kotak mf booklet1

FUNDS IN FOCUS

JULY 2018

TH

EPAG

EH

AS

BEEN

LEFT

INTEN

TIO

NALL

YBLA

NK

EQUITY FUNDS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

HYBRID FUNDS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

THEMATIC FUNDS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

DEBT FUNDS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Kotak India EQ Contra Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Kotak Tax Saver Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Kotak Standard Multicap Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Kotak Equity Opportunities Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Kotak Emerging Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Kotak Equity Hybrid Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Kotak Equity Savings Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Kotak Infrastructure & Economic Reform Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Kotak Low Duration Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Kotak Credit Risk Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Kotak Medium Term Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Kotak Bond Short Term Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

JULY

2018

Classic Equity

Select Focus

Opp

Balance

Income Opp

EQUITY FUNDS

About Kotak India EQ Contra Fund

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Kotak Classic Equity is an open - ended equity growth scheme. The investment objective of the scheme is to

generate capital appreciation from a diversified portfolio of equity and equity related securities.

An open-ended diversified equity scheme with a focus on large caps.

Market capitalization bias:(a) Largecap focused with normal allocation between 70%-90% and (b) Midcap

allocation between 10%-30%.

Portfolio Action

• The fund has an overweight position in Media, Metals, Tech and Consumers while it is underweight in Pharma andBFSI.

• The metals call in CY 2016 and the Tech call in CY 2017 have immensely benefitted the fund.

• We continue to be underweight on corporate lenders and PSU banks and that hurts the fund whenever there is a rallyin these stocks.

• Some weight was added to the cement sector in the month of June where we have been almost absent.

Kotak India EQ Contra Fund

Scheme Facts

Structure

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

Month end AUM* (as on 31st July )

Monthly Average AUM*

NAV (as on 2018)

2018

31st July

An open ended equity Scheme followingcontrarian investment strategy

496.33 crs

461.91 crs

Direct Dividend 23.6040

Direct Growth 56.2050

Dividend 21.3470

Growth 52.3690

27th July 2005

Nifty 100 TRI

5000

1000 & in multiples of 1

13.30%

0.93

0.49

*Source: MFI Explorer.

^ as on 31st July, 2018. Source: ICRA

`

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`

`

`

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MFIExplorer.

Portfolio Turnover

53.73%

Market Cap %$

Load Structure

Large cap 81.28

Midcap 12.20

Small cap 1.13

Cash 5.39

$The given market cap data is on the basis of newSEBI circular on scheme rationalisation whereinStocks are categorised as per given AMFI list.

Source: MFI Explorer. Market definition used ismarket capitalisation of the 100th largest scrip (onthe bases of market capitalisation) is the cutoff todetermine the large cap and midcap segment.

NilEntry Load:

Exit Load:

I) For redemptions / switch outs (including SIP/STP)within 1 year from the date of allotment of units,irrespective of the amount of investment:1%

ii) For redemptions / switch outs (including SIP/STP)after 1 year from the date of allotment of units,irrespective of the amount of investment: NIL

Any exit load charged (net off Service Tax, if any) shallbe credited back to the respective Scheme. Unitsissued on reinvestment of dividends shall not besubject to entry and exit load.

31 July, 2018st

Top 10 Sectors as on 31st July, 2018

Sector % Weight Underweight / Previous Changeoverweight

against (Portfolio % from previousbenchmark Weight) month

Month in portfolioPortfolio Benchmark

(Nifty 100)

Financial Services

Consumer Goods

Information Technology

Automobile

Energy

Cash & Cash Equivalent

Others

Construction

Metals

Pharma

20.17 34.42 -14.25 21.17 -1.00

19.72 13.36 6.37 16.32 3.40

15.90 11.61 4.28 14.22 1.68

10.41 8.96 1.45 12.30 -1.89

8.93 13.49 -4.56 7.91 1.01

5.43 0.00 5.43 7.24 -1.81

4.47 0.00 4.47 5.79 -1.33

4.18 3.26 0.92 4.65 -0.46

3.61 4.00 -0.39 4.14 -0.53

1.98 3.66 -1.69 2.03 -0.05

Equity Market Brief

• GST – landmark reform is now implemented, and over the last few months, the government has introduced further changes to

help the smaller firms navigate GST better. While there might be some near-term issues in implementing, the longer term

benefits are transformative. Most listed players will benefit, as they form the organised part of the economy, especially once

the e-way bill is introduced in totality and the reverse charge mechanism reduces scope of under-invoicing by unorganised

sector.

• After a prolonged period of under-delivery of Corporate Earnings, earnings are starting to improve across a broad spectrum of

sectors. Barring corporate banks and US focused pharma, most other sectors are witnessing improving business momentum.

• India to benefit from such reforms which encourages formalisation of the economy in the medium-to-long-term, significant

flow from physical to financial savings to further provide stability to markets.

• Volatility across global equities have been on the lower side in 2017. Volatility is on the rise recently due to global events - Fed

hiking, crude oil price rally, trade wars like the flare-up between US and China. In India as well, as we approach general

elections, markets are likely to turn more volatile.

• As we approach general elections, it is important to understand that all events create a level of uncertainty. While near-term

uncertainty induces volatility in asset prices, in the long run, wealth creation in equities is a function as how businesses can

profitably grow over their cost of capital sustainably. Given the long-range of reforms introduced, we believe longer-term

prospects of Indian equities is quite encouraging and we would advise investors to benefit from such induced volatility.

• Time in the market more important than timing the market – after a long period of lower volatility, markets volatility may move

up and investors can benefit from this volatility by focusing on disciplined investing and asset allocation.

(Formerly Known As Kotak Classic Equity)

2

Kotak India EQ Contra Fund31 July, 2018st

About Kotak Mutual Fund

Kotak Mahindra Asset Management

Company Limited (KMAMC) is a wholly

owned subsidiary of Kotak Mahindra Bank

Limited (KMBL). KMBL has over two decades

of experience in financial services. KMBL has a

market capitalization of 2490.915 bn as on

31st July, 2018). KMAMC is the Asset

Manager for Kotak Mahindra Mutual Fund

(KMMF). It started operations in December

1998. KMMF offers schemes catering to

investors with varying risk - return profiles and

was the first fund house in the country to

launch a dedicated gilt scheme. KMAMC

manages assets worth 1,29,948.48 cr as on

31st July 2018.

`

`

* The numbers are converted using the Rupee-

USD reference rate published by the Reserve

Bank of India as on the respective dates.

To know more

Call : 1800-222-626 (Toll Free), Mumbai61152100, Delhi 66306900 / 02, Chennai28221333 / 45038171, Kolkata 64509802 /03, Pune 64013395 / 96, Ahmedabad26779888, Bangalore 66128050 / 51,Hyderabad 66178140 / 41.

Visit - assetmanagement.kotak.com

Email - [email protected]

Disclaimer

Kotak Classic Equity

Investment Objective:

Mutual Fund investments are subject to marketrisks, read all scheme related documentscarefully. Scheme Information Document (SID)and Statement of Additional Information (SAI)available on mutualfund.kotak.com

.To generate capital

appreciation from a diversified portfolio of equityand equity related securities.

An open ended equityScheme following contrarian investment strategy

Kotak India EQ Contra Fund* Performance (%) as on 31st July, 2018

Different plans have different expense structure. The performance details provided herein are of regular plan.

^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 29 for top 3 and bottom 3schemes managed by Mr.

`

Deepak Gupta.

*TRI – Total Return Index

With effect from 1st February 2018, we are comparing the performances of the funds with the total return variant of the benchmarkinstead of the price return variant.

^^Kotak Classic Equity is renamed as Kotak India EQ Contra Fund with effect from 1st June 2018.

Date SchemeReturns of 10000 in the

Scheme ( ) Benchmark# ( ) Benchmark ## ( )

Nifty 100 Nifty 50 Current Value of Standard Investment

(%) ^ # (%)* ## (%)* Additional

`

` `

Kotak India EQ Contra Fund^^

Since Inception 13.56 14.78 14.40 52,369 60,146 57,637

Last 1 Year 16.56 13.14 14.20 11,656 11,314 11,420

Last 3 Years 12.54 11.88 11.42 14,257 14,010 13,834

Last 5 Years 18.58 17.16 16.03 23,455 22,083 21,038

Scheme Inception date is 27/07/2005. Mr. Deepak Gupta has been managing the fund since 01/01/2017.

TRI TRI

`

This product is suitable for investors who are seeking*:

• Long term capital growth

• Investment in portfolio of predominantly equity &equity related securities

* Investors should consult their financial advisors if in doubtabout whether the product is suitable for them.

Investors understand that their principal willbe at moderately high risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Mar-23-18 23.714 4.78

Jul-28-17 23.433 0.70

Jul-15-16 19.692 0.50

Jul-25-14 18.227 1.00

Jan-23-14 19.202 4.30

Jul-31-12 15.413 1.00

Nov-20-15 18.540 0.50

Dividend History

Date CUM DividendNAV

Dividend( per unit)`

Top 10 Companies as on , 201831st July

(Formerly Known As Kotak Classic Equity)

Reliance Industries Ltd. Petroleum Products 5.98%

Infosys Ltd. Software 5.22%

Maruti Suzuki India Limited Auto 4.39%

Hindustan Unilever Ltd. Consumer Non Durables 4.33%

Tata Consultancy Services Ltd. Software 4.31%

Bharat Financial Inclusion Limited Finance 3.98%

ITC Ltd. Consumer Non Durables 3.88%

Titan Company Ltd. Consumer Durables 3.64%

Bajaj Finance Limited Finance 3.56%

Mahindra & Mahindra Ltd. Auto 3.44%

3

About Kotak Tax Saver

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The investment objective of Kotak Tax Saver is 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.

The scheme thus offers a dual benefit of growth and tax savings.

The scheme although open ended, has a three year lock-in.

The portfolio is generally diversified across sectors and market capitalization segments.

Portfolio Action

• The key overweight sectors in the portfolio are – Cement, Capital Goods and Oil&Gas.

• The underweight sectors are – Financials and Auto. We are following stock specific approach in these sectors.

Despite strong volume growth, quarterly earnings for Auto sector was quite disappointing due to margin

pressure.

• Telecom sector continues to see headwinds, wherein the portfolio has no exposure.

• Large cap allocation in the portfolio is about 54%.

Kotak Tax Saver31 July, 2018st

Scheme Facts

Structure

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^


NAV (as on 2018)

2018

31st July

An open ended equity linked saving schemewith a statutory lock in of 3 years and taxbenefit

Dividend 19.3930

Dividend Direct 22.7390

Growth 42.6550

Growth Direct 45.8110

23 November 2005

Nifty 500 TRI

500


14.64%

0.99

0.27

65.22%



`

` `

777.09 crs

`

`

749.06 crs

rd


Portfolio Turnover

`

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`

`

MFIExplorer.

Market Cap %$

Load Structure

Large cap 55.29

Midcap 25.62

Small cap 17.26

Cash 1.84$The given mar ket cap data is on the basis of newSEBI circular on scheme rationalisation whereinStocks are categorised as per given AMFI list.

KPAX (internal system). Market definitionused is market capitalisation of the 100th largestscrip (on the bases of market capitalisation) is thecutoff to determine the large cap and midcapsegment.

Source:

NilEntry Load:

Exit Load: Exit Load is not applicable for Kotak TaxSaver Scheme. (applicable for all plans)

Units issued on reinvestment of dividends shall notbe subject to exit load (applicable for all plans)





(Nifty 500)

Financial Services

Energy

Consumer Goods


Industrial Manufacturing

Cement & Cement Products

Construction

Metals

Chemicals

Services

28.23 32.26 -4.03 28.28 -0.05

14.82 12.01 2.81 13.60 1.22

11.04 13.49 -2.45 11.20 -0.16

8.20 10.30 -2.10 8.44 -0.25

6.18 2.62 3.56 6.25 -0.07

6.17 2.49 3.68 6.13 0.04

6.05 3.92 2.12 6.23 -0.19

3.72 3.53 0.19 4.08 -0.36

2.56 0.64 1.92 2.58 -0.03

2.49 2.25 0.24 2.69 -0.20

Equity Market Brief





sector.














4

Kotak Tax Saver
















31st July 2018.

`

`




To know more




Disclaimer

Kotak Tax Saver

InvestmentObjective:

.To generate long-term capital

appreciation from a diversified portfolio ofequity and equity related securities and enableinvestors to avail the income tax rebate, aspermitted from time to time. The amountinvested in the scheme shall be subject to alock-in of 3 years irrespective of whether theinvestments would be eligible for tax benefitor not. The above does not constitute andadvice or a representation. Investors arerequested to seek professional advice in thisregard. Kotak Mahindra Bank Limited is notliable or responsible for any loss or short fallresulting from the operations of the scheme.

Mutual Fund investments are subject tomarket risks, read all scheme relateddocuments carefully. Scheme InformationDocument (SID) and Statement ofAdditional Information (SAI) available onmutualfund.kotak.com

An open ended equitylinked saving scheme with a statutory lock inof 3 years and tax benefit

Kotak Tax Saver* Performance (%) as on , 201831st July


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 29 for other schemes managed byMr.

`

Harsha Upadhyay.



Date SchemeReturns TRI of 10000 in the


Nifty 500 Nifty 50 Current Value of Standard InvestmentTRI

(%) ^ # (%)* ## (%)* Additional

`

` `

Since Inception 12.11 13.52 13.69 42,655 49,988 50,949

Last 1 Year 4.84 11.06 14.20 10,484 11,106 11,420

Last 3 Years 9.52 12.09 11.42 13,140 14,087 13,834

Last 5 Years 20.11 18.46 16.03 25,007 23,334 21,038

Scheme Inception date is 23/11/2005. Mr. Harsha Upadhyaya has been managing the fund since 25/08/2015.

Kotak Tax Saver

`


• long term capital growth with a 3 year lock in

• Investment in portfolio of predominantly equity &equity related securities.



Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Jun-28-18 18.444 0.34

Mar-22-16 16.266 0.65

Mar-23-18 18.583 0.38Dec-29-17 20.848 0.40Jun-29-17 22.144 0.40Mar-29-17 19.432 0.75Jan-27-17 18.889 0.72

Jan-21-16 16.113 0.70

Dividend History



31 July, 2018st


HDFC Bank Ltd. Banks 6.73%



Larsen And Toubro Ltd. Construction Project 4.11%


HDFC Ltd. Finance 3.85%


GlaxoSmithkline Consumer Healthcare Ltd Consumer Non Durables 3.34%

AU Small Finance Bank Ltd. Banks 3.27%

ICICI Bank Ltd. Banks 2.74%

5

About Kotak Standard Multicap Fund

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The investment objective of Kotak Standard Multicap Fund scheme is to generate long term capital

appreciation from a portfolio of equity and equity related securities, generally focused on select few sectors.

The scheme endeavors to identify sectors that are likely to do well over the medium term and takes focus

exposures to the same.

There is no restriction on which type of sectors the scheme can take exposure to and the portfolio will be

generally diversified at the stock level across market capitalization.

The scheme is well positioned to capture various themes that are in flavour in a focused manner.

Portfolio Action

• In the backdrop of higher than average market valuations and emerging macro headwinds, now there is barbellapproach in portfolio composition. Portfolio has a good mix of cyclical and defensive bets.

• Domestic businesses with operating leverage continue dominate the portfolio as compared to export/ globalbusinesses due to better earnings trajectory. However, exposure to IT sector has gone up in the recent months.

• The top overweight sectors in the fund are Cement and Financials.

• We believe that Government’s focus on reviving consumption and spending on infrastructure will create positivedemand scenario for our portfolio companies in medium term.

• The key underweight sectors are FMCG and Metals.

• Utilities and Telecom sectors are the major exclusions from the fund.

• Allocation to large cap segment accounts for about 3/4th of the total corpus.

Kotak Standard Multicap Fund

Scheme Facts

Structure


NAV (as on 31st July 2018)

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

2018

Multi Cap Fund - An open ended equityscheme investing across large cap, mid cap,small cap stocks

crs

20,464.13 crs



Dividend 24.8250

Growth 34.8090

11 September 2009

Nifty 200 TRI

5000 & in multiple of 1 for purchase andfor 0.01 for switches


13.69%

0.95

0.51

27.12%



`

`

`

` `

`

th

`

21,271.15

`

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MFIExplorer.


Portfolio Turn over

Market Cap %

Load Structure

$

Large cap 77.24

Midcap 13.54

Small cap 3.54

Cash 5.68$The given market cap data is on the basis of newSEBI circular on scheme rationalisation whereinStocks are categorised as per given AMFI list.

Source: KPAX (internal system). Market definitionused is market capitalisation of the 100th largestscrip (on the bases of market capitalisation) is thecutoff to determine the large cap and midcapsegment.

NilEntry Load:

Exit Load:



iii) Any exit load charged (net off Service Tax, if any)shall be credited back to the respective Scheme.(applicable for all plans)

iv) Units issued on reinvestment of dividends shall notbe subject to exit load (applicable for all plans)

Top Sectors as on 31st July, 2018




(Nifty 200)

Financial Services

Energy

Consumer Goods

Automobile




Construction

35.34 33.98 1.36 34.34 1.00

12.96 12.90 0.06 12.02 0.95

9.08 13.22 -4.14 9.05 0.03

8.74 8.63 0.11 9.11 -0.37

6.73 10.68 -3.96 7.02 -0.29

5.92 2.53 3.39 5.96 -0.04

5.68 0.00 5.68 6.66 -0.98

4.89 3.55 1.33 5.06 -0.18

31 July, 2018st





sector.














Equity Market Brief

(Formerly Known As Kotak Select Focus)

6
















31st July 2018.

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To know more

Ccall : 1800-222-626 (Toll Free), Mumbai61152100, Delhi 66306900 / 02, Chennai28221333 / 45038171, Kolkata 64509802 /03, Pune 64013395 / 96, Ahmedabad26779888, Bangalore 66128050 / 51,Hyderabad 66178140 / 41.



Disclaimer

Kotak Standard Multicap Fund

Investment Objective:. Theinvestment objective of the scheme is togenerate long-term capital appreciation froma portfolio of equity and equity relatedsecurities, generally focused on a few selectedsectors.


Multi CapFund - An open ended equity schemeinvesting across large cap, mid cap, small capstocks

Kotak Standard Multicap Fund* Performance (%) as on 31st July, 2018


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 29 for other schemes managed byMr. Harsha Upadhyaya.

`



^^Kotak Select Focus Fund is renamed as Kotak Standard Multicap Fund with effect from 25th May 2018.


Scheme ( ) Benchmark#( ) Benchmark ## ( )


(%) ^ #(%)* ## (%)* Additional

`

` `

Since Inception 15.06 11.86 11.44 34,809 27,087 26,185

Last 1 Year 9.19 12.18 14.20 10,919 11,218 11,420

Last 3 Years 13.09 11.94 11.42 14,468 14,030 13,834

Last 5 Years 22.75 17.78 16.03 27,881 22,679 21,038


Kotak Standard Multicap Fund^^

TRI

`



• Investment in portfolio of predominantly equity &equity related securities generally focussed on a fewselected sectors.



Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Sep-27-17 23.592 1.50

Sep-30-16 21.349 1.25

Sep-26-14 17.791 1.00

Oct-15-10 12.850 1.25

Oct-12-15 19.739 1.00

Dividend History



Top 10 Companies as on 31st July, 2018

31 July, 2018st

Kotak Standard Multicap Fund(Formerly Known As Kotak Select Focus)







State Bank Of India Banks 2.83%


RBL Bank Ltd Banks 2.70%

Maruti Suzuki India Limited Auto 2.69%

7

About Kotak Equity Opportunities

�

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Kotak Equity Opportunities looks for opportunities across sectors based on performance and potential of

companies within the sectors.

The fund manager has the flexibility to invest in a mix of large and mid cap stocks from various sectors.

The allocation between large caps & midcaps would broadly depend on the choice of sectors, business

environment & valuations.

Portfolio Action

• The portfolio has seem significant changes in the past few months. In line with revised investment mandate, the

proportion of midcaps in the portfolio has increased. The portfolio has also seen defensive bets (mainly IT sector)

increasing while procyclicals that have operating leverage continue to dominate the portfolio.

• The top overweight sectors are – Industrials and Cement.

• Telecom sector continues to see headwinds, wherein the portfolio has no exposure.

• Key underweight sectors are Auto and Pharma. Despite strong volume growth, quarterly earnings for Auto sector was

quite disappointing due to margin pressure.

• Large, mid and small cap exposures are around 49%, 36% and 11% respectively.

Kotak Equity Opportunities31 July, 2018st

Scheme Facts

Structure

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^


NAV (as on 2018)

2018

31st July

Large & Mid Cap Fund- An open ended equityscheme investing in both large cap and midcap stocks

2,559.70 crs

2,485.23 crs



Dividend 26.3710

Growth 118.0320

9 September 2004

Nifty 200 TRI

5000


14.17%

0.97

0.37

80.61%



`

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`

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`

`

`

th

MFIExplorer.


Portfolio Turn over

Market Cap %$

Load Structure

Large cap 50.54

Midcap 36.01

Small cap 11.14

Cash 2.30

$The given market cap data is on the basis of newSEBI circular on scheme rationalisation whereinStocks are categorised as per given AMFI list.

Source: KPAX (internal system). Market definitionused is market capitalisation of the 100th largestscrip (on the bases of market capitalisation) is thecutoff to determine the large cap and midcapsegment.

NilEntry Load:Exit Load:

I) For redemptions / switch outs (including SIP/STP) within1 year from the date of allotment of units, irrespective ofthe amount of investment:1%

ii) For redemptions / switch outs (including SIP/STP) after1 year from the date of allotment of units, irrespective ofthe amount of investment: NIL

iii) Any exit load charged (net off Service Tax, if any) shallbe credited back to the respective Scheme. (applicablefor all plans)

iv) Units issued on reinvestment of dividends shall not besubject to exit load (applicable for all plans)





(Nifty 200)

Financial Services

Energy

Consumer Goods




Construction

Fertilisers & Pesticides


Automobile

29.58 32.26 -2.68 29.03 0.55

14.48 12.01 2.47 13.15 1.33

12.26 13.49 -1.23 11.43 0.83

8.93 10.30 -1.37 9.06 -0.13

7.05 2.62 4.43 6.79 0.26

6.22 2.49 3.73 5.85 0.37

4.43 3.92 0.51 4.48 -0.05

2.37 0.74 1.63 2.38 -0.01

2.30 0.00 2.30 3.19 -0.89

2.00 8.23 -6.23 3.31 -1.32

Equity Market Brief





sector.














(Formerly Known As Kotak Opportunities)

8

Kotak Equity Opportunities
















31st July 2018.

`

`




To know more




Disclaimer

Kotak Equity Opportunities

Investment Objective:.

To generate capitalappreciation from a diversified portfolio ofequity & equity related instruments


Large & MidCap Fund- An open ended equity schemeinvesting in both large cap and mid cap stocks

May-30-18 26.1190 0.70

Feb-27-18 27.3670 0.83

Nov-28-17 28.7004 0.85

Aug-29-17 27.9190 0.85

May-29-17 27.7480 0.85

Feb-28-17 26.2790 0.50

Nov-22-16 24.2460 0.80

Aug-25-14 21.4110 1.00

Nov-11-11 13.6820 0.50

May-28-10 14.6250 1.00

Sept-8-09 14.7330 1.50

Mar-14-08 16.9750 2.00

Jan-25-08 27.0900 6.00

Sept-28-07 24.2930 3.00

Sept-27-06 17.7450 1.50

Aug-28-15 24.3880 1.60

Dividend History



Kotak Equity Opportunities* Performance (%) as on 31st July, 2018


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 29 for other schemes managed byMr. Harsha Upadhyaya.

`



^^Kotak Opportunities is renamed as Kotak Equity Opportunities Fund with effect from 1st June 2018.

With Effect from 1st June 2018, the Benchmark Name is changed to Nifty 200 TRI from Nifty 500 TRI. The above performance isbenchmarked to Nifty 500 TRI.

$




(%) ^ # (%)* ## (%)* Additional

`

` `

Since Inception 19.43 16.30 16.36 118,032 81,530 82,164

Last 1 Year 4.84 12.18 14.20 10,484 11,218 11,420

Last 3 Years 10.99 11.94 11.42 13,675 14,030 13,834

Last 5 Years 19.90 17.78 16.03 24,788 22,679 21,038


Kotak Equity Opportunities^^

TRI$

`



• Investment in portfolio of predominantly equity &equity related securities



Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

31 July, 2018st


(Formerly Known As Kotak Opportunities)








Gujarat State Petronet Ltd. Gas 2.94%

Thermax Ltd. Industrial Capital Goods 2.75%

The Ramco Cements Ltd Cement 2.43%

9

About Kotak Emerging Equity

�

�

�

The investment objective of Kotak Emerging Equity 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.

These companies are either at their nascent or developing stage and are under researched.

Although relatively volatile in the short run, small and mid cap companies have the potential to deliver higher

growth in the long term.

Portfolio Action

• The portfolio continues to be pro-cyclical and tilted towards economic recovery. As a result we continue to be Overweighton sectors such as Financials, cement, Industrial Manufacturing, speciality chemicals & consumer discretionary.

• We believe that this year would be a stock picker’s year. Last year 90%of the BSE 500 stocks gave positive return which isnot going to be repeated in our view. Ground indicators are suggesting strong pick as seen from CV sales, dieselconsumption, bank credit growth, airlines passenger growth, order book of infra/capital good companies, strongcement volumes growth, steel prices rising to 9year high and capacity utilisation at 78%. However would strongearnings lead to better market performance?

• In the medium term, post GST implementation, we anticipate that the organized players would become stronger asunorganized sector would find it tough to do business in the changed environment and cede market share to moreorganized players and portfolio is well positioned in those sectors where there is a large portion of unorganized players.The portfolio is well positioned to ride on this theme from medium term perspective.

• In the IT and pharma sector we continue to have stock specific approach and continue to have UW stance on both thesectors.

• During the month the broader allocation remains largely unchanged with marginal reduction in Industrial manufacturingand marginal increase in financials, auto ancillaries and cement.

• In the new scheme of arrangement, Kotak Emerging would remain as the Midcap fund. The current allocation to midcaps(as defined by SEBI i.e. between 101-250th companies in terms of market cap) is around 65.5% and we have nowcomplied with the new asset allocation.

• We expect Kotak Emerging Equity as a portfolio should deliver 25% and 23% earnings growth in FY19E & FY20E basedon current set of stocks and the portfolio is trading at a P/E 22x and 18.5x for FY19E and FY20E.

Kotak Emerging Equity

Scheme Facts

Structure

Month end AUM* (as on 31st July 2018)


Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

Mid Cap Fund - An open ended equity schemepredominantly investing in mid cap stocks

Dividend 24.1430


Growth 39.3450


30th March 2007

Nifty Midcap 100

5000


15.69%

0.87

0.45

41.81%


^ as on , 2018. Source: ICRA

`

`

` `

3,327.41 crs

`3,201.99 crs


Portfolio Turnover

`

`

`

`

MFIExplorer.

31st July

Market Cap %

Load Structure

$

Source: Value Research definition.

Large cap 3.94

Midcap 64.62

Small cap 30.42

Cash 1.02

The given market cap data is on the basis ofnew SEBI circular on scheme rationalisationwherein Stocks are categorised as per givenAMFI list.

$

NilEntry Load:

Exit Load:



Any exit load charged (net off Service Tax, if any) shallbe credited back to the respective Scheme. Unitsissued on reinvestment of dividends shall not besubject to entry and exit load.

31 July, 2018st





Financial Services


Consumer Goods

Pharma

Automobile

Chemicals

Construction

Fertilisers & Pesticides


Textiles

22.61 19.72 2.89 23.26 -0.65

18.62 10.20 8.43 18.86 -0.24

14.78 14.10 0.67 15.30 -0.52

6.56 8.14 -1.57 6.29 0.27

5.93 7.32 -1.40 6.23 -0.30

5.64 3.35 2.29 5.87 -0.22

4.53 5.66 -1.13 3.79 0.74

3.64 2.11 1.53 3.21 0.43

3.20 2.51 0.68 2.97 0.22

3.13 2.92 0.21 2.64 0.49

Nifty Midcap100 TRI

Equity Market Brief

• GST – landmark reform is now implemented, and over the last few months, the government has introduced further changes tohelp the smaller firms navigate GST better. While there might be some near-term issues in implementing, the longer termbenefits are transformative. Most listed players will benefit, as they form the organised part of the economy, especially oncethe e-way bill is introduced in totality and the reverse charge mechanism reduces scope of under-invoicing by unorganisedsector.

• After a prolonged period of under-delivery of Corporate Earnings, earnings are starting to improve across a broad spectrum ofsectors. Barring corporate banks and US focused pharma, most other sectors are witnessing improving business momentum.

• India to benefit from such reforms which encourages formalisation of the economy in the medium-to-long-term, significantflow from physical to financial savings to further provide stability to markets.

• Volatility across global equities have been on the lower side in 2017. Volatility is on the rise recently due to global events - Fedhiking, crude oil price rally, trade wars like the flare-up between US and China. In India as well, as we approach generalelections, markets are likely to turn more volatile.

• As we approach general elections, it is important to understand that all events create a level of uncertainty. While near-termuncertainty induces volatility in asset prices, in the long run, wealth creation in equities is a function as how businesses canprofitably grow over their cost of capital sustainably. Given the long-range of reforms introduced, we believe longer-termprospects of Indian equities is quite encouraging and we would advise investors to benefit from such induced volatility.

• Time in the market more important than timing the market – after a long period of lower volatility, markets volatility may moveup and investors can benefit from this volatility by focusing on disciplined investing and asset allocation.

10

















31st July 2018.

`

`




To know more




Disclaimer



.The investment objective of the

scheme is to generate long-term capitalappreciation from a portfolio of equity andequity related securities, by investingpredominantly in mid and small capcompanies.


Mid Cap Fund - Anopen ended equity scheme predominantlyinvesting in mid cap stocks

Kotak Emerging Equity*Performance (%) as on 31st July 2018,


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 29 for other schemes managed byMr. Pankaj Tibrewal.

`



With Effect from 25th May 2018, the Benchmark is changed to Nifty Midcap 100 TRI.$

31 July, 2018st

Since Inception 12.83 14.22 11.40 39,345 45,201 34,027

Last 1 Year 5.94 3.06 14.20 10,594 10,306 11,420

Last 3 Years 12.88 12.51 11.42 14,387 14,246 13,834

Last 5 Years 29.75 23.83 16.03 36,799 29,127 21,038



Nifty Nifty 50 Current Value of Standard Investment

(%) ^ ## (%)* Additional

`

`

# (%)* ` `

Midcap

TRI$

100

Scheme Inception date is 30/03/2007. Mr. Pankaj Tibrewal has been managing the fund since 27/05/2010.

Kotak Emerging Equity Fund



• Investment in equity & equity related securitiespredominantly in mid & small cap companies



Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Mar-23-18 26.153 2.67

May-26-17 26.010 1.59

Apr-28-15 21.499 2.10

May-02-14 13.073 0.50

May-02-13 11.491 0.50

Apr-29-11 10.573 0.75

May-27-16 21.196 1.30

Dividend History





RBL Bank Ltd Banks 3.59%

Schaeffler India Ltd Industrial Products 3.29%

The Ramco Cements Ltd Cement 3.20%

Atul Ltd. Chemicals 2.94%

Supreme Industries Limited Industrial Products 2.91%

Finolex Cables Ltd. Industrial Products 2.73%

Solar Industries India Limited Chemicals 2.71%

Shriram City Union Finance Ltd. Finance 2.60%


11

HYBRID FUNDS

EQUITY DEBT

1313

About Kotak Equity Hybrid

� The investment objective of Kotak Equity Hybrid is to achieve growth by investing in equity and equity related instruments,

balanced with income generation by investing in debt and money market instruments.

The scheme thus provides capital appreciation potential of equities as well as stable returns of debt.�

Portfolio Action

Equity

Debt:

• The portfolio continues to be pro-cyclical and tilted towards economic recovery. As a result we continue to be overweight on sectors

such as cement, capital goods & engineering, auto ancillary, media and consumer discretionary.

• In the IT and pharma sector we continue to have stock specific approach. The fund continues the underweight stance on consumer

staples and IT.

• During the months we marginally increased weightage to financials (private sector banks), capital goods, construction, pharma and

consumer discretionary sector.

• In the short term we believe the GST implementation could be a disruptor for B2C businesses. However from a medium term perspective

post GST implementation, we anticipate that the organized players would become stronger as unorganized sector would find it tough

to do business in the changed environment and cede market share to more organized players and portfolio is well positioned in those

sectors where there is a large portion of unorganized players.

• The current large cap (above 20,000 crs market cap): midcap ratio remains at 66:34 in the fund.

• We expect equity portion of Kotak balance fund to deliver 31% and 26% earnings growth in FY19E & FY20E based on current set of

stocks and the portfolio is trading at a P/E 20x and 16x for FY19E and FY20E.

• As on July 31 2018, ~26.37% of the scheme portfolio comprised of government securities (central as well as state). ~56.86% of the

portfolio was invested in corporate bonds and the balance was held in the form of Money market securities and cash.

• The benchmark gilt started the month at 7.91%-levels and ended the month around 7.77%-levels.

• However, we continue to remain positive about our gilt holdings in the 3-5 year bucket for the coming month(s) due to flat-to-inverted

yield curves.

• During July, we continued to maintain a conservative stance portfolio duration-wise.

• In the near term as we monitor the economic developments closely, the portfolio construct will be such that the loss due to volatility is

minimal.

• We hope to increase the portfolio duration, in due time, so that we can reverse losses caused by higher duration. The emerging situation

demands caution and conservatism. We shall look to better equip ourselves with more information and clarity, rather than just chasing

absolute yields, before making a defined move in terms of portfolio duration.

• Bearing in mind the macro-economic signals highlighted above, we will continue our conservative stance and maintain portfolio

duration in the range of 2.50 - 4.00 for August 2018.

Kotak Equity Hybrid31 July, 2018st

Scheme Facts

Structure


NAV (as on 2018)

2018

31st July

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

An open ended hybrid scheme investingpredominantly in equity and equity relatedinstruments.

1,976.10 crs

2,012.71 crs

25 November 1999

NIFTY 50 Hybrid Composite Debt 70:30Index

5000


10.96%

1.03

0.27

45.44%


^ as on 31st July, 2018. Source: ICRA MFIExplorer.

`

`

`



Dividend 16.0850

Growth 24.5170

th

`

`


Portfolio Turn over

`

`

`

`

Load Structure

Entry Load:

Exit Load:

Nil



iii) Any exit load charged (net off Service Tax, if any)shall be credited back to the respective Scheme.(applicable for all plans)

iv) Units issued on reinvestment of dividends shall notbe subject to exit load (applicable for all plans)


Equity Market Brief

• GST – landmark reform is now implemented, and over the last few months, the government has introduced further changes to help the

smaller firms navigate GST better. While there might be some near-term issues in implementing, the longer term benefits are

transformative. Most listed players will benefit, as they form the organised part of the economy, especially once the e-way bill is

introduced in totality and the reverse charge mechanism reduces scope of under-invoicing by unorganised sector.

• After a prolonged period of under-delivery of Corporate Earnings, earnings are starting to improve across a broad spectrum of sectors.

Barring corporate banks and US focused pharma, most other sectors are witnessing improving business momentum.

• India to benefit from such reforms which encourages formalisation of the economy in the medium-to-long-term, significant flow from

physical to financial savings to further provide stability to markets.

• Volatility across global equities have been on the lower side in 2017. Volatility is on the rise recently due to global events - Fed hiking,

crude oil price rally, trade wars like the flare-up between US and China. In India as well, as we approach general elections, markets are

likely to turn more volatile.

• As we approach general elections, it is important to understand that all events create a level of uncertainty. While near-term uncertainty

induces volatility in asset prices, in the long run, wealth creation in equities is a function as how businesses can profitably grow over their

cost of capital sustainably. Given the long-range of reforms introduced, we believe longer-term prospects of Indian equities is quite

encouraging and we would advise investors to benefit from such induced volatility.

• Time in the market more important than timing the market – after a long period of lower volatility, markets volatility may move up and

investors can benefit from this volatility by focusing on disciplined investing and asset allocation.

(Formerly Known As Kotak Balance)

16.82

12.48

7.98

6.65

5.34

4.94

4.57

4.25

3.78

2.97

30.22

Banks

Debentures and Bonds

Finance

Auto

Cement

Software

Consumer Non Durables

Industrial Products

Chemicals

Construction Project

Others

13

1414

Kotak Equity Hybrid31 July, 2018st



















31st July 2018.

`

`

To know more




Disclaimer

Kotak Equity Hybrid



To achieve growth by investing inequity & equity related instruments, balancedwith income generation by investing in debt &money market instruments.

An open ended hybridscheme investing predominantly in equity andequity related instruments.

14

Kotak Equity Hybrid* Performance (%) as on , 201831st July


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark.Please refer page no. 29-30 for top 3 and bottom 3schemes managed by & Mr. Abhishek Bisen.


With effect from 1st February 2018, we are comparing the performances of the funds with the total return variant of the benchmarkinstead of the price return variant

*The debt component of the index is TRI since inception. For equity component of the index, as TRI data is not available sinceinception of the scheme, benchmark performance is calculated using composite CAGR of S&P BSE 200 PRI values series is used till31st July 2006 and TRI values is used since 1st Aug 2006.

^^Kotak Balance is renamed as kotak Equity Hybrid with effect from 25th May 2018.

With Effect from 25th May 2018, the Benchmark is changed to Nifty 50 Hybrid Composite Debt 70:30 Index TRI.

`

Pankaj Tibrewal

$

^The existing benchmark “CRISIL Balanced Fund” has been renamed as “CRISIL Hybrid 35+65 - Aggressive Index” as percommunication received from CRISIL.



• Investment in equity & equity related securitiesbalanced with income generation by investing indebt & money market instruments



Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Jul-25-18 15.9800 0.12Jun-25-18 15.8710 0.12May-25-18 16.2170 0.12Apr-25-18 16.5120 0.12Mar-26-18 16.2295 0.14Feb-26-18 16.8210 0.14Jan-25-18 17.6320 0.14Dec-26-17 17.4978 0.14Nov-27-17 17.1870 0.14Oct-25-17 16.8647 0.11Sep-25-17 16.4830 0.11Aug-28-17 16.6866 0.11Jul-25-17 17.1274 0.12Jun-27-17 16.7970 0.11May-25-17 16.8061 0.11Apr-25-17 16.9880 0.11Mar-27-17 16.4515 0.11Feb-27-17 16.3220 0.11Jan-25-17 16.0710 0.11Dec-26-16 14.9970 0.10Dec-01-16 15.6912 0.11Oct-25-16 16.4100 0.08Sep-26-16 16.2900 0.08Aug-25-16 16.0150 0.08July-25-16 15.8590 0.08

Dividend History




Date SchemeReturns

#( ) Benchmark##( )

Nifty50 Nifty50 CurrentValueof Standard Investment

` `

Kotak Equity Hybrid - Dividend (Erstwhile Kotak Balance), *Name of the Benchmark - CRISIL Hybrid 35+65 - Aggressive Index,Scheme Inception date is 25/11/1999. Mr. Pankaj Tibrewal has been managing the fund since 25/08/2015. Mr. Abhishek Bisenhas been managing the fund since 15/04/2008.

Kotak Equity Hybrid^^

HybridComposite TRI of 10000 in the

Debt70:30Index Scheme( ) BenchmarkTRI #(%)^

`

(%)^ ##(%)* Additional`$

Since Inception 14.54 NA 13.40 126,498 NA 104,935

Last 1 Year 3.40 10.42 14.20 10,340 11,042 11,420

Last 3 Years 8.81 10.30 11.42 12,886 13,424 13,834

Last 5 Years 13.81 13.90 16.03 19,105 19,175 21,038

(Formerly Known As Kotak Balance)

United Bank Of India CRISIL AA- 4.90%




Shree Cement Ltd. Cement 2.51%

U P Power Corporation Ltd (Guaranteed

By UP State Government ) CRISIL A+(SO) 2.38%


7.17% Central Government SOV 2.19%

State Bank Of India Banks 2.18%


About Kotak Equity Savings Fund

�

�

�

�

�

It is an open-ended equity scheme which aims to generate income from cash- futures arbitrage positions and

at the same time allows you to participate in the equity market growth moderately.

-Aims to provide income from arbitrage opportunities in cash & derivatives segment of the equity

market.

- Potential for growth in the long term through moderate exposure in directional equity.

- No aggressive duration or credit risk taken on debt portion. No aggressive mid

cap / small cap exposure taken. This we feel should lower the volatility of the fund.

- The Fund is treated similar to equity funds for tax purposes .*

* Please consult your tax adviser with respect to the specific tax implications.

Benefits of Kotak Equity Savings Fund

Income

Growth Potential

Conservative Approach

Tax efficiency

:

Portfolio Action

Directional Equity:

Arbitrage:

Debt:

• The directional equity was around 27.4%.

• On the directional equity side, we have been running a conservative portfolio with a max exposure in mid cap stocks

being 20-25% at any point in time. Remaining 75-80% of the directional equity continues to be in large cap stocks.

• We have been overweight on sectors like IT and consumers. The major underweight sectors are Cap Goods, Pharma

and BFSI.

• The exposure to consumers and Technology has been increased gradually over the last 12 months. The weight in

Pharma was also increased in the month of June as the stocks were trading at extremely low valuations.

• The arbitrage portion continues to be managed in the same way we manage our arbitrage fund. In months, when

the arbitrage opportunities provide better returns than the debt papers, we deploy more money into arbitrage

trades.

• The benefit is that in months when the arbitrage returns are sub optimal, we can deploy a lower amount in arbitrage

and still maintain the 'equity' taxation status.

• We have done some merger arbitrage trades viz. CMC-TCS and Shasun-Strides in the past. The blended annualized

returns were upwards of 14% in these trades. Recently, we have done merger arbitrage trades in Geometric-HCL

Tech and Cairn-Vedanta which have an expected return potential of more than 16% annualized. Trades like

subscribing to the CPSE ETFs (at 5% discount) and shorting the futures of individual constituents, buying HDFC

warrants and selling HDFC Ltd futures, etc have boosted the arbitrage returns.

• We have been managing the debt portion in a very conservative manner till now.

• The term deposits which are to be placed with the exchange for taking exposure in derivatives generally have a

tenure of 1 year.

• On the debt side, we prefer to play accrual as compared to duration. A bulk of exposure on the debt side is into

papers with a residual maturity (or time to put option) of 2-3 years. A significant portion is also invested into our

own Liquid Fund. The benefit of investing in Liquid is that in case the arbitrage spreads expand, we can easily move

the money from liquid into arbitrage trades without worrying about the levels where the debt yields are quoting at

that point in time.

Kotak Equity Savings Fund

Scheme Facts

Structure



2018

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

An open ended scheme investing in equity,arbitrage and debt

crs

13 October 2014

75% of Nifty 50 Arbitrage Index &25% in Nifty 50 TRI (w.e.f. Nov 01, 2016)

5000


3.50%

0.96

0.52

111.77%


^as on 31st July, 2018. Source: ICRA

`2,260.08

`

` `

` `

2,216.06 crs


Growth 13.8390

Quarterly Dividend 11.3604

Direct Quarterly Dividend 11.4673

Monthly Dividend 11.4970

Direct Monthly Dividend 11.7671

& in multiples of 1

th


Portfolio Turnover

`

`

`

`

`

`

MFIExplorer.

Load Structure

Entry Load:

Exit Load:

Nil

i) For redemption / switch out ofupto 10% of the initial investment amount(limit) purchased or switched in within 1 yearfrom the date of allotment: Nil.

ii) If units redeemed or switched out are inexcess of the limit within 1 year from the dateof allotment: 1%.

iii) If units are redeemed or switched out on orafter 1 year from the date of allotment: Nil.

Any exit load charged (net off Service Tax, ifany) shall be credited back to the respectiveScheme. Units issued on reinvestment ofdividends shall not be subject to entry and exitload.

31 July, 2018st

Equity Market Brief





sector.








Time in the market more important than timing the market – after a long period of lower volatility, markets volatility may move






•

15

Kotak Equity Savings Fund31 July, 2018st
















31st July 2018.

`

`




To know more




Disclaimer


Investment objective:


,

. of the scheme isto generate capital appreciation and incomeby predominantly investing in arbitrageopportunities in the cash and derivativessegment of the equity market, and enhancereturns with a moderate exposure in equity &equity related instruments.There is noassurance or guarantee that the investmentobjective of the scheme will be achieved.

An open endedscheme investing in equity, arbitrage anddebt

Jul-12-18 11.4191 0.0441

Jun-12-18 11.3494 0.0361

May-14-18 11.3246 0.0477

Apr-12-18 11.2952 0.0391

Jun-20-18 11.2939 0.1584

Mar-12-18 11.2418 0.0389

Feb-12-18 11.3290 0.0500

Jan-12-18 11.4330 0.0500

Dec-12-17 11.3254 0.0473

Oct-13-17 11.2550 0.0518

Oct-12-17 11.3021 0.0497

Sep-12-17 11.3260 0.0600

Aug-14-17 11.4110 0.0583

Jul-12-17 11.1373 0.0500

Jun-12-17 11.0760 0.0500

Mar-20-18 11.1604 0.1789

Dec-20-17 11.4149 0.1803

Sep-20-17 11.3680 0.1750

Jun-20-17 11.1180 0.1500

Quaterly Dividend Option

Dividend History




• Income from arbitrage opportunities in the equitymarket & long term capital growth

• Investment predominantly in arbitrage opportunitiesin the cash & derivatives segment of the equitymarket and equity & equity related securities

* Investors should consult their financial advisors if in doubtabout whether the product is suitable for them.Investors understand that their principal will

be at moderately high risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Portfolio Detail % of Net assets

Unhedged Position 27.68

Cash Futures Arbitrage 42.37

Debt Instruments* 25.55

Cash and Cash equivalent and Net Current Asset 4.40

Total 100.00

*Debt Instruments includes redeemable preference shares

The scheme has been in existence for less than 5 years


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark.Please refer page no. 29 - 30 for top 3 and bottom 3schemes managed by Mr. Deepak Gupta & Mr. Abhishek Bisen.

`

*TRI – Total Return IndexWith effect from 1st February 2018, we are comparing the performances of the funds with the total return variant of the benchmarkinstead of the price return variant.

Kotak Equity Savings Fund * Performance (%) as on 31st July, 2018

Date SchemeReturns of 10000 in the


75%50 TRI

##

Nifty Current Value of Standard Investment

(%) ^ (%)* Additional# (%)*

`

`

` `

Scheme Inception date is 13/10/2014. Mr. Deepak Gupta has been managing the fund since 13/10/2014. Mr. Abhishek Bisenhas been managing the fund since 13/10/2014.


Nifty 50Arbitrage Index

25% Nifty 50 TRI

Since Inception 8.93 7.48 11.48 13,839 13,154 15,115

Last 1 Year 8.43 6.66 14.20 10,843 10,666 11,420

Last 3 Years 8.32 6.92 11.42 12,712 12,224 13,834

Finance 17.00

Consumer Non Durables 15.48

Software 14.30

Banks 8.11

Auto 7.91

Sector* % of Weight

*The top 5 sectors pertain to the unhedged equity portion and the figures have been extrapolated to 100%

Tata Consultancy Services Ltd. 8.01

HDFC Bank Ltd. 6.73

Reliance Industries Ltd. 6.52

Bharat Financial Inclusion Limited 5.14

Hindustan Unilever Ltd. 5.10

Maruti Suzuki India Limited 4.29

Bajaj Finance Limited 4.23

Infosys Ltd. 3.68

Mahindra & Mahindra Ltd. 3.28

Titan Company Ltd. 2.74

Stock* % of Weight

*The top 10 stocks pertain to the unhedged equity portion and the figures have been extrapolated to 100%

16

THEMATIC FUND

Kotak Infrastructure & Economic Reform Fund(formerly known as “PineBridge Infrastructure & EconomicReform Fund)

31 July, 2018st

Scheme Facts

Structure

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^



2018

An open ended equity scheme followingInfrastructure & Economic Reform theme

crs

crs



Standard Dividend 18.5450

Standard Growth 20.3550

27 February 2008

India Infrastructure Index - Customised Indexprepared by IISL


16.18%

0.81

0.17

32.87%



`

`

`

`

455.22

442.75

th

5000 & in multiples of 1`

`


Portfolio Turn over

`

`

`

`

MFIExplorer.

Load Structure

Entry Load:

Exit Load:

Nil

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 Scheme;

iv) Units issued on reinvestment of dividends shall notbe subject to entry and exit load. (applicable for allplans)

About Kotak Infrastructure & Economic Reform Fund

�

�

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of

predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of

India as a result of potential investments in infrastructure and unfolding economic reforms.

There is no assurance that the investment objective of the Scheme will be achieved.

Portfolio Action

• We believe investment cycle revival in India will be led by spending by government and this has been articulated well inthe government budget, while private developers following public investments with a lag. The current NCLTresolution plan will likely pave the way for private capex to pick up. However, there has been a delay compared to ourexpectations in the resolution of a few large NCLT cases.

• While investment cycle is gradually improving with revival in government capex, housing and private sector capex areyet to see meaningful traction.

• We continue to remain significantly invested in the “flow” of infrastructure theme (i.e. companies that benefit fromspending by various entities towards infrastructure creation) rather than “stock” or asset owners in the portfolio.

• We continue to invest along a range of these sectors to play overall improvement in investment cycle.

• We believe well managed companies in capital goods, cement, logistics, utilities and EPC companies will be largebeneficiaries with developers still reeling under regulatory uncertainties and/or large debt servicing.

• During the month, we reduced our exposure to construction, while increasing weight to cement sector.

Sector Allocation as on 31st July, 2018

Industrial Products 17.04

Gas 12.92

Cement 11.2

Industrial Capital Goods 10.43

Construction Project 8.19

Construction 7.27

Power 4.95

Chemicals 4.68

Auto Ancillaries 3.86

Ferrous Metals 3.82

Others 15.64

Equity Market Brief

• GST – landmark reform is now implemented, and over the last few months, the government has introduced further

changes to help the smaller firms navigate GST better. While there might be some near-term issues in implementing,

the longer term benefits are transformative. Most listed players will benefit, as they form the organised part of the

economy, especially once the e-way bill is introduced in totality and the reverse charge mechanism reduces scope of

under-invoicing by unorganised sector.

• After a prolonged period of under-delivery of Corporate Earnings, earnings are starting to improve across a broad

spectrum of sectors. Barring corporate banks and US focused pharma, most other sectors are witnessing improving

business momentum.

• India to benefit from such reforms which encourages formalisation of the economy in the medium-to-long-term,

significant flow from physical to financial savings to further provide stability to markets.

• Volatility across global equities have been on the lower side in 2017. Volatility is on the rise recently due to global

events - Fed hiking, crude oil price rally, trade wars like the flare-up between US and China. In India as well, as we

approach general elections, markets are likely to turn more volatile.

• As we approach general elections, it is important to understand that all events create a level of uncertainty. While

near-term uncertainty induces volatility in asset prices, in the long run, wealth creation in equities is a function as

how businesses can profitably grow over their cost of capital sustainably. Given the long-range of reforms introduced,

we believe longer-term prospects of Indian equities is quite encouraging and we would advise investors to benefit

from such induced volatility.

• Time in the market more important than timing the market – after a long period of lower volatility, markets volatility

may move up and investors can benefit from this volatility by focusing on disciplined investing and asset allocation.

Sector %

18

19
















31st July 2018.

`

`

* The numbers are converted using the

Rupee- USD reference rate published by the

Reserve Bank of India as on the respective

dates.

To know more




Disclaimer

Kotak Infrastructure & Economic ReformFund

investment objective:


investment objective of the Scheme isto generate long-term capital appreciationfrom a diversified portfolio of predominantly(at least 65%) equity and equity-relatedsecurities of companies involved in economicdevelopment of India as a result of potentialinvestments in infrastructure and unfoldingeconomic reforms. There is no assurance thatthe of the Schemewill be achieved.

An open ended equity schemefollowing Infrastructure & Economic Reformtheme.

Kotak Infrastructure & Economic Reform Fund(formerly known as “PineBridge Infrastructure & EconomicReform Fund)

Kotak Infrastructure & Economic Reform FundPerformance (%) as on 31st July, 2018


Scheme ( )Benchmark# ( ) Benchmark ## ( )

India Infrastructure Nifty 50 Current Value of Standard Investment

(%) ^ ## (%)* Additional

`

# (%)* ` `

Scheme Inception date is 25/02/2008. Mr. Harish Krishnan has been managing the fund since 01/02/2015.

Kotak Infrastructure & Economic Reform Fund

Index - customised

`index prepared byIISL

$

Since Inception 7.05 0.33 9.08 20,355 10,351 24,762

Last 1 Year -2.38 -5.46 14.20 9,762 9,454 11,420

Last 3 Years 8.08 2.93 11.42 12,626 10,907 13,834

Last 5 Years 22.94 10.52 16.03 28,103 16,493 21,038



• Long term capital appreciation by investing in equityand equity related instruments of companiescontributing to infrastructure and economicdevelopment of India

* Investors should consult their financial advisors if in doubtabout whether the product is suitable for them.Investors understand that their principal will

be at high risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

Feb-28-2018 20.5820 0.63

Feb-23-2017 17.5640 0.50

June-23-2015 15.2601 0.50

Dividend History



31 July, 2018st

Top 10 Holdings as on , 201831st July


^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at thethen prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point(PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ##Name of Additional Benchmark. Please refer page no. 29 for other schemes managed by Mr. Harish Krishnan.


With effect from 1st February 2018, we are comparing the performances of the funds with the total return variant of the benchmark instead ofthe price return variant.

With Effect from 25th May 2018, the Benchmark is changed to India Infrastructure Index (Customised Index by IISL)$


Shree Cement Ltd. Cement 4.49%

Indraprastha Gas Ltd. Gas 4.34%

GAIL (India) Ltd. Gas 3.87%

Solar Industries India Limited Chemicals 3.67%

Ultratech Cement Ltd. Cement 3.64%


Schaeffler India Ltd Industrial Products 3.18%

Supreme Industries Limited Industrial Products 3.04%

Container Corporation of India Ltd. Transportation 3.00%

19

DEBT FUNDS

Kotak Low Duration Fund(formerly known as “PineBridge India Short Term Fund”)

31 July, 2018st

Scheme Facts

Structure


NAV (as on 31st July )

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM

Portfolio Modified Duration

2018

2018

Average Maturity

An open ended low duration debt schemeinvesting in instruments such that theMacaulay duration of the portfolio is between6 months and 12 months


Regular Dividend NA

Monthly Dividend Direct 1070.7584

Weekly Dividend Direct 1198.8766

Standard Growth 2167.9310

Standard Monthly Dividend 1021.8636

Standard Weekly Dividend 1014.4393

6th March, 2008

9.20%

0.84 years


^ as on 31st July, 2018. Source: ValueResearch.

`

` `

` `

4,859.66 crs

`5,079.13 crs

`

`

`

`

`

`



0.72%

1.00 years


Nifty Low Duration Debt Index

Load Structure

Entry Load:

Exit Load:

Nil

Nil

Any exit load charged (net off Service Tax, ifany) shall be credited back to the Scheme;

Note - Units issued on reinvestment ofdividends shall not be subject to entry and exitload.

About Kotak Low Duration Plan

�

�

The primary objective of the Scheme is to generate income through investment primarily in low duration debt &

money market securities.

There is no assurance or guarantee that the investment objective of the scheme will be achieved.

Portfolio Action

• Given the above outlook we intend to maintain the average maturity at the higher end of the indicated band.

• The focus is to enhance the portfolio yield while maintaining the liquidity and maturity of the portfolio in theindicated band.

• We intend to maintain the modified duration in the range of 0.60 – 1.00 in August 2018.

Asset Allocation as on , 201831st July

Debentures and Bonds 89.36%

Commercial Paper (CP)/Certificate of Deposits (CD) 7.72%

Net Current Assets 2.55%

CBLO & Term Deposits & Rev.Repo 0.37%

Debt Market Outlook

• Inadequate OMO announcements in the last quarter dashed market hopes for yield corrections. However,

recent correction in crude prices and CPI data beating market estimates triggered a rally in the yields.

• The benchmark 10-yr gilt started the month at 7.91% and ended at 7.77% while hitting an intra-month low

of 7.75%. We expect its levels to remain within 7.70-7.90% unless there are any material changes in oil prices,

inflation, government finances and currency.

• Long term bond yields are likely to remain range bound and will be guided largely by external factors such as

crude prices. We continue to remain bearish on SDL spreads.

• At its bi-monthly monetary policy announcement on Aug 1, 2018, RBI MPC hiked rates by 25 bps while

maintaining a neutral stance. Since the yield curve had already priced in 1 or 2 hikes, the hike did not impact

the markets adversely.

• We are in a range trading market and therefore we will keep trading the same with small exposures from time

to time.

• Going forward, we shall continue to monitor market developments closely and maintain conservative

portfolio durations. Our portfolio construct shall endeavour to minimize losses due to volatility.


(^) Fully or Party blocked against Interest Rate Swap (IRS)

Particulars 31 Jul 2018

Avg. Maturity (in yrs) 1.00

Duration 0.84

Yield (in %) 9.20 8.98

30 Jun 2018

0.97

0.83

Macaulay Duration 0.91 0.90

U P Power Corporation Ltd (Guaranteed By UP State Government)(^) FITCH IND AA(SO) 8.13%

Bank Of Baroda (^) CARE AA 7.35%

S D Corporation Pvt. Ltd. ( DSRA Guarantee from Shapoorji Pallonji

and Company Private Limited) CARE AA+(SO) 6.75%

Piramal Enterprises Ltd. ICRA AA 5.64%

Manappuram Finance Ltd.(^) ICRA AA- 5.19%

Rent A Device Trust ( ) ICRA AAA(SO) 4.79%

Sarvoday Advisory Services Pvt. Ltd. ( Secured by

Equity shares of JSW Energy Ltd. and JSW Steel Ltd. )

BRICKWORKBWR A(SO) 4.34%

SVL Ltd ( Guaranteed by Shriram Transport Finance ) ICRA AA(SO) 4.16%

Edelweiss Commodities Services Ltd. ( Put options on ECL Finance)(^) ICRA AA 4.11%

Dewan Housing Finance Corporation Ltd. CARE AAA 3.73%

21
















31st July 2018.

`

`




To know more




Disclaimer

Kotak Low Duration Fund


An open ended lowduration debt scheme investing in instruments suchthat the Macaulay duration of the portfolio isbetween 6 months and 12 months.

The primary objective of the Scheme is togenerate income through investment primarily inlow duration debt & money market securities. Thereis no assurance or guarantee that the investmentobjective of the scheme will be achieved.


22

Kotak Low Duration Fund* Performance (%) as on 31st July, 2018


^Past performance may or may not be sustained in future. *All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. Classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of SchemeBenchmark. ## Name of Additional Benchmark. Please refer page no. 29 for top 3 and bottom 3 schemes managed by Mr. DeepakAgrawal.

`

We are comparing the performances of the funds with the total return Index.

With Effect from 1st June 2018, the Benchmark is changed to Nifty Low Duration Debt Index from Crisil Liquid Fund.$

Since Inception 7.72 8.53 6.41 21,679 23,446 19,087

Last 1 Year 6.56 6.58 5.69 10,656 10,658 10,569

Last 3 Years 7.95 7.48 6.57 12,582 12,419 12,106

Last 5 Years 8.54 8.43 7.36 15,066 14,995 14,268

Scheme Inception date is 06/03/2008. Mr. Deepak Agrawal has been managing the fund since 01/02/2015.

Rating Profile as on 31st July, 2018

Kotak Low Duration Fund

Current Value of Standard Investmentof 10000 in the`

CRISIL 1 YearT-Bill Index

## (%)

Nifty LowDuration

# (%)Debt Index

$

SchemeReturns(%) ^

Date

Scheme( )`

Benchmark# ( )`

AdditionalBenchmark ## ( )`

Kotak Low Duration Fund(formerly known as )“PineBridge India Short Term Fund”

31 July, 2018st


• Regular income over short term

• Income by focusing on low duration securities


Investors understand that their principal willbe at moderate risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

68.52

17.89

10.67

2.55

0.37

A1, AA+, AA+(SO), AA, AA(SO), IND AA(SO),AA-, AA- (SO), BWR AA-(SO)

A1+, A1+(SO), AAA, AAA(SO), IND AAA

A+, A+(SO), A, BWR A(SO)

Net Current Assets

CBLO & Term Deposits & Rev.Repo

Kotak Credit Risk31 July, 2018st

Scheme Facts

Structure



Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM


2018

Launch Date

Average Maturity

An open ended debt scheme predominantlyinvesting in AA and below rated corporatebonds (Excluding AA+ rated corporate bonds)

Annual Dividend Direct 15.3373

Monthly Dividend Direct 10.5700

Quarterly Dividend Direct 10.2363

Weekly Dividend Direct 10.4354


Annual Dividend 10.4534

Monthly Dividend 10.3469


Weekly Dividend 10.0113

Growth 19.4035

5000/-

1.31%

9.71%

1.77 years



`

`

5,286.32 crs

`

` `

5,246.40 crs

`

`

`

`

`

`

`

`

`

`

11 May 2010


2.29 years

th

CRISIL Composite AA Short Term Bond Index


Load Structure

Entry Load:Exit Load:

Nil) For redemption / switch out of upto

10% of the initial investment amount (limit)purchased or switched in within 1 year from thedate of allotment: Nil.ii) If units redeemed or switched out are inexcess of the limit within 1 year from the date ofallotment: 1%.iii) If units are redeemed or switched out on orafter 1 year from the date of allotment: Nil.iv) Any exit load charged (net off Service Tax, ifany) shall be credited back to the respectiveScheme. Units issued on reinvestment ofdividends shall not be subject to entry and exitload.

i

About Kotak Credit Risk

�

�

�

�

�

The investment objective of Kotak Credit Risk 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.

The scheme invests in securities offering high accrual by taking on a marginally higher credit risk.

The fund manager may also seek to capitalize on opportunity of potential credit rating upgrades from time to

time.

The scheme is suitable for investors with a time horizon of 15 months plus.

Portfolio Action


• The endeavour is to enhance the portfolio yield by either selling low yielding assets to buy high yielding assetsor by utilising the cash to acquire high yielding assets.

• We intend to maintain the modified duration in the range of 1.40 – 2.25 in August 2018.

Asset Allocation as on 31st July, 2018




Net Current Assets -0.24%

Debt Market Outlook


• Inadequate OMO announcements in the last quarter dashed market hopes for yield corrections. However,recent correction in crude prices and CPI data beating market estimates triggered a rally in the yields.

• The benchmark 10-yr gilt started the month at 7.91% and ended at 7.77% while hitting an intra-month lowof 7.75%. We expect its levels to remain within 7.70-7.90% unless there are any material changes in oil prices,inflation, government finances and currency.

• Long term bond yields are likely to remain range bound and will be guided largely by external factors such ascrude prices. We continue to remain bearish on SDL spreads.

• At its bi-monthly monetary policy announcement on Aug 1, 2018, RBI MPC hiked rates by 25 bps whilemaintaining a neutral stance. Since the yield curve had already priced in 1 or 2 hikes, the hike did not impactthe markets adversely.

• We are in a range trading market and therefore we will keep trading the same with small exposures from timeto time.

• Going forward, we shall continue to monitor market developments closely and maintain conservativeportfolio durations. Our portfolio construct shall endeavour to minimize losses due to volatility.



Duration 1.77 1.66

Yield (in %) 9.71 9.75

30 Jun 2018

3.02


U P Power Corporation Ltd ( Guaranteed By UP State Government) CRISIL A+(SO) 8.33%

Karelides Traders Pvt. Ltd. ( backed by unconditional and irrevocable

undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd) ICRA AA-(SO) 6.42%

Andhra Bank CARE A+ 4.72%

Sarvoday Advisory Services Pvt. Ltd. (Secured by Equity

shares of JSW Energy Ltd. and JSW Steel Ltd.)

BRICKWORK

4.00%

Reliance Jio Infocomm Ltd. CRISIL AAA 3.81%

Talwandi Sabo Power Ltd. (Guaranteed by Vedanta Ltd) CRISIL AA(SO) 3.78%

Suhani Trading and Investment Consultants Pvt Ltd (Secured by Equity

shares of Future Ratails Ltd & Future Lifestyle Fashions Ltd.)

BRICKWORK

3.76%

Aasan Corporate Solutions Pvt. Ltd. (Guaranteed by a

Piramal Group Company) ICRA AA-(SO) 3.50%

HPCL Mittal Energy Ltd. ICRA AA 3.17%

Muthoot Finance Ltd. CRISIL AA 2.75%

BWR A(SO)

BWR A+(SO)

23

31 July, 2018st
















31st July 2018.

`

`




To know more


Visit - assetmanagement.kotak.comEmail - [email protected]

Disclaimer

Kotak Credit Risk


An open ended debt scheme

predominantly investing in AA and below rated

corporate bonds (Excluding AA+ rated corporate

bonds) 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. There is no assurance that

or guarantee that the investment objective of the

scheme will be achieved.


Kotak Credit Risk Fund - Growth *Performance (%) as on 31st July, 2018



`


^^Kotak Income Opportunities Fund is renamed as Kotak Credit Risk Fund with effect from 1st June 2018.

With Effect from 1st June 2018, the Benchmark is changed to CRISIL Composite AA Short Term Bond Index from Crisil Short TermBond Fund Index.

$

Since Inception 8.39 8.97 6.68 19,404 20,280 17,029

Last 1 Year 5.31 6.47 5.69 10,531 10,647 10,569

Last 3 Years 8.05 8.54 6.57 12,619 12,790 12,106

Last 5 Years 9.05 9.59 7.36 15,424 15,809 14,268



Kotak Credit Risk Fund - Growth^^


CRISIL 1Year T-Bill

Index## (%)

Crisil CompositeTerm

BondFundIndex # (%)

AAShort

$

SchemeReturns(%) ^

Date

Scheme( )`

Benchmark# ( )`


Kotak Credit Risk


• Income over a medium term horizon

• Investment in debt & money market securities


Investors understand that their principal willbe at moderately low risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

53.70

29.59

15.11

0.94

0.65

0.25

-0.24

AA+, AA+(SO), AA, AA(SO), BWR AA, IND AA, INDAA(SO), AA-, AA-(SO), BWR AA-(SO), IND AA-

A+, A+(SO), BWR A+, BWR A+(SO), A, BWR A(SO)

A1+, A1+(SO), AAA

Unrated

BBB


Net Current Assets

24

Kotak Medium Term Fund31 July, 2018st

Scheme Facts

Structure

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM



NAV (as on 2018)

2018

31st July

Average Maturity

An open ended medium term debt schemeinvesting in instruments such that theMacaulay duration of the portfolio is between3 years and 4 years


Quarterly Dividend Direct 10.7326

Annual Dividend 10.6448

Annual Dividend Direct 15.2182

Growth 14.5814


21st March, 2014

9.60%

2.24 years



`

` `

` `

crs4,652.56

`4,671.24 crs

`

`

`

`

`

`



1.80%

2.96 years


Nifty Medium Duration Index

Load Structure

Entry Load:

Exit Load:

Nil

i) For redemption / switch out ofupto 15% of the initial investment amount(limit) purchased or switched in within 18months from the date of allotment: Nil.

ii) If units redeemed or switched out are inexcess of the limit within 18 months from thedate of allotment: 2%.

iii) If units are redeemed or switched out on orafter 18 months from the date of allotment:Nil.

iv) Any exit load charged (net off Service Tax ifany) shall be credited back to the respectiveScheme. Units issued on reinvestment ofdividends shall not be subject to entry and exitload.


Asset Allocation as on , 201831st July



Unrated 0.56%

Government Dated Securities 0.32%



About Kotak Medium Term Plan

�

�

�

�

�

Kotak Medium Term Fund, an open-ended debt scheme.

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.

The fund has an average maturity floor of around 3 years and a ceiling of around 7 years.

As a result, the fund occupies a mid-segment space between the long duration and the short duration bonds.

Likewise, the fund's merits also tend to be a balance of the long term and the short term bond funds.

The fund operates largely on a Hold-Till-Maturity (HTM) strategy.

Portfolio Action


• The endeavour is to enhance the portfolio yield by either selling low yield assets or buying high yielding assetsby utilising the cash.

• We intend to maintain a modified duration in the range of 2.00 – 2.40 in August 2018.

Debt Market Outlook












to time.





Duration 2.24

Yield (in %) 9.60

30 Jun 2018

3.17

2.15

9.69


Karelides Traders Pvt. Ltd. ( backed by unconditional and irrevocableundertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA-(SO) 6.64%

Reliance Jio Infocomm Ltd. CRISIL AAA 6.23%

Punjab National Bank FITCH IND A+ 5.64%

Edelweiss Commodities Services Ltd. ( Put options on ECL Finance) ICRA AA 5.20%

U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 5.09%

Punjab & Sind Bank ICRA A+ 3.87%

HPCL Mittal Energy Ltd. ICRA AA 3.75%

U P Power Corporation Ltd ( Guaranteed By UP State Government ) CRISIL A+(SO) 3.66%

PNB Housing Finance Ltd. CARE AAA 3.54%

Sikka Ports & Terminals Ltd. ( Mukesh Ambani Group ) CRISIL AAA 3.48%

25
















31st July 2018.

`

`




To know more




Disclaimer

Kotak Medium Term Fund

Investment objective:

An open endedmedium term debt scheme investing ininstruments such that the Macaulay durationof the portfolio is between 3 years and 4 years.

of the scheme is togenerate regular income and capitalappreciation by investing in a portfolio ofmedium term debt and money marketinstruments. There is no assurance orguarantee that the investment objective of thescheme will be achieved.


Kotak Medium Term Fund *Performance (%) as on 31st July, 2018



`


With Effect from 1st June 2018, the Benchmark is changed to Nifty Medium Duration Index from Crisil Composite Bond FundIndex.

$




CRISIL 10 YRGilt Index## (%)

NiftyMediumDuration

Index # (%)$

SchemeReturns(%) ^

Date

Scheme( )`

Benchmark# ( )`




• Income over a medium term investment horizon

• Investment in debt, government securities & moneymarket instruments with a portfolio weightedaverage maturity between 3-7 years


Investors understand that their principal willbe at moderate risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

31 July, 2018st

Since Inception 9.03 8.47 7.68 14,581 14,262 13,814

Last 1 Year 4.69 2.85 -2.90 10,469 10,285 9,710

Last 3 Years 7.99 7.31 6.01 12,598 12,361 11,916


The scheme has been in existence for less than 5 years.

49.34

25.62

20.2

2.77

1.63

0.32

0.12

AA+, AA+(SO), AA, AA(SO), BWR AA, IND AA, INDAA(SO), AA-, AA-(SO), BWR AA-(SO), IND AA-

A1+, AAA, AAA(SO), IND AAA, SOV

A+, A+(SO), BWR A+, BWR A+(SO), IND A+

Net Current Assets

Unrated

BBB


26

Kotak Bond Short Term31 July, 2018st

Scheme Facts

Structure

Month end AUM* (as on 31st July 2018)


Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM


Average Maturity

An open ended short term debt schemeinvesting in instruments such that theMacaulay duration of the portfolio is between1 year and 3 years

8,377.39 crs

8,416.65 crs

Dividend 10.1195


Half Yearly Dividend 11.9969

Half Yearly Dividend Direct 12.1694

Growth 32.8938


2nd May, 2002

(a) Dividend Re-investment & Growth -5000 & above (b) Dividend Payout (Monthly

Dividend) - 50,000& above


1.20%

8.43%

1.74 years

2.04 years


^ as on 31st July, 2018. Source: ICRA MFIExplorer. Standard Deviation is calculated onAnnualised basis using 3 years history ofmonthly returns.

`

`

`

`

` `


`

`

`

`

`

`

Nifty Short Duration Index

Load Structure

Entry Load:

Exit Load:

Nil

Nil

About Kotak Bond Short Term

�

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The investment objective of Kotak Bond Short Term is to provide reasonable returns and high level of liquidity by

investing in debt and money market instruments of different maturities so as to spread the risk across different

kind of issuers in the debt market.

The scheme is suitable for investors who may generally want to position themselves at the shorter end of the yield

curve with a time horizon of 6 months and more.

Portfolio Action

• As on July 2018 end, the portfolio duration stood at 1.74 years; we have maintained duration of the fund in

the middle of the matrix.

• Currently, ~58% of the portfolio has a residual maturity of less than 2 years. Of the balance, ~22% is invested

in 2–5 years corporate bonds and ~20% is invested majorly in 3-5 yr central and state government securities.

• 100% of the portfolio is invested in government securities and in AAA or equivalent rated securities.

• We intend to run the duration of the fund in the band of 1.5 - 1.9 years in the month of August 2018.

Asset Allocation as on 31st July, 2018


Government Dated Securities 20.29%



Debt Market Outlook












to time.





Duration 1.74

Yield (in %) 8.43 8

30 Jun 2018


2.03

1.72

.47

27

31 July, 2018st
















31st July 2018.

`

`




To know more




Disclaimer

Kotak Bond Short Term is


An open ended short

term debt scheme. The

investment objective of the Scheme 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 instrume nts such as treasury 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 Schememay invest in the call

money/termmoney market in terms of RBI guidelines

in this respect. To reduce the risk of the portfolio, the

Scheme 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 Scheme may invest in offshore

securities in the manner allowed by SEBI/RBI,

provided such investments are in conformity with the

investment objective of the Scheme and the

prevailing guidelines and Regulations.There is no

assurance that the investment objective of the

Scheme will be realised.

Mutual Fund investments are subject to market

risks, read all scheme related documents

carefully. Scheme Information Document (SID)

and Statement of Additional Information (SAI)

available on mutualfund.kotak.com

Kotak Bond Short Term

Kotak Bond Short Term* Performance (%) as on 31st July, 2018



`


With Effect from 1st June 2018, the Benchmark is changed to Nifty Short Duration Index from Crisil Short Term Bond Fund Index.$

Since Inception 7.60 7.81 5.95 32,894 33,963 25,605

Last 1 Year 4.32 5.02 5.69 10,432 10,502 10,569

Last 3 Years 7.07 7.42 6.57 12,277 12,398 12,106

Last 5 Years 8.16 8.56 7.36 14,803 15,082 14,268


Kotak Bond Short Term - Growth


CRISIL 1Year

T-Bill Index## (%)

Nifty ShortDuration

Index(%)

$

#

SchemeReturns(%) ^

Date

Scheme( )`

Benchmark# ( )`



• Income over a medium term horizon

• Investment in debt & money market securities


Investors understand that their principal willbe at moderately low risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

ModeratelyRating Profile as on 31st July, 2018


Power Finance Corporation Ltd. CRISIL AAA 10.08%

6.84% Central Government SOV 9.39%

HDFC Ltd. CRISIL AAA 8.79%

Nabha Power Ltd. ( backed by unconditional and

irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 7.61%

LIC Housing Finance Ltd. CRISIL AAA 5.88%

Small Industries Development Bank Of India CARE AAA 4.72%

Kotak Mahindra Prime Ltd. CRISIL AAA 4.37%

Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 4.37%

Indiabulls Housing Finance Ltd. CARE AAA 3.76%

8.21% State Government SOV 3.08%

96.68

3.28

0.04

AAA, AAA(SO), IND AAA, IND AAA(SO), SOV

Net Current Assets


28

Top 3 Funds Managed by Mr. Abhishek Bisen**

Kotak GlobalEmergingMarket Fund -Growth ()^ 15.38 6.21 5.27 16,710 4.84 26/09/07

MSCIEmergingMarket index # () 8.79 8.86 5.21 15,876 4.35

Nifty50 TRI## () 14.20 11.42 16.03 26,138 9.26

Kotak Gold Fund - Growth () ^ 3.24 4.72 -0.81 12,435 3.01 25/03/11

Price of Gold # () 3.02 6.17 0.82 14,075 4.76

CRISIL 10 Year Gilt ## () -2.90 6.01 6.49 15,591 6.22

Kotak DebtHybrid ()^ 2.31 8.19 10.83 29,885 7.75 02/12/03

CRISILHybrid85+15 -Conservative Index# () 3.16 8.33 10.29 31,781 8.20

CRISIL10 YearGilt ## () -2.90 6.01 6.49 21,129 5.23

29

Current Value ofInvestment of

10000 in the`

Other Mr. Pankaj Tibrewal#Funds managed by

Other Funds managed by Mr. Harish Krishnan$

Annexure - Returns(Fund Manager wise)

1 Year 3 Years 5 Years

Scheme Name Absolute Returns (%) CAGR Returns (%) CAGR Returns (%)

Inceptiondate

Since inception

CAGR

Returns(%)

Top 3 Funds Managed by Mr. Deepak Agarwal*

Top 3 Funds Managed by Mr. Deepak Gupta^

Bottom 3 Funds Managed by Mr. Deepak Gupta^^

Bottom 3 Funds Managed by Mr. Deepak Agarwal*

Kotak Smallcap Fund - Growth () ^ 0.93 10.80 25.94 74,690 16.14 24/02/05

NIFTY Smallcap 50 TRI # () -12.09 6.28 23.67 NA NA

Nifty 50 TRI ## () 14.20 11.42 16.03 65,521 15.01

Kotak Bluechip Fund () ^ 9.14 9.24 17.52 316,862 19.28 29/12/98

Nifty 50 TRI # () 14.20 11.42 16.03 171,656 15.61

S&P BSE SENSEX TRI ## () 16.97 11.61 15.80 144,966 14.62

KotakNV20 ETF () ^ 20.22 NA NA 15,928 19.08 01/12/15

Nifty50 Value20 TRI# () 20.79 NA NA 15,237 17.12

Nifty50 TRI ## () 14.20 NA NA 14,804 15.85

Kotak USEquityFund -Growth () ^ 18.53 11.11 NA 16,145 10.94 20/12/13

S&P500 International Total ReturnNet Index# () 24.00 15.07 NA 18,815 14.68

Nifty50 TRI## () 14.20 11.42 NA 19,192 15.18

Kotak SensexETF () ^ 16.63 11.29 15.37 26,787 10.19 06/06/08

S&PBSESENSEX TRI# () 16.97 11.61 15.80 28,020 10.68

Nifty50 TRI## () 14.20 11.42 16.03 27,776 10.58

Kotak World Gold Fund - Growth () ^ -6.47 10.88 -2.72 8,479 -1.61 06/06/08

Financial Times Gold Mines Total - Price # () -2.77 20.24 0.34 8,108 -2.04

Nifty 50 TRI ## () 14.20 11.42 16.03 27,776 10.58

Kotak Asset Allocator Fund - Growth () ^ 3.69 8.71 16.68 77,162 15.73 09/08/04

NIFTY 50 Hybrid Composite Debt 50:50 Index # () 7.86 9.46 12.40 50,727 12.31

S&P BSE SENSEX TRI ## () 16.97 11.61 15.80 84,386 16.48

Kotak PSU Bank ETF () ^ -14.76 -2.23 6.73 13,111 2.56 08/11/07

Nifty PSU Bank TRI # () -14.41 -1.74 7.18 13,080 2.53

Nifty 50 TRI ## () 14.20 11.42 16.03 22,649 7.91

Kotak Money Market Scheme - Growth () ^ 6.96 7.30 8.09 29,118 7.36 14/07/03

NIFTY Money Market Index # () 6.76 7.29 8.25 30,251 7.63

CRISIL 1 Year TBill ## () 5.69 6.57 7.36 23,780 5.92

Kotak Liquid - Regular Plan - Growth () ^ 6.96 7.25 8.06 28,821 7.44 04/11/03

NIFTY Liquid Index # () 6.82 7.06 7.96 28,880 7.46


Kotak Savings Fund - Growth () ^ 6.49 7.42 8.32 28,420 7.76 13/08/04

NIFTY Ultra Short Duration Debt Index # () 7.21 7.56 8.46 30,035 8.19


Kotak Corporate Bond Fund - Growth () ^ 6.31 7.77 8.63 23,336 8.11 21/09/07

CRISIL Corporate Bond Fund Index # () 3.26 8.14 9.39 26,508 9.39


Kotak Banking and PSU Debt Fund - Growth () ^ 4.41 7.46 8.70 39,705 7.29 29/12/98

CRISIL Banking and PSU Debt Index # () 4.96 7.92 9.15 NA NA


Kotak Dynamic Bond Fund - Growth () ^ 3.46 8.41 8.80 22,507 8.29 26/05/08

NIFTY Composite Debt Index # () 1.40 7.03 8.42 22,002 8.05


30

Current Value ofInvestment of

10000 in the`

Annexure - Returns(Fund Manager wise)

Scheme Name Absolute Returns (%) CAGR Returns (%) CAGR Returns (%)

Inceptiondate

Since inception

CAGR

Returns

Bottom 3 Funds Managed by Mr. Abhishek Bisen**

1 Year 3 Years 5 Years

Kotak Bond - Growth () ^ -0.70 6.05 7.23 47,697 8.72 25/11/99

NIFTY Medium to Long Duration Debt Index # () 0.70 6.88 8.30 NA NA

CRISIL 10 Year Gilt ## () -2.90 6.01 6.49 NA NA

Kotak Gilt - Investment - Regular - Growth () ^ -0.93 6.95 7.82 58,522 9.43 29/12/98

NIFTY All Duration G-Sec Index # () -0.29 6.45 7.36 NA NA

CRISIL 10 Year Gilt ## () -2.90 6.01 6.49 NA NA

Kotak GoldETF ()^ 2.01 5.03 -0.28 29,581 10.34 27/07/07

Priceof Gold# () 3.02 6.17 0.82 33,641 11.64

CRISIL10 YearGilt ## () -2.90 6.01 6.49 19,636 6.32

#

$

^^

*

**

Mr. Pankaj Tibrewal manages 3 funds of Kotak Mutual fund.

Mr. Harish Krishnan manages 2 funds of Kotak Mutual fund.

Mr. Deepak Gupta manages 13 funds of Kotak Mutual fund.

Mr. Deepak Agrawal manages 10 & All FMPs funds of Kotak Mutual fund.

Mr. Abhishek Bisen manages 9 funds of Kotak Mutual fund.

Kotak Smallcap Fund - Growth (Erstwhile Kotak Midcap), *Name of the Benchmark - Nifty Midcap 100 TRI, Scheme Inception date is 24/02/2005. Mr. Pankaj Tibrewal has been managing

the fund since 21/01/2010.

Kotak NV20 ETF - *Name of the Benchmark Nifty 50 Value 20 TRI, Scheme Inception date is 01/12/2015. Mr. Deepak Gupta has been managing the fund since 08/12/2015.

Kotak US Equity Fund - Growth, *Name of the Benchmark - S&P 500 International Total Return Net Index, Scheme Inception date is 20/12/2013. Mr. Deepak Gupta has been managing the

fund since 01/02/2015.

Kotak Asset Allocator Fund - Growth, *Name of the Benchmark - NIFTY 50 Hybrid Composite Debt 50:50 Index, Scheme Inception date is 09/08/2004. Mr. Deepak Gupta has been

managing the fund since 01/09/2008.

Kotak World Gold Fund - Growth, *Name of the Benchmark - Financial Times Gold Mines Total - Price, Scheme Inception date is 06/06/2008. Mr. Deepak Gupta has been managing the


Kotak PSU Bank ETF, *Name of the Benchmark - Nifty PSU Bank TRI , Scheme Inception date is 08/11/2007. Mr. Deepak Gupta has been managing the fund since 25/02/2011.

Kotak Global Emerging Market Fund - Growth, *Name of the Benchmark - MSCI Emerging Market index, Scheme Inception date is 26/09/2007. Mr. Deepak Gupta has been managing the

fund since 04/04/2011(Dedicated fund manager for overseas investment) and Mr. Abhishek Bisen has been managing the fund since 04/04/2011.

Kotak Gold Fund - Growth, *Name of the Benchmark - Price of Gold, Scheme Inception date is 25/03/2011. Mr. Abhishek Bisen has been managing the fund since 04/03/2011.

Kotak Debt Hybrid - Growth (Erstwhile Kotak Monthly Income Plan), *Name of the Benchmark - CRISIL Hybrid 85+15 - Conservative Index, Scheme Inception date is 02/12/2003. Mr.

Abhishek Bisen has been managing the fund since 01/04/2008. Mr. Devender Singhal has been managing the fund since 25/08/2015.

Kotak Bond - Regular Plan - Growth, *Name of the Benchmark - NIFTY Medium to Long Duration Debt Index, Scheme Inception date is 25/11/1999. Mr. Abhishek Bisen has been


Kotak Gilt - Investment - Regular - Growth, *Name of the Benchmark -NIFTY All Duration G-Sec Index, Scheme Inception date is 29/12/1998. Mr. Abhishek Bisen has been managing the


Different plans have different expense structure. The performance details provided herein are of regular plan

^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV.Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Source: ICRA MFI Explorer.

Kotak Bluechip Fund - Dividend (Erstwhile Kotak 50), *Name of the Benchmark - Nifty 50 TRI, Scheme Inception date is 29/12/1998. Mr. Harish Krishnan has been managing the fund since

15/11/2013.

Kotak Money Market Scheme - Growth (Erstwhile Floater - Short Term), *Name of the Benchmark - NIFTY Money Market Index, Scheme Inception date is 14/07/2003. Mr. Deepak Agrawal

has been managing the fund since 01/11/2006.

Kotak Liquid - Regular Plan - Growth, *Name of the Benchmark - NIFTY Liquid Index, Scheme Inception date is 04/11/2003. Mr. Deepak Agrawal has been managing the fund since

01/05/2007.

Kotak Savings Fund - Growth (Erstwhile Kotak Treasury Advantage Fund), *Name of the Benchmark - NIFTY Ultra Short Duration Debt Index, Scheme Inception date is 13/08/2004. Mr.

Deepak Agrawal has been managing the fund since 01/04/2008.

Kotak Corporate Bond Fund - Growth, *Name of the Benchmark - CRISIL Corporate Bond Fund Index, Scheme Inception date is 21/09/2007. Mr. Deepak Agrawal has been managing the


Kotak Banking and PSU Debt Fund - Growth, *Name of the Benchmark - CRISIL Banking and PSU Debt Index, Scheme Inception date is 29/12/1998. Mr. Deepak Agrawal has been


Kotak Dynamic Bond Fund - Growth (Erstwhile Flexi Debt Fund), *Name of the Benchmark - Nifty Composite Debt Index, Scheme Inception date is 26/05/2008. Mr. Deepak Agrawal has

been managing the fund since 25/11/2012.

Kotak Sensex ETF, *Name of the Benchmark - S&P BSE SENSEX TRI, Scheme Inception date is 06/06/2008. Mr. Deepak Gupta has been managing the fund since 25/02/2011.

Kotak Gold ETF, *Name of the Benchmark - Price of Gold, Scheme Inception date is 27/07/2007. Mr. Abhishek Bisen has been managing the fund since 01/08/2008.

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