Kotak Focused Equity Fund 30th November, 2019 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 30th Nov 2019) `1,464.02 crs Monthly Average AUM* Equity Market Brief `1,435.96 crs NAV (as on 29th Nov 2019) Dividend `10.8090 Post the Finance Minister statement on reduction in corporate taxes,Indian markets staged a significant recovery,with corporate earnings finally getting support, after seeing a spate of downgrades. Direct Dividend `10.8820 Growth `10.8090 However, the wholesale market, sentiment and perception to stressed corporate groups, promoter pledges,NBFC especially Home Finance Companies continue to be elevated and in a risk-off mode. However, at the margin, in the last Direct Growth `10.8810 few months we have seen some equity capital moving to few of these names,which is an encouraging development. Launch Date 16th July 2019 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, Benchmark we believe longer-term prospects of Indian equities is quite encouraging and we would advise investors to benefit from Nifty 200 TRI such induced volatility. Min. Initial Inv. Time in the market is more important than timing the market - recently, markets volatility has moved up and investors `5,000 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: 2.18% Direct: 0.42% Portfolio Turnover • The fund has a multi-cap portfolio with investments in 30 stocks. Allocation to mid and small caps at present is ~27% of the portfolio. 24.84% • 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,Oil Marketing Companies,Cement 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 30th November 2019 Sector % Banks 30.59 Petroleum Products 10.81 Finance 8.91 Software 7.08 Cement 5.41 Construction Project 4.74 Gas 4.41 Textile Products 4.18 Auto 3.29 TREP & Term Deposits & Rev.Repo 3.21 REST 17.37 1 Kotak Focused Equity Fund 30th November, 2019 Top 10 Companies as on30th November, 2019 About Kotak Mutual Fund Kotak Mahindra Asset Management ICICI Bank Ltd. Banks 8.89% Company Limited (KMAMC) is a wholly HDFC Bank Ltd. Banks 8.58% owned subsidiary of Kotak Mahindra Bank Reliance Industries Ltd. Petroleum Products 8.24% Limited (KMBL). KMBL has over two decades Larsen And Toubro Ltd. Construction Project 4.74% of experience in financial services. KMBL has a market capitalization of 3084.73bn (as on, Infosys Ltd. Software 4.23% 30th November,2019). KMAMC is the Asset Axis Bank Ltd Banks 4.11% Manager for Kotak Mahindra Mutual Fund State Bank Of India Banks 3.58% (KMMF). It started operations in December Maruti Suzuki India Limited Auto 3.29% 1998. KMMF offers schemes catering to investors with varying risk - return profiles and Shree Cement Ltd. Cement 3.00% was the first fund house in the country to Hindustan Unilever Ltd. Consumer Non Durables 2.95% launch a dedicated gilt scheme. KMAMC manages assets worth `1,81,046 as on 30th November,2019. * The numbers are converted using the Rupee- Riskometer USD reference rate published by the Reserve 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.