTOR ALLOCATION (%) 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 Debentures and Bonds CBLO & Term Deposits & Rev.Repo Net Current Commercial Paper (CP)/Certificate of Deposits (CD) AA+, IND AA+, AA, AA(SO), CARE AA(SO), LAA(SO), AA-, BWR AA-, IND AA- A1+, A1+(SO), AAA Net Current CBLO & Term Deposits & Rev.Repo A+, BWR A+, IND A+, 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month), Quarterly (20th of Mar, Jun, Sep and Dec of every Year) Ratios Standard Deviation: 1.17%, Modified Duration: 1.87 yrs, Portfolio Yield: 7.70% 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% Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Reliance Jio Infocomm Limited CRISIL AAA 8.82 Nirchem Cement Ltd. ( ) CRISIL AA 8.76 Bajaj Finance Limited FITCH IND AAA 6.22 HDFC Ltd. CRISIL AAA 5.82 Reliance Ports And Terminals Limited CRISIL AAA 4.81 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 4.76 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA(SO) 4.10 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 3.86 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 3.40 ECL Finance Limited CARE AA 2.72 Shriram Transport Finance Co Ltd. CRISIL AA Ultratech Cement Ltd. CRISIL AAA 1.23 Mahindra & Mahindra Financial Services Ltd. ICRA AAA 0.68 Inox Air Products Ltd. CRISIL AA 0.67 LIC Housing Finance Ltd. CRISIL AAA 0.63 Corporate Debt/Financial Institutions - Total Public Sector Undertakings Rural Electrification Corporation Ltd. CRISIL AAA 8.24 Power Finance Corporation Ltd. CRISIL AAA 7.94 ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 6.17 National Housing Bank CRISIL AAA 5.43 Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) CRISIL AAA(SO) 4.87 Export-Import Bank of India. CRISIL AAA 1.19 Airports Authority of India CRISIL AAA 0.68 Steel Authority of India Ltd. FITCH IND AA 0.55 National Bank for Agriculture and Rural Developmen CRISIL AAA 0.08 Public Sector Undertakings - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions AXIS Bank Ltd. CRISIL A Corporate Debt/Financial Institutions - Total 1.34 Collateral Borrowing & Lending obligation 1.41 Net Current /(Liabilities) 4.25 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 2.25 years Kotak Corporate Bond Fund NAV as on September 30, 2016: ` (Standard Plan-Growth Option), ` (Standard Plan- Weekly Dividend),` (Standard Plan-Monthly Dividend), ` (Standard Plan-Quarterly Dividend), ` (Standard Plan-Daily Dividend), ` (Retail Plan-Growth Option), ` (Retail Plan- Weekly Dividend), ` (Retail Plan- Monthly Dividend), ` (Retail Plan-Daily Dividend), ` (Direct Plan- Growth Option), ` (Direct Plan- Monthly Dividend), ` (Institutional Plan-Growth Option) Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), IND AAA AA+, AA, IND AA CBLO & Term Deposits & Rev.Repo 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 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Quarterly (20th of Mar, Jun, Sep and Dec of every Year), Annually (12th of March) Ratios Standard Deviation: 1.59%, Modified Duration: 2.90yrs, Portfolio Yield: 9.03% 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 8.43 HPCL Mittal Energy Ltd. ICRA AA Dalmia Cement (Bharat) Ltd ICRA AA 5.06 Nirchem Cement Ltd. ( ) CRISIL AA 4.89 Tata Power Company Ltd. CRISIL AA Piramal Enterprises Limited ICRA AA 0.81 Piramal Finance Limited ICRA AA 3.65 Indiabulls Housing Finance Limited CARE AAA 4.07 ECL Finance Limited CARE AA 3.80 HPCL Mittal Pipelines Ltd. ICRA AA Prestige Estates Projects Limited ICRA A Nirma Ltd. CRISIL AA 3.03 Reliance Utilities And Power Private Limited CRISIL AAA 2.94 India Infoline Housing Finance Ltd. ICRA AA 2.43 Birla Corporation Ltd. CARE AA 2.02 SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) ICRA AA Edelweiss Agri Value Chain Limited ( ) CARE AA(SO) 1.98 Janalakshami Financial Services Ltd. ICRA A Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) CARE AAA(SO) 1.55 Intime Properties Ltd. FITCH IND AAA 1.55 Equitas Micro Finance Ltd. CARE A Essel Lucknow Raibareli Toll Roads Limited CARE AAA 1.44 ECL Finance Limited ICRA AA 1.42 Peninsula Land Limited ICRA A 1.39 Tata Power Renewable Energy Ltd. CARE CARE AA(SO) 1.39 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CARE A Au Financiers (India) Limited FITCH IND A East-North Interconnection Company Limited CRISIL AAA(SO) 1.01 Shriram Transport Finance Co Ltd. FITCH IND AA Reliance Ports And Terminals Limited CRISIL AAA 0.54 IOT Utkal Energy Services Ltd. CRISIL AAA(SO) 0.41 Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 0.41 SP Jammu Udhampur way Ltd. ( backed by Notes: Term Deposit as provided above is towards margin for derivatives transactions unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) ICRA AAA 0.38 Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) ICRA AA Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) ICRA AAA 0.31 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) CRISIL A IOT Utkal Energy Services Ltd. CRISIL AAA 0.01 Corporate Debt/Financial Institutions - Total Public Sector Undertakings PNB Housing Finance Ltd. CARE AAA 2.49 Bank of India CRISIL A IDBI Bank Ltd ICRA A Union Bank of India CARE AA 2.04 Power Finance Corporation Ltd. CRISIL AAA 1.31 Canara Bank CRISIL AAA 1.05 Syndicate Bank CARE AA Bank of India BRICKWORK BWR AA State Bank of Travancore CRISIL AAA 0.46 Public Sector Undertakings - Total Government Dated Securities 1.44% Central Government SOV 0.61 Government Dated Securities - Total 0.61 Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total 0.40 Treasury Bills 182 Treasury Bill SOV 0.16 Treasury Bills - Total 0.16 Collateral Borrowing & Lending obligation 2.29 Net Current /(Liabilities) 2.55 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 3.73 years Kotak Medium Term Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Treasury Bills Net Current Debentures and Bonds Commercial Paper (CP)/Certificate of Deposits (CD) CBLO & Term Deposits & Rev.Repo Government Dated Securities Investors understand that their principal will be at moderate risk * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no RATING PROFILE IND AA+, AA, AA(SO), CARE AA(SO), LAA(SO), AA-, BWR AA- A1+, AAA, AAA(SO), IND AAA, SOV A+, IND A+, A, A- Net Current CBLO & Term Deposits & Rev.Repo Income over a medium term investment horizon Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 30

32 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 September 30, 2016: ` A) Plan A (Previously known as 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: 4.46% Modified Duration: 7.64 yrs Portfolio Yield: 7.48% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: Plan A `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: Nil. Exit Load: Nil. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.72% Direct: 0.93% Issuer/Instrument Industry/ % to Net Rating Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Bajaj Finance Limited CARE AAA 2.37 East-North Interconnection Company Limited CRISIL AAA(SO) 0.84 HDFC Ltd. CRISIL AAA 0.03 Corporate Debt/Financial Institutions - Total 3.24 Public Sector Undertakings Canara Bank CRISIL AAA 5.61 IDBI Bank Ltd ICRA A Union Bank of India CARE AA 1.63 Andhra Bank CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 1.29 Syndicate Bank CARE AA Indian Railway Finance Corporation Ltd. CRISIL AAA 0.15 Public Sector Undertakings - Total Government Dated Securities 7.73% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % Central Government SOV % Central Government SOV % State Government SOV 2.50 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : years. Kotak Bond Plan A Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual Dividend), ` (Plan A-Bonus Plan) SECTOR ALLOCATION (%) Commercial Paper (CP)/Certi cate of Deposits (CD) Net Current CBLO & Term Deposits & Rev.Repo Debentures and Bonds Government Dated Securities Issuer/Instrument Industry/ % to Net Rating 8.18% State Government SOV % State Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV 0.01 Government Dated Securities - Total Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions ICICI Bank Ltd. ICRA A Corporate Debt/Financial Institutions - Total 0.50 Reverse Repo 0.23 Collateral Borrowing & Lending obligation 0.72 Net Current /(Liabilities) A+ AA, AA- Net Current CBLO & Term Deposits & Rev.Repo A1+, AAA, AAA(SO), SOV Income over long term investment horizon Investment in debt & money market securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderate risk 31 * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no 56-58

33 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 September 30, 2016: ` Plans- A) Regular Non Direct Plan, B) PF & Trust Non Direct Plan, C) Regular Direct Plan, D) PF & Trust Direct Plan/ Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans) Dividend Frequency Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: A) Regular Plan: 4.65%, B) PF & Trust Plan: 4.63%, Modified Duration:7.90yrs, Portfolio Yield: 7.22% Source: ICRAMFI Explorer. Standard Deviation is calculated on Annualised basis using 3 years history of monthly returns. Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 1 year & above Entry Load: (a) Regular Plan - Entry: Nil. (b) PF & Trust Plan - Entry: Nil. (applicable for all plans) Exit Load: (a) Regular Plan - Exit: Nil. (b) PF&Trust Plan - Exit: Nil. (applicable for all plans) Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.40% Direct: 0.40% Issuer/Instrument Industry/ % to Net Rating Government Dated Securities 7.61% Central Government SOV % Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV % State Government SOV 0.16 Issuer/Instrument Industry/ % to Net Rating 8.39% State Government SOV 0.06 Government Dated Securities - Total Collateral Borrowing & Lending obligation 0.56 Net Current /(Liabilities) 2.53 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 September 30, 2016: ` (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

34 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 September 30, 2016: ` A) Regular Plan B) Direct Plan/Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Monthly (12th of every Month) Quarterly (20th of Mar/Jun/Sep/Dec) Ratios Standard Deviation: 6.11% Modified Duration: 3.92yrs Portfolio Yield: 7.54% 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: 2.39% Direct: 1.29% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ITC Ltd. Consumer Non Durables 1.55 Maruti Suzuki India Limited Auto 0.98 Godfrey Phillips India Ltd. Consumer Non Durables 0.96 ICICI Bank Ltd. Banks 0.96 Tata Communications Ltd Telecom - Services 0.89 ICICI Prudential Life Insurance Company Ltd Finance 0.87 Bombay Burmah Trading Corporation Ltd. Consumer Non Durables 0.84 Tata Motors Ltd. Auto 0.84 Hero MotoCorp Ltd. Auto 0.79 India Cements Ltd. Cement 0.76 Infosys Ltd. Software 0.70 IFB Industries Ltd. Consumer Durables 0.65 Sun TV Limited. Media and Entertainment 0.64 Whirlpool of India Ltd. Consumer Durables 0.61 Adlabs Entertainment Ltd Media and Entertainment 0.59 HDFC Bank Ltd. Banks 0.57 Dalmia Bharat Ltd Cement 0.56 DLF Limited Construction 0.56 Yes Bank Ltd Banks 0.56 Tata Motors Ltd - DVR Auto 0.53 Phillips Carbon Black Ltd. Chemicals 0.47 Engineers India Ltd. Construction Project 0.46 Equitas Holdings Ltd Finance 0.46 Manpasand Beverages Ltd. Consumer Non Durables 0.45 State Bank Of India Banks 0.43 Jagran Prakashan Limited Media and Entertainment 0.42 IDFC Limited Finance 0.40 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 0.33 IndusInd Bank Ltd. Banks 0.27 Bharat Petroleum Corporation Ltd. Petroleum Products 0.25 The Ramco Cements Ltd Cement 0.22 GNA Axles Ltd Auto Ancillaries 0.20 Federal Bank Ltd. Banks 0.19 Pennar Engineered Building Systems Limited Ferrous Metals 0.14 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating HDFC Ltd. Warrants Finance 0.09 Listed/Awaiting Listing on Stock Exchange - Total Debt Instruments Debentures and Bonds Corporate Debt/Financial Institutions Konkan Railway Corporation Ltd. ICRA AAA 7.81 Corporate Debt/Financial Institutions -Total 7.81 Public Sector Undertakings Canara Bank CRISIL AAA 3.84 Syndicate Bank CARE AA Andhra Bank CRISIL AA Rural Electrification Corporation Ltd. CRISIL AAA 0.08 Public Sector Undertakings - Total Government Dated Securities 7.88% Central Government SOV % Central Government SOV % State Government SOV % State Government SOV % State Government SOV % Central Government SOV 3.96 Government Dated Securities - Total TERM DEPOSITS HDFC Bank Ltd Kotak Mahindra Bank Ltd Term Deposits - Total 0.45 Collateral Borrowing & Lending obligation 8.69 Net Current /(Liabilities) 1.55 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments 5.87 years. Kotak Monthly Income Plan Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Direct Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend) SECTOR ALLOCATION (%) CBLO & Term Deposits & Rev.Repo Investors understand that their principal will be at moderate risk RATING PROFILE 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

35 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 September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth ) Dividend Frequency Monthly (12th of Every Month), Quarterly (20th of Mar/Jun/Sep/Dec), Annual (12th of March) Ratios Standard Deviation: 4.57%, Modified Duration: 2.34yrs, Portfolio Yield: 7.15% 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: 2.43% Direct: 0.37% Issuer/Instrument Industry/ % to Net Rating Equity & Equity related (Listed/Awaiting listing on Stock Exchange) HDFC Bank Ltd. Banks 1.30 Grasim Industries Ltd. Cement 0.96 Bharat Petroleum Corporation Ltd. Petroleum Products 0.92 IndusInd Bank Ltd. Banks 0.90 Asian Paints Ltd. Consumer Non Durables 0.88 Hero MotoCorp Ltd. Auto 0.81 Infosys Ltd. Software 0.71 ITC Ltd. Consumer Non Durables 0.71 Power Grid Corporation Of India Ltd Power 0.68 GNA Axles Ltd Auto Ancillaries 0.61 National Thermal Power Corporation Limited Power 0.52 Tata Steel Limited. Ferrous Metals 0.52 ICICI Prudential Life Insurance Company Ltd Finance 0.48 Bajaj Finance Limited Finance 0.41 Zee Entertainment Enterprises Ltd Media and Entertainment 0.38 Reliance Industries Ltd. Petroleum Products 0.34 Yes Bank Ltd Banks 0.34 ACC Ltd. Cement 0.31 Ambuja Cements Ltd Cement 0.31 Hindustan Unilever Ltd. Consumer Non Durables 0.31 Petronet LNG Ltd. Gas 0.31 Eicher Motors Ltd Auto 0.30 Biocon Ltd. Pharmaceuticals 0.29 GAIL (India) Ltd. Gas 0.27 Hindalco Industries Ltd Non - Ferrous Metals 0.27 The Ramco Cements Ltd Cement 0.26 ICICI Bank Ltd. Banks 0.25 JSW Steel Ltd. Ferrous Metals 0.25 Axis Bank Ltd Banks 0.24 Larsen And Toubro Ltd. Construction Project 0.21 Bosch Limited Auto Ancillaries 0.20 Ultratech Cement Ltd. Cement 0.20 Bajaj Auto Ltd. Auto 0.18 Tata Motors Ltd. Auto 0.18 Mahindra & Mahindra Ltd. Auto 0.17 HDFC Ltd. Finance 0.14 Wipro Ltd. Software 0.14 Maruti Suzuki India Limited Auto 0.13 Dr Reddys Laboratories Ltd Pharmaceuticals 0.12 Lupin Ltd. Pharmaceuticals 0.10 The Indian Hotels Company Ltd. Hotels 0.08 Shriram Transport Finance Co Ltd. Finance 0.07 Vedanta Ltd. Minerals/Mining 0.07 Notes: Term Deposit as provided above is towards margin for derivatives transactions Issuer/Instrument Industry/ % to Net Rating HCL Technologies Ltd. Software 0.06 Tech Mahindra Ltd. Software 0.04 Ashok Leyland Ltd. Auto 0.03 Aditya Birla Nuvo Limited Services 0.02 Mahindra & Mahindra Financial Services Ltd. Finance 0.02 Listed/Awaiting Listing on Stock Exchange - Total 17 Mutual Fund Units Kotak Mutual Fund - Kotak Gold ETF Mutual Fund Units 8.44 Mutual Fund Units - Total 8.44 Futures Futures CNX NIFTY-OCT 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 3.81 Government Dated Securities 8.72% State Government SOV % State Government SOV % State Government SOV Government Dated Securities - Total TERM DEPOSITS Kotak Mahindra Bank Ltd Term Deposits - Total 1.12 Collateral Borrowing & Lending obligation Net Current /(Liabilities) 2.32 Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 3.02 years. Kotak Multi Asset Allocation Fund NAV as on September 30, 2016: ` (Growth Option), ` (Direct Growth Option), ` (Monthly Dividend), ` (Quarterly Dividend), ` (Direct Quarterly Dividend), ` (Annual Dividend), ` (Direct Annual) Government Dated Securities Net Current Debentures and Bonds Derivatives Mutual Fund Units Investors understand that their principal will be at moderate risk Mutual Fund Units AA- Derivatives SOV Income & capital growth over a long term horizon Investment in a portfolio of debt instruments with a moderate exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no For last three dividends, please refer page no

36 Details of exposure across all Debt Funds of Kotak Mahindra Mutual Fund as on 30 September 2016 Issuer Name %age of Exposure to Debt AUM AXIS Bank Ltd Aasan Corporate Solutions Private Limited ( Guaranteed by a Piramal Group Company ) 0.13 Adani Port and Special Economic Zone Limited 0.37 Adani Transmission Ltd 0.37 Aditya Birla Finance Ltd Aditya Birla Nuvo Limited 0.27 Airports Authority of India 0.05 Altico Capital India Pvt Ltd 0.12 Andhra Bank 0.42 Ashirvad Microfinance Private Limited ( 85 subsidiary of Manappuram Finance Ltd ) 0.14 Aspire Home Finance Corporation Ltd 0.13 Au Financiers (India) Limited 0.25 Bahadur Chand Investments Private Limited 0.23 Bajaj Capital Ventures Pvt. Ltd. ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.14 Bajaj Finance Limited 2.06 Bank of India 0.22 Bank of Maharashtra 0.04 Bhanu Vyapaar Private Limited ( Secured by Equity shares of Emami Ltd ) 0.08 Bharat Aluminum Co. Ltd Bharti enterprises (Holding) Pvt. Ltd Birla Corporation Ltd CBLO/REVERSE REPO 1.97 Camden Industries Ltd. ( backed by unconditional and irrevocable undertaking of Axis Capital ) 0.41 Canara Bank 0.62 Central Government Cholamandalam Investment and Finance Company Ltd 0.01 Continental Drug Company P Ltd ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.39 Corporation Bank 0.35 DLF Emporio Ltd 0.19 Dalmia Cement (Bharat) Ltd 0.36 Dena Bank 0.18 Dewan Housing Finance Corporation Ltd ECL Finance Limited 1.13 East-North Interconnection Company Limited 0.13 Edelweiss Agri Value Chain Limited ( Guaranteed by Edelweiss Financial Services) 0.53 Edelweiss Commodities Services Ltd Edelweiss Financial Services Limited 0.15 Edelweiss Housing Finanance Limited 0.23 Edisons Untility Works Pvt.Ltd. ( Secured by Equity shares of Zee Entertainment Enterprises Ltd ) 0.20 Emami Enclave Markets Pvt Ltd. ( Secured by Equity shares of Emami Ltd ) 0.08 Equitas Micro Finance Ltd Essel Lucknow Raibareli Toll Roads Limited 0.09 Export-Import Bank of India Fullerton India Credit Co. Ltd Grand View Estate Pvt Ltd ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.35 HDB Financial Services Ltd HDFC Bank Ltd HDFC Ltd HPCL Mittal Energy Ltd HPCL Mittal Pipelines Ltd Haldhar Developers Private Limited ( backed by unconditional and irrevocable undertaking by Piramal ) 0.05 Hero Realty Ltd ( Guaranteed by a Hero Group company ) 0.19 Point Properties Pvt LTD ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.16 Hindalco Industries Ltd Hinduja Leyland Finance Ltd Hindustan Zinc Ltd 0.46 ICICI Bank Ltd ICICI Home Finance Company Limited 0.43 IDBI Bank Ltd IDFC Bank Limited 0.84 IL & FS Transportation Networks Limited ( Secured by Equity shares of IL & FS Ltd ) 0.13 IOT Utkal Energy Services Ltd India Infoline Finance Limited 0.15 India Infoline Housing Finance Ltd Indiabulls Housing Finance Limited 1.38 Indian Oil Corporation Ltd Indian Railway Finance Corporation Ltd Indostar Capital Finance Private Limited 0.19 IndusInd Bank Ltd Innovador Realtors Pvt Ltd ( backed by unconditional and irrevocable undertaking by Piramal ) 0.42 Inox Air Products Ltd Intime Properties Ltd JM Financial Products Limited 0.13 Industry / Sector Issuer Name %age of Exposure to Debt AUM Janalakshami Financial Services Ltd Jyothy Laboratories Limited 0.06 Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) 0.69 Konkan Railway Corporation Ltd Kotak Mahindra Bank Ltd Kotak Mahindra Investments Ltd Kotak Mahindra Prime Ltd L & T Finance Limited 0.63 L & T Infrastructure Development Project Ltd LIC Housing Finance Ltd MA MAULTI TRADE PVT LTD ( Secured by Equity shares of Bajaj Corp. Ltd ) 0.14 Mahindra & Mahindra Financial Services Ltd Manappuram Finance Ltd 0.94 Mandava Holdings Private Limited ( backed by unconditional and irrevocable undertaking by Axis Capital ) 0.31 Muthoot Finance Ltd 2.04 Muthoot Fincorp Ltd Nabha Power Ltd. ( backed by unconditional and irrevocable guarantee by Larsen & Toubro Ltd ) 1.64 National Bank for Agriculture and Rural Developmen 3.95 National Housing Bank 0.23 Nirchem Cement Ltd Nirma Ltd ONGC Manglore Petrochemicals Ltd Oriental Bank of Commerce 0.04 PNB Housing Finance Ltd Peninsula Land Limited 0.19 Phoenix ARC Pvt Ltd 0.09 Piramal Enterprises Limited 2.68 Power Finance Corporation Ltd Power Grid Corporation of India Ltd Powergrid Vizag Transminssion Ltd. ( backed by unconditional and irrevocable guarantee by Powergrid Corp ) 0.04 Prestige Estates Projects Limited 0.38 Pune Solapur Expressways Pvt. Ltd. ( toll road project of Tata Realty & Infrastructure Ltd, 100 subsidiary of Tata Sons ) 0.16 Punjab National Bank 0.03 Raymond Ltd Reliance Jio Infocomm Limited 3.95 Reliance Ports And Terminals Limited 0.04 Reliance Utilities And Power Private Limited 0.13 Rural Electrification Corporation Ltd SBK Properties Pvt Ltd. ( Guaranteed by a Kalyani Group company ) 0.17 SP Jammu Udhampur way Ltd. ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.17 Sahyadri Agencies Ltd ( Secured by Equity shares of Jyothy Laboratories Ltd ) 0.21 Shapoorji Pallonji Energy Gujarat Private Limited ( backed by unconditional and irrevocable guarantee of Shapoorji Pallonji & Co Pvt Ltd ) 0.12 Shapoorji Pallonji Finance Private Limited 0.05 Shriram Transport Finance Co Ltd Small Industries Development Bank Of India Sneha Abasan Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.07 Sneha Enclave Pvt Ltd ( Secured by Equity shares of Emami Ltd ) 0.04 State Bank Of India State Bank of Patiala 0.09 State Bank of Travancore 0.09 State Government 4.99 Steel Authority of India Ltd Sterlite Industries (India) Ltd 0.29 Sun Pharmaceutical Industries Ltd Sundaram BNP Paribas Home Finance Ltd 0.09 Sundaram Finance Ltd Suraksha Reality Ltd ( Secured by Equity shares of Sun Pharmaceuticals Industries Ltd ) 1.83 Syndicate Bank 0.19 Tata Capital Financial Services Limited 0.63 Tata Capital Housing Finance Ltd; 1.15 Tata Motors Finance Ltd 0.68 Tata Motors Ltd Tata Power Company Ltd Tata Power Renewable Energy Ltd.(Guaranteed by Tata Power Co. Ltd) 0.14 Tata Sons Ltd Tata Steel Limited 0.91 Ultratech Cement Ltd Union Bank of India 0.31 Vedanta Ltd Vijaya Bank 0.04 YES Bank Ltd Total %age of Exposure to Debt AUM BANK 6.54 CASH(CBLO/REVERSE REPO) 1.97 CORPORATES FINANCIAL SERVICES GOI/TBILLS NBFC REAL ESTATE 0.57 TOTAL Includes Hybrid schemes - debt scheme schemes having equity exposure 35

37 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) `28.71 AUM (` In Crores) AUM as on September 30, 2016: ` 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: 1.85% Direct: 1.20% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Kotak Treasury Advantage Fund Direct Growth Debt Kotak Select Focus Fund Direct Growth Equity Kotak Mahindra Bond Plan Debt Kotak Liquid Plan A Debt 9.04 Mutual Fund Units - Total Net Current /(Liabilities) 1.13 Kotak Asset Allocator Fund NAV as on September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), `66.832(Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) Debt Equity 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

38 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) ` 5.19 AUM (` In Crores) AUM as on September 30, 2016: ` 5.22 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:1.40% Direct: 0.61% Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Mutual Fund Units Pinebridge US Large Cap Research Enhance Fund Overseas Mutual Fund Mutual Fund Units - Total Net Current /(Liabilities) 3.16 Kotak US Equity Fund NAV as on September 30, 2016: ` (Dividend Option), ` (Direct Dividend Option), ` (Growth Option), ` (Direct Growth Option) SECTOR ALLOCATION (%) 3.54 Overseas Mutual Fund Others Investors understand that their principal will be at high risk Long term capital growth Long term capital appreciation by investing in Units of PineBridge US Large Cap Research Enhanced Fund which in turn invests in equity and equity related securities of companies having assets, products or operations in the United States. * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. 37 * For experience, please refer page For scheme performance, please refer page no

39 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) `30.90 AUM (` In Crores) AUM as on September 30, 2016: `30.84 A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For exit within 1 year from the date of allotment of units: 1%. ii) For exit after 1 year from the date of allotment of units: Nil iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the. Note - Units issued on reinvestment of dividends shall not be subject to exit load Regular: 1.87% Direct: 0.67% 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 3.57 Net Current /(Liabilities) 0.20 Kotak Global Emerging Market Fund NAV as on September 30, 2016: ` (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

40 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) ` AUM (` In Crores) AUM as on September 30, 2016: ` A) Regular Plan B) Direct Plan / Options: Dividend Payout, Dividend Reinvestment & Growth Dividend Frequency Trustee s Discretion Initial Investment: `5000 and in multiple of `1 for purchase and for `0.01 for switches Investment: `1000 & in multiples of `1 for purchase and for `0.01 for switches Ideal Investments Horizon: 3 years & above Entry Load: Nil. Exit Load: I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment 1%; ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment NIL; iii) Any exit load charged (net off ServiceTax, if any) shall be credited back to the ; Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load. Regular:1.90% Direct: 1.06% 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 2.29 Net Current /(Liabilities) Kotak World Gold Fund NAV as on September 30, 2016: `9.470 (Dividend Option), `9.744 (Direct Dividend Option), ` (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

41 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 September 30, 2016: ` A) Regular Plan B) Direct Plan Through Exchange:10 Units, Through AMC: Units, Ideal Investment Horizon: 3 years and above Entry Load: Nil. Exit Load: Nil Regular: 1.00% Direct: NA Issuer / Instrument Industry/ % to Net Rating Gold Gold Fineness99.5 Gold Listed/Awaiting Listing on Stock Exchange - Total Kotak Gold ETF NAV as on September 30, 2016: ` Tracking Error: 0.06% NAV Issuer / Instrument Industry/ % to Net Rating Net Current /(Liabilities) Sector Allocation (%) Gold Others Investors understand that their principal will be at moderate risk Returns in line with physical gold over medium to long term, subject to tracking error Investment in physical gold * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. * For experience, please refer page For scheme performance, please refer page no