FROM THE CEO’S DESK (As on January 31, 2009)

Dear Friends, Equity Market View With June having passed by, we stand at the proverbial point of Indian equities market remained range bound in the June month, perception where we see the year as witnessing bouts of volatility and narrow trading. Sensex and Nifty rose either half-full or half-empty! I, for to an intra-month peak in the first fortnight by around 6.7% and 5.5%. one believe that, despite the Though, subsequent profit-booking at peaks, and international comparable slowdown in the Indian financial fluctuations, ensured that markets remained on leash. economy, the last six months have Resultantly, Sensex & Nifty registered a m-o-m decline of -0.9% and - only been productive in laying the 3.55% for the June period. foundation-stone for a more robust growth in future. Nifty June Month Performance 4720 4655.3 4637.7 4530.74572.7 4529.9 4586.9 4551.0 4583.4 The performance of the Indian debt 4540 4517.8 4484.0 4449.0 4525.3 4429.9 4356.2 and equities market in June month 4375.5 4391.0 4360 4313.6 4293.0 remained overshadowed by the directional uncertainty from the 4235.3 4291.1 4251.4 4247.0 4241.9 impending budget. Despite a markedly improved business optimism, 4180 the debt market for one has switched to trading prominently in the near 4000 2 1 4 7 1 1 1 1 2 2 2 9 - - 6 9 - 0 3 2 5 8 J J J ------M u u J J J term paper, as the expectation on the long-term interest rate remains u J J J J n n n u u u u u u u a n n n n n n n wary. To exacerbate that, the aggressive issuances by RBI has only y cautioned the market traders further, and given rise to the speculation Sensex June Month Performance 15,800 that government borrowings may exceed the initial target of Rs 15,411.5 3,62,000 crs for FY09. 15,440 15,466.8

15,008.7 15,127.0 15,080 15,237.9 14,875.5 14,870.9 15,103.6 14,840.6 14,764.6 On the other hand, the Indian equities market continued to witness a 14,957.9 14,785.7 14,625.3 14,874.9 14,720 14,665.9

range-bound movement; as interplay of liquidity and investor 14,522.8 14,422.7 14,493.8 14,521.9 14,324.0 14,360 14,265.5 14,326.2 sentiments restricted further upside. The markets saw an FII investment 14,345.6 of US$ 1469 mn in the first half of the month, though in the later half, 14,000 2 2 6 1 1 1 2 2 3 9 - - 2 6 0 0 4 8 J J ------M u u J J J J J J n n u u u u u they withdrew nearly 645 mn in anticipation of the Union budget. u a n n n n n n y

It gets evidently clear that the future outcome of the market direction The performance of sectoral indices reflected the interplay of the may be determined in the immediate by the Union Budget. But! What is specific factors intrinsic and peculiar to each sector; and therefore varied more critical is that market (and people) expects a progressive budget accordingly. The top sectoral gainers in June month were IT (9.6%), that is centered around the objective of reviving demand in the FMCG (7.9%), Capital Goods (7.3%), and Consumer goods (7.2%). On economy; while also ensuring long-term fiscal stability. Given the the other hand, Realty (-16%), Oil & Gas (-9.9%), PSU (-6%) sectors mutually exclusive set of choices, government may have to go for a remained at the lower-end of sectoral-index performance. balancing act and look for alternative sources of finance. Disinvestment of PSUs in that aspect is seen as a major determinant in ascertaining the The Sensex and Nifty performance displayed a daily returns variance effectiveness of the budget. (risk) of 1.706% and 1.870% respectively. The average daily cash volume in Nifty during June month was at Rs 21,927 crs. This is a volume One sector which may come under special policy attention in the increase of 14.6% from the previous month. On the y-o-y basis, the budget may be Infrastructure. Currently, Indian economy requires an average daily cash volume in Nifty increased by 74.14%. The aggregate investment of nearly US$ 100 bn for atleast 5 years to achieve a cash volume in Nifty during June month was recorded at Rs 482,413.59 sustainable growth of above 9%. This may be achievable, provided that crs - a gain of 26% over the previous month. a policy framework is in place that emphasizes on PPP model and provisions for bankability of strategic projects. Other Economic News India's Balance of Payment increases by US$ 300 mn in Q4-FY09 India's current account witnessed a turnaround in Q4-FY09, as it posted From the mutual funds point of view, the budget should grant the a surplus of US$ 4.7 bn on back of invisibles inflow of US$ 19.5 bn equity FoF schemes the taxation status of equities, which has been a during the period. This very effectively covered up the trade deficit of long-standing demand of the industry. Additionally, there is an US$ -14.6 bn, which anyways has declined sizably due to contraction in expectation that budget may accord a tax exemption status to all three both import(-27.3%) and exports (24.2%) during the period. dimensions of investment in Pension fund. That is: contribution towards pension investments; the return on those investments; and on January-March withdrawal of the eventual pension corpus. Net Capital Inflows(US$ bn) FY08 FY09 While at the topic of mutual funds, the industry as we know, has been 1.Foreign Direct Investment 8.5 3.2 undergoing structural changes at the behest of the regulator. The recent initiative by SEBI regarding the elimination of entry-load is that 2.Portfolio Investment -3.7 -2.7 series of steps. While this may help boost the investor-confidence 3.External Assistance 0.8 0.8 through enhanced transparency, and make mutual funds investment a 4.External Commercial Borrowings 5.2 1.1 far more cost-efficient option; the mutual funds may loose out against 5. NRI Deposits 1.1 2.2 other competing products available at the sales point. This would make 4.7 -5.4 the retailisation of the product more difficult. 6. Banking Capital 7. Short-term Trade Credits 6.5 -5.5 In conclusion, the legendary green-shoots emerging in the global 8. Rupee Debt Service -0.1 -0.1 economy may, in most probability, find its first branch in India and 9. Other Capital 3.0 1.1 China. But what's important is: will it have the strength and the tenacity to help tilt the global economic and power scale in Asia's favor. That I Total (1 to 9) 26.0 -5.3 think remains pertinent question! And an interesting One! Source: RBI Regards, On the Other hand, the capital account saw a net negative figure(US$ - 5.3 bn) due to outflow in portfolio investments, banking capital and short-term trade credit. Net FDI during the period was at US$ 3.2 bn. Sandesh Kirkire While, the External Commercial Borrowings (ECB) too remained low at US$ 1.1 bn in Q4-FY09, as liquidity in the overseas market remained dry. Mutual Fund investments are subject to market risk. Please read the Consequently, the Balance of Payment posted a positive growth of US$ Scheme Information Document and Statement of Additional 300 mn during Q4-FY09. Information carefully before investing.

2 Think Investments. Think Kotak. Balance of Payment of January-March 2009 Credit Market The m-o-m growth in credit offtake in the Indian banking sector remained Particulars (US$ bn) Q4-FY09 Q4-FY08 % largely sluggish as the credit growth in Non-Food segment continued to remain inconsequential. On Y-o-Y basis, the off-take in the non-food Current Account segment remained at 15.6%, which is way below the 4-year average. 1. Merchandise, net -14.6 -22.3 -34.7% Accommodation Provided by SCBs to Commercial Sector in the form of % growth % growth Bank Credit and Investments (As on 5th June 2009) M-o-m as in FY09 2. Services, net 11.0 7.6 45.2% Particulars (Rs billion) 5-Jun-09 May-09 24-Mar-09 on till date 3. Transfers, net 9.6 13.5 -29.1% (1) Bank Credit 27,572.10 27,520.56 27,755.49 0.2% -0.7% 4. Income, net -1.2 -0.3 373.8% (A) Food Credit 591.08 552.18 462.11 7.0% 27.9% 5. Current Account Balance 4.7 -1.5 -411.1% (B) Non-Food Credit 26,981.02 26,968.39 27,293.38 0.0% -1.1% (2) Investments 988.62 976.67 1,047.73 1.2% -5.6% (A) Commercial Paper 164.91 151.01 196.88 9.2% -16.2% Capital Account (B) Shares Issued by (a+b) 271.08 276.02 278.10 -1.8% -2.5% (a) Public Sector Undertakings 24.70 27.35 27.67 -9.7% -10.7% 1. Foreign Investment 0.5 4.8 -89.7% (b) Private Corporate Sector 246.38 248.67 250.43 -0.9% -1.6% (C) Bonds/Dbntrs Issued by (a+b) 552.63 549.64 572.75 0.5% -3.5% 2. Loans -3.6 12.5 -128.7% (a) Public Sector Undertakings 210.10 223.79 241.82 -6.1% -13.1% 3. Banking Capital -3.3 5.8 -156.0% (b) Private Corporate Sector 342.52 325.84 330.93 5.1% 3.5%

4. Rupee Debt Service -0.1 -0.1 -10.5% (3) Total (1B + 2) 27,969.64 27,945.05 28,341.12 0.1% -1.3% 5. Other Capital 1.1 3.0 -61.7% (4) Bank Investments in 6. Capital Account Balance -5.3 26.0 -120.3% A. Instruments Issued by MFs 1,222.97 1,171.47 367.81 4.4% 232.5% B. " Public Fin institutions 271.26 283.80 310.46 -4.4% -12.6% 7. Errors and Ommissions 0.8 0.5 72.7% C. Bonds /Dbntrs Issued by Others 295.23 307.05 310.30 -3.8% -4.9%

Overall Balance 0.3 24.9 -98.8% Source: RBI Source: RBI Market Outlook Added to that, the credit growth in commerical segment in the last quarter As we proceed into the July month, the market expectation pertaining to the has largely in the negative, witnessing a decline of -1.1%. The trend has imminent Union budget takes precedence. The market remains hopeful that been similar in the 'Banking investments' segment; wherein the growth in the budget may help provide concrete directional cue by way of policy the last quarter has been around -5.6%. Nonetheless, it is expected that the announcement, or even through statement of intent. Another factor that growth in credit market may pick-up as the seasonal trend gives way and demand rises in the next quarter. the markets will keenly watch-out for, would be, the first quarter results for FY10 that may start to come in by third week of July. The performances of this result season will help validate the speculation that economy may be on Outlook the rebound; and corroborate the generally held expectation that cost of The debt market remain cautious and keenly observant of the approaching Union budget. This is despite the fact that markets seem to have already business may be coming down. Added to that, the RBI monetary policy on factored in the likely increase in the governemnt spending that the budget the interest rates too may prove to be one of the key determining events in may propose. In that context, the quantum and the additional rate of the July Month. increase/decrease in the government expenditure, over the already Given the various stream of events expected in the July month, a segment of postulated figure, may be a key decider of market direction. Additionally, it is investors remain circumspect for now, and may wait for the events to pan- expected that the budget may seek to stimulate credit offtake by addressing out. In that context, it is expected that the market may remain range bound the structural inefficiency between the bank rates, and the government during the first half of the month and then may adopt a directional path in aided small savings rate regime. That notwithstanding, the market may the latter half. continue to be influenced by the liquidity variances. In this backdrop, the 10 Given these set of variables, It is recommended that the investors allocate year government paper may hover in the 6.60-6.90% range, while the 5 their investible corpus in accordance with prudent risk management year gilt will have a 6.20-6.40 % trading range. practices, and with a 2-3 year investment horizon. Also, to mitigate the possibilities of short term pricing volatility, investment through means of SIP to obtain 'competitive risk adjusted return' on their investments is advisable. Gold Corner Debt Market View Gold prices declined by 3.19% in June. Gold opened at a month high of USD 987/oz and touched a low of USD 920.25/oz during the month. Finally Particular June End May End Change ending the month at USD 941/oz. The decline in the gold prices is mainly Inflation (13/June/2009) -1.14% 0.61% 175 bps due to strengthening of the US dollar. After an aggregate decline of 7.12% WPI (Points) 234.2 232.2 2 ticks in April-May period, the dollar index surged by 1.21% during the June 10 YR IGB (Yield) (30/June/2009) 7.00% 6.69% 31 bps month 09, closing at 80.133 point as on 30th June 09. Historically gold prices reflect negative correlation with US Dollar. 10 YR UST (Yield) (30/June/2009) 3.53% 3.50% 3 bps The assets managed by Gold Exchange Traded Funds in the country Weekly as Avg. LAF Rs (26/June/2009) 122440 126831 Rs- 4391 crs marginally increased to Rs 849 crore as on May 31, 09 from Rs. 717 crore as Currency (Rs. /$) (30/June/2009) 47.87 47.11 76 ps on Apr 30, 09 (See: Industry ETF AUM). India's Forex Reserve (bn $) (15/May/2009) 263.65 260.64 US$ 3 bn Source: RBI, US Fed 900 849 Inflation 800 Change in Inflation (from May to June period) 700

600

6.22% ) s

5.65% r C

500 n i ( 400 M U

1.09% A 300 0.61% 0.78% 200 96

100 -1.14% 0 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Months

Mid-June Outlook -6.68% The outlook on gold assumes critical significance in the backdrop of massive Mid-May quantitative easing which US, EU & Japan have undertaken. This may lead to an increase in investment allocation ratio by Central bankers in favor of gold. In similar vein, Mr Marcus Grubb, the World Gold Council's head of -12.60% investment, research and marketing, told delegates at a meeting in London WPI Primary Goods Fuel Manufacturing that central banks may be justified in increasing their gold holdings to 40-50 percent of their reserves. Source: Mospi He further stated that the current macroeconomic environment supported The WPI based inflation in the economy slid into the negative during the last gold buying: “It is not only about the dollar, not only about diversification, month, closing at -1.14% on 13th June. but also about future inflation”. (Source: goldassets.com) In that context, it In the sensitive primary goods segment, the inflationary pressure withered remains prudent to be diversified across asset classes with a healthy somewhat. However, the previous year's low-base effect does not fully allocation to precious metals like gold in these uncertain economic times. reflect the upward price movement in the retail prices. Further, it is expected that prices may come under significant pressure if the monsoon season does not pan-out soon. Assets Under Management as on June 30, 2009 - Rs. 26209.34 Crores Think Investments. Think Kotak. 3 EQUITY FUNDS (As on June 30, 2009)

Scheme Name KOTAK 30 KOTAK OPPORTUNITIES Open-Ended Equity Growth Scheme Open - Ended Equity Growth Scheme To generate capital appreciation from a portfolio of predominantly equity related securities. The To generate capital appreciation from a diversified portfolio of equity and equity related Investment portfolio will generally comprise of equity and equity related instruments of around 30 securities. Objective companies which may go up to 39 companies. Available Options Dividend Payout, Dividend Reinvestment & Growth Dividend Payout, Dividend Reinvestment & Growth Dividend Freq. Trustee's Discretion Trustee's Discretion Fund Managers Krishna Sanghvi and Emmanuel Elango Krishna Sanghvi and Anurag Jain. a) No entry load shall be charged on: i) For "all direct" applications received by AMC i.e. applications received through internet facility offered (www.kotakmutual.com), on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. ii) On additional purchases done directly by the investor under the same folio and switch-in to the scheme from other scheme if such transaction is done directly by the investor: iii) Where the purchase amount/switch in amount is equal to or more than Rs. 5 crores iv) Entry Where the switch in is from an Equity/Balanced/Equity FOF Scheme to an Equity/Balanced/Equity FOF Scheme. v) Where switch in is from a close ended scheme (excluding Fixed Maturity Plans and Load Interval Plans) during the pre-defined liquidity window of the scheme as defined in the respective offer documents or on maturity to an Equity/ Balanced/Equity FOF Schemes: vi) Where the switch in is Load from any other scheme apart from point iv and v above to an Equity/ Balanced/ Equity FOF Scheme for investments equal to or more than Rs. 5 crores vii) Where investments is made by Fund of Funds Structure as defined under SEBI Regulations viii) Where units are allotted upon reinvestment of Dividends b) Cases not covered above: 2.25%. i) For redemptions/switchouts within 1 year from the date allotment of units for investments of less than Rs. 5 crores: 1%. ii) For redemptions/switchouts on or after 1 year from the date allotment of Exit units for investments of less than Rs. 5 crores: Nil . iii) For exit within 2 year from the date allotment of units for investments in respect of SIP/STP transaction of less than Rs. 5 crores: 2%. iv) For exit on Load or after 2 year from the date allotment of units for investments in respect of SIP/STP transactions of less than Rs. 5 crores: Nil . v) Where an investment is made by Fund of Funds as defined under SEBI Regulations: Nil . vi) Where units are allotted upon reinvestment of Dividends: Nil . vii) Cases not covered above: Nil Minimum Initial Investment: Rs. 5000 Initial Investment: Rs. 5000 Investment Additional Investment: Rs. 1000 & in multiples of Re1 Additional Investment: Rs. 1000 & in multiples of Re.1. Amount Ideal Investments Horizon - 1-3 years Ideal Investments Horizon - 1-3 years Corpus: Rs. 896.33 crores Corpus: Rs. 903.48 crores. Corpus & Ratios Ratios: Portfolio Turnover: 232.12% Beta*: 0.90 Sharpe*:0.36 Standard Deviation*: 32.21 Ratios: Portfolio Turnover: 270.71% Beta*: 1.06 Sharpe*: 0.40 Standard Deviation*: 38.48 Alpha*: 1.25 * Source: Value Research. Alpha*:3.06 * Source: Value Research. S&P CNX Nifty S&P CNX 500 Benchmark December 29,1998 Inception Date September 9, 2004 Performance as 4

on June 5 . 50.00 60.00 1 Kotak 30, 2009 3 Kotak 30 * 0 . 4

45.00 0 Opportunities 0 S&P CNX 5 0 0 50.00 .

40.00 4

2 S&P CNX 500 . Nifty 4 3 4 35.00 3 6 40.00 . 6 % 7

9 6 % .

s 30.00 2 4 2 . 8 s n 2 0 . 3 2 r n 30.00 8 r 1 2

25.00 u 6 . t 2 u 3 0 t 8 . e 2 6 0 e 0 20.00 6 R 2 . 2 1 R 1

. 20.00 . 6 4 . 1 2 1 15.00 1 0 3 1 1 . 0 1 1 8 2 0

10.00 . 10.00 . 6 6 4 6 5.00 . 2 0.00 0.00 6 Months 1 Year 3 Years Since Inception 6 Months 1 Year 3 Years 5 Years Since Inception

Kotak 30 NAV: Rs.26.503 (Dividend Option) Kotak Opportunities NAV :Rs. 33.590 (Growth Option) * Returns assumed reinvestment of the tax free dividend declared. Returns <= 1 year : Absolute; Returns <= 1 year : Absolute. Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Past performance may or may Past performance may or may not be sustained in future. not be sustained in future. SIP Returns SIP Returns 1 Year 3 Year 5 Year 7 Year SIP Returns 1 Year 2 Year 3 Year Investment Amt. Rs. 12,000 Rs. 36,000 Rs. 60,000 Rs. 84,000 Investment Amt. Rs. 12,000 Rs. 24,000 Rs. 36,000 Investment Value Rs. 14,518 Rs. 38,991 Rs. 90,778 Rs.2,16,619 Investment Value Rs.15,467 Rs.25,540 Rs.40,626 XIRR 41.41% 5.26% 16.60% 26.64% XIRR 58.06% 6.13% 8.03%

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. Petroleum Products 7.43% Reliance Industries Ltd. Petroleum Products 4.03% Larsen And Toubro Ltd. Diversified 5.95% Bharti Airtel Ltd. Telecom - Services 3.33% Infosys Technologies Ltd. Software 5.42% Larsen And Toubro Ltd. Diversified 2.86% ICICI Bank Ltd. Banks 5% Aditya Birla Nuvo Limited Textile Products 2.77% Bharti Airtel Ltd. Telecom - Services 4.47% State Bank Of India Banks 2.76% State Bank Of India Banks 4.28% ICICI Bank Ltd. Banks 2.64% HDFC Ltd. Finance 4.05% Oil & Natural Gas Corporation Ltd. Oil 2.54% HDFC Bank Ltd. Banks 3.75% Infosys Technologies Ltd. Software 2.46% Oil & Natural Gas Corporation Ltd. Oil 3.57% ITC Ltd. Consumer Non Durables 2.43% ITC Ltd. Consumer Non Durables 3.53% Tata Power Co. Ltd. Power 2.16% Others 45.50% Others 63.16% Listed/Awaiting Listing on Stock 92.95% Listed/Awaiting Listing on Stock Exchange - Total 91.14% Exchange - Total Futures Futures Educomp Solutions Ltd-JUL2009 0.16% Oil & Natural Gas Corporation Ltd.-JUL2009 -0.24% Bank Of Baroda-JUL2009 0.14% Futures (Market value represents -0.24% GMR Infrastructure Ltd.-JUL2009 -0.14% Notional Value) - Total Futures (Market value represents Notional Value) - 0.16% Options Total NIFTY - 4300.00 - Put Option - July 2009 0.09% Options NIFTY - 4200.00 - Put Option - July 2009 0.06% NIFTY - 4300.00 - Put Option - July 2009 0.09% Options - Total 0.15% NIFTY - 4200.00 - Put Option - July 2009 0.06% TERM DEPOSITS Options - Total 0.15% Kotak Mahindra Bank Ltd. 3.08% TERM DEPOSITS Term Deposits - Total 3.08% Kotak Mahindra Bank Ltd. 1.98% Collateral Borrowing & Lending 0.67% Term Deposits - Total 1.98% obligation Collateral Borrowing & Lending obligation 4.11% Net Current Assets/(Liabilities) 3.39% Net Current Assets/(Liabilities) 2.46% Grand Total 100% Grand Total 100%

Notes: Notes: Total NPA's provided for and percentage to NAV: Nil Total NPA's provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil

Sector Allocation Banks 17.33% Banks 11.54% Petroleum Products 9.29% Construction 11.04% Diversified 9.23% Consumer Non Durables 9.16% Software 8.74% Power 7.03% Telecom - Services 5.92% Software 6.56% Power 5.82% CBLO & Term Deposits & Rev.Repo 6.09% Construction 5.78% Telecom - Services 5.95% Industrial Capital Goods 4.83% Finance 5.72% Finance 4.05% Petroleum Products 5.52% Auto 4.03% Diversified 4.43% Others 24.98% Others 26.96%

4 Think Investments. Think Kotak. EQUITY FUNDS (As on June 30, 2009)

Scheme Name KOTAK TAX SAVER KOTAK MID-CAP Open-Ended Equity Linked Saving Scheme Open - Ended Equity Growth Scheme To generate long-term capital appreciation from a diversified portfolio of equity and equity To generate capital appreciation from a diversified portfolio of equity and equity related Investment related securities and enable investors to avail the income tax rebate, as permitted from time to securities. Objective time. Available Options Dividend Payout, Dividend Reinvestment & Growth Dividend Payout, Dividend Reinvestment & Growth Dividend Freq. Trustee's Discretion Trustee's Discretion Fund Managers Krishna Sanghvi & Anurag Jain. Krishna Sanghvi and Anurag Jain. a) No entry load shall be charged on: i) For "all direct" applications received by AMC i.e. applications received through internet facility offered (www.kotakmutual.com), on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. ii) On additional purchases done directly by the investor under the same folio and switch-in to the scheme from other scheme if such transaction is done directly by the investor: iii) Where the purchase amount/switch in amount is equal to or more than Rs. 5 crores iv) Where the switch in is from an Entry Equity/Balanced/Equity FOF Scheme to an Equity/Balanced/Equity FOF Scheme. v) Where switch in is from a close ended scheme (excluding Fixed Maturity Plans and Interval Plans) during the pre-defined liquidity Load window of the scheme as defined in the respective offer documents or on maturity to an Equity/ Balanced/Equity FOF Schemes: vi) Where the switch in is from any other scheme apart from point iv and v above to an Equity/ Balanced/ Equity FOF Scheme for investments equal to or more than Rs. 5 crores vii) Where investments is made by Fund of Funds as defined under SEBI Regulations viii) Where units are allotted upon Load reinvestment of Dividends b) Cases not covered above: 2.25%. Structure Exit Load is not applicable for Kotak Tax Saver Scheme. I) For redemptions/switchouts within 1 year from the date allotment of units for investments of less than Rs. 5 crores: 1%. ii) For redemptions/switchouts on or after 1 year from the date allotment of units for Exit investments of less than Rs. 5 crores: Nil . iii) For exit within 2 year from the date allotment of units for Load investments in respect of SIP/STP transaction of less than Rs. 5 crores: 2%. iv) For exit on or after 2 year from the date allotment of units for investments in respect of SIP/STP transactions of less than Rs. 5 crores: Nil . v) Where an investment is made by Fund of Funds as defined under SEBI Regulations: Nil . vi) Where units are allotted upon reinvestment of Dividends: Nil . vii) Cases not covered above: Nil Minimum Initial Investment: Rs. 500 Initial Investment: Rs. 5000 Investment Additional Investment: Rs. 500 & in multiples of Rs. 500 Additional Investment: Rs. 1000 & in multiples of Re.1. Amount Ideal Investments Horizon - 3 years Ideal Investments Horizon - 1-3 years Corpus: Rs. 443.74 crores. Corpus: Rs. 107.29 crores. Corpus & Ratios Ratios: Portfolio Turnover: 193.88% Beta*: 1.03 Sharpe*: 0.27 Standard Deviation*: 37.65 Ratios: Portfolio Turnover: 276.45% Beta*: 1.05 Sharpe*: 0.10 Standard Deviation*: 38.79 Alpha*: -1.74 * Source: Value Research. Alpha*: -8.11 * Source: Value Research.

Benchmark S&P CNX 500 CNX Midcap Inception Date November 23, 2005 February 24, 2005

Performance as 7 9 on June Kotak Tax Saver . Kotak Midcap 5 60.00 1

50.00 3 4 30, 2009 0 . 1 .

0 S&P CNX 500 9

5 CNX Midcap 3 50.00 7 40.00 9 . 9 40.00 3 30.00 % %

8 s s 8 1 n n . 3 r r

20.00 2 4

30.00 6 . . u u 1 1 t t 0 1 e e 1 0 0 R R 2 7

10.00 5 6 20.00 . . 6 6 . 2 . 7 5 3 1 0 1 1 6 5 3 . . . 1

8 8 0.00 10.00 8 9 1 . 0 0 -10.00 3 0.00 . 4 6 Months 1 Year 3 Years Since Inception - 6 Months 1 Year 3 Years Since Inception Kotak Tax Saver NAV:Rs. 13.447 (Growth Option) Kotak Midcap NAV : Rs. 15.863 (Growth Option) Returns <= 1 year : Absolute. Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Returns <= 1 year : Absolute. Returns > 1 year : CAGR (Compounded Annualised Growth Past performance may or may not be sustained in future. Rate). Past performance may or may not be sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. Petroleum Products 3.98% IRB Infrastructure Developers Ltd Construction 4.90% Oil & Natural Gas Corporation Ltd. Oil 3.01% Exide Industries Ltd Auto Ancillaries 4.05% ICICI Bank Ltd. Banks 2.93% Punj Lloyd Ltd. Construction 4.01% Sterlite Industries (India) Ltd Non - Ferrous Metals 2.86% Hindustan Petroleum Corporation Ltd Petroleum Products 3.90% Bharti Airtel Ltd. Telecom - Services 2.71% United Phosphorus Ltd Pesticides 2.99% Larsen And Toubro Ltd. Diversified 2.47% Apollo Tyres Ltd. Auto Ancillaries 2.88% Mundra Port and Special Economic Zone Travel & Transportation 2.11% Shriram Transport Finance Co Ltd. Finance 2.81% Limited Educomp Solutions Ltd Software 2.69% Jaiprakash Associates Ltd Construction 2.08% Mphasis Ltd Software 2.58% Sintex Industries Ltd. Industrial Products 2.08% GlaxoSmithkline Consumer Healthcare Ltd Consumer Non Durables 2.48% Hindustan Petroleum Corporation Ltd Petroleum Products 2.07% Others 59.86% Others 65.54% Listed/Awaiting Listing on Stock Exchange - Total 93.15% Listed/Awaiting Listing on Stock 91.84% Futures Exchange - Total Bajaj Hindusthan Limited-JUL2009 Debt Instruments Futures (Market value represents Notional Value) - Total 0.90% Debentures and Bonds Debt Instruments 0.90% Corporate Debt/Financial Institutions Debentures and Bonds Ultratech Cement Ltd. AAA 1.36% Corporate Debt/Financial Institutions Corporate Debt/Financial Institutions - 1.36% Ultratech Cement Ltd. AAA 1.86% Total Corporate Debt/Financial Institutions - Total 1.86% Collateral Borrowing & Lending 3.04% TERM DEPOSITS obligation Kotak Mahindra Bank Ltd. 0.93% Net Current Assets/(Liabilities) 3.76% Term Deposits - Total 0.93% Grand Total 100% Collateral Borrowing & Lending obligation 3.63% Net Current Assets/(Liabilities) -0.47% Grand Total 100%

Notes: Notes: Total NPA's provided for and percentage to NAV: Nil Total NPA's provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil

Sector Allocation Banks 12.61% Construction 20.36% Construction 11.07% Consumer Non Durables 15.30% Power 8.07% Banks 8.70% Petroleum Products 6.76% Pharmaceuticals 7.20% Software 5.19% Auto Ancillaries 6.93% Pharmaceuticals 4.81% Software 5.27% Consumer Non Durables 4.68% CBLO & Term Deposits & Rev.Repo 4.56% Diversified 3.68% Finance 4.47% Ferrous Metals 3.52% Petroleum Products 3.90% Telecom - Services 3.51% Power 3.86% Others 36.10% Others 19.45%

Midcap stocks as a %age of Net Assets - 67.68%

Think Investments. Think Kotak. 5 EQUITY FUNDS (As on June 30, 2009)

Scheme Name KOTAK BALANCE KOTAK LIFESTYLE Open-Ended Balanced Scheme Open - Ended Equity Growth Scheme To achieve growth by investing in equity & equity related instruments, balanced with income The investment objective of the fund is to generate longterm capital appreciation from a Investment generation by investing in debt & money market instruments. portfolio of equity and equity related securities, generally diversified across companies, which are Objective likely to benefit by changing lifestyle and rising consumerism in India. Available Options Dividend Payout, Dividend Reinvestment Dividend Payout, Dividend Reinvestment & Growth Dividend Freq. Half Yearly (25 of Mar/Sep) Trustee's Discretion Fund Managers Krishna Sanghvi, Sajit Pisharodi & Abhishek Bisen. Krishna Sanghvi and Emmanuel Elango. a) No entry load shall be charged on: i) For "all direct" applications received by AMC i.e. applications received through internet facility offered (www.kotakmutual.com), on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. ii) On additional purchases done directly by the investor under the same folio and switch-in to the scheme from other scheme if such transaction is done directly by the investor: iii) Where the purchase amount/switch in amount is equal to or more than Rs. 5 crores iv) Entry Where the switch in is from an Equity/Balanced/Equity FOF Scheme to an Equity/Balanced/Equity FOF Scheme. v) Where switch in is from a close ended scheme (excluding Fixed Maturity Plans and Load Interval Plans) during the pre-defined liquidity window of the scheme as defined in the respective offer documents or on maturity to an Equity/ Balanced/Equity FOF Schemes: vi) Where the switch in is Load from any other scheme apart from point iv and v above to an Equity/ Balanced/ Equity FOF Scheme for investments equal to or more than Rs. 5 crores vii) Where investments is made by Fund of Funds Structure as defined under SEBI Regulations viii) Where units are allotted upon reinvestment of Dividends b) Cases not covered above: 2.25%. i) For redemptions/switchouts within 1 year from the date allotment of units for investments of less than Rs. 5 crores: 1%. ii) For redemptions/switchouts on or after 1 year from the date allotment of Exit units for investments of less than Rs. 5 crores: Nil . iii) For exit within 2 year from the date allotment of units for investments in respect of SIP/STP transaction of less than Rs. 5 crores: 2%. iv) For exit on Load or after 2 year from the date allotment of units for investments in respect of SIP/STP transactions of less than Rs. 5 crores: Nil . v) Where an investment is made by Fund of Funds as defined under SEBI Regulations: Nil . vi) Where units are allotted upon reinvestment of Dividends: Nil . vii) Cases not covered above: Nil Minimum Initial Investment: Rs. 5000 Initial Investment: Rs. 5000 Investment Additional Investment: Rs. 1000 & in multiples of Re1 Additional Investment: Rs. 1000 & in multiples of Re.1. Amount Ideal Investments Horizon - 1-3 years Ideal Investments Horizon - 1-3 years Corpus: Rs. 68.61 crores. Corpus: Rs. 121.87 crore. Corpus & Ratios Ratios: Portfolio Turnover: 224.58% Beta*: 0.96 Sharpe*: 0.26 Standard Deviation*: 25.37 Ratios: Portfolio Turnover: 139.12% Beta*: 0.84 Sharpe*: 0.12 Standard Deviation*: 31.96 Alpha*: -0.84*Source: Value Research Alpha*: -5.91 * Source: Value Research. Benchmark Crisil Balanced Fund Index S & P CNX 500 November 25, 1999 Inception Date March 21, 2006 Performance as

on June 35.00 8 2 4 30, 2009 . Kotak Lifestyle 1 9 . 2

30.00 7 5 2 1

. S & P CNX 500 1

3 60.00 0

25.00 . 2 0 0 7 5 5 % .

6

. 50.00 s 7

20.00 6 6 n 1 9 1 r . 8 7 u 4

0 40.00 8 Kotak Balance * t . . 15.00 3 e 1 7 0 % R

1 8 1 0 . s

6 30.00 8

. Crisil Balanced 10.00 n r 6 2 Fund Index u t

20.00 6 .

5.00 e 1 5 0 R 3 . 6 1 9 . 8 8 8 10.00 6 . 0.00 0 . 3 6 Months 1 Year 3 Years 5 Years Since Inception 2 0.00 6 8

-10.00 . 1

Kotak Balance NAV - Rs. 20.726 (Dividend Option) - * Returns assumed reinvestment of the tax free dividend declared. Returns <= 1 year : Absolute; 6 Months 1 Year 3 Years Since Inception Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Past performance may or may not be sustained in future. Kotak Lifestyle NAV : Rs. 9.403 (Growth Option) SIP Returns SIP Returns 1 Year 3 Year 5 Year 7 Year Investment Amt. Rs. 12,000 Rs. 36,000 Rs. 60,000 Rs. 84,000 Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Investment Value Rs.14,260 Rs.39,129 Rs.83,732 Rs.1,71,764 Rate). Past performance may or may not be sustained in future. XIRR 36.97% 5.50% 13.31% 20.09%

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. Petroleum Products 4.13% Colgate Palmolive (India ) Ltd. Consumer Non Durables 8.07% Bharat Heavy Electricals Ltd. Industrial Capital Goods 2.25% Bharti Airtel Ltd. Telecom - Services 7.24% Tata Consultancy Services Ltd. Software 2.05% Hero Honda Motors Ltd. Auto 5.73% Oil & Natural Gas Corporation Ltd. Oil 2.02% ITC Ltd. Consumer Non Durables 4.04% Hindustan Petroleum Corporation Ltd Petroleum Products 1.92% ICICI Bank Ltd. Banks 3.98% State Bank Of India Banks 1.92% Union Bank Of India Banks 3.87% Bharti Airtel Ltd. Telecom - Services 1.80% Aditya Birla Nuvo Limited Textile Products 3.84% Larsen And Toubro Ltd. Diversified 1.60% Hindustan Unilever Ltd. Diversified 3.51% Infosys Technologies Ltd. Software 1.55% HDFC Ltd. Finance 3.46% Balrampur Chini Mills Ltd Consumer Non Durables 1.45% Bank Of Baroda Banks 3.36% Others 45.56% Others 41.28% Listed/Awaiting Listing on Stock Exchange - Total 66.25% Listed/Awaiting Listing on Stock Exchange - Total 88.38% Futures Debt Instruments National Thermal Power Corporation Limited-JUL2009 0.37% Debentures and Bonds Tata Steel Limited.-JUL2009 0.25% Corporate Debt/Financial Institutions Bajaj Hindusthan Limited-JUL2009 0.20% LIC Housing Finance Ltd. AAA 0.83% NIFTY-JUL2009 -1.56% Corporate Debt/Financial Institutions - Total 0.83% Futures (Market value represents Notional Value) - Total -0.74% TERM DEPOSITS Government Dated Securities Kotak Mahindra Bank Ltd. 4.92% 7% Government Stock - 2012 SOV 2.98% Term Deposits - Total 4.92% Government Dated Securities - Total 2.98% Collateral Borrowing & Lending obligation 2.71% TERM DEPOSITS Net Current Assets/(Liabilities) 3.16% Kotak Mahindra Bank Ltd. 7.24% Grand Total 100% Term Deposits - Total 7.24% Collateral Borrowing & Lending obligation 20.40% Net Current Assets/(Liabilities) 3.87% Grand Total 100%

Notes: Notes: Total NPA's provided for and percentage to NAV: Nil Total NPA's provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil

Sector Allocation CBLO & Term Deposits & Rev.Repo 27.64% Banks 27.31% Banks 7.48% Consumer Non Durables 20.04% Petroleum Products 6.05% Auto 10.19% Construction 5.78% Telecom - Services 8.90% Consumer Non Durables 5.43% CBLO & Term Deposits & Rev.Repo 7.63% Industrial Capital Goods 5.32% Finance 5.35% Power 5.16% Textile Products 4.51% Software 4.99% Diversified 3.51% Telecom - Services 3.43% Construction 3.42% Government Dated Securities 2.98% Media and Entertainment 3.25% Others 25.74% Others 5.89%

6 Think Investments. Think Kotak. EQUITY FUNDS (As on June 30, 2009)

Scheme Name KOTAK CONTRA KOTAK EQUITY FOF Open - Ended Equity Growth Scheme Open - Ended Equity Fund of Funds Scheme To generate capital appreciation from a diversified portfolio of equity and equity related The Investment Objective of the Scheme is to generate longterm capital appreciation from a Investment securities. portfolio created by investing predominantly in openended diversified equity schemes of Mutual Objective Funds registered with SEBI. Available Options Dividend Payout, Dividend Reinvestment & Growth Dividend Payout, Dividend Reinvestment & Growth Dividend Freq. Trustee's Discretion Trustee's Discretion Fund Managers Anurag Jain and Emmanuel Elango. Sajit Pisharodi & Deepak Gupta a) No entry load shall be charged on: i) For "all direct" applications received by AMC i.e. applications received through internet facility offered (www.kotakmutual.com), on application forms that are not routed through any distributor/agent/broker and submitted to AMC office or collection centre / investment service centre. ii) On additional purchases done directly by the investor under the same folio and switch-in to the scheme from other scheme if such transaction is done directly by the investor: iii) Where the purchase amount/switch in amount is equal to or more than Rs. 5 crores iv) Entry Where the switch in is from an Equity/Balanced/Equity FOF Scheme to an Equity/Balanced/Equity FOF Scheme. v) Where switch in is from a close ended scheme (excluding Fixed Maturity Plans and Load Interval Plans) during the pre-defined liquidity window of the scheme as defined in the respective offer documents or on maturity to an Equity/ Balanced/Equity FOF Schemes: vi) Where the switch in is from any other scheme apart from point iv and v above to an Equity/ Balanced/ Equity FOF Scheme for investments equal to or more than Rs. 5 crores vii) Where investments is made by Fund of Funds Load as defined under SEBI Regulations viii) Where units are allotted upon reinvestment of Dividends b) Cases not covered above: 2.25%. Structure i) For redemptions/switchouts within 1 year from the date allotment of units for investments of less than Rs. 5 crores: 1%. ii) For redemptions/switchouts on or after 1 year from the date allotment of Exit units for investments of less than Rs. 5 crores: Nil . iii) For exit within 2 year from the date allotment of units for investments in respect of SIP/STP transaction of less than Rs. 5 crores: 2%. iv) For exit on Load or after 2 year from the date allotment of units for investments in respect of SIP/STP transactions of less than Rs. 5 crores: Nil . v) Where an investment is made by Fund of Funds as defined under SEBI Regulations: Nil . vi) Where units are allotted upon reinvestment of Dividends: Nil . vii) Cases not covered above: Nil

Minimum Initial Investment: Rs. 5000 Initial Investment: Rs. 5000 Investment Additional Investment: Rs. 1000 & in multiples of Re1 Additional Investment: Rs. 1000 & in multiples of Re.1. Amount Ideal Investments Horizon - 1-3 years Ideal Investments Horizon - 1-3 years Corpus: Rs. 83.69 crores. Corpus: Rs. 47.53 crores. Corpus & Ratios Ratios: Portfolio Turnover: 323.61% Beta*: 0.88 Sharpe*: 0.29 Standard Deviation*: 32.39 Ratios: Beta*: 0.95 Sharpe*: 0.32 Alpha*: -0.12 Standard Deviation*: 33.85* Source: Value Alpha*: -0.84 * Source: Value Research. Research S & P CNX 500 S & P CNX Nifty Benchmark Inception Date July 27, 2005 August 9, 2004

Performance as on June Kotak Contra Kotak Equity FOF 1

30, 2009 60.00 4 4 0 0 . 5

. S & P CNX Nifty S & P CNX 500 50.00 . 0 4 3 5 4 4 50.00 3 45.00 0 .

9 40.00 40.00 3

% 35.00

s %

8 n s 30.00 8 r 30.00 9 . 6 n u . 2 r t 0

25.00 1 e 2 u 5 7 2 t . R 6 2 9

20.00 0 0 4 . e 9 0 6 20.00 . 6 . 1 1 1 9 1 1 R . 0 6 . 0 . 1 . 3 1 . 1 1 0

15.00 1 9 0 8 1 1

10.00 1 2

10.00 . 6 0.00 5.00 6 Months 1 Year 3 Years Since Inception 0.00 6 Months 1 Year 3 Years Since Inception

Kotak Contra NAV: Rs.15.384 (Growth Option) Kotak Equity FOF NAV : Rs.27.516 (Growth Option) Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Rate). Past performance may or may not be sustained in future. Past performance may or may not be sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Reliance Industries Ltd. Petroleum Products 5.63% Mutual Fund Units Bharti Airtel Ltd. Telecom - Services 3.70% Reliance Regular Saving Fund Equity Schemes 21.09% ITC Ltd. Consumer Non Durables 3.50% Kotak 30 Equity Schemes 20.31% Tata Consultancy Services Ltd. Software 3.38% Birla Sunlife Equity Fund Equity Schemes 19.87% Hero Honda Motors Ltd. Auto 3.34% HDFC Growth Fund Equity Schemes 18.84% Infosys Technologies Ltd. Software 3.12% Franklin India Prima Plus Equity Schemes 18.56% Oil & Natural Gas Corporation Ltd. Oil 3.10% Mutual Fund Units - Total 98.67% Larsen And Toubro Ltd. Diversified 2.81% Net Current Assets/(Liabilities) 1.33% Shree Cement Ltd. Cement 2.33% Grand Total 100% IRB Infrastructure Developers Ltd Construction 2.31% Others 58.48% Listed/Awaiting Listing on Stock Exchange - Total 91.70% Futures Bajaj Hindusthan Limited-JUL2009 1.38% Futures (Market value represents Notional Value) - Total 1.38% TERM DEPOSITS Kotak Mahindra Bank Ltd. 1.18% Term Deposits - Total 1.18% Collateral Borrowing & Lending obligation 2.51% Net Current Assets/(Liabilities) 3.23% Grand Total 100%

Notes: Notes: Total NPA's provided for and percentage to NAV: Nil Total NPA's provided for and percentage to NAV: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil Total value and percentage to Net Asset of Illiquid Equity Shares: Nil

Sector Allocation Banks 11.83% Equity Schemes 98.67% Software 11.51% Others 1.33% Consumer Non Durables 8.03% Industrial Capital Goods 6.41% Specific Risk Factors: Power 5.80% The investors of the scheme shall bear the recurring expenses of the Scheme in addition to the Petroleum Products 5.63% 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 Construction 5.12% proportions. The disclosure of the scheme will be limited to providing the particulars of the Oil 5.07% underlying schemes where the scheme has invested and will not include the investments made Diversified 4.89% by the underlying schemes. Ferrous Metals 3.96% Others 31.75%

Think Investments. Think Kotak. 7 EQUITY FUNDS (As on June 30, 2009)

Scheme Name KOTAK EQUITY ARBITRAGE Open - Ended Equity Growth Scheme The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, Investment and by investing the balance in debt and money market instruments. Objective Available Options Dividend Payout, Dividend Reinvestment & Growth Dividend Freq. Monthly (Monday preceding the last Thursday Of the month) Fund Managers Sajit Pisharodi, Abhishek Bisen and Deepak Gupta Entry Nil. Load For Investments <= Rs. 2 Crores: For Investments greater than Rs. 2 crores and less than Rs. 25 crores: Exit a. If redeemed on or before 90 days from the date of allotment of units: 0.60% a. If redeemed on or before 30 days from the date of allotment of units: 0.50% Load Load b. If redeemed after 90 days, on or before 180 days from the date of allotment of units: 0.50% b. If redeemed after 30 days from the date of allotment of units: Nil Structure c. If redeemed after 180 days from the date of allotment of units: Nil For Investments greater than or equal to Rs. 25 crores: Nil Minimum Initial Investment: Rs. 5000 Investment Additional Investment: Rs. 1000 & in multiples of Re1 Amount Ideal Investments Horizon - Above 3 Months Rs.980.08 crores. Corpus & Ratios Corpus: Ratios: Beta*: -0.10 Sharpe*: 2.45 Standard Deviation*: 1.01 Alpha*: 2.68 YTM: 4.50%* Source: Value Research.

Benchmark CRISIL Liquid Fund Index September 29, 2005 Inception Date

Performance as 0 4 . 0 9.00 4 8 9 8 9

on June . . 4 2 9 7 7 . 1

30, 2009 8.00 0 7 . . 7 7.00 7 6.00 %

s 5.00 n 7 r 8

4 Kotak Equity Arbitrage Fund 2 . u

4.00 . t 3 3 e R 3.00 CRISIL Liquid Fund Index 2.00 1.00 0.00 6 Months 1 Year 3 Year Since Inception (September 29, 2005) Kotak Equity Arbitrage NAV : Rs. 13.2739 (Growth Option) Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Past performance may or may not be sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) ICICI Bank Ltd.-JUL2009 -0.33% Sterlite Industries (India) Ltd-JUL2009 -0.33% Reliance Industries Ltd. Petroleum Products 3.28% Vijaya Bank-JUL2009 -0.33% India Cements Ltd. Cement 2.16% Indian Overseas Bank-JUL2009 -0.34% IFCI Ltd. Finance 1.75% Jindal Steel & Power Ltd.-JUL2009 -0.35% Welspun Gujarat Stahl Rohren Ltd. Ferrous Metals 1.60% Kingfisher Airlines Limited-JUL2009 -0.35% Balrampur Chini Mills Ltd Consumer Non Durables 1.58% Mphasis Ltd-JUL2009 -0.35% Reliance Infrastructure Ltd Power 1.58% Bombay Rayon Fashions Ltd.-JUL2009 -0.36% GTL Ltd Telecom - Equipment & Accessories 1.56% Praj Industries Ltd.-JUL2009 -0.36% ITC Ltd. Consumer Non Durables 1.54% Petronet LNG Ltd.-JUL2009 -0.37% Indiabulls Real Estate Ltd Construction 1.50% GAIL (India) Ltd.-JUL2009 -0.39% Shree Renuka Sugars Ltd. Consumer Non Durables 1.33% Yes Bank Ltd-JUL2009 -0.41% Others 43.72% Biocon Ltd.-JUL2009 -0.44% Listed/Awaiting Listing on Stock Exchange - Total 61.60% Dish TV India Ltd.-JUL2009 -0.48% Futures Ultratech Cement Ltd.-AUG2009 -0.48% Andhra Bank-JUL2009 -0.01% Aditya Birla Nuvo Limited-JUL2009 -0.50% Dena Bank-JUL2009 -0.01% Axis Bank Ltd-JUL2009 -0.50% Power Finance Corporation Ltd.-JUL2009 -0.02% Reliance Petroleum Ltd.-JUL2009 -0.53% Tata Chemicals Ltd.-JUL2009 -0.03% Oil & Natural Gas Corporation Ltd.-JUL2009 -0.56% Television Eighteen India Ltd.-JUL2009 -0.03% Idea Cellular Ltd.-JUL2009 -0.57% ACC Ltd.-JUL2009 -0.04% Jaiprakash Associates Ltd-JUL2009 -0.57% Power Grid Corporation Of India Ltd-JUL2009 -0.04% Reliance Capital Ltd.-JUL2009 -0.59% Canara Bank-JUL2009 -0.05% Adlabs Films Ltd.-JUL2009 -0.60% GTL Infrastructure Ltd.-JUL2009 -0.05% Chambal Fertilisers & Chemicals Ltd-JUL2009 -0.61% Divi s Laboratories Limited-JUL2009 -0.07% Firstsource Solutions Ltd.-JUL2009 -0.61% Allahabad Bank.-JUL2009 -0.08% Indian Oil Corporation Ltd-JUL2009 -0.61% Great Offshore Ltd.-JUL2009 -0.08% Cipla Ltd.-JUL2009 -0.62% Zee Entertainment Enterprises Ltd-JUL2009 -0.08% Lanco Infratech Ltd-JUL2009 -0.65% Hotel Leela Venture Ltd-JUL2009 -0.09% Industrial Development Bank of India Ltd.-JUL2009 -0.66% Syndicate Bank-JUL2009 -0.09% HDFC Ltd.-JUL2009 -0.68% Bajaj Auto Ltd.-JUL2009 -0.10% Bharti Airtel Ltd.-JUL2009 -0.69% Financial Technologies (India) Ltd.-JUL2009 -0.10% Ispat Industries Ltd-JUL2009 -0.70% HDFC Bank Ltd.-JUL2009 -0.10% Reliance Power Ltd-JUL2009 -0.71% Hero Honda Motors Ltd.-JUL2009 -0.10% Triveni Engineering & Industries Ltd.-JUL2009 -0.75% Ultratech Cement Ltd.-JUL2009 -0.10% Housing Development and Infrastructure Limited-JUL2009 -0.78% Chennai Petroleum Corporation Ltd.-JUL2009 -0.11% Nagarjuna Fertilizers & Chemicals Ltd.-JUL2009 -0.82% Federal Bank Ltd.-JUL2009 -0.11% Century Textiles & Industries Ltd.-JUL2009 -0.83% Rolta India Ltd.-JUL2009 -0.11% GVK Power & Infrastructure Ltd.-JUL2009 -0.84% Tata Power Co. Ltd.-JUL2009 -0.12% Infrastructure Development Finance Co. Ltd-JUL2009 -0.88% Ambuja Cements Ltd-JUL2009 -0.13% Hindustan Construction Co.Ltd-JUL2009 -0.89% DLF Limited-JUL2009 -0.13% Sun Pharmaceuticals Industries Ltd.-JUL2009 -0.90% Oriental Bank of Commerce-JUL2009 -0.13% National Thermal Power Corporation Limited-JUL2009 -0.91% Siemens Ltd.-JUL2009 -0.14% Punj Lloyd Ltd.-JUL2009 -0.95% Hcl Technologies Ltd.-JUL2009 -0.15% K S Oils Ltd-JUL2009 -0.98% Neyveli Lignite Corporation Ltd.-JUL2009 -0.16% Reliance Communications Ltd.-JUL2009 -0.99% Alstom Projects India Ltd.-JUL2009 -0.18% Bank of India-JUL2009 -1.06% Mercator Lines Ltd.-JUL2009 -0.18% Reliance Natural Resources Ltd-JUL2009 -1.06% Oracle Financial Services Software Ltd-JUL2009 -0.18% Essar Oil Ltd.-JUL2009 -1.13% Steel Authority of India Ltd.-JUL2009 -0.18% Hindustan Petroleum Corporation Ltd-JUL2009 -1.13% CESC Ltd.-JUL2009 -0.19% Mahanagar Telephone Nigam Ltd.-JUL2009 -1.17% Jaiprakash Hydro Power Ltd.-JUL2009 -0.20% Bharat Forge Ltd.-JUL2009 -1.18% Suzlon Energy Ltd.-JUL2009 -0.21% Cairn India Limited-JUL2009 -1.29% Tata Teleservices Ltd-JUL2009 -0.22% Infosys Technologies Ltd.-JUL2009 -1.32% Indian Hotels Company Ltd.-JUL2009 -0.24% Shree Renuka Sugars Ltd.-JUL2009 -1.32% Hindalco Industries Ltd-JUL2009 -0.25% Indiabulls Real Estate Ltd-JUL2009 -1.50% LIC Housing Finance Ltd.-JUL2009 -0.25% ITC Ltd.-JUL2009 -1.52% Tech Mahindra Ltd.-JUL2009 -0.25% GTL Ltd-JUL2009 -1.55% Ranbaxy Laboratories Ltd.-JUL2009 -0.26% Reliance Infrastructure Ltd-JUL2009 -1.58% Pantaloon Retail (india) Ltd.-JUL2009 -0.28% Balrampur Chini Mills Ltd-JUL2009 -1.59% Mangalore Refinery And Petrochemicals Ltd.-JUL2009 -0.30% Welspun Gujarat Stahl Rohren Ltd.-JUL2009 -1.60% Gujarat State Petronet Ltd.-JUL2009 -0.31% IFCI Ltd.-JUL2009 -1.75% Shipping Corporation of India Ltd.-JUL2009 -0.31% India Cements Ltd.-JUL2009 -2.17% United Spirits Ltd.-JUL2009 -0.31% Reliance Industries Ltd.-JUL2009 -3.29% Rural Electrification Corporation Ltd-JUL2009 -0.32% Money Market Instruments CBLO & Term Deposits & Rev.Repo 36.84% Commercial Paper(CP)/Certificate of Deposits(CD) Sector Allocation Public Sector Undertakings Petroleum Products 7.08% Syndicate Bank 1.12% Consumer Non Durables 6.49% Public Sector Undertakings - Total PR1+ 1.12% Power 5.38% TERM DEPOSITS Kotak Mahindra Bank Ltd. 27.35% Construction 4.85% Term Deposits - Total 27.35% Finance 4.49% Collateral Borrowing & Lending obligation 9.49% Banks 4.26% Net Current Assets/(Liabilities) 0.44% Cement 3.75% Grand Total 100% Telecom - Services 3.63% Notes: Software 3.06% Total NPA's provided for and percentage to NAV: Nil Others 20.17% Total value and percentage to Net Asset of Illiquid Equity Shares: Nil

8 Think Investments. Think Kotak. DEBT FUNDS (As on June 30, 2009)

Scheme Name KOTAK GILT SAVINGS KOTAK GILT INVESTMENT Open - Ended Dedicated Gilt Scheme Open - Ended Debt Scheme Investment To generate risk-free returns through investments in sovereign securities issued by the Central To generate risk-free returns through investments in sovereign securities issued by the Central Objective and / or State Government(s) and/ or reverse repos in such securities. and /or State Government(s) and/ or reverse repos in such securities.

Available Plans/ Dividend Payout, Dividend Reinvestment & Growth Plans- (a) Regular, (b) PF & Trust Options - Dividend Payout, Dividend Reinvestment & Growth Options Dividend Freq. Monthly (12th of every Mth) Annual Quarterly (20th of Mar/Jan/Sep/Dec) Fund Managers Deepak Agrawal & Abhishek Bisen. Deepak Agrawal & Abhishek Bisen. Nil. (a) Regular Plan - Entry: Nil . Entry (b) PF & Trust Plan - Entry: Nil. Load

Nil. (a) Regular Plan - Exit: (a) For amounts less than or equal to Rs. 50 lakhs: • For redemptions/ Load Exit switchouts within 6 months : 0.75% • For redemptions/ switchouts after 6 months : Nil (b) For Structure Load amounts greater than Rs. 50 lakhs : Nil (b) PF & Trust Plan - Exit: 1.00%, if redeemed within 1year. : Rs. 5000 Rs. 5000 Minimum Initial Investment Initial Investment: Additional Investment: Rs. 1000 & in multiples of Re1 Additional Investment: Rs. 1000 & in multiples of Re.1. Investment - 6 Months and above - More than 1 year. Amount Ideal Investments Horizon Ideal Investments Horizon Corpus: Rs. 58.62 crores. Corpus: Rs. 90.95 crores. Ratios: Beta*: 0.04 Sharpe*: 0.72 Standard Deviation*: 1.45 Alpha*: 0.83 YTM: 4.00% * (a) Regular Plan - Ratios: Sharpe*: 0.60 Beta*: 0.59 Alpha : 4.38 Standard Deviation*: Source: Value Research. Portfolio Modified Duration: 2.11 yrs 12.54 Corpus & Ratios (b) PF & Trust Plan - Ratios: Sharpe*:0.62 Beta*: 0.59 Alpha: 4.57 Standard Deviation*: 12.53 *YTM: 5.25% *Source: Value Research. Portfolio Modified Duration: 5.25yrs ISEC SIBEX ISEC Composite Index Benchmark December 29, 1998 Inception Date Regular Plan - December 29, 1998; PF & Trust Plan - November 11, 2003 Kotak Gilt Performance as Kotak Gilt Investment Investment Plan on June Kotak Gilt Investment 5 3 Savings Plan 4 0 2 9 30, 2009 3 - PF & Trust Plan . . . 5 8 8 7 . 20.00 1 1

16.00 1 4 ISEC SIBEX ISEC Composite 1

8 Index 3 14.00 15.00 9 . 1 7 . 4 0 8 0 5 1 . .

12.00 3 1 0 9 7 7 9 2 6 2 1

10.00 8 . 2 . 3 2 % . . . .

7 7 6 9 s

10.00 6 6 % 2

3 n s 3 2 r . . 6 5.00 1 n u 7 3 7 8.00 3 r 1 t . . 7 u e . 6 6 t 5 R e 6.00 0.00 R 4 1 . 6 4.00 3 9 -5.00 9 . 5 1 .

2.00 2 - -10.00 1 1 2 2 0.00 . . 7 7 - - 6 Months 1 Year 3 Years 5 Years Since 6 Months 1 Year 3 Years 5 Years Since Inception Inception $ the benchmark return corresponds only to Kotak Investment PF and Trust Plan Kotak Gilt Investment Savings Plan : Rs. 20.8456 (Growth Option). Kotak Gilt Investment Regular Plan : Rs. 29.9286 (Growth Option). Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Kotak Gilt Investment PF & Trust Plan : Rs. 30.5027 (Growth Option). Returns <= 1 year : Past performance may or may not be sustained in future. Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate)

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Government Dated Securities Government Dated Securities 7% Government Stock - 2012 SOV 34.88% 8.24% Government Stock - 2027 SOV 17.27% 7.4% Government Stock - 2012 SOV 17.74% 6.35% Government Stock - 2020 SOV 15.82% 7.56% Government Stock - 2014 SOV 16.01% 7.35% Government Stock - 2024 SOV 10.92% Government Dated Securities - Total 68.63% 8.2% Government Stock - 2022 SOV 8.22% Collateral Borrowing & Lending obligation 0.51% 7.5% Government Stock - 2034 SOV 7.97% Net Current Assets/(Liabilities) 30.86% 7.56% Government Stock - 2014 SOV 1.15% Grand Total 100% Government Dated Securities - Total 61.35% Treasury Bills 91 Days Treasury Bill 07/08/2009 SOV 3.70% Treasury Bills - Total 3.70% Collateral Borrowing & Lending obligation 23.75% Net Current Assets/(Liabilities) 11.20% Grand Total 100%

Average Maturity of the portfolio based on total maturity of fixed rate and immediate Average Maturity of the portfolio based on total maturity of fixed rate andimmediate reset date of floating rate instruments : 2.48 years reset date of floating rate instruments : 9.46 years

Total NPA provided and percentage to NAV: NIL Total NPA provided and percentage to NAV: NIL Notes: Valuation of Goverment Securities are as per the Securities and Exchange Board of India (SEBI) circular No. MFD/CIR/No 14/442/2002 dated February 20, 2002. * Indicates % to net Asset less than 0.01%

Sector Allocation Government Dated Securities 68.63% Government Dated Securities 61.35% Net Current Assets 30.86% CBLO & Term Deposits & Rev.Repo 23.75% CBLO & Term Deposits & Rev.Repo 0.51% Net Current Assets 11.20% Treasury Bills 3.70%

Rating Profile SOV 68.63% SOV 65.05% Net Current Assets 30.86% CBLO & Term Deposits & Rev.Repo 23.75% CBLO & Term Deposits & Rev.Repo 0.51% Net Current Assets 11.20%

Think Investments. Think Kotak. 9 DEBT FUNDS (As on June 30, 2009)

Scheme Name KOTAK BOND SHORT TERM KOTAK BOND Open - Ended Debt Scheme Open - Ended Debt Scheme To provide reasonable returns and high level of liquidity by investing in debt & money market To create a portfolio of debt and money market instruments of different maturities so as to spread Investment instruments of different maturities, so as to spread the risk across different kinds of issuers in the the risk across a wide maturity horizon & different kinds of issuers in the debt market. Objective debt market. Available Plans/ Dividend Reinvestment & Growth Plan (a) Deposit (b) Regular. Options (a) Deposit - Dividend Payout, Dividend Reinvestment & Options Growth (b) Regular - Dividend Payout, Dividend Reinvestment , Growth & Bonus Monthly (12th of every Mth) Dividend Freq. Deposit Plan - Quarterly (20th of Mar/Jan/Sep/Dec) Regular Plan - Quarterly (20th of Mar/Jan/Sep/Dec) Annual (12th of Mar) Fund Managers Deepak Agrawal & Abhishek Bisen. Deepak Agrawal & Abhishek Bisen. Nil. (a) Deposit Plan - Entry: Nil . Entry Nil. Load (b)Regular Plan - Entry: Load For investments less than or equal to Rs. 2 crores: (a) Deposit Plan - Exit: • For redemptions/ switch-outs within 1 Year : 1.25% • For redemptions/ Structure Exit a. If redeemed/switched out on or before 182 days from the date of allotment of units: 0.50% switch-outs after 1 Year: Nil Load b. If redeemed/switched out after 182 days: Nil (b) Regular Plan - Exit: Nil. For investments greater than Rs. 2 crores: Nil : Rs. 5000 Rs. 5000 Rs. 500000 Minimum Initial Investment Initial Investment: (a) Deposit Plan - (b) Regular Plan - Additional Investment: Rs. 1000 & in multiples of Re1 Additional Investment: Rs. 1000 & in multiples of Re.1. Investment - 6 Months and above - 1-2 years Amount Ideal Investments Horizon Ideal Investments Horizon Corpus: Rs. 666.65 crores. Corpus: Rs. 511.61 crores. Corpus & Ratios Ratios: Beta*: -0.05 Sharpe*: 2.37 Standard Deviation*: 2.32 Alpha*: 5.60 YTM: 6.75% (a) Deposit Plan- Ratios: Sharpe*: 0.76 Beta*: 0.87 Alpha: 4.02 Standard Deviation*: 8.96 *Source: Value Research. Portfolio Modified Duration: 1.46 yrs (b) Regular Plan - Ratios: Sharpe*: 0.81 Beta*: 0.87 Alpha: 4.52 Standard Deviation*: 8.96 YTM: 7.00% *Source: Value Research. Portfolio Modified Duration: 5.83 yrs

Crisil Short - Term Bond Fund Index Benchmark Crisil Composite Bond Index May 02, 2002 Inception Date November 25, 1999 Short Term Plan Deposit Plan

Performance as 6 6 2 1 3 7 on June . . . 14.00 3 Crisil Short - Term 20.00 8 8 Regular Plan 6 30, 2009 1 1 1 2

. Bond Fund Index

1 Crisil Composite 12.00 1 5 0 4 9 15.00 . Bond Index 6 2 1 . . 9 2 1 0 . 1 1 7

10.00 5 9 3 0 1 1 1 1 . 4 . 0 . . 1 7 % 9 8 7 4 .

8 9 . 0 6 % 4 7 5 10.00

s . 8 9 6

8.00 0 4 . . s 4 7 . n 0 6 6 n 3 . r 6 . r 6 u 5 2 u t

6.00 0 t 4 e . 5.00 2 e . 4 R R 4.00 2 0.00 2.00 4 4 5 5 . .

-5.00 1 1 0.00 - - 6 Months 1 Year 3 Years 5 Years Since 6 Months 1 Year 3 Years 5 Years Since Inception Inception

Kotak Bond Short Term NAV : Rs.17.0263 (Growth Option). Kotak Bond Deposit NAV : Rs.23.7899 (Growth Option). Kotak Bond Regular NAV : Rs.25.5470 Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate) (Growth Option). Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Past performance may or may not be sustained in future. Annualised Growth Rate). Past performance may or may not be sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Debt Instruments Debt Instruments Debentures and Bonds Debentures and Bonds Corporate Debt/Financial Institutions Corporate Debt/Financial Institutions HDFC Ltd. AAA 10.11% Tech Mahindra Ltd. CARE AAA 5.17% LIC Housing Finance Ltd. AAA 5.26% HDFC Ltd. AAA 4.14% Tech Mahindra Ltd. CARE AAA 3.17% Corporate Debt/Financial Institutions - Total 9.31% Aditya Birla Nuvo Limited AAA 1.62% Public Sector Undertakings Tata Motors Ltd. AAA 1.51% Power Finance Corporation Ltd. AAA 11.33% Infrastructure Development Finance Co. Ltd AAA 1.50% Indian Railway Finance Corporation Ltd. AAA 8.07% HDFC Bank Ltd. AAA 0.75% India Infrastructure Finance Company Ltd. AAA 4.40% Infrastructure Development Finance Co. Ltd LAAA 0.02% Export-Import Bank of India. AAA 3.03% Corporate Debt/Financial Institutions - Total 23.94% Power Finance Corporation Ltd. AAA(ind) 1.03% Public Sector Undertakings Public Sector Undertakings - Total 27.86% Power Finance Corporation Ltd. AAA 8.10% Government Dated Securities Export-Import Bank of India. AAA 7.35% 8.24% Government Stock - 2027 SOV 20.47% Rural Electrification Corporation Ltd. AAA 7.08% 8.2% Government Stock - 2022 SOV 11.06% Indian Railway Finance Corporation Ltd. AAA 5.42% 7.35% Government Stock - 2024 SOV 9.71% Food Corporation of India AAA(so) 4.54% 6.35% Government Stock - 2020 SOV 6.56% Power Finance Corporation Ltd. AAA(ind) 4.04% 7.5% Government Stock - 2034 SOV 3.31% Rural Electrification Corporation Ltd. AAA(ind) 1.66% 7.56% Government Stock - 2014 SOV 1.02% Steel Authority of India Ltd. AAA 1.62% Government Dated Securities - Total 52.13% National Bank for Agriculture and Rural Development AAA 1.23% Money Market Instruments Power Grid Corporation of India Ltd. AAA 0.81% Commercial Paper(CP)/Certificate of Deposits(CD) Indian Oil Corporation Ltd. AAA 0.46% Public Sector Undertakings Public Sector Undertakings - Total 42.31% IDBI Bank Ltd. A1+ 6.47% Government Dated Securities Public Sector Undertakings - Total 6.47% 6.57% Government Stock - 2011 SOV 2.30% 2.35% SOV Collateral Borrowing & Lending obligation 7% Government Stock - 2012 1.23% Net Current Assets/(Liabilities) 1.88% Government Dated Securities - Total 3.53% Grand Total 100% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions Sterlite Industries (India) Ltd P1+ 3.56% ICICI Bank Ltd. A1+ 0.72% Corporate Debt/Financial Institutions - Total 4.28% Public Sector Undertakings Punjab & Sind Bank A1+ 7.25% Vijaya Bank P1+ 3.63% Union Bank of India P1+ 1.48% 12.36% Public Sector Undertakings - Total Collateral Borrowing & Lending obligation 7.05% Net Current Assets/(Liabilities) 6.53% Grand Total 100% Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 9.90 years Total NPA provided and percentage to NAV: NIL Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments : 1.70 years Notes: Total NPA provided and percentage to NAV: NIL Valuation of Goverment Securities are as per the Securities and Exchange Board of India (SEBI) circular No. MFD/CIR/No 14/442/2002 dated February 20, 2002. Notes: * Indicates % to net Asset less than 0.01% # Indicates % to net Asset less than 0.01%

Sector Allocation Debentures and Bonds 66.25% Government Dated Securities 52.13% Commercial Paper (CP)/Certificate of Deposits (CD) 16.64% Debentures and Bonds 37.17% CBLO & Term Deposits & Rev.Repo 7.05% Commercial Paper (CP)/Certificate of Deposits (CD) 6.47% Net Current Assets 6.53% CBLO & Term Deposits & Rev.Repo 2.35% Government Dated Securities 3.53% Net Current Assets 1.88%

A1+, AAA, AAA(ind), AAA(so), CARE AAA, LAAA, P1+, SOV 86.42% Rating Profile A1+, AAA, AAA(ind), CARE AAA, SOV 95.77% CBLO & Term Deposits & Rev.Repo 7.05% CBLO & Term Deposits & Rev.Repo 2.35% Net Current Assets 6.53% Net Current Assets 1.88%

10 Think Investments. Think Kotak. DEBT FUNDS (As on June 30, 2009)

Scheme Name KOTAK FLOATER LONG TERM KOTAK FLOATER SHORT TERM Open - Ended Debt Scheme Open - Ended Debt Scheme To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in To reduce the interest rate risk associated with investments in fixed rate Investment floating rate securities, money market instruments and using appropriate derivatives. instruments by investing predominantly in floating rate securities, money Objective market instruments and using appropriate derivatives. Available Options Growth, Dividend Reinvestment & Weekly Dividend Payout Dividend Reinvestment & Growth Dividend Freq. Daily Monthly (12th of every Mth) Annual. Weekly (Every Monday) Daily Weekly (Every Monday) Monthly (12th of every Mth) Fund Managers Deepak Agrawal & Abhishek Bisen. Deepak Agrawal & Abhishek Bisen. Entry Nil. Nil. Load

Nil. Nil. Load Exit Structure Load

: Rs. 5000 Rs. 5000 & Rs.1,00,000 under Daily Dividend Minimum Initial Investment Initial Investment: Additional Investment: Rs. 1000 & in multiples of Re1 Reinvestment option, Additional Investment: Rs. 1000 & in multiples Investment - 3 Months and above of Re.1. - 1 Month to 3 Months. Amount Ideal Investments Horizon Ideal Investments Horizon Corpus: Rs. 9696.20 crores. Corpus: Rs. 364.30 crores. Corpus & Ratios Ratios: Standard Deviation*: 0.27 Beta*: 0.48 Sharpe*: 11.40 Alpha*: 2.34 YTM: 6.00% * Source: Value Research. Ratios: Standard Deviation*: 0.26 Beta*: 0.64 Sharpe*: 10.68 Alpha*: Portfolio Modified Duration: 0.52 yrs 1.75 YTM: 5.00% *Source: Value Research. Portfolio Modified Duration: 0.12 yrs CRISIL Liquid Fund Index CRISIL Liquid Fund Index Benchmark August 13, 2004 Inception Date July 14, 2003 0 4 1 . Performance as 1 9 9 9 8 7 0 8 9.00 . . 4 4 4 7 . on June 4 3 7 . 4 . . 9 7 9.00 2

8.00 . 8 6 9 8 8 4 3 . 8 30, 2009 6 . 4 0 6 6 . . 2 7.00 8.00 . 6 7 8 7 %

4 6.00 . 7.00 s 6 n 5.00 7 r 4 . 0

6.00 u 3 8

t 4.00 . %

e 2 s 8 R 3.00

5.00 3 3 n 7 2 4 . r

Kotak Floater Long Term . 4 1 5 3 2.00 3 1 . 6 u 1 . 7 5 3

t 4.00 2 1 . 3 1 0 0 . 3 . . . . e 1.00 0 0 0 0 0 0 R 3.00 CRISIL Liquid Fund Index 0.00 s s h n r s s t s s h h r r y o 2.00 a y t t n i e a a a e t a n n o c e e Y p D D o o

n

Y Y 1.00 e i M

1

5 c 7 M M S 3 5

1 1 n I 0.00 3 6 6 Months 1 Year 3 Years Since Inception Kotak Floater Short Term CRISIL Liquid Fund Index Kotak Floater Long Term NAV : Rs.14.0945 (Growth Option). Kotak Floater Short Term NAV : Rs.14.6719 (Growth Option). Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Past performance may or may not be sustained in future. Annualised Growth Rate). Past performance may or may not be sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Issuer / Instrument Industry / Rating % to Net Issuer / Instrument Industry / Rating % to Net Assets Assets Assets Debt Instruments Debt Instruments Jammu & Kashmir Bank P1+ 0.24% Debentures and Bonds Debentures and Bonds Standard Chartered Bank Ltd P1+ 0.20% Corporate Debt/Financial Institutions HDFC Ltd. P1+ 0.15% HDFC Ltd. AAA 11.05% Corporate Debt/Financial Infrastructure Development Finance Co. Ltd LAAA 4.12% Institutions Corporate Debt/Financial Institutions - Total 26.33% AAA 3.77% HDFC Ltd. AAA 4.92% Public Sector Undertakings Tata Sons Ltd. Infrastructure Development Finance LAAA 1.49% Punjab & Sind Bank A1+ 9.24% Tata Steel Limited AA(ind) 2.77% Co. Ltd Canara Bank P1+ 6.88% Kotak Mahindra Prime Ltd. LAA 2.74% LIC Housing Finance Ltd. AAA 0.54% Vijaya Bank P1+ 5.58% AXIS Bank Ltd. LAA+ 1.42% Infrastructure Development Finance AAA 0.39% United Bank Of India A1+ 4.91% Ultratech Cement Ltd. AAA 1.12% Co. Ltd Punjab National Bank P1+ 4.72% Citifinancial Consumer Finance India Ltd. AA+ 0.82% HDFC Ltd. LAAA 0.16% State Bank of Bikaner & Jaipur P1+ 3.35% Corporate Debt/Financial Institutions - Total 27.81% Infrastructure Development Finance AAA(ind) 0.16% Bank of India P1+ 3.30% Money Market Instruments Co. Ltd Allahabad Bank P1+ 3.14% Commercial Paper(CP)/Certificate of Deposits(CD) AXIS Bank Ltd. LAA+ 0.10% Oriental Bank of Commerce P1+ 2.96% Corporate Debt/Financial Institutions Tata Sons Ltd. AAA 0.09% UCO Bank P1+ 2.32% ICICI Bank Ltd. A1+ 6.81% Hindalco Industries Ltd. AA- 0.05% Syndicate Bank P1+ 2.19% Corporate Debt/Financial Institutions - Total 6.81% Corporate Debt/Financial Institutions - Total IDBI Bank Ltd. P1+ 1.62% Public Sector Undertakings 7.90% Central Bank Of India P1+ 1.54% Export-Import Bank of India. P1+ 13.67% Public Sector Undertakings PR1+ Export-Import Bank of India. AAA 0.61% IDBI Bank Ltd. A1+ 1.47% Syndicate Bank 9.55% Rural Electrification Corporation Ltd. Andhra Bank P1+ 1.35% Central Bank Of India P1+ 8.19% AAA 0.51% P1+ Indian Railway Finance Corporation AAA 0.45% Corporation Bank P1+ 1.24% Union Bank of India 6.81% Ltd. State Bank of Patiala P1+ 1.23% IDBI Bank Ltd. P1+ 4.10% Power Finance Corporation Ltd. Bank Of Baroda P1+ 1.17% Andhra Bank P1+ 2.73% AAA 0.32% P1+ Food Corporation of India AAA(so) 0.26% Bank of Maharashtra P1+ 0.76% State Bank of Bikaner & Jaipur 2.73% IDBI Bank Ltd. Union Bank of India P1+ 0.76% Canara Bank P1+ 1.37% AA+ 0.22% P1+ National Housing Bank AAA 0.21% Hindustan Petroleum Corporation Ltd. P1+ 0.74% Corporation Bank 1.37% National Bank for Agriculture AAA 0.10% State Bank of Mysore A1+ 0.56% Public Sector Undertakings - Total 50.52% and Rural Development Union Bank of India A1+ 0.40% Treasury Bills SOV Power Finance Corporation Ltd. AAA(ind) 0.06% Export-Import Bank of India. P1+ 0.30% 91 Days Treasury Bills 09/07/2009 0.55% National Bank for Agriculture CARE AAA 0.05% State Bank of Hyderabad P1+ 0.28% Treasury Bills - Total 0.55% and Rural Development Dena Bank P1+ 0.26% Collateral Borrowing & Lending obligation 13.86% Indian Oil Corporation Ltd. LAAA 0.02% Bank Of Baroda F1+(ind) 0.06% Net Current Assets/(Liabilities) 0.45% AAA 0.05% Public Sector Undertakings - Total 2.81% National Housing Bank Grand Total 100% Money Market Instruments Power Finance Corporation Ltd. P1+ 0.05% Commercial Paper(CP)/ Rural Electrification Corporation Ltd. A1+ 0.05% Certificate of Deposits(CD) Public Sector Undertakings - Total 62.48% Corporate Debt/Financial Institutions Treasury Bills ICICI Bank Ltd. A1+ 7.40% 91 Days Treasury Bills 17/07/2009 SOV 0.26% AXIS Bank Ltd. P1+ 4.97% Treasury Bills - Total 0.26% YES Bank Ltd. P1+ 3.50% Collateral Borrowing & Lending obligation 0.18% Reliance Petroleum Ltd. P1+ 2.79% Net Current Assets/(Liabilities) 0.04% Federal Bank Ltd. P1+ 2.09% Grand Total 100% Sterlite Industries (India) Ltd P1+ 1.72% HDFC Ltd. A1+ 1.70% Tata Sons Ltd. P1+ 0.71% HDFC Bank Ltd. P1+ 0.51% Infrastructure Development Finance A1+ 0.35% Co. Ltd

Average Maturity of the portfolio based on total maturity of fixed Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of rate and immediate reset date of floating rate instruments: 0.12 floating rate instruments: 0.52 years years Total NPA provided and percentage to NAV: NIL Total NPA provided and percentage to NAV: NIL

Notes: Notes * Indicates % to net Asset less than 0.01% *Indicates % to net Asset less than 0.01%

Sector Allocation Commercial Paper (CP)/Certificate of Deposits (CD) 88.81% Commercial Paper (CP)/Certificate of Deposits (CD) 57.33% Debentures and Bonds 10.71% Debentures and Bonds 27.81% Treasury Bills 0.26% CBLO & Term Deposits & Rev.Repo 13.86% CBLO & Term Deposits & Rev.Repo 0.18% Treasury Bills 0.55% Net Current Assets 0.04% Net Current Assets 0.45%

Rating Profile A1+, AAA, AAA(ind), AAA(so), CARE AAA, F1+(ind), LAAA, P1+, SOV 99.41% A1+, AAA, LAAA, P1+, PR1+, SOV 77.94% AA+, LAA+, AA- 0.37% CBLO & Term Deposits & Rev.Repo 13.86% CBLO & Term Deposits & Rev.Repo 0.18% AA+, LAA+, AA(ind), LAA 7.75% Net Current Assets 0.04% Net Current Assets 0.45%

Think Investments. Think Kotak. 11 DEBT FUNDS (As on June 30, 2009)

Scheme Name KOTAK INCOME PLUS KOTAK FLEXI DEBT Open - Ended Income Scheme Open - Ended Debt Scheme Investment To enhance returns over a portfolio of Debt Instruments with a The investment objective of the Scheme is to maximize returns through an active management of a portfolio of debt and money Objective moderate exposure in Equity and Equity related Instruments. market securities. Available Plans/ Dividend Payout, Dividend Reinvestment & Growth - (a) Regular, (b) Institutional. Dividend Reinvestment & Growth Options Plans Options - Dividend Freq. Monthly (12th of every Mth) Quarterly (20th of Mar/Jan/Sep/Dec) Regular Plan - Daily Weekly (Every Monday) Quarterly (20th of Mar/Jan/Sep/Dec), Institutional Plan - Daily Weekly (Every Monday) Fund Managers Krishna Sanghvi, Sajit Pisharodi & Abhishek Bisen. Deepak Agrawal & Abhishek Bisen (a) Regular Plan - Entry: Nil . Entry Nil. Nil. Load (b) Institutional Plan - Entry: Load Exit 1% for redemptions within 1 year where investment (a) Regular Plan - Exit: Nil . Structure Load amount Rs. 25 lacs. (b) Institutional Plan - Exit: Nil. Minimum Initial Investment: Rs. 5000 Initial Investment: (a) Rs. 5000 & Rs.1,00,000 under Daily Dividend Reinvestment option (b) Rs.1,00,00,000, Investment Additional Investment: Rs. 1000 & in multiples of Re1 Additional Investment: (a) & (b) Rs.1000 & in Multiples of Re.1. Amount Ideal Investments Horizon - 1-3 years Ideal Investments Horizon - 7 Days Corpus: Rs. 17.78 crores. Corpus: Rs. 2863.96 crores. Corpus & Ratios Ratios: Standard Deviation*: 6.76 Sharpe*: -1.55 Beta*: 0.55 (a) Regular Plan - Ratios: Standard Deviation*: 0.22 Sharpe*: 12.64 Beta*: 0.01 Alpha*: 2.77 Alpha*: -8.20 YTM: 4.50% *Source: Value Research. Portfolio (b) Institutional Plan - Ratios: Total Expense Ratio: 1.00% Modified Duration: 1. 03 yrs YTM: 6.00% *Source: Value Research. Portfolio Modified Duration: 0.50 yrs CRISIL MIP Blended Index CRISIL Composite Bond Index Benchmark Inception Date December 02, 2003 Regular Plan - December 06, 2004, Institutional Plan - May 26, 2008 Performance as Kotak Income Plus

4 Kotak Flexi Debt - Regular

on June 14.00 0 . CRISIL MIP Blended Index 2 30, 2009 0 1 2 12.00 . Kotak Flexi Debt - Institutional 12.00 1 1 8 3 10.00 2 3 4 2 7 . . . 5 8 8 CRISIL Composite Bond Index 8 . 1 9 % 9

10.00 2 7 4 s 8.00 3 3 8 5 . . . 1 1 n 7 . 7 r 6 8 . 8 5 . 0 8 u . 5 t 6.00 7 9 The benchmark returns corresponds to Kotak 7 % e

8.00 . 7

6 R 6 8

s Flexi Debt Regular Plan Capital 9 0 . 7 . n

4.00 . 3 5 r 2 6.00 u

9 Kotak Flexi Debt NAV: Rs.13.9165 (Growth 2.00 t 9 0 e . 0

3 Option). 0 . R 0 . 4.00 0 0.00 3 3 2 6 Months 1 Year 3 Years 5 Years Since Inception . Kotak Flexi Debt Institutional Plan NAV: 2.00 2 Rs.10.9225 (Growth Option). Returns <= 1 Kotak Income Plus NAV - Rs.13.6629 (Growth Option) year : Absolute; Returns > 1 year : CAGR Returns <= 1 year : Absolute; Returns > 1 year : CAGR 0.00 (Compounded Annualised Growth Rate). (Compounded Annualised Growth Rate). Past performance may Past performance may or may not be or may not be sustained in future. 6 Months 1 Year 3 Years Since Inception sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Issuer / Instrument Industry / Rating % to Net Assets Equity & Equity related (Listed/Awaiting listing on Equity & Equity related (Listed/Awaiting listing on Stock Exchange) Stock Exchange) Public Sector Undertakings - Total 5.80% Reliance Industries Ltd. Petroleum Products 0.97% Debt Instruments Money Market Instruments Oil & Natural Gas Corporation Oil 0.78% Debentures and Bonds Commercial Paper(CP)/Certificate of Ltd. Corporate Debt/Financial Institutions Deposits(CD) Bharat Heavy Electricals Ltd. Industrial Capital Goods 0.62% Kotak Mahindra Prime Ltd. LAA 5.44% Corporate Debt/Financial Institutions Hindustan Petroleum Petroleum Products 0.57% Infrastructure Leasing & Financial F1+(ind) 3.48% L & T Finance Limited PR1+ 4.94% Corporation Ltd Services Limited ICICI Bank Ltd. A1+ 3.48% Balrampur Chini Mills Ltd Consumer Non Durables 0.56% Kesoram Industries Limited CARE AA- 2.86% AXIS Bank Ltd. P1+ 2.80% Bharti Airtel Ltd. Telecom - Services 0.54% Sundaram Finance Ltd. A1+ 2.63% Mahindra & Mahindra Financial P1+ 2.04% IRB Infrastructure Developers Bharat Securitisation Trust 2 Ser AA(ind)(SO) 2.27% Services Ltd. Ltd Construction 0.52% B(Shriram Transport Finance Co Ltd.) Sundaram Finance Ltd. A1+ 1.65% GlaxoSmithkline Consumer Consumer Non Durables 0.50% Unitech Ltd. F4(ind) 1.79% Century Enka Ltd. P1+ 1.22% Healthcare Ltd IBM India Private Ltd., AAA(ind)(SO) 1.77% Aditya Birla Nuvo Limited A1+ 0.87% ICICI Bank Ltd. Banks 0.49% Infrastructure Leasing & Financial A1+ 1.75% Birla Global Finance Co.Ltd. A1+ 0.85% Union Bank Of India Banks 0.49% Services Limited Sterlite Industries (India) Ltd P1+ 0.83% Others 12.58% Sundaram Finance Ltd. AA+ 1.75% Karur Vysya Bank Ltd. F1(ind) 0.50% Listed/Awaiting Listing on Stock 18.62% Infrastructure Leasing & Financial PR1+ 1.74% Cholamandalam DBS Finance A1+ 0.35% Exchange - Total Services Limited Limited. Futures Citifinancial Consumer Finance India Ltd. AA+ 1.71% ICICI Home Finance Company A1+ 0.34% National Thermal Power Corporation 0.18% Long Bond Receivables Trust 2007 AAA(so) 1.67% Limited Limited-JUL2009 SR-V(Standard Chartered Bank Ltd) Cholamandalam DBS Finance P1 0.31% Futures (Market value represents 0.18% Tata Sons Ltd. AAA 1.46% Limited. Notional Value) - Total LIC Housing Finance Ltd. AAA 1.19% Reliance Capital Ltd. A1+ 0.20% Government Dated Securities Indian Corporate Loan Securitization AAA(so) 0.93% Reliance Communications Ltd. A1+ 0.17% 7.27% Government Stock - SOV 28.99% Trust Series 9 S(LIC Housing Finance Ltd.) Corporate Debt/Financial Institutions - Total 20.55% 2013 Infrastructure Development LAAA 0.90% Public Sector Undertakings Government Dated Securities - Total 28.99% Finance Co. Ltd AAA 0.89% Canara Bank P1+ 8.15% TERM DEPOSITS GE Capital Services India. AAA 0.89% State Bank of Patiala P1+ 4.18% Kotak Mahindra Bank Ltd. 2.81% Sundaram Finance Ltd. Vijaya Bank P1+ 2.86% Term Deposits - Total 2.81% ICICI Securities Primary Dealership Ltd. AAA 0.87% Syndicate Bank P1+ 2.52% Collateral Borrowing & Lending 44.99% Ultratech Cement Ltd. AAA 0.81% State Bank of Indore P1+ 1.69% obligation Long Bond Rec.Trust 2006 Ser IV AAA(so) 0.76% State Bank of Bikaner & Jaipur P1+ 1.67% 4.41% A2(Standard Chartered Bank Ltd) LAA+ 0.74% IDBI Bank Ltd. A1+ 1.33% Net Current Assets/(Liabilities) P1+ Grand Total 100% Sundaram Finance Ltd. Oriental Bank of Commerce 1.04% BHW Home Finance Ltd LAA+ 0.70% Union Bank of India P1+ 0.97% Kotak Mahindra Prime Ltd. P1+ 0.70% Dena Bank P1+ 0.85% Mahindra & Mahindra Financial AA+ 0.70% IDBI Bank Ltd. P1+ 0.71% Services Ltd. Export-Import Bank of India. P1+ 0.34% Infrastructure Leasing & Financial AAA(ind) 0.52% State Bank of Travancore P1+ 0.33% Services Limited Export-Import Bank of India. A1+ 0.21% AXIS Bank Ltd. LAA+ 0.50% National Bank for Agriculture P1+ 0.17% Long Bond Receivables 2006 III and Rural Development A(Standard Chartered Bank Ltd) AAA(ind) 0.41% Public Sector Undertakings - Total 27.02% Sobha Developers Ltd. Unrated 0.37% Collateral Borrowing & Lending obligation 1.52% HDFC Ltd. AAA 0.36% Net Current Assets/(Liabilities) 2.38% Indian Retail ABS Trust Series 56 AAA 0.10% Grand Total 100% A2(ICICI Bank Ltd.) ICICI Bank Ltd. CARE AAA 0.07% Corporate Debt/Financial Institutions - Total 42.73% Public Sector Undertakings Export-Import Bank of India. AAA 2.58% Power Finance Corporation Ltd. AAA 1.06% IDBI Bank Ltd. AA+ 0.71% Rural Electrification Corporation Ltd. AAA 0.55% National Bank for Agriculture and Rural AAA 0.35% Development Indian Oil Corporation Ltd. AAA 0.19% Average Maturity of the portfolio based on total maturity Indian Railway Finance Corporation Ltd. AAA 0.18% of fixed rate and immediate reset date of floating rate Union Bank of India AA+ 0.18% instruments. 1.23 years Total NPA provided and percentage to NAV: Nil Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 0.51 years Notes: Total NPA provided and percentage to NAV: NIL * Indicates % to net Asset less than 0.01% Notes: *Indicates % to net Asset less than 0.01% Sector Allocation CBLO & Term Deposits & Rev.Repo 47.80% Debentures and Bonds 48.53% Government Dated Securities 28.99% Commercial Paper (CP)/Certificate of Deposits (CD) 47.57% Equities 18.62% Net Current Assets 2.38% Net Current Assets 4.41% CBLO & Term Deposits & Rev.Repo 1.52% Derivatives 0.18%

A1+, AAA, AAA(ind), AAA(ind)(SO), AAA(so), CARE AAA, F1+(ind), LAAA, P1+, PR1+ 75.57% Rating Profile CBLO & Term Deposits & Rev.Repo 47.80% SOV 28.99% AA+, F1(ind), LAA+, P1, AA(ind)(SO), LAA, CARE AA- 18.37% Equities 18.62% Net Current Assets 2.38% Net Current Assets 4.41% F4(ind) 1.79% Derivatives 0.18% Unrated 0.37% CBLO & Term Deposits & Rev.Repo 1.52%

12 Think Investments. Think Kotak. DEBT FUNDS (As on June 30, 2009)

Scheme Name KOTAK LIQUID Open - Ended Income Scheme Investment To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of different maturities so as to spread risk across different kinds of issuers in the debt Objective markets Available Plans/ Plans- (a) Regular, (b) Institutional (c) Institutional Premium Options - (a) Dividend Reinvestment & Growth (b) Dividend Reinvestment & Growth (c) Dividend Payout, Dividend Reinvestment & Options Growth Dividend Freq. Regular - Weekly (Every Monday) , Institutional - Daily, Weekly (Every Monday) Institutional Premium - Daily, Weekly (Every Monday) Fund Managers Deepak Agrawal & Abhishek Bisen Load Entry Nil. Exit Nil. Structure Load Load Minimum Investment Initial Investment:(a) Rs. 5000 (b) Rs. 1 crore (c) Rs. 5 crores. Additional Investment: Rs. 1000 & in multiples of Re1 Ideal Investments Horizon - 7 days to 15 days Amount Corpus & Ratios Corpus: Rs. 3317.67 crores. (a) Regular Plan- Ratios: Sharpe*: 9.78 Beta*: 0.01 Alpha* : 2.19 Standard Deviation*: 0.23 (b) Institutional Plan - Ratios: Sharpe*: 10.43 Beta*:0.01 Alpha*: 2.40 Standard Deviation*:0.23 (c) Institutional Premium Plan - Ratios: Sharpe*: 12.92 Beta*: 0.01 Alpha*: 2.91 Standard Deviation*: 0.23 YTM: 6.00% Source*: Value Research. Portfolio Modified Duration: 0.16yrs CRISIL Liquid Fund Index Benchmark Regular Plan - October 5, 2000; Institutional Plan - March 14, 2003,Institutional Premium Plan - November 4, 2003 Inception Date Performance as 0 5 9 on June 4 . 1 Kotak Liquid Regular Plan 9 .

9.00 9 7 1 . 8 7 2 8 4 5 30, 2009 5 7 . 3 4 2 . . . 6 . 7 0 8.00 7 7 7 2 3 7 7 2 . 7 1

. Kotak Liquid Institutional Plan 6 4 4 5 3 7 . 3 . . 6 . 1 .

7.00 6 . 6 6 6 6 % 6

s 6.00 Kotak Liquid Institutional Premium Plan n

r 5.00 7 2 u 4 CRISIL Liquid Fund Index . 2 t 1 5

4.00 . 3 8 7 e . 3 . 2 2 R 3.00 8 1 4 2 3 3 . 1 1 2.00 . 1 .

. The benchmark returns corresponds to Kotak Liquid Institutional Premium Capital 1 5 5 1 3 0 6 4 1 1 1 8 9 0 5 6 . 3 3 2 2 1 . . . 1 0 0 1 0 1 1.00 . . 0 ...... 0 0 0 0 0 0 0.00 0 0 0 0 0 Kotak Liquid Regular Plan NAV: Rs.17.3807 (Growth Option); Kotak Liquid s s h n

s Institutional Plan NAV : Rs.17.7412 (Growth Option);Kotak Liquid Institutional t h h s r s s o y t t y r r n i a e t a n n a a a Premium Plan NAV: Rs.18.0664 (Growth Option) o e c p o o e e D Y D

n

e

M Y Y i

c 5 M M 1 7 S

1 3 5 n 1 I

3 6 Returns <= 1 year : Absolute; Returns > 1 year : CAGR (Compounded Annualised Growth Rate). Past performance may or may not be sustained in future.

Portfolio Issuer / Instrument Industry / Rating % to Net Issuer / Instrument Industry / Rating % to Net Assets Assets

Debt Instruments Syndicate Bank P1+ 5.93% Debentures and Bonds State Bank of Indore P1+ 4.65% Corporate Debt/Financial Institutions Punjab National Bank P1+ 4.45% Tata Steel Limited AA(ind) 2.71% Allahabad Bank P1+ 3.50% LIC Housing Finance Ltd. AAA 2.03% Export-Import Bank of India. P1+ 2.84% RB Loan Trust Series 30 Series PR1+(SO) 2.01% Vijaya Bank P1+ 2.66% A2(PO)(Tata Communications Ltd) Central Bank Of India P1+ 2.10% Indian Corp Loan Securitisation Trust LAA+(SO) 1.51% Bank of India P1+ 1.63% Series 11 Seri(TATA Capital Ltd.) Bank Of Baroda F1+(ind) 0.63% Mahindra & Mahindra Financial Services AA- 1.50% State Bank of Bikaner & Jaipur P1+ 0.60% Ltd. Syndicate Bank PR1+ 0.57% Sundaram Finance Ltd. AA+ 1.35% Union Bank of India P1+ 0.45% HDFC Ltd. AAA 1.21% State Bank of Mysore A1+ 0.30% ICICI Bank Ltd. CARE AAA 1.10% Corporation Bank P1+ 0.14% Citifinancial Consumer Finance India Ltd. AA+ 1.09% State Bank of Hyderabad P1+ 0.06% DSP Merrill Lynch Capital Ltd. AA+ 1.05% Canara Bank P1+ 0.03% AXIS Bank Ltd. LAA+ 0.92% State Bank of Patiala A1+ 0.03% Tata Sons Ltd. AAA 0.78% Public Sector Undertakings - Total 40.73% Sundaram Finance Ltd. AAA 0.75% Treasury Bills Loan Receivable Trust Series A2(PO)- P1+(so) 0.66% 182 Days Treasury Bill SOV 0.15% SHRT(Shriram Transport Finance Co Ltd.) 04/09/2009 Kotak Mahindra Prime Ltd. LAA 0.56% 364 Days Treasury Bill SOV 0.15% Long Bond Rec.Trust 2006 Ser IV AAA(so) 0.18% 17/07/2009 A(Standard Chartered Bank Ltd) 91 Days Treasury Bills SOV 0.02% Hindalco Industries Ltd. AAA 0.15% 09/07/2009 Infrastructure Development Finance Co. LAAA 0.15% Treasury Bills - Total 0.32% Ltd TERM DEPOSITS Ultratech Cement Ltd. AAA 0.15% Indusind Bank Ltd 3.01% Long Bond Receivables 2006 III AAA(ind) 0.14% Term Deposits - Total 3.01% A(Standard Chartered Bank Ltd) Collateral Borrowing & Lending 1.81% RB Loan Trust Series 30 Series PR1+(SO) 0.09% obligation A1(IO)(Tata Communications Ltd) Net Current Assets/(Liabilities) 2.45% Corporate Debt/Financial Institutions 20.09% Grand Total 100% - Total Public Sector Undertakings Indian Railway Finance Corporation Ltd. AAA 7.36% Power Finance Corporation Ltd. AAA 1.67% Corporate Debt Trust 2008 - 09 Srs 12 A1+(SO) 1.34% Class A1(Hindustan Petroleum Corporation Ltd.) Canbank Factors Ltd. P1+ 0.75% IDBI Bank Ltd. AA+ 0.75% Export-Import Bank of India. AAA 0.58% IDBI Bank Ltd. LAA+ 0.30% Union Bank of India AA+ 0.15% Corporate Debt Trust 2008 - 09 Srs 12 A1+(SO) 0.05% Class A2(Hindustan Petroleum Corporation Ltd.) Public Sector Undertakings - Total 12.95% Money Market Instruments Commercial Paper(CP)/Certificate of Deposits(CD) Corporate Debt/Financial Institutions YES Bank Ltd. P1+ 5.52% Tata Sons Ltd. P1+ 4.47% Infrastructure Development Finance Co. A1+ 2.67% Ltd ICICI Bank Ltd. A1+ 1.64% ICICI Home Finance Company Limited A1+ 1.50% Sundaram Finance Ltd. P1+ 0.74% Karnataka Bank Ltd A1+ 0.45% Birla Global Finance Co.Ltd. P1+ 0.30% GE Capital Services India. P1+ 0.30% HDFC Ltd. A1+ 0.30% ICICI Securities Primary Dealership Ltd. P1+ 0.30% Jammu & Kashmir Bank P1+ 0.30% Edelweiss Capital Ltd. P1+ 0.15% Corporate Debt/Financial Institutions 18.64% - Total Public Sector Undertakings Punjab & Sind Bank A1+ 10.16%

Average Maturity of the portfolio based on total maturity of fixed rate and immediate reset date of floating rate instruments: 0.15 years Total NPA provided and percentage to NAV: NIL

Notes: * Indicates % to net Asset less than 0.01%

Sector Allocation Commercial Paper (CP)/Certificate of Deposits (CD) 59.37% Rating Profile A1+, A1+(SO), AAA, AAA(ind), AAA(so), CARE AAA, F1+(ind), LAAA, 80.84 Debentures and Bonds 33.04% P1+, PR1+, PR1+(SO), SOV CBLO & Term Deposits & Rev.Repo 4.82% AA+, LAA+, LAA+(SO), AA(ind), LAA, AA- 11.89 Net Current Assets 2.45% CBLO & Term Deposits & Rev.Repo 4.82 Treasury Bills 0.32% Net Current Assets 2.45 Risk free rate of returns for Sharpe ratio : 3.85% Think Investments. Think Kotak. 13 ABOUT OUR FUND MANAGERS

FUND MANAGER BUSINESS EXPERIENCE

Mr. Sanghvi nearly 13 years of experience spanning various functions like in Credit Name: Mr. Krishna Sanghavi Appraisal & Credit Risk Management, Dealer Finance, Business Planning and Fund Scheme (experience in managing these funds since) Kotak 30 (Jul 11, ‘07), Kotak Midcap (Sep 11, ‘07), Kotak Opportunities (Jul 11, ‘07), Management. He joined Kotak Group in 1997 and has worked with Kotak Mahindra Kotak Lifestyle (Sep 11, ‘07), Kotak Tax Saver (Sep 11, ‘07), Kotak Balance (Jul 11, ‘07), Primus Ltd., Kotak Mahindra Finance Ltd. & Kotak Mahindra Old Mutual Life Insurance Kotak Income Plus (Sep 11, ‘07) Ltd. Before joining Kotak group he had worked with IDBI for nearly 2 years.

Total experience of nearly 15 years in financial services. Sajit started his career with SHCIL where he was part of Custodial Services. After SHCIL he joined IDBI Capital Markets where Name: Mr. Sajit Pisharodi he set up the Equity desk and was responsible for Institutional Equity sales. Later on he Scheme (experience in managing these funds since) Kotak Equity Arbitrage (Sep 29, ‘05), Kotak Equity FOF (Aug 31, ‘05), Kotak Income Plus moved into the fund management team of SBI Funds Management Pvt. Ltd., where his (Sep 11, ‘07), Kotak MNC (Aug 29, ‘08), Kotak Tech (Aug 29, ‘08), Kotak Balance (Aug primarily responsibility included portfolio management and equity dealing. In 2004 he 29, ‘08) joined kotak Mutual Fund and has been part of the Funds management team and has been managing various equity funds and other structured funds.

Mr. Jain has close to 7 years of experience in financial engineering, equity research and Name: Mr. Anurag Jain Fund Management. He joined the equity markets in 2001 working with SBI Mutual Fund, Scheme (experience in managing these funds since) Kotak Midcap (Sept 11, ‘07), Kotak Opportunities (Jul 11, ‘07), Kotak Contra (Jul 11, ‘07), ICICI Bank followed with SSKI securities. He joined the AMC in August 2005, as a part of Kotak Tax Saver (Sept 11, ‘07), Kotak Global India (Sept 11, ‘07), Kotak MNC (Sept 11, the equity fund management team for evaluating investment opportunities in equities. ‘07), Kotak Tech (Sept 11, ‘07)

Mr. Abhishek Bisen, who holds a Bachelors Degree In Management and Masters Degree in Name: Mr. Abhishek Bisen Business Administration with Specialisation in Finance, Joined the AMC in October 2006. Scheme (experience in managing these funds since) Kotak Equity Arbitrage Fund (Apr 15, 2008), Kotak Balance (Apr 15, 2008), Kotak Income Prior to joining Fund Management team Mr. Bisen was Manager with Portfolio Advisory Plus (Apr 15, 2008), Kotak Bond Short Term (Apr 15, 2008), Kotak Bond (Regular & Group of Kotak AMC. Prior to joining Kotak AMC he was working with Securities Trading Deposit) (Apr 15, 2008), Kotak Gilt Savings (Apr 15, 2008), Kotak Gilt Investment Corporation of India Limited and was involved in Managing Non SLR Trading book (AUM (Regular & PF-Trust) (Apr 15, 2008), Kotak Flexi Debt (Apr 15, 2008), Kotak Floater Long about INR 10 Bn) and was responsible for all trading positions of Corporate Bonds/PSU Term (Apr 15, 2008) Kotak Floater Short Term (Apr 15, 2008), Kotak Liquid (Regular, Bonds as well as Advising Clients under portfolio Advisory Services. He also has 2 Years Institutional & Institutional Premium) (Apr 15, 2008) Merchant Banking experience. Mr. Bisen has Total work experience of 7 Years in the Fixed Income / Debt Market.

Past experience of 4 years in Institutional Equities. Worked as Equity research analyst (Oil Name: Mr. Emmanuel Elango and Gas, Oil services, Auto Ancillaries, Shipping, Textiles, Transport/Logistics/Aviation), at Scheme (experience in managing these funds since) Franklin Templeton Mutual Fund, India for 2 years. His prior assignment was with J P Kotak 30 (Sept 1, ‘08), Kotak Lifestyle (Sept 1, ‘08), Kotak Contra (Sept 1, ‘08), Kotak Morgan Chase as an Equity research analyst. Before his management studies Mr. Elango Global India (Sept 1, ‘08) worked with Bosch as a Design Engineer.

Mr. Agrawal started his career with the AMC in September 2000 and moved to Debt Fund Name: Mr. Deepak Agrawal Management Team as research analyst in September 2001 and performed the role of Scheme (experience in managing these funds since) dealer from October 2004 Since November 2006, Mr Agrawal was Fund Manager in the Kotak Bond Short Term (Apr 14, ’08), Kotak Flexi Debt (Jul 11, ‘07), Kotak Floater Short debt fund management team. Term (Jul 11, ‘07), Kotak Liquid (Jul 11, ‘07), Kotak Bond (Regular & Deposit) (Apr 14, ’08), Kotak Gilt – Savings (Apr 14, ’08), Kotak Gilt - Investment & PF-Trust Plan (Apr 14, ’08), Kotak Floater Long Term (Jul 11, ’07) Post his CA qualification; Deepak Gupta joined the Kotak AMC in April, 2005 as a Name: Mr. Deepak Gupta Management Trainee in the 'NAV and Fund Accounting' team. In April, 2007 he moved to Scheme (experience in managing these funds since) the Equity Fund Management team as a research analyst. Kotak Equity Arbitrage (Aug 29, ‘08), Kotak Equity FOF (Aug 29, ‘08)

DIVIDEND HISTORY EQUITY SCHEMES Record Date Cum Dividend NAV Rs/Unit Record Date Cum Dividend NAV Rs/Unit Kotak 30 - Dividend A Kotak Lifestyle Mar-30-09 20.021 1.00 June-29-07 13.067 1.75 Feb-28-08 39.091 3.00 Jan-11-08 51.398 6.00 HYBRID SCHEMES July-20-07 38.869 3.00 Dec-27-06 38.556 5.50 Kotak Balance 25.629 Dec-27-05 27.711 1.00 Mar-25-08 4.00 Jun-03-05 20.345 1.00 Sept-27-06 22.870 1.00 Nov-05-04 18.060 1.50 Mar-27-06 26.645 3.50 Jan-31-04 21.093 5.00 Dec-12-05 22.232 1.00 Oct-20-03 18.983 2.00 May-16-05 18.129 0.75 Dec-28-01 11.036 1.00 Dec-13-04 16.175 0.50 Oct-09-00 17.556 2.00 Dec-12-03 15.559 2.75 Dec-11-99 22.954 2.00 Mar-13-00 13.471 1.00

Kotak Global India Feb-08-07 19.792 2.50 Kotak Income Plus - Monthly Feb-08-06 19.609 2.00 Dividend Feb-04-05 13.708 1.50 Jun-12-09 10.1736 Individual / HUF: 0.0056 Other: 0.0052 Kotak Contra Sep-12-08 10.2283 Individual / HUF :0.0536 July-27-07 16.0365 2.00 Others : 0.0498 Aug-12-08 10.3604 Individual/ HUF : 0.0566 Others : Kotak MNC 0.0526 Feb-11-05 20.600 4.50 July-14-08 10.2430 Individual / HUF :0.0647 Others : 0.0602 Kotak Opportunities Mar-14-08 16.975 2.00 Jan-25-08 27.090 6.00 Kotak Income Plus- Quarterly Sept-28-07 24.293 3.00 Dividend Sept-27-06 17.745 1.50 Sep-20-08 10.2997 Individual / HUF : 0.0939 Mar-21-06 21.783 4.50 Others : 0.0874 Sept-28-05 16.816 1.00 Jun-20-08 10.6606 Individual / HUF : 0.1560 Feb-25-05 12.852 0.75 Others : 0.1451 Mar-24-08 10.7946 Individual / HUF : 0.2093 Kotak Midcap Others : 0.1948 19.437 4.00 Apr-28-06 Dec-20-07 11.6952 Individual / HUF : 0.1907 13.026 0.50 Aug-24-05 Others : 0.1775

Kotak Tax Saver Feb-08-08 15.189 3.50 Feb-20-07 11.640 3.00

14 Think Investments. Think Kotak. before 15 RISK FACTORS We declare that we, Kotak Mahindra Asset Management Company Limited, and / or are employees, have short / long positions in the security(ies) in respect of which investment advice is being rendered.

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/AMC/Fund or that of existing Schemes of the Fund does not indicate the future performance of the Schemes. • Kotak Mahindra Gilt Unit Scheme '98 (Kotak Gilt), Kotak Mahindra Bond Unit Scheme 99 (Kotak Bond), Kotak Mahindra Liquid Scheme (Kotak Liquid), Kotak Mahindra 30 Unit Scheme (Kotak 30), Kotak Mahindra Balance Unit Scheme 99 (Kotak Balance), Kotak Mid-Cap Scheme (Kotak Mid-Cap), Kotak Floater Short Term Scheme, Kotak Mahindra Income Plus Scheme (Kotak Income Plus), Kotak Equity FOF, Kotak Opportunities, Kotak Floater Long Term Scheme, Kotak Flexi Debt Scheme (Kotak Flexi Debt), Kotak Contra Scheme, Kotak Equity Arbitrage Scheme, Kotak Tax Saver & Kotak Lifestyle scheme are only the names of the Schemes and do not in any manner indicate the quality of the Schemes, future prospects or returns.

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. Kotak Mahindra Bank Limited is not liable or responsible for any loss or shortfall resulting from the operations of the Scheme. Past performance of the Sponsor/ AMC/ Fund dose not indicate the Schemes future performance. Before investing, please read the Offer Documents.

SERVICES & FACILITIES • Network of Transaction Acceptance Points: Submit transaction requests at your convenience across our 27 Investor Service Centres and 168 Transaction Points of CAMS. (To locate these, visit the "Locate Us" section on our website, www.kotakmutual.com). • Electronic Credit of Dividends and Redemption Proceeds: Have your dividend payouts and redemption proceeds paid directly into your bank account*. No more worrying about cheques lost in transit or queuing at a bank to deposit cheques. * Available for accounts in the following banks only: ABN Amro Bank, AXIS Bank, Centurion Bank of Punjab, Citibank, Corporation Bank, Deutsche Bank, HDFC Bank, HSBC, ICICI Bank, IDBI Bank, Indusind Bank, Kotak Mahindra Bank, Standard Chartered Bank, Yes Bank. • Systematic Investments, Withdrawals and Transfers: Our Systematic Investment Facility provides you with the option of investing a fixed amount over a period of time, in a disciplined manner. Through this process, you benefit from Rupee Cost Averaging (buying more Units at lower NAV), and avoid the uncertainties involved with trying to time the market. Through our Systematic Withdrawal Facility, withdraw fixed amounts, or the entire appreciation on your investment, in any scheme periodically and benefit by averaging out on market fluctuations. To systematically transfer investments from one Kotak scheme to another, try our Systematic Transfer Facility. This tool also helps you manage your investment portfolio among Kotak Mutual Schemes, in line with your asset allocation plan. • Internet Transactions: Switch investments across our schemes, or redeem your investments electronically, through our Internet Transaction Facility. You can also invest in our schemes online, through Kotak Securities (www.kotaksecurities.com), ICICI Direct (www.icicidirect.com), and Times of Money (www.timesofmoney.com). • E-mail Communication: Opt in to value-added information through e-mail: Daily NAV and Dividend Updates, Monthly Updates, weekly and more. • Website Utilities: Plan and track your investments better. Use our Risk Profiler to assess your risk appetite, our Financial Planner to plan investments and financial goals and our Returns Calculator to measure your earnings from Kotak Mutual schemes. Just register, free, at www.kotakmutual.com, and access all these facilities.

CONTACT DETAILS For details contact us at: KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED 6th Floor, Kotak Towers, Building No. 21, Infinity Park, Off W. E. Highway, Goregaon - Mulund Link Road, Malad (East), Mumbai – 400067 Tel.: 91-22-6638 4400 Fax: 91-22-6638 4455 E-mail: [email protected] Website: www.kotakmutual.com

Agra: 9719222156 Guntur: 0863-6650490 / 9849201122 Mysore: 9886780074 Ahmedabad: 079-26779888/ 26766077 Guwahati: 0361 - 2734784/ 9207048909 Nagpur: 6638353 / 54 /9923061585 Ajmer: 9828557883 Hubli: 0836-6450140 / 986034351 Nasik: 9823069202/ 0253-6574255 Allahabad: 9335664902 Hyderabad: 040-66682308/ 09 New Delhi: 011-66306900/ 02 Ambala: 0171-6451570 / 571 Indore: 0731-4027181/6453390 Panipat: 0180-4022300/ 9991144544 Amritsar: 0183-6575777/6576777 Jaipur: 0141- 6503339/ 2373879 Patiala: 9988883553/ 0175-5015528 Anand: 02692-650281 Jalgaon: 9823113197 Patna: 9835453534 Aurangabad: 9370188486 Jallandhar: 0181-2233481/482/9988883556 Pune: 020-64014800/ 64013395/ 96/ 97 Bangalore: 080-66128050/ 51 Jammu: 9906905679 Raipur: 9826049267 Bhavnagar: 9825433064/ 0278-2569511 Jamnagar: 0288-6540129 Rajkot: 0281-6620735 Bhilai: 9752009099 Jamshedpur: 657-2756104 Ranchi: 0651-6454629/ 2332274 / 9304756460 Bhopal: 0755-6461018 Jodhpur: 0291-630625 Ratnagiri: 9923103339 Bhubaneshwar: 0674-2597193 Kanpur: 0512-2541016/ 17 Rourkela: 0661-6450114/ 9937064555 Bhuj: 02832-653976 Kolhapur: 0231-6610390/ 91 Surat: 0261-2210596 Calicut: 495-6576552/ 9745002031 Kolkata: 033-64509806 / 9817 / 8919 Silliguri: 0353-2522012 / 9933043502 Chandigarh: 0172-4671885/ 4641886 Kota: 9983301679 Shimla: 09318099900 Chennai: 044-28221333/ 45038171 Kottayam: 0481-6452922 / 9745632244 Shrinagar: 9906816655 Cochin: 0484-6533110 / 4064646 Lucknow: 522-2236739 Trivandrum: 0471-4470134/ 9745002032 Coimbatore: 422-6572165 Ludhiana: 9988883563/ 0161-4646602/ 03 Trichy: 9944055455 Cuttak: 9937084567 Madurai: 452-4378728 Udaipur: 9928080889 Dehradun: 9719401444/ 0135-2742900 Mangalore: 9886738530 Vadodara: 0265-6640290 Dhanbad: 9934302102/ 0326-6450798 Mathura: 565-6455186/ 9719011211 Vapi: 9825415209/ 0260-6534863 Durgapur: 02343-6456038/9734203571 Meerut: 0121-4007753/ 9719623666 Varanasi: 9838594209 Goa: 0832-6650490 Muradabad: 9719102702 Vijayawada: 0866-6459930 Gorakhpur: 9839579004 Mumbai: 022-66384400 Vishakhapatnam: 9985509966

Toll Free Number : 1800 222 626 To know more about mutual funds Visit: www.kotakmutual.com For daily NAVs: Call 022-66384400

16 Think Investments. Think Kotak.