Managing Risks & Optimizing Returns

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3 Managing Risks & Optimizing Returns

4 KOTAK GROUP CORPORATE OVERVIEW 3,209 BRANCHES MARKET CAP* USD BN 46,000+ EMPLOYEES NET WORTH USD 7.05 BN OVER 30% PROMOTER GROUP OWNERSHIP CONSTITUENT OF THE NIFTY 50 Established in 1985 by Mr. Uday Kotak, it was the first Indian non-banking financial company to be given a banking licence by the Reserve Bank of India in February The Group caters to the financial needs of individuals and institutional investors across the globe. GLOBAL PARTNERSHIPS CURRENT: our 2nd largest shareholder PAST: RANGE OF FINANCIAL SERVICES BRANCH BREAKUP (As on June 30, 2017) BUSINESS NO. OF BRANCHES Banking ,455 Car Finance 81 General Insurance 12 KM Inc. 2 Total 3,209 * Constituent of the NIFTY. The mainline 50 stock Indian market index Kotak Group is one of the large Indian financial services groups Data as on June 30, 2017

5 ASSETS UNDER MANAGEMENT (USD BN) 16% Offshore Funds 13% Insurance 2% PMS 4% Alternate Asset 44% Domestic MF Debt 21% Domestic MF Equity ASSET MANAGEMENT: STRENGTHS first few private firms qualified to manage pension funds in India Providing solutions for 15+ years for International clients the Securities and Exchange Board of India. As on June 30, 2017

6 KOTAK GROUP CORPORATE OVERVIEW PRESENCE ACROSS MAJOR FINANCIAL MARKETS London New York California Texas Abu Dhabi (Rep Office) Dubai Singapore Mauritius

7 WHO ARE WE? KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED (KMAMC) IS Part of a reputed conglomerate - Wholly owned subsidiary of Kotak Mahindra Long Experience - operations in December th Largest Mutual Fund - as of June 2017 Large Investor base million* *as per number of existing folios Robust distribution network - distribution channel with over 32,000 empanelled distributors Complete Product bouquet - to investors with varying risk-return profiles

8 WHO ARE WE? WIDE GEOGRAPHICAL PRESENCE - THE COMPANY IS PRESENT IN 79 CITIES AND HAS 77 BRANCHES.

9 OUR VISION OUR PURPOSE responsible player in the Indian mutual fund space, always striving to offer best-in-class products across investor lifecycle. We strive hard to deliver consistent performance over the benchmark across all our products, thereby creating customer satisfaction. 18 years of existence, offering a broad range of investment products across asset classes with varying risk parameters that cater to needs of various customer segments, has enabled us to garner trust of over 1.2 Million investors.* *As per number of existing folios.

10 THE AUM SIZING UP THE CAUSE EQUITY June-17 June-16 June-15 11,314 15,502 YoY growth (37.02%) 30,474 YoY growth (96.58%) FIXED INCOME June-17 June-16 June-15 22,542 29,731 YoY growth (31.89%) 43,820 YoY growth (47.39%) `

11 LIQUID/MONEY MARKET June-17 June-16 June-15 14,221 17,641 YoY growth (24.05%) 26,902 YoY growth (52.50%) MF AUM June-17 June-16 June-15 PMS June-17 June-16 June-15 48, ,874 YoY growth (30.78%) 753 YoY growth (24.85%) 1,01,197 YoY growth (60.95%) 3245 YoY growth (331%) Kotak Mutual Fund, on back of its fund performances, is one of the fastest growing* fund houses in India. `` Crore

12 INSTITUTIONALIZED INVESTMENT PROCESS INVESTMENT UNIVERSE RESEARCH IDEA GENERATION COMPANY MEETING & IDEA DISCUSSION INVESTMENT REPORT PORTFOLIO ACTION ON-GOING REVIEW (PERIODICALLY) Fund manager is the sole decision maker for respective portfolios The process is followed for majority of investments.

13 WELL DEFINED AND EVOLVED INVESTMENT PROCESS INVESTMENT UNIVERSE INDIA FOCUSED RESEARCH BUY-SIDE SELL-SIDE CREDIT RESEARCH IDEA GENERATION SOURCES PORTFOLIO ACTION ON-GOING REVIEW (PERIODICALLY) The process is subject to change without notice.

14 DISCIPLINED INVESTMENT APPROACH INVESTMENT PHILOSOPHY Endeavour to derive value from macro trends and identify stock specific opportunities Bottom-up approach adopts BMV approach to stock picking CENTRALIZED BUY-SIDE RESEARCH TEAM Brings coverage and depth RISK FRAMEWORK PERFORMANCE EVALUATION SYSTEM Relative to the benchmark Relative to the peers KNOWLEDGE MANAGEMENT SYSTEM / REUTERS STARMINE PORTFOLIO ANALYTICS Portfolio metrics POWERFUL SELL-SIDE BROKER VOTING SYSTEM BUSINESS MANAGEMENT Orientation Record Governance Allocation Reasonable Price Free Cash Flow VALUATION

15 ROBUST RISK MANAGEMENT SECTOR & STOCK SELECTION IS AN OUTCOME OF THE RESEARCH PROCESS, HOWEVER - ALL FUNDS RESTRICT EXPOSURE TO EQUITY RELATED INSTRUMENTS OF A COMPANY TO 10% OF ASSETS. ALL REGULATORY LIMITS, RESTRICTIONS AND GUIDELINES WHEREVER APPLICABLE ARE STRICTLY ADHERED TO. PORTFOLIO OPTIMIZATION MEETINGS HELP IDENTIFY OTHER AREAS OF RISKS TO PERFORMANCE. FUND PERFORMANCE AND FUND POSITIONING ARE REVIEWED MONTHLY BY THE INVESTMENT COMMITTEE.

16 A WELL-DEVELOPED FEEDBACK LOOP CENTRAL RESEARCH interaction updates sell-side analysts PORTFOLIO OPTIMIZATION FUND MANAGEMENT ATTRIBUTION SYSTEM

17 DEBT INVESTMENT FRAMEWORK DEBT INVESTMENT PROCESS 1. We closely monitor macroeconomic factors such as money supply, deposit growth, etc. and the market factors such as policy risk, money flow, etc. 2. We evaluate the yield curve, modified duration, the total volume traded, etc. 3. We have strong internal credit processes for fresh credit investment EMPHASIS ON CREDIT, DURATION & LIQUIDITY CREDIT by the Investment committee benchmark ratios analysis of companies with company and Rating agencies LIQUIDITY as per interest rate view and investment objective DURATION modified duration that best fits the investment objective THERE ARE BROADLY 3 APPROACHES THAT WE FOLLOW: ACCRUAL APPROACH the yields in a portfolio carry return over add some liquidity risk by taking higher yielding less liquid assets. TRADITIONAL APPROACH portfolio of quality corporate bonds of various maturities portfolio, more as a tactical call duration is mostly through Gilts ACTIVE APPROACH several strategies certain component while keeping the core portfolio intact

18 KOTAK CREDIT PROCESS MITIGATING RISK THROUGH ROBUST PRACTICES Qualitative i and dquantitative Documented dprocess CREDIT RISK MANAGEMENT Diversification ifi i Monitoring i Portfolio composition ii addresses

19 ROBUST CREDIT EVALUATION PROCESS AT KOTAK MF POOL ASSET ANALYSIS available measures delinquencies and resultant probability of default amounts and recourse level available under different scenarios ISSUE ANALYSIS PORTFOLIO RISK ANALYSIS borrower ROBUST CREDIT EVALUATION PROCESS AT KOTAK MF on debt ISSUER ANALYSIS cash flows of all relevant entities borrowing and Corporate Governance

20 PERFORMANCE CENTRIC INVESTMENT TEAM EVALUATION & REMUNERATION POLICY INCENTIVIZES FUND MANAGERS BASED ON LONG-TERM CONSISTENT RELATIVE PERFORMANCE Fund Manager s performance evaluation is INCENTIVIZES QUALITY & QUANTITY OF RESEARCH stock coverage and the ideas provided during a given period. INCENTIVIZES RESEARCH PERFORMANCE model portfolio and continuously measure its performance vis-à-vis real portfolios.

21 OUR PHILOSOPHY PRODUCTS We believe Funds are like kids. Don t have more than you can manage. PERFORMANCE on a consistent basis. PLEDGE* investments only in our schemes. That is our way to align our interest with our investors. PARTNERSHIP We believe in managing your Trust. We are your partner and not Principal. We are honored to get the mandate of managing your client s trust and money. PROCESS We believe in proactively changing the environment for better growth. GLOBAL STANDARDS BEYOND CURRENT REGULATIONS We do not invest in our sponsors equity #, although regulations allow it. *It is a voluntary pledge by employees as on December 31, #

22 OUR EDGE STRONG PARENTAGE Kotak Bank, the holding company, is one of the largest private banks in India with a wide network. Vast experience of over 18 years in managing money across asset classes in India. On-ground presence with large teams ensuring Institutional approach to investing matched with robust risk management. Sound understanding of governance structures of Indian corporates. We are committed to provide quality investment management services of global standards to our investors.

23 OUR INVESTMENT LEADERSHIP MR. NILESH SHAH (Managing Director) Over 25 years of experience in capital markets and market related investments, having managed funds across equity, fixed income securities and real estate for local and global investors Has previously held leadership roles in Axis Capital, ICICI Prudential Mutual Fund, Franklin Templeton Mutual Fund and ICICI Securities Gold medallist Chartered Accountant and a merit ranked Cost Accountant Has been with Kotak Mahindra AMC since January 2015 MR. HARSHA UPADHYAYA (CIO Equity) Has been with Kotak Mahindra AMC and is heading the equity team since Aug years of industry experience including that in DSP BlackRock MF, UTI MF, etc. PGDM (Finance) IIM-Lucknow, CFA, BE (Mechanical) MS. LAKSHMI IYER (CIO Debt & Head Products) Has been with Kotak Mahindra AMC for 16 years and is heading the fixed income and products team since Sep years of industry experience PGDM - NMIMS, B.Com MR. ANSHUL SAIGAL (Head PMS) Has a total experience of over 16 years in the Indian Capital Markets, of which he has spent over 9.5 years at Kotak PMS. In the past, he has worked with organisations like JP Morgan, ICICI Bank and Standard Chartered Bank. MBA (Finance) - MDI, Gurgaon

24 EQUITY INVESTMENT TEAM MR. HARSHA UPADHYAYA (CIO Equity) Has been with Kotak Mahindra AMC and is heading the equity team since Aug years of industry experience including that in DSP BlackRock MF, UTI MF, etc. PGDM (Finance) IIM-Lucknow, CFA, BE (Mechanical) MR. PANKAJ TIBREWAL (Fund Manager) Has been with Kotak Mahindra AMC for more than 7 years 16 years of industry experience Masters in Finance - Manchester University, B.Com (Hons.) MR. DEEPAK GUPTA (Fund Manager) Started his career at Kotak Mahindra AMC and has spent more than 12 years More than 12 years of industry experience CA, Cost Accountant, AIMR CFA Level III, B.Com MR. HARISH KRISHNAN (Fund Manager) Has been with Kotak Mahindra AMC for the last 3 years 11 years of industry experience PGDBM (IIM Kozhikode), CFA, B.Tech (Electronics & Communications) MR. DEVENDER SINGHAL (Fund Manager) 15 years experience PGDM, B.A. (Hons) Maths

25 CENTRALIZED RESEARCH TEAM MS. SHIBANI S. KURIAN (Head - Equity Research) Sectors Managed/ Portfolio Managed Banking & Financial Services, Economy, Information Technology Education Background PGDM, B.Sc (Hons) - Economics Total Experience 16 Years MR. AKSHIT GANDHI MR. DEVENDER SINGHAL Sectors Managed/ Portfolio Managed Cement, Building Materials Sectors Managed/ Portfolio Managed Education Background MBA (Finance), CFA Education Background PGDM, B.A. (Hons) Maths Total Experience 14 Years Total Experience 15 Years MR. ARJUN KHANNA MR. DHANANJAY TIKARIHA Sectors Managed/ Portfolio Managed Auto Ancillary, Media, Midcaps, Hotel, Agricultural Commodities Sectors Managed/ Portfolio Managed Telecom, Capital Goods, Industrials, Pharmaceuticals & Hospitals Education Background MMS (Finance), CFA, B.Eng Education Background PGDM, B.Tec Total Experience 9 Years Total Experience 10 Years MR. MANDAR PAWAR MR. NALIN BHATT Sectors Managed/ Portfolio Managed Oil & Gas, Metals, Pipes, Shipping, Retail & Logistics Education Background MMS, B.Com Total Experience 11 Years Sectors Managed/ Portfolio Managed Infrastructure, Power Utilities, Real Estate Education Background B.Com, CA Total Experience 12 Years All information as of June 30, 2017

26 DEBT INVESTMENT TEAM MS. LAKSHMI IYER (CIO Debt & Head Products) Has been with Kotak Mahindra AMC for 16 years and is heading the fixed income and products team since September years of industry experience PGDM - NMIMS, B.Com MR. DEEPAK AGARWAL (Fund Manager) Has been with Kotak Mahindra AMC for more than 14 years 15 years of industry experience CA, CS, B.Com, AIMR CFA Level I MR. ABHISHEK BISEN (Fund Manager) Has been with Kotak Mahindra AMC for more than 10 years 15 years of industry experience MBA Finance, BA Management MR. SUNIT GARG (Credit Analyst) He joined Kotak AMC in June years of industry experience CA, PGDM (Finance) MR. MANU SHARMA (Debt Dealer) He joined Kotak AMC in September 2006 and has been appointed as Debt Dealer since October 14, 2015 CA, M.Com MR. SUNIL PANDEY (Debt Dealer) He joined Kotak AMC since July And has been appointed as Debt Dealer since May 1, 2015 MBA, B.Com

27 A SELECTION OF EQUITY PRODUCT BASKET WITH KOTAK AMC SCHEME NAME INVESTMENT THEME PRODUCT POSITIONING FUND MANAGER BENCHMARK QUARTERLY AAUM INR (Crs.) KOTAK 50 Large cap Invest with industry leaders Mr. Harish Krishnan Nifty KOTAK CLASSIC EQUITY Large cap & Mid cap Long term wealth creators Mr. Deepak Gupta Nifty KOTAK OPPORTUNITIES Diversified Spotting the hidden gems Mr. Harsha Upadhyaya Nifty KOTAK SELECT FOCUS FUND Multi Cap Focus on few selected sectors Mr. Harsha Upadhyaya Nifty KOTAK TAX SAVER ELSS Tax advantage with potential equity growth Mr. Harsha Upadhyaya Nifty KOTAK MIDCAP Mid cap Spot them young, watch them grow Mr. Pankaj Tibrewal Nifty Midcap KOTAK EMERGING EQUITY SCHEME Mid and Small Cap Emerging leaders Mr. Pankaj Tibrewal S&P BSE Mid Small Cap 1403 KOTAK INFRASTRUCTURE & ECONOMIC REFORM FUND Thematic: Infrastructure True to label Mr. Harish Krishnan S&P BSE KOTAK BALANCE FUND Balanced Best of both worlds: equity & debt Mr. Pankaj Tibrewal & Mr. Abhishek Bisen Crisil Balanced Fund 861 KOTAK EQUITY ARBITRAGE FUND Equity Arbitrage Arbitrage opportunities Mr. Deepak Gupta Nifty 50 Arbitrage Index 5872 KOTAK EQUITY SAVINGS FUND Equity Savings MIP with equity tax efficiency Mr. Deepak Gupta & Mr. Abhishek Bisen 75% of Nifty 50 Arbitrage Index + 25% of Nifty As on June 30, 2017

28 A SELECTION OF FIXED INCOME PRODUCT BASKET WITH KOTAK AMC SCHEME NAME CURRENT SCHEME POSITIONING FUND MANAGER BENCHMARK QUARTERLY AAUM INR (Crs.) KOTAK LIQUID SCHEME Liquid-Conservative Mr. Deepak Agrawal Crisil Liquid Fund Index KOTAK FLOATER SHORT TERM Liquid-Aggressive Mr. Deepak Agrawal Crisil Liquid Fund Index KOTAK TREASURY ADVANTAGE UST^-Conservative Mr. Deepak Agrawal Crisil Liquid Fund Index 5892 KOTAK LOW DURATION FUND UST^-Aggressive Mr. Deepak Agrawal Mr. Deepak Agrawal 4250 KOTAK CORPORATE BOND FUND UST^-Aggressive Mr. Deepak Agrawal Crisil Composite Bond Fund 174 KOTAK BANKING & PSU DEBT FUND Banking and PSU Mr. Deepak Agrawal Crisil Composite Bond Fund 1148 KOTAK BOND SHORT TERM STP^^-Conservative Mr. Deepak Agrawal Crisil Composite Bond Fund 8231 KOTAK INCOME OPPORTUNITIES FUND Accrual Mr. Deepak Agrawal Crisil Composite Bond Fund 3346 KOTAK MEDIUM TERM Accrual Mr. Deepak Agrawal Crisil Composite Bond Fund 3452 KOTAK FLEXI DEBT Dynamic STP Mr. Deepak Agrawal Crisil Composite Bond Fund 1730 KOTAK BOND FUND Income-Aggressive Mr. Abhishek Bisen Crisil Composite Bond Fund 3344 KOTAK GILT INVESTMENT Gilt-Aggressive Mr. Abhishek Bisen ISEC Composite Index 553 KOTAK MULTI ASSET ALLOCATION Multi Asset Mr. Devender Singhal & Mr. Abhishek Bisen 75% Crisil Short term Bond Fund index, 15% Nifty 50 and 10% Prices of Gold 18 KOTAK MONTHLY INCOME PLAN MIP Mr. Devender Singhal & Mr. Abhishek Bisen Crisil MIP Blended Index 213 Note: ^UST = Ultra Short Term plan, ^^STP= Short Term plan. As on June 30, 2017

29 A SELECTION OF ETF PRODUCT BASKET WITH KOTAK AMC SCHEME NAME FUND MANAGER BENCHMARK QUARTERLY AAUM INR (Crs.) KOTAK BANKING ETF Mr. Deepak Gupta Nifty Bank 3571 KOTAK GOLD ETF Mr. Abhishek Bisen Prices of Gold 434 KOTAK NIFTY ETF Mr. Deepak Gupta Nifty KOTAK NV 20 ETF Mr. Deepak Gupta Nifty 50 Value 20 3 KOTAK PSU BANK ETF Mr. Deepak Gupta Nifty PSU Bank 193 KOTAK SENSEX ETF Mr. Deepak Gupta S&P BSE Sensex 12 Note: ^UST = Ultra Short Term plan, ^^STP= Short Term plan. As on June 30, 2017

30 A SMALL REPRESENTATION OF ACCOLADES AND RECOGNITION RECEIVED Industry experts have also acknowledged KMAMC s superior performance. Some of the accolades which KMAMC has received in the recent past include: Best Group over 3 years Equity: 2017 Thomson Reuters Lipper Fund Awards India Best ETF Manager of the year India 2015, 2016 Best Debt Fund House by Outlook Money awards 2012 Best Debt Fund House: Outlook Money NDTV Profit Awards 2009 Best Bond Fund Group over 3 years: Lipper Fund Awards India 2007 Best Debt Fund House: Outlook Money Awards 2007 Best Mutual Fund House: NDTV Profit Business Leadership Award 2006 in Mutual Fund Category Best Bond Fund Group over 3 years: Lipper Fund Awards India 2006 Outlook Money Best Wealth creator Debt 2003 BEST FUND AWARD 10 year category at Lipper Fund awards, 2012 for Kotak Bond Fund Regular Plan-Growth Best Performing Mutual Fund of the year INDEX FUNDS, 2012 for Kotak SENSEX ETF BEST FUND AWARD 10 year category at Lipper Fund awards, 2011 for Kotak Bond Fund Regular Plan-Growth

31 PRODUCT LABELS EQUITY PRODUCT OFFERINGS SCHEME NAME THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOMETER Kotak 50 securities Kotak Classic Equity securities Kotak Emerging Equity & small cap companies Kotak Mid Cap cap stocks Moderate Kotak Opportunities securities LOW HIGH Investors understand that their principal will be at moderately high risk Kotak Select Focus securities generally focused on a few selected sectors Kotak Tax Saver Kotak Equity Savings Fund securities term capital growth derivatives segment of the equity market and equity & equity related securities Kotak Equity Arbitrage segment of the equity market Moderate LOW HIGH Investors understand that their principal will be at moderately low risk Kotak Global Emerging Market diversified portfolio of securities in global emerging markets Moderate LOW HIGH Investors understand that their principal will be at high risk * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

32 PRODUCT LABELS EQUITY PRODUCT OFFERINGS SCHEME NAME THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOMETER Kotak Infrastructure & Economic Reforms Fund related instruments of companies contributing to infrastructure and economic development of India LOW Moderate Investors understand that their principal will be at high risk HIGH DEBT PRODUCT OFFERINGS Kotak Bond Kotak Gilt Investment Kotak Medium Term Fund Kotak Monthly Income Plan Kotak Multi Asset Allocation instruments with a portfolio weighted average maturity between 3-7 years exposure in equity & equity related instruments exposure in equity & equity related instruments and provides diversification by investing in Gold ETFs LOW Moderate Investors understand that their principal will be at moderate risk HIGH Kotak Duration Fund Kotak Corporate Bond Fund Fund and credit Kotak Bond Short Term Moderate Kotak Flexi Debt Kotak Treasury Advantage Fund LOW HIGH Investors understand that their principal will be at moderately low risk Kotak Banking and PSU Debt Fund government securities * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

33 DEBT PRODUCT OFFERINGS SCHEME NAME THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOMETER Moderate Kotak Income Opportunities LOW HIGH Investors understand that their principal will be at moderately low risk Kotak Floater Short Term Moderate Kotak Liquid BALANCED SCHEME OFFERINGS LOW HIGH Investors understand that their principal will be at low risk Kotak Balance generation by investing in debt & money market Instruments ETF PRODUCT OFFERINGS Kotak Gold ETF subject to tracking error Moderate Kotak Nifty ETF Kotak SENSEX ETF to track the benchmark index to track the benchmark index LOW Investors understand that their principal will be at moderately high risk HIGH Kotak NV 20 ETF to track the benchmark index Kotak PSU Bank ETF to track the benchmark index Moderate Kotak Banking ETF to track the benchmark index LOW HIGH Investors understand that their principal will be at high risk * Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

34 PRODUCT LABELS FUND OF FUND OFFERINGS SCHEME NAME THIS PRODUCT IS SUITABLE FOR INVESTORS WHO ARE SEEKING* RISKOMETER Kotak Asset Allocator Fund schemes of Kotak Mahindra Mutual Fund Moderate Kotak Gold fund LOW HIGH Investors understand that their principal will be at moderately high risk Kotak World Gold Fund Gold Equity Fund which in turn invests in international securities of gold production, processing and marketing companies Moderate Kotak US Equity Fund 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. LOW Investors understand that their principal will be at high risk HIGH * Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Call on Visit Disclaimer The information contained in this (document) is extracted from different sources. All reasonable care has been taken to ensure that the information contained herein is not misleading or untrue at the time of publication. This is for the information of the person to whom it is provided without any liability whatsoever on the part of Kotak Mahindra Asset Management Co. Ltd. or any associated companies or any employee thereof. We are not soliciting any action based on this material and is for general information only. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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