Kotak Mutual Fund

Products
March 2007

Think Investments. Think Kotak.

Contents
Key Product Features Highlighted
– Positioning

– Portfolio Strategy
– Performance

Page 2
Scheme Matrix
(click on the hyperlinks for details)

Equity Funds
Kotak 30 Kotak Opportunities Kotak Mid-Cap Kotak Global

Kotak Contra Kotak MNC Kotak Tech Kotak Balance

Kotak Equity FOF Kotak Tax Saver Kotak Lifestyle

Debt Funds

Kotak Income Plus Kotak Bond Kotak Bond Regular

Kotak Floater ST Kotak Floater LT Kotak Flexi Debt

Kotak Bond ST Kotak Gilt Investment Kotak Gilt Savings

Kotak Liquid Kotak Cash Plus

Kotak Mutual At A Glance Risk Return Stack Up

Page 3
Kotak 30
An Open-ended Equity Growth Scheme

Fund Positioning
– A large cap diversified scheme
– Scheme straddles the biggest segment of the market
 Large cap segment represents the largest market
capitalization
– Some flavour of midcap stocks: Exposure to midcap
stocks maintained below 20% of NAV
Portfolio Strategy
– Bottom up stock selection
– We back our best ideas
– Fairly balanced sector exposure
MENU Page 4
Kotak 30
An Open-ended Equity Growth Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak 30 * S&P CNX Nifty

45 40.8
40 37.6
35
29.7 30.1
30 27.4
25
19.6
20
15 11.8
9.4
10
5
0
1 ye ar 3 ye ars 5 ye ars Since
allo tme nt
(De c 29, 1998)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the
future. Returns assume reinvestment of the tax free dividends. Allotment Date: 29-12-98.

MENU Page 5
Kotak Opportunities
An Open-ended Equity Growth Scheme

Fund Positioning
– A Diversified Aggressive Equity Scheme

Portfolio Strategy
– Flexible Investment Style:
 Flexibility for large exposure in promising sectors
 Mix of Large cap and Mid cap stocks
 Strategic use of debt/ money market securities of upto
35%

MENU Page 6
Kotak Opportunities
An Open-ended Equity Growth Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Oppo rtunitie s S&P CNX 500

60.0
49.5
50.0

40.0 37.4

30.0

20.0
9.8 8.4
10.0

0.0
Last 1 ye ar Since Allo tme nt (
Se pte mbe r 09, 2004)

Returns < 1 yr: Absolute. Past performance may or may not be sustained in the future.
Allotment Date: 09-09-04. Returns assume reinvestment of the tax free dividends.

MENU Page 7
Kotak Mid-Cap
An Open Ended Equity Growth Scheme

Fund Positioning
– Focus on mid-cap stocks that are likely to be tomorrow's large cap
– Aims at capturing the valuation gains, derived from understanding the
Business, Management & Valuation of the company

Portfolio Strategy
– The portfolio would be diversified across sectors
– Bottom up approach in process of stock selection
– Flexible investment style
– 65% to 95% in mid-cap stocks
– 0% to 30% other than mid-cap stocks
– 5% to 35% in debt & money market instruments
MENU Page 8
Kotak Mid-Cap
An Open Ended Equity Growth Scheme

Pe rfo rmanc e as o n Marc h 30, 2007

Ko tak Midc ap CNX Midc ap

50.0 45.1
40.0 35.8

30.0
20.0
10.0 2.9
0.0
-1.6 Las t 1 ye ar S inc e Allo tme nt (Fe b 24,
-10.0
2005)

Returns < 1 yr: Absolute. Past performance may or may not be sustained in the future. Allotment
Date: 24-02-05.

MENU Page 9
Kotak Tax Saver Scheme
An Open- ended Equity Growth Scheme

Fund Positioning
– An ELSS Scheme, allowing investors twin advantage of capital
appreciation and tax savings

Portfolio Strategy
– The portfolio diversified across sectors
– Bottom up approach in process of stock selection

MENU Page 10
Kotak Lifestyle Scheme An
Open- ended Equity Growth Scheme

Fund Positioning
– Focus on companies which are likely to benefit by changing
lifestyle & rising consumerism in India.
– Aims at capturing valuation gains derived from emerging
lifestyle companies due to changing lifestyles of people.

Portfolio Strategy
– The portfolio diversified across sectors
– Bottom up approach in process of stock selection

MENU Page 11
Kotak Global India
An Open- ended Equity Growth Scheme

Fund Positioning
– Focus on Globally Competitive Indian Companies that are
looking at International market for growth
– Aims at capturing the valuation gains, derived from
resurgence in manufacturing sector and inherent strength in
service sector

Portfolio Strategy
– The portfolio diversified across sectors
– Bottom up approach in process of stock selection

MENU Page 12
Kotak Global India
An Open- ended Equity Growth Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Glo bal India S&P CNX 500

65.0
55.0
45.0 39.1
29.7 34.7
35.0
25.0 14.4
15.0 7.0 8.4
5.0
Last 1 ye ar Last 3 ye ars Since Allo tme nt
( Jan 30, 2004)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the
future. Allotment Date: 30-01-04

MENU Page 13
Kotak Contra
An Open- ended Equity Growth Scheme

Fund Positioning
– Follows contrarian style of investing

– Favours bargain hunting over the momentum approach to stock

picking

Portfolio Strategy
– Invests in [1] companies, which are fundamentally sound and
are having long-term growth potential, but are currently
undervalued, [2] Companies / sectors whose changing
fundamentals are not recognized by markets. [3] Companies /
Sectors whose long-term potential is partly or wholly
unrecognized by markets.

MENU Page 14
Kotak Contra
An Open- ended Equity Growth Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Co ntra S&P CNX 500

55.0

45.0

35.0 30.1

25.0 19.1

15.0
8.4
5.0 0.8

-5.0 Last 1 ye ar Since Allo tme nt ( July 27,

2005)

Returns < 1 yr: Absolute. Past performance may or may not be sustained in the future.
Allotment Date: 27-07-05. Returns assume reinvestment of the tax free dividends.

MENU Page 15
Kotak MNC
An Open-ended Equity Growth Scheme

Fund Positioning
– A scheme diversified across sectors but focuses only on
Multinational Companies

Portfolio Strategy
– Bottom up stock selection process
– Aggressive allocation across select stocks

MENU Page 16
Kotak MNC
An Open-ended Equity Growth Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak MNC * BSE Se nsitive Inde x S&P CNX Nifty

40
35 33.3 32.0 27.4
31.8
29.7 30.2
30
25 15.1
20 15.6 18.2
15.8
15 11.8
10
5
0
-5 Last 1 ye ar Last 3 ye ars Last 5 ye ars Sin ce
Allo tme nt
-10 -8.3 (Apr 04,
-15 2000)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the
future. Allotment Date: 04-04-00. Returns assume reinvestment of the tax free dividends.

MENU Page 17
Kotak Technology
An Open-ended Equity Growth Scheme

Fund Positioning
– A Sector Scheme, focusing on IT companies

Portfolio Strategy
– Portfolio has been kept strictly to IT companies – unlike
competitors
– Strategic use of cash in an endeavor to enhance returns

MENU Page 18
Kotak Technology
An Open-ended Equity Growth Scheme

Pe rfo rman ce as o n March 30, 2007

Ko tak Te ch BSE IT

45.0 41.7
40.0 36.8
35.0 27.7 24.8
30.0
25.0 21.920.4
20.0
15.0
10.0
0.3
5.0 -0.01
0.0
-5.0 Last 1 ye ar Last 3 ye ars Last 5 ye ars Sin ce
Allo tme nt
(April 04,
2000)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in
the future. Allotment Date: 04-04-00.
MENU Page 19
Kotak Balance
An Open-ended Balanced Scheme

Fund Positioning
– A balanced scheme
– Equity exposure maintained between 50% to 70%

Portfolio Strategy
– Diversified equity basket for better risk control
– Mix of large and mid cap stocks

MENU Page 20
Kotak Balance
An Open-ended Balanced Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Balance * Crisil Balance d Fund Inde x

40
35
30 27.6 27.0
25
18.0 18.91 18.7
20
15 10.4
10
5 2.8
0
1 ye ar 3 ye ars 5 ye ars Since
Allo tme nt
(No v 25,
1999)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the
future. In periods where benchmark values were not available, the benchmark returns are not shown.
Allotment Date: 25-11-99.

MENU Page 21
Kotak Equity FOF
An Open-ended Equity Fund of Fund Scheme

Fund Positioning

– Single asset class (equity), multi manager Fund of Funds

–The portfolio invests largely across equity schemes from

multiple fund houses
– The Scheme allows you to invest in the Best of Breed
equity schemes (based on recommendations of Designated
Agency) in India, without the challenges of managing such a
portfolio on your own.

MENU Page 22
Kotak Equity FOF
An Open-ended Equity Fund of Fund Scheme

Portfolio Strategy

– 75% of the portfolio in diversified large cap schemes.

Remaining in aggressive equity schemes
– Use of cash for managing liquidity: Flexibility to hold up to
10% in call money, floaters and other money market
instrument.
– Scheme selection on the basis of parameters like consistency
of performance, risk, corpus etc
– The research function has been outsourced to a Designated
Agency (Kotak Securities)

MENU Page 23
Kotak Equity FOF
An Open-ended Equity Fund of Fund Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Equity FOF S & P CNX Nifty

60

50
39.7 37.7
40

30

20
11.8
10 6.0

0
Last 1 ye ar Since Allo tme nt ( Aug 09,
2004)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the
future. Allotment Date: 09-08-04

MENU Page 24
Kotak Income Plus
An Open Ended Income Scheme

Fund Positioning
– An income scheme, wherein equity component is aimed to
be used as a return enhancer

Portfolio Strategy
– Predominant investments in Debt / Money market securities
– Equity investments are aimed to be used as a tool for return
enhancement
– Debt portion managed comparable to Kotak Bond Short Term
Plan

MENU Page 25
Kotak Income Plus
An Open Ended Income Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Inco me Plus CRISIL MIP Ble nde d Inde x

9 8.2 8.2
8 6.8
7 6.3
5.7
6
5
3.7
4
3
2
1
0
1 ye ar 3 Ye ars Since Allo tme nt (
De c 02, 2003)

Returns < 1 yr: Absolute. Past performance may or may not be sustained in the future. Allotment
Date: 02-12-03.

MENU Page 26
Kotak Bond
An Open Ended Debt Scheme

Fund Positioning
– A long term Income Plan (s)

Plans*
– Regular Plan
– Deposit Plan

*Both Plans share the same portfolio

MENU Page 27
Kotak Bond
An Open Ended Debt Scheme

Portfolio Strategy
– Investments in G.Secs, Corporate Bonds and Money Market
securities
– G.Sec component varies depending on market conditions
– No restriction on maturity of portfolio; however average
portfolio maturity is generally 2 to 6 years

MENU Page 28
 Kotak Bond Regular(Growth)
An Open Ended Debt Scheme

Pe rfo rmance as o n March 30, 2007

De po s it Plan Re g ular Plan Cris il Co mpo s ite Bo nd Inde x

10 8.8
9 6.7
8 6.9 6.9
7 6.2
6 5.2
4.3
5 3.5
4
3
2
1
0
1 ye ar 3 Ye ars 5 Ye ars Since
Allo tme nt
( No v 25,
1999)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the
future. In periods where benchmark values were not available, the benchmark returns are not shown.
Allotment Date: 25-11-99.

MENU Page 29
 Kotak Bond Regular(Growth)
An Open Ended Debt Scheme

Awards won by Kotak Bond Regular*

Kotak Bond Regular won the Lipper Fund awards India – April 2006
(Best Fund over Five years – Bond Indian Rupee – General) 
Kotak Bond Regular won ICRA ONLINE MFR 1 – December 2005
(2nd Best performing Open-Ended Debt/ Income Fund – 3 year category)
Kotak Bond Deposit won ICRA ONLINE MFR 1 - December 2004
(Best performing Open-Ended Debt/ Income Fund – 3 year category)
CNBC India Mutual Fund of the Year Award 2004
(Best performing Open-Ended Debt/ Income Fund – 3 year category)
CNBC India Mutual Fund of the Year Award 2003
(Best performing Open-Ended Debt/ Income Fund – 3 year category)
CNBC India Mutual Fund of the Year Award 2002
(Best performing Open-Ended Debt/ Income Fund – 1 year category)
 CRISIL Best Fund Award 2003
(Best performing Open-Ended Income Fund) 

Past performance is no guarantee of future results. For details on ranking methodology, please refer to the disclaimer. * Previously
Kotak Bond Wholesale MENU Page 30
Kotak Bond Short Term
An Open Ended Debt Scheme

Fund Positioning
– A short term Income Plan

Portfolio Strategy
– Investments in CPs, T Bills, Bonds and Gilts
– Average Portfolio Maturity capped at 3 years
– Dynamic approach to duration management within the
prescribed limits

MENU Page 31
Kotak Bond Short Term
An Open Ended Debt Scheme

Pe rfo rman ce as o n March 30, 2007

Sho rt Te rm Plan Crisil Sho rt - Te rm Bo nd Fund Inde x

8
7.0
7 6.3
6 5.7 5.7
5.2
5 4.2
4
3
2
1
0
1 ye ar 3 Ye ars Since Allo tme nt
( May 02, 2002)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained
in the future. Allotment Date: 02-05-02.

MENU Page 32
 Kotak Bond Short term
An Open Ended Debt Scheme

Awards won by Kotak Bond Short term

Kotak Bond Short term has been awarded ICRA MFR-1– March 2007
(Best open ended bond short term in 3 year for period ending december 31st 2006)

Past performance is no guarantee of future results. For details on ranking methodology, please refer to the disclaimer.
MENU Page 33
Kotak Floater Long Term Scheme
An Open Ended Debt Scheme

Fund Positioning
– Floating Rate (long term) Scheme

Portfolio Strategy
– Investments are in money market and floating rate securities
with an aim to contain interest rate risk
–Higher component of the portfolio is deployed in carry assets so
that they run down to maturity

MENU Page 34
Kotak Floater Long Term Scheme
An Open Ended Debt Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Flo ate r Lo ng Te rm CRISIL Liquid Fund Inde x

8
7.1
7 6.4
6.0
6
5.3
5

3
Last 1 ye ar Since Allo tme nt (Aug 13,
2004)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may not be sustained in the future. In
periods where benchmark values were not available, the benchmark returns are not shown. Allotment
Date: 13-08-04.

MENU Page 35
Kotak Floater Short Term Scheme
An Open Ended Debt Scheme

Fund Positioning
– A Floating Rate (short term) Scheme

Portfolio Strategy
– Investments are predominantly in money market and floating
rate securities
– The entire investments in papers that have outstanding
maturity of less than 1 year; not more than 10% of the portfolio
can be exposed to market risk

MENU Page 36
Kotak Floater Short Term Scheme
An Open Ended Debt Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Flo ate r Sho rt Te rm CRISIL Liquid Fund Inde x

8 7.1
6.4
5.9 5.8
6 5.1 4.9

0
Last 1 ye ar Last 3 ye ars Since Allo tme nt
(July 14, 2003)

Returns < 1 yr: Absolute. Past performance may not be sustained in the future. Allotment Date:
14-07-03.

MENU Page 37
Kotak Cash Plus Scheme
An Open Ended Debt Scheme

Fund Positioning
– An arbitrage scheme

Portfolio Strategy
– To generate income from investments in debt and money
market securities and by availing arbitrage opportunities between
price of spot and derivatives equity markets.

– The scheme will invest in equity, derivatives and debt and

money market instruments as per the investment pattern.

MENU Page 38
Kotak Cash Plus Scheme
An Open Ended Debt Scheme

Pe rformance as on M arch 30, 2007

Kotak Cash Plus CRISIL Liquid Fund Index

9.0 8.3
8.0 7.6

7.0 6.5
5.9
6.0

5.0

4.0

3.0

2.0

1.0

0.0
1 ye ar Since Allotme nt (Sept 29, 2005)

Returns < 1 yr: Absolute. Past performance may or may not be sustained in the future.
Allotment Date: 29-09-05.

MENU Page 39
Kotak Flexi Debt
An Open Ended Debt Scheme

Fund Positioning
– To generate superior returns over cash funds

Portfolio Strategy
– Capitalise on trading opportunities in bond market

– Focus on protecting the downside rather than capturing

additional capital gains
–Enhance returns by increasing the carry on the portfolio
– Focused more on 3- 6 months assets
– No mark to market risk on the portfolio
Page 40
MENU
Kotak Flexi Debt
An Open Ended Debt Scheme

Perfo rmance as o n March 30, 2007

Ko tak Flexi Debt CRISIL Co mpo site Bo nd Index

8 7.6

7 6.7

5
4.0
4 3.7

1
1 year Since Allo tment (Dec 06, 2004)

Returns < 1 yr: Absolute. Past performance may or may not be sustained in the future. Allotment
Date: 06-12-04.

MENU Page 41
 Kotak Flexi Debt
An Open Ended Debt Scheme

Awards won by Flexi Debt

Kotak Flexi Debt has been awarded ICRA MFR-1 – March 2007
(Best open ended bond short term in 1 year for period ending december 31st 2006)

Past performance is no guarantee of future results. For details on ranking methodology, please refer to the disclaimer.
MENU Page 42
Kotak Gilt Investment
A plan under an Open-ended Dedicated Gilt Scheme

Fund Positioning
– A long term Gilt Plan

Plans
– Regular Plan

– PF and Trust Plan

Portfolio Strategy
– Predominant investments in long-term G.Secs- no cap on
average maturity
– Aggressive asset allocation: increase cash allocation in bearish
times and vice versa
MENU Page 43
Kotak Gilt Investment
A plan under an Open-ended Dedicated Gilt Scheme

Pe rfo rman ce a s o n March 30, 2007

In ve stme n t Plan ISEC Co mp o site In d e x

12 1 0 .9

10

8 6 .8
6 .7

6 5 .3
4 .2
4 3 .2 3 .0 $
2 .5
2

0
1 Ye a r 3 Ye a rs 5 Ye a rs Since Allo t m e nt
(Inv Plan - De c 2 9 ,
'9 8 ;)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the future.
In periods where benchmark values were not available, the benchmark returns are not shown. Allotment Date
29-12-98.

MENU Page 44
Kotak Gilt Savings
A plan under an Open-ended Dedicated Gilt Scheme

Fund Positioning
– A short term Gilt Plan

Portfolio Strategy
– Low interest rate / price risk
– Average Portfolio Maturity capped at 4 years
– Substantial cash component in bearish markets- very low
average maturity
– Predominant investments in short-term G.Secs, treasury bills

MENU Page 45
Kotak Gilt Savings
A plan under an Open-ended Dedicated Gilt Scheme

Pe rfo rmance as o n March 30, 2007

Saving s Plan ISEC SIBEX

8 7.5
7 6.0
6 5.5 5.9 5.2 4.8 5.4
5
4
3
2
1
0
Last 1 Ye ar Last 3 Ye ars Last 5 Ye ars Since
(CAGR*) (CAGR*) Allo tme nt (
De c 29,
1998)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may or may not be sustained in the future.
In periods where benchmark values were not available, the benchmark returns are not shown. Allotment Date:
29-12-98.

MENU Page 46
Kotak Liquid Scheme
An Open Ended Debt Scheme

Fund Positioning
– A Liquid scheme aimed at cash management needs of
individuals, corporate’s etc
Plans*
– Regular
– Institutional
– Institutional Premium
*All plans share the same portfolio

Portfolio Strategy
– Predominant investments in money market securities
– Average portfolio maturity is generally less than 6 months

MENU Page 47
Kotak Liquid Scheme
An Open Ended Debt Scheme

Pe rfo rmance as o n March 30, 2007

Ko tak Liquid Reg ular Plan CRISIL Liquid Fund Inde x

7 6.5 6.4 6.2

6 5.3 5.1 5.5 5.2 5.6
5
4
3
2
1
0
1 year 3 years 5 ye ars Since
Allo tme nt
(Reg . - Oct
05, '00)

Returns = 1 yr: Absolute; Returns > 1 yr: CAGR. Past performance may not be sustained in the future.
In periods where benchmark values were not available, the benchmark returns are not shown.
Allotment Date: 05-10-00.

MENU Page 48
 Awards Won by Kotak Mutual Fund as a Fund
House

NDTV Business Leadership Award 2006

(in the Mutual Fund Category)

Lipper Fund Awards India 2006

(Best Bond Fund Group Over Three years)

Outlook Money Best Wealth creator Debt 2003

For details on ranking methodology, please refer to the disclaimer

MENU Page 49
 Risk Return Stack Up
Kotak Tech
Kotak MNC
Kotak Global India & Kotak Midcap
Kotak Lifestyle
Kotak Opportunities
Kotak 30 and Kotak Contra
Kotak Equity FOF
Kotak Balance
Kotak Income Plus
Risk

Kotak Gilt Investment

Kotak Bond Deposit & regular
Kotak Gilt Savings
Kotak Cash Plus
Kotak Bond STP
Kotak Flexi Debt
Kotak Floater LT
Kotak Floater ST
Kotak Liquid

Potential Return
The above chart is meant only to show relative positioning and should not be construed
as absolute risk return relationships among different products. MENU Page 50
Kotak Mutual At a Glance

AUM: Rs. 12125 cr.

Equity AUM: Rs. 2749 cr.
Investor Base: Close to 5.05,000
No. of Schemes: 49
In existence for over 9 yrs
Branch presence in 54 cities in India
176 employees
Pioneered many products and services that
have now become standards in industry
As on 31th March 2007

MENU Page 51
Risk Factors: Mutual Funds and securities investments are subject to market risks and there is
no assurance or guarantee that the objectives of the Schemes will be achieved. *As with any
securities investment, the NAV of the Units issued under the Schemes can go up or down
depending on the factors and forces affecting the capital and money markets. * Past performance
of the Sponsor or that of existing Schemes of the Fund does not indicate the future performance
of the Schemes. *Kotak Gilt, Kotak Bond, Kotak Liquid, Kotak Floater Short Term, Kotak
Floater Long Term, Kotak Dynamic Income, Kotak 30, Kotak Balance, Kotak Income Plus,
Kotak Global India, Kotak Tech, Kotak Equity FoF, Kotak Opportunities and Kotak MNC,
Kotak Contra are only the names of the Schemes and do not in any manner indicate the quality
of the Schemes, future prospects or returns. * Appreciation of the value of the Units issued
under Kotak 30, Kotak Tech and Kotak MNC can be restricted in the event of a high asset
allocation to cash, when stock appreciates. * Investments by Kotak Tech in the Information
Technology Sector will constrict the diversification of the Scheme due to which the NAV of the
Units issued under the Scheme runs the risk of high volatility. * Technology stocks particularly
run the risk of high volatility, high valuation and obsolescence. * The NAV of the Schemes may
be affected, inter-alia, by changes in the market, market interest rates, Price/Interest-rate Risk
and Credit Risk, changes in credit rating, government policy, volatility and liquidity in the
money markets, pressure on the exchange rate of the rupee, trading volumes, performance of
individual stocks, settlement periods and transfer procedures, Basis Risk, Spread Risk and
Reinvestment Risk.

Page 52
Risk Factors (Contd.): Specific Risk Factors for Equity FoF: The investors of the Scheme
shall bear the recurring expenses of the Scheme in addition to the expenses of the underlying
schemes. Hence the investor under the Scheme may receive lower pre-tax returns than what
they may receive if they had invested directly in the underlying schemes in the same
proportions. The portfolio disclosure of the scheme would be limited to providing particulars
of the underlying schemes where the scheme has invested and will not include the
investments made by the underlying schemes. The portfolio of the schemes would normally
be comprised of schemes of Kotak Mahindra Mutual Fund and other schemes from the
recommended list provided by the Designated Agency. Though adequate care would be taken
to ensure that the methodology adopted by the Designated Agency is proper, there may be
any analytical error (like assigning overweightage or underweightage to various risk-return
parameters), execution error etc. by the Designated Agency, which may result in sub-optimal
performance of the Scheme. Since the Scheme proposes to invest in 5 underlying , the
significant underperformance in even one of the underlying schemes may adversely affect the
performance of the Scheme. Investments in underlying equity/debt schemes will have all the
risks associated with such schemes.

Page 53
Risk Factors (Contd.): *Tax laws may change, affecting the return on investment in Units. *
In the event of receipt of a very large number of redemption requests or very large value
redemption requests or of a restructuring of the Schemes’ portfolios, there may be delays in
the redemption of Units. Please refer to the paragraph on “Right to limit Redemption” in the
Combined Offer Document.
Statutory: Kotak Mahindra Mutual Fund has been established as a trust under the Indian
Trusts Act, 1882, by Kotak Mahindra Bank Limited (liability Rs. NIL) with Kotak Mahindra
Trustee Company Limited as the Trustee and with Kotak Mahindra Asset Management
Company Limited as the Investment Manager. Before investing, please read the Offer
Documents.
We, Kotak Mahindra Asset Management Company Limited, and/or our employees, have
long/short positions in the securities in respect of which investment advice is being rendered.

Page 54
Investment Objectives: Kotak Gilt: To generate risk-free returns through investments in
sovereign securities issued by the Central Government and/or a State Government and/or
reverse repos in such securities. Kotak FMP: To generate regular returns by investing in debt /
money market and Government Securities in such a way that the average maturity of the asset
portfolio of a Plan does not exceed the maturity period of the Plan. Kotak Bond: To create a
portfolio of debt and money market instruments of different maturities so as to spread the risk
across a wide maturity horizon and different kinds of issuers in the debt market. Kotak Bond
Short Term Plan: 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
kinds of issuers in the debt market. Kotak Liquid: 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 kinds of issuers in the debt market. Kotak Floater Short Term:
To reduce the interest rate risk associated with investments in fixed rate instruments by
investing predominantly in floating rate securities, money market instruments and using
appropriate derivatives. Kotak Floater Long Term: To reduce the interest rate risk associated
with investments in fixed rate instruments by investing predominantly in floating rate
securities, money market instruments and using appropriate derivatives.

Page 55
Kotak Flexi Debt: To maximize returns through an active management of a portfolio of debt
and money market securities. Kotak Mid-Cap: To generate capital appreciation from a
diversified portfolio of equity and equity related instruments.Kotak 30:To generate capital
appreciation from a portfolio of predominantly equity and equity related securities with
investment in generally not more than 30 stocks. Kotak Balance: To achieve growth by
investing in equity and equity related instruments, balanced with income generation by
investing in debt and money market instruments. Kotak Income Plus Scheme: To enhance
returns over a portfolio of debt instruments with a moderate exposure in equity and equity
related instruments.Kotak Global India: To generate capital appreciation from a diversified
portfolio of predominantly equity and equity related securities issued by Globally
Competitive Indian Companies. Kotak Tech: To generate capital appreciation from a
portfolio of predominantly equity and equity related securities in the information technology
sector. Kotak MNC: To generate capital appreciation from a portfolio of predominantly
equity and equity related securities issued by Multinational Companies. Kotak Opportunities:
To generate capital appreciation from a diversified portfolio of equity and equity related
securities. Kotak Equity FOF: To generate long term capital appreciation from a portfolio
created by investing predominantly in open-ended diversified equity schemes of Mutual
Funds registered with SEBI. Kotak Contra: To generate capital appreciation from a
diversified portfolio of equity and equity related instruments.

Page 56
Ranking Methodology CRISIL: [A] Crisil Best Fund Awards 2003 is based on the ranking
methodology of Crisil Fund Services. The Award recognizes consistency of mutual fund
performance and is based on CRISIL~ CPRs (Composite Performance Rankings) across
four-quarter ends (Sept-02, Dec-02, March-03 & June-03). These quarterly rankings took
into account the performance and the portfolios of 19 Open End Income Schemes. [B] The
criteria used in computing the CRISIL Composite CPR are Superior Return Ratio based on
NAVs over the 2-year period for respective quarter ends, Concentration, Asset Quality,
Liquidity and the Asset Size of the scheme. The methodology does not take into account the
entry and exit loads levied by the scheme. [C] Individual CPR parameter scores were
averaged for the fourth quarter and further multiplied by the parameter weight as per the
CPR methodology to arrive at the final scores. The CPR rankings are published by Business
Standard.

Page 57
NDTV Business Leadership Awards 2006: The Award aims to felicitate excellence as
acknowledged by their respective peer groups. Methodology: MF companies were short
listed on the basis of criteria's like; types/ number of products and services offered, rate of
return, minimum required investment amount, NAVs. The short listed entities further
underwent self and peer evaluation. Weightage was assigned to factors like return on
investments, various types of funds and good dividend track record etc. To arrive at the
leader, 5 nominees based on the self and peer evaluations were presented to a panel of jury's
who ranked each of them.

Page 58
Ranking Methodology Lipper: All funds registered for sale in India as 31st December 2005
having at least 36 months of performance history as of that date. The calculation period
extends over 36, 60, and 120 months with the highest consistent return (effective return)
value within each eligible classification determines the fund classification winner over 3, 5
or 10 years. The lowest average decile rank of the three years consistent return measure of
the eligible funds per asset class and group will determine the asset class group award winner
over the three year period. In case of identical results the lower average percentile rank will
determine the winner.

Page 59
Ranking Methodology CNBC India: # Ranked by 'Moody's Investor Services' for 'The
CNBC-BNP Paribas Mutual Fund of the year awards 2002, 2003 and 2004. # Chosen among
21 funds in 2002, 25 funds in 2003 and 22 funds in 2004 in the Debt/Income fund category. #
Ranked on performance dated December 31, 2001 (1 year performance), December 31 (3
year performance), 2002 and December 31, 2003 (3 year performance). # Selection criteria -
Only Open-ended Schemes, with at least one, three or five year track record, screened by
minimum asset size and using SEBI classifications. # Load has not been considered for the
rankings. # The Scheme Rankings were calculated by measuring the consistency of the
fund's risk adjusted performance relative to its classification or investment objective. # Only
open-ended Schemes, from eligible fund houses, with 1 year & 3 years track record with
Fund Assets being greater than or equal to 1% of category total net assets have been
considered for this award.The awards were published by CNBC-BNP Paribas.

Page 60
Research Methodology of ICRA: Kotak Bond Deposit has been ranked ICRA MFR 1 by
ICRA Online in the category Debt Long Term (name of the category) for its 3 (1 or 3 years)
year performance till December 31, 2004. The rank indicates performance within the top 10%
of the stated category, which had a total of 22 (no. of schemes in the category) similar funds,
including this scheme. The rank is an outcome of an objective and comparative analysis against
various performance parameters, including: risk adjusted return; fund size, Sector
Concentration, and average maturity. The ranking methodology did not take into account the
entry and exit loads imposed by the Fund. The rank is neither a certificate of statutory
compliance nor any guarantee on the future performance of Kotak Mahindra Mutual Fund.

Page 61
Outlook Money Award “Best Wealth Created (Debt) for 2003”: Methodology: All fund
houses with AUM of at least Rs. 500 cr. As of June 30, 2003 were considered with minimum
track record of 3 years for Income Schemes, 2 years for Gilt Schemes and 2 year for Liquid
Schemes. Key parameter examined was risk adjusted return (bonus point for outperforming
category, average risk adjusted` returns and for top 5 schemes in the respective categories).
Weights were also assigned to factors like nature of schemes and investor services (online
subscription and redemption, SIP and SWP, trigger facility, no loading switching,
communication etc. To arrive at the final result, 14 asset management companies were
considered for awards. Period of the award: 1st Jan - 31st Dec 2003. Only open-ended
schemes were considered. No loads were considered. The award was based on the Outlook
Money methodology and was also published by Outlook Money.

Page 62
Thank You

Page 63