Kotak Focused Equity Fund 28th February, 2020 Scheme Facts About Kotak Focused Equity Fund Structure An open ended equity scheme investing in maximum 30 stocks in large-cap, mid-cap 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 28th Feb 2020) `1,605.02 crs Monthly Average AUM* Equity Market Brief `1,640.50 crs NAV (as on 28th Feb 2020) The Budget presented a policy continuum,with focus on fiscal prudence and some steps in capital markets, especially Dividend `10.5290 to help India Inc access global financial markets. Direct Dividend`10.646 0 The last 18 months have seen risks emerge from wholesale funded NBFC, over-leveraged promoters having difficulty to Growth `10.5290 roll-over debt etc. Over the few months, lot of these companies have managed to raise capital which is an encouraging Direct Growth `10.6460 development. With RBI introducing newer measures to help in transmission of interest rates, this fall in borrowing costs to India Inc will be viewed positively by markets. Launch Date Coronavirus –while initial impact was localised to Chinese economy and therefore the supply shock given large export 16th July 2019 from China, the spread of virus globally now risks creating a demand shock as well. While global coordination of policy Benchmark makers and containment of virus and improvement in drugs to counter will reduce the longer term impacts of this Nifty 200 TRI shock, near-term will be dominated how the virus stats develops, especially in developed world. Min. Initial Inv. While near term uncertainty induces volatility in asset prices, in the long run,wealth creation in equities is a function as how businesses can profitably grow over their cost of capital sustainably. Given the long-range of reforms introduced, `5,000 we believe longer-term prospects of Indian equities is quite encouraging and we would advise investors to benefit from Additional Inv. such induced volatility. ``1000 & in multiples of 1 Time in the market is more important than timing the market - recently, markets volatility has moved up and investors Total Expense Ratio^ can benefit from this volatility by focusing on disciplined investing and asset allocation. Regular: 2.17% Direct: 0.40% Portfolio Action Portfolio Turnover 27.73% • The fund has a multi-cap portfolio with investments in 30 stocks. Allocation to mid and small caps at present is ~29% *Source: MFI Explorer. of the portfolio. ^ Total Expense Ratio includes applicable B30 • The focus is on companies which demonstrate good corporate governance standard,which are gaining market share fee and GST. Source: ICRA MFI Explorer. in their own industries, have healthy balance sheets and which have return ratios higher than the cost of equity. •Domestic businesses dominate the portfolio as compared to export/ global businesses due to better visibility of long Market Cap$ % term earnings growth. • The fund is OW on private sector banks (mainly private corporate banks), Life Insurance companies,Gas utility Large cap 66.75 companies,Cement,Chemicals, and Industrials. Midcap 27.63 • The Fund is UW metals, pharma,Automobiles and Technology. Small cap 1.89 • The fund has selective exposure to consumers given the overall valuations in the space. Cash 3.73 $The given mar ket cap data is on the basis of new SEBI circular on scheme rationalisation wherein Stocks are categorised as per given AMFI list. Source: KPAX (internal system). Market definition Sector Allocation as on 28th February, 2020 used is market capitalisation of the 100th largest scrip (on the bases of market capitalisation) is the Sector % cutoff to determine the large cap and midcap Banks 29.08 segment. Petroleum Products 8.35 Finance 8.26 Load Structure Software 7.76 Entry Load: Nil Cement 5.95 Gas 5.00 Exit Load: Consumer Non Durables 4.59 I) For redemptions / switch outs (including SIP/STP) Textile Products 4.49 within 1 year from the date of allotment of units:1% Construction Project 4.41 ii)For redemptions / switch outs (including SIP/STP) Telecom - Services 3.71 after 1 year from the date of allotment of units: Nil REST 18.40 1 Kotak Focused Equity Fund 28th February, 2020 28th February, 2020 About Kotak Mutual Fund Top 10 Companies as on Kotak Mahindra Asset Management ICICI Bank Ltd. Banks 8.06% Company Limited (KMAMC) is a wholly HDFC Bank Ltd. Banks 7.80% owned subsidiary of Kotak Mahindra Bank Limited (KMBL). KMBL has over two decades Reliance Industries Ltd. Petroleum Products 6.54% of experience in financial services. KMBL has a Infosys Ltd. Software 4.79% market capitalization of` 3095.99 bn(as on, Hindustan Unilever Ltd. Consumer Non Durables 4.59% 28th February,2020). KMAMC is the Asset Larsen And Toubro Ltd. Construction Project 4.41% Manager for Kotak Mahindra Mutual Fund (KMMF). It started operations in December Axis Bank Ltd Banks 3.87% 1998. KMMF offers schemes catering to Bharti Airtel Ltd. Telecom - Services 3.71% investors with varying risk - return profiles and AU Small Finance Bank Ltd. Banks 3.35% was the first fund house in the country to Shree Cement Ltd. Cement 3.11% launch a dedicated gilt scheme. KMAMC manages assets worth` 188760crs as on 28th February,2020. * The numbers are converted using the Rupee- USD reference rate published by the Reserve Riskometer This product is suitable for investors who are seeking*: Bank of India as on the respective dates. ly Moderate Mo te de era 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,Kolkata 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.