Kotak Focused Equity Fund

31st January, 2020

Scheme Facts Structure About Kotak Focused Equity Fund An open ended equity scheme investing in maximum 30 stocks in large-cap, mid-cap Ÿ The investment objective of the scheme is to generate long term capital appreciation/income by investing in equity & and small-cap category equity related instruments across market capitalization of up to 30 companies. Month end AUM* (as on 31st Jan 2020) `1,609.70 crs Monthly Average AUM* Equity Market Brief `1,579.35 crs NAV (as on 31st Jan 2020) Ÿ The Budget presented a policy continuum, with focus on fiscal prudence and some steps in capital markets, especially 11.0700 Dividend ` to help India Inc access global financial markets. Direct Dividend `11.1780 Ÿ The last 18 months have seen risks emerge from wholesale funded NBFC, over-leveraged promoters having difficulty to 11.0700 Growth ` roll-over debt etc. Over the few months, lot of these companies have managed to raise capital which is an encouraging Direct Growth `11.1790 development. With RBI introducing newer measures to help in transmission of interest rates, this fall in borrowing costs Launch Date to India Inc will be viewed positively by markets. 16th July 2019 Ÿ While near term uncertainty induces volatility in asset prices, in the long run, wealth creation in equities is a function as Benchmark how businesses can profitably grow over their cost of capital sustainably. Given the long-range of reforms introduced, Nifty 200 TRI we believe longer-term prospects of Indian equities is quite encouraging and we would advise investors to benefit from such induced volatility Min. Initial Inv. `5,000 Ÿ Time in the market is more important than timing the market - recently, markets volatility has moved up and investors can benefit from this volatility by focusing on disciplined investing and asset allocation. Additional Inv. `1000 & in multiples of `1 Total Expense Ratio^ Portfolio Action Regular: 2.17% Direct: 0.42% • The fund has a multi-cap portfolio with investments in 30 stocks. Allocation to mid and small caps at present is ~30% Portfolio Turnover of the portfolio. 26.92% • The focus is on companies which demonstrate good corporate governance standard, which are gaining market share *Source: MFI Explorer. in their own industries, have healthy balance sheets and which have return ratios higher than the cost of equity. ^ Total Expense Ratio includes applicable B30 fee and GST. Source: ICRA MFI Explorer. • Domestic businesses dominate the portfolio as compared to export/ global businesses due to better visibility of long term earnings growth. Load Structure • The fund is OW on private sector banks (mainly private corporate banks), Life Insurance companies, Gas utility companies, Cement, Chemicals, and Industrials. Entry Load: Nil • The Fund is UW metals, pharma, Automobiles and Technology. Exit Load: • The fund has selective exposure to consumers given the overall valuations in the space. I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units:1% ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units: Nil

Sector Allocation as on 31st January, 2020 Sector % Banks 28.41 Petroleum Products 8.65 Finance 8.40 Software 7.84 Cement 5.82 Gas 5.39 Construction Project 5.07 Textile Products 4.66 Consumer Non Durables 3.36 Industrial Products 3.17 REST 19.23

1 Kotak Focused Equity Fund

31st January, 2020

Top 10 Companies as on 31st January, 2020 About Kotak Mutual Fund Kotak Mahindra Asset Management ICICI Bank Ltd. Banks 8.49% Company Limited (KMAMC) is a wholly HDFC Bank Ltd. Banks 8.10% owned subsidiary of Ltd. Petroleum Products 6.73% Limited (KMBL). KMBL has over two decades of experience in financial services. KMBL has a Larsen And Toubro Ltd. Construction Project 5.07% market capitalization of `3232.41bn(as on, Ltd. Software 4.77% 31st January, 2020). KMAMC is the Asset Ltd Banks 4.04% Manager for Kotak Mahindra Mutual Fund Ltd. Consumer Non Durables 3.36% (KMMF). It started operations in December 1998. KMMF offers schemes catering to Supreme Industries Limited Industrial Products 3.17% investors with varying risk - return profiles and Shree Cement Ltd. Cement 3.14% was the first fund house in the country to Tata Consultancy Services Ltd. Software 3.07% launch a dedicated gilt scheme. KMAMC manages assets worth `1,91,410crs as on 31st January, 2020.

* The numbers are converted using the Rupee- Riskometer USD reference rate published by the Reserve This product is suitable for investors who are seeking*: as on the respective dates. ly Moderate Mo ate de er Highra d te • Long term capital growth o l M Low y • Investment in equity & equity related securities

High across market capitalisation in maximum 30 stocks

Low * Investors should consult their financial advisors if in doubt To know more about whether the product is suitable for them. LOW HIGH Call : 1800-222-626 (Toll Free), Mumbai Investors understand that their principal will 61152100, Delhi 66306900 / 02, Chennai be at moderately high risk 28221333 / 45038171, 64509802 / 03, Pune 64013395 / 96, Ahmedabad 26779888, Bangalore 66128050 / 51, Hyderabad 66178140 / 41. Visit - assetmanagement.kotak.com Email - [email protected]

Disclaimer

Kotak Focused Equity Fund An open ended equity scheme investing in maximum 30 stocks in large-cap, mid-cap and small-cap category Investment Objective: The investment objective of the scheme is to generate long term capital appreciation/income by investing in equity & equity related instruments across market capitalization of up to 30 companies. However, there is no assurance that the objective of the scheme will be realized. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Scheme Information Document (SID) and Statement of Additional Information (SAI) available on mutualfund.kotak.com

2