Kotak Mutual Fund Products

March 2007

Think Investments. Think Kotak.

Contents
Key Product Features Highlighted
Positioning Portfolio Strategy Performance

Page

Scheme Matrix
(click on the hyperlinks for details)

Equity Funds
Kotak 30 Kotak Opportunities Kotak Mid-Cap Kotak MNC Kotak Tech Kotak Global Kotak Contra Kotak Balance

Kotak Equity FOF

Kotak Tax Saver

Kotak Lifestyle

Debt Funds
Kotak Income Plus Kotak Floater ST Kotak Bond ST Kotak Liquid Kotak Bond Kotak Floater LT Kotak Gilt Investment Kotak Cash Plus Kotak Bond Regular Kotak Flexi Debt Kotak Gilt Savings

Kotak Mutual At A Glance

Risk Return Stack Up

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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
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Kotak 30
An Open-ended Equity Growth Scheme
P r r a c a o M r h3 , 2 0 e fo m n e s n a c 0 0 7 K t k3 * oa 0 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 1y a er 3y a s er 5y a s er S c in e a t et llo m n ( e 2 ,1 9 ) Dc 9 98 94 . 1. 18 3. 76 2. 97 S PC XN y & N ift 4. 08

2. 74

3. 01 1. 96

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.

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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%

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Kotak Opportunities
An Open-ended Equity Growth Scheme
P r r a c a o M r h3 ,2 0 e fo m n e s n a c 0 0 7 K t kO p r u it s o a p o t n ie 6. 00 5. 00 4. 00 3. 00 2. 00 1. 00 00 . L s 1y a at e r S c A t e t( in e llo m n S p e b r0 , 2 0 ) e t me 9 0 4 98 . 84 . 4. 95 3. 74 S PC X5 0 & N 0

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.

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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
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Kotak Mid-Cap
An Open Ended Equity Growth Scheme
Perform ance as on M arch 30, 2007 Kotak M idcap 50.0 40.0 30.0 20.0 10.0 0.0 -10.0 -1.6Last 1 year Since Allotm ent (Feb 24, 2005) 2.9 35.8 CNX M idcap 45.1

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

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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

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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

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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
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Kotak Global India

An Open- ended Equity Growth Scheme

P r o mn ea o M r h3 ,2 0 ef r a c s n a c 0 0 7

K t kGo a I da oa l b l n i 6. 50 5. 50 4. 50 3. 50 2. 50 1. 50 50 .

S PC X5 0 & N 0

3. 91

2. 97

3. 47 1. 44

70 .

84 . L s 3y as at e r

L s 1y a at e r

Sn eAl t e t i c l o mn (Ja 3 ,2 0 ) n 0 04

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

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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.
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Kotak Contra
An Open- ended Equity Growth Scheme
P r r a c a o M r h3 ,2 0 e fo m n e s n a c 0 0 7 K t kC n r oa o ta 5. 50 4. 50 3. 50 2. 50 1. 50 50 . -. 50 08 . L s 1y a at e r Sn eAlo m n (Ju 2 , i c l t et ly 7 20) 05 84 . 1. 91 3. 01 S PC X5 0 & N 0

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.

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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

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Kotak MNC
An Open-ended Equity Growth Scheme
P r o mn ea o M r h3 ,2 0 ef r a c s n ac 0 0 7 K t kM C* oa N 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 5 -0 1 -5 1 L s 1y a at e r -. 83 L s 3y as at e r L s 5y as at e r Sn e i c Al t e t lo mn ( p 0, Ar 4 20) 00 1. 56 1. 18 1. 82 3. 3. 18 33 2. 97 2. 74 3. 20 3. 02 1. 51 1. 58 B ES n i i eI d x S e stv n e S P N Nf y & C X it

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.

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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

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Kotak Technology
An Open-ended Equity Growth Scheme
P r omnea o M r h3 ,2 0 ef r a c s n ac 0 0 7 K t kT c oa e h 4. 50 4. 00 3. 50 3. 00 2. 50 2. 00 1. 50 1. 00 50 . 00 . -. 50 4. 17 3. 6 8 2. 77 2. 2. 19 04 2. 48 B EI S T

03 . L s 1y a at e r L s 3y as at e r L s 5y as at e r

-.1 00

Sc i e n Al t e t lomn ( pi 0 , A rl 4 20) 00

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

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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

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Kotak Balance
An Open-ended Balanced Scheme

P r r a c a o M r h3 , 2 0 e fo m n e s n a c 0 0 7 K ta B la c * o k a ne 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 C is B la c dF n I d x r il a n e u d n e

2. 76 1. 80 1. 04 28 . 1y a er 3y a s er

2. 70 1.1 89 1. 87

5y a s er

S c in e Allo e t tm n ( o 2, Nv 5 19) 99

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.

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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.

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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)

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Kotak Equity FOF

An Open-ended Equity Fund of Fund Scheme
P erform e as on Marc 3 2007 anc h 0, Kotak Equity F OF 60 50 40 30 20 10 0 Las 1 year t S e Allotm inc ent ( Aug 09, 2004 ) 6.0 11.8 39 .7 3 7.7 S& PCNX Nifty

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

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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

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Kotak Income Plus

An Open Ended Income Scheme

P r m n ea on M rc 3 , 2 0 e for a c s a h 0 07

K kIn om P s ota c e lu 9 8 7 6 5 4 3 2 1 0 8 .2 5 .7 3 .7

C IS M B n e In e R IL IP le d d d x 8 .2 6 .3 6 .8

1ye r a

3Ye rs a

S c Allotm n ( in e et D c0 , 2 0 ) e 2 03

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

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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

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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

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Kotak Bond Regular(Growth)

An Open Ended Debt Scheme

P r r a c a o M r h3 ,2 0 efo mn e s n ac 0 0 7 D p stPa e oi l n 1 0 9 8 7 6 5 4 3 2 1 0 R g l rPa e ua l n 67 . 52 . 43 . 35 . Cis C m o i eB n I d x r il o p st o d n e 88 . 69 . 62 . 69 .

1y a er

3Y as er

5Y as er

S c in e A t et llo mn (N v2 , o 5 19) 99

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.

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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 Page the disclaimer. * Previously Kotak Bond Wholesale

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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

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Kotak Bond Short Term

An Open Ended Debt Scheme
P r omn ea o M r h3 ,2 0 ef r a c s n ac 0 0 7 S o tT r P n h r em l a 8 7 6 5 4 3 2 1 0 1y a er 3Y as er Sn eAl t e t i c lo mn (M y0 ,2 0 ) a 2 02 70 . 57 . 57 . 42 . 63 . 52 . Ci i S o t-T r B n F n I d x rsl h r em o d u d n e

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

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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.

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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

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Kotak Floater Long Term Scheme

An Open Ended Debt Scheme
P rform nc a on M rc 3 , 2 0 e a e s a h 0 07 K k F te L ota loa r ong T rm e C IS L uid F R IL iq und Ind x e

8 7 6 5 4 3

7 .1 64 . 6 .0 5 .3

L s 1y a at e r

S e Allotm n ( inc e t Aug 1 , 3 20) 04

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.

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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

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Kotak Floater Short Term Scheme

An Open Ended Debt Scheme
P rform e ason Ma h 3 , 2 0 e anc rc 0 0 7

Kotak F loate S r hort T rm e 8 6 4 2 0 L t 1ye as ar 7 .1 6 .4 5 .9

C IS L R IL iquid F und Inde x 5 .8

5 .1

4 .9

L t 3ye rs as a

S e Allotm nt inc e ( July 1 , 2 0 ) 4 03

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

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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.

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Kotak Cash Plus Scheme

An Open Ended Debt Scheme

Performance as on March 30, 2007 Kotak Cash Plus 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1 year Since Allotment (Sept 29, 2005) 6.5 5.9 8.3 7.6 CRISIL Liquid Fund Index

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

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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
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Kotak Flexi Debt

An Open Ended Debt Scheme
Performance as on March 30, 2007 Kotak Flexi Debt 8 7 6 5 4 3 2 1 1 year Since Allotment (Dec 06, 2004) 3.7 4.0 7.6 6.7 CRISIL Composite Bond Index

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

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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.

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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
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Kotak Gilt Investment

A plan under an Open-ended Dedicated Gilt Scheme
P r r a c a o M r h3 , 2 0 e fo m n e s n a c 0 0 7 In e t e tP n v sm n la
1 2 1 0 8 6 42 . 4 2 0 1Y a er 3Y a s er 5Y a s er Sn eAlo m n ic l t et (n Pa - D c2 , Iv ln e 9 '9 ; 8) 25 . 32 . 30 .$ 53 . 67 . 68 .

I E C m o it I d x SC o p s en e

1. 09

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.

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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 marketsvery low average maturity Predominant investments in short-term G.Secs, treasury bills

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Kotak Gilt Savings

A plan under an Open-ended Dedicated Gilt Scheme
P r r a c a o M r h3 ,2 0 e fo m n e s n a c 0 0 7 S vn sPa ai g l n 8 7 6 5 4 3 2 1 0 I E SB X SC I E 75 . . 55 59 . 52 48 . . 54 . 60 .

L s 1Y a at e r

L s 3Y a s at er (A R C G *)

L s 5Y a s at er (A R C G *)

Sn e i c Al t e t( lo m n D c2 , e 9 19) 98

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.

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Kotak Liquid Scheme

An Open Ended Debt Scheme

Fund Positioning
A Liquid scheme aimed at cash management needs of individuals, corporates 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
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Kotak Liquid Scheme

An Open Ended Debt Scheme
P rform nce a on Ma e a s rch 3 , 2 0 0 07

Kota Liquid R gula P n k e r la

C IS Liq R IL uid F und Inde x

7 6 5 4 3 2 1 0

6 6 .5 .4 5 5 .3 .1 5 5 .5 .2

6 .2

5 .6

1ye r a

3 ye rs a

5 ye rs a

S ince Allotm nt e (R g. - Oct e 0 , '0 ) 5 0

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.

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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

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Risk Return Stack Up

Kotak Tech Kotak MNC Kotak Global India & Kotak Kotak Lifestyle Midcap Kotak Opportunities Kotak 30 and Kotak Contra Kotak Equity FOF Kotak Balance Kotak Income Plus Kotak Gilt Investment Kotak Bond Deposit & regular Kotak Gilt Savings Kotak Cash Plus Kotak Bond STP Kotak Flexi Kotak Floater LT Debt Kotak Floater Kotak Liquid ST

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.

ks R i

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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 As on 31th March 2007 industry
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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.

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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.
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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.

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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.

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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 openended 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.

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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.

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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.

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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.

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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.

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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.

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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.

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Thank You
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