funds in focus - kotak asset management · industrial manufacturing 3.59 1.71 1.88 3.67 -0.08 ......

FUNDS IN FOCUS

SEPTEMBER 30, 2017

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EQUITY FUNDS:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

HYBRID FUNDS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

THEMATIC FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

DEBT FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Kotak Select Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Kotak Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Kotak Emerging Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Kotak Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Kotak Equity Savings Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Kotak Infrastructure & Economic Reform Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Kotak Low Duration Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Kotak Income Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Kotak Medium Term Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Kotak Bond Short Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

SEPTEMBER2017

EQUITY FUNDS

About Kotak Select Focus

Ÿ The investment objective of Kotak Select Focus scheme is to generate long term capital appreciation from a

portfolio of equity and equity related securities, generally focused on select few sectors.

Ÿ The scheme endeavors to identify sectors that are likely to do well over the medium term and takes focus

exposures to the same.

Ÿ There is no restriction on which type of sectors the scheme can take exposure to and the portfolio will be

generally diversified at the stock level across market capitalization.

Ÿ The scheme is well positioned to capture various themes that are in flavour in a focused manner.

Portfolio Action

• The portfolio continues to have a pro-cyclical tilt.

• Domestic businesses continue dominate the portfolio as compared to export/ global businesses due to better earnings trajectory.

• The top overweight sectors in the fund are Cement, Oil&Gas and Automobiles.

• We believe that Government’s focus on reviving consumption and spending on infrastructure will create positive demand scenario for our portfolio companies in medium term.

• Metals, Utilities and Telecom sectors are the major exclusions from the fund.

• The key underweight sectors continue to be IT and Pharma, wherein earnings momentum is weak and business headwinds still persist.

• Allocation to large cap segment accounts for about 3/4th of the total corpus.

Kotak Select Focus

Scheme Facts

Structure

Month end AUM* (as on 30th Sep 2017)

NAV (as on 29th Sep 2017)

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

An Open Ended Equity Scheme

` crs

`13,923.54 crs

Dividend 22.3460

Direct Dividend 23.5490

Growth 31.3340

Direct Growth 32.7840

th11 September 2009

Nifty 200

`5000 & in multiple of `1 for purchase and for ` 0.01 for switches

`1000 & in multiples of `1

14.04%

1.01

0.73

23.28%

*Source: MFI Explorer.

^ as on 29th Sep, 2017. Source: Value Research.

13,947.12

`

`

`

`

Monthly Average AUM*

Portfolio Turn over

Market Cap. %

Load Structure

Large cap 76.06

Midcap 16.58

Cash 7.36

As on 29th Sep, 2017.Source: KPAX (internal system). Market definition used is market capitalisation of the 100th largest scrip (on the bases of market capitalisation) is the cutoff to determine the large cap and midcap segment.

NilEntry Load:

Exit Load:

I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment:1%

ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment: NIL

iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective Scheme. (applicable for all plans)

iv) Units issued on reinvestment of dividends shall not be subject to exit load (applicable for all plans)

2

Top Sectors as on 30th Sep, 2017

Sector % Weight Underweight / Previous Changeoverweight Month in portfolio

Portfolio Benchmark against (Portfolio % from previous(Nifty 200) benchmark Weight) month

Financial Services 33.07 32.92 0.15 32.84 0.23

Energy 15.45 12.65 2.80 14.64 0.81

Automobile 11.62 9.48 2.14 11.36 0.26

Consumer Goods 7.65 12.33 -4.68 8.00 -0.35

Cement & Cement Products 7.60 2.29 5.31 7.80 -0.20

Cash & Cash Equivalent 7.36 0.00 7.36 7.42 -0.05

Industrial Manufacturing 3.59 1.71 1.88 3.67 -0.08

Construction 3.34 3.63 -0.29 3.22 0.12

th30 September, 2017

• GST – landmark reform is now implemented, and over the last month, the government has introduced further changes to help the smaller firms navigate GST better. While there might be some near-term issues in implementing, the longer term benefits are transformative. Most listed players will benefit, as they form the organised part of the economy. Corporate earnings in few sectors like FMCG, home building, durables, fashion etc are showing these transitional impact of GST implementation, even as most company management view this as a strong opportunity for their companies. Corporate earnings are likely to pick up in the second half of Fy18.

• India to benefit from such reforms which encourages formalisation of the economy in the medium-to-long-term, significant flow from physical to financial savings to further provide stability to markets.

• Volatility across global equities is on lower side. Global events – Fed hiking, Chinese currency depreciation, geopolitical events like the flare-up between US and North Korea to add to near-term volatility.

• Time in the market more important than timing the market – after a long period of lower volatility, markets volatility may move up.

Equity Market Brief

Kotak Select Focusth30 September, 2017

About Kotak Mutual Fund

Kotak Mahindra Asset Management

Company Limited (KMAMC) is a wholly

owned subsidiary of Kotak Mahindra Bank

Limited (KMBL). KMBL has over two decades

of experience in financial services. KMBL has a

market capitalization of `1880.887bn (as on

29th September, 2017). KMAMC is the Asset

Manager for Kotak Mahindra Mutual Fund

(KMMF). It started operations in December

1998. KMMF offers schemes catering to

investors with varying risk - return profiles and

was the first fund house in the country to

launch a dedicated gilt scheme. KMAMC

manages assets worth `1,10,854.01CR cr as

on 29th September, 2017.

* The numbers are converted using the Rupee-

USD reference rate published by the Reserve

Bank of India as on the respective dates.

To know more

Ccall : 1800-222-626 (Toll Free), Mumbai 61152100, Delhi 66306900 / 02, Chennai 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 Select Focus Fund is an open-ended equity scheme. Investment Objective: The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, generally focused on a few selected sectors.

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

3

Kotak Select Focus* Performance (%) as on 29th September, 2017

Different plans have different expense structure. The performance details provided herein are of regular plan.^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 25 for schemes managed by Mr. Harsha Upadhyaya.

Date Scheme Returns #(%) ## of 10000 in the(%) ^ Scheme ( ) Benchmark Additional

#(`) Benchmark ## (`)

Kotak Select Focus Fund

Since Inception 15.23 9.80 9.17 31,334 21,242 20,268

Last 1 Year 18.69 15.28 13.67

Last 3 Years 16.52 9.41 7.11

Last 5 Years 20.49 13.04 11.40

Scheme Inception date is 11/09/2009. Mr. Harsha Upadhyaya has been managing the fund since 04/08/2012.

Nifty 200 Nifty 50 Current Value of Standard Investment (%) `

`

This product is suitable for investors who are seeking*:

• Long term capital growth

• Investment in portfolio of predominantly equity & equity related securities generally focussed on a few selected sectors.

* Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Investors understand that their principal will be at moderately high risk

Riskometer

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Moderate

Low

High

Low

High

LOW HIGH

Moderately

Sep-27-17 23.592 1.50Sep-30-16 21.349 1.25Oct-12-15 19.739 1.00Sep-26-14 17.791 1.00Oct-15-10 12.850 1.25

Dividend History

Date CUM Dividend NAV

Dividend(` per unit)

Top 10 Companies as on 30th Sep, 2017

HDFC Bank Ltd. Banks 7.07%

Reliance Industries Ltd. Petroleum Products 5.04%

HDFC Ltd. Finance 4.37%

Hero MotoCorp Ltd. Auto 4.19%

ITC Ltd. Consumer Non Durables 3.61%

Maruti Suzuki India Limited Auto 3.43%

IndusInd Bank Ltd. Banks 3.38%

State Bank Of India Banks 3.28%

ICICI Bank Ltd. Banks 2.97%

Larsen And Toubro Ltd. Construction Project 2.87%

About Kotak Opportunities

Ÿ Kotak Opportunities looks for opportunities across sectors based on performance and potential of companies

within the sectors.

Ÿ The fund manager has the flexibility to invest in a mix of large and mid cap stocks from various sectors.

Ÿ The allocation between large caps & midcaps would broadly depend on the choice of sectors, business

environment & valuations.

Portfolio Action

• The portfolio continues to have a tilt towards pro-cyclicals that have operating leverage.

• The top overweight sectors are – Oil & Gas and Cement.

• The top underweight sectors in the fund are – IT, FMCG and Metals.

• Telecom sector continues to see headwinds, wherein the portfolio has no exposure.

• The large cap allocation in the fund is about 68%.

Kotak Opportunitiesth30 September, 2017

Scheme FactsStructure

Month end AUM* (as on 30th Sep )


Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

An Open Ended Equity Growth Scheme

`1,893.22 crs

`1,882.38 crs

Dividend `27.0140

Dividend Direct `28.5400

Growth `110.3340

Growth Direct `115.7000

th 9 September 2004

Nifty 500

`5000


14.07%

1.01

0.68

34.66%



2017


Portfolio Turn over

Market Cap. %

Load Structure

Large cap 68.61

Midcap 26.48

Small cap 0.00

Cash 4.90

As on 29th Sep, 2017. Source: KPAX (internal system). Market definition used is market capitalisation of the 100th largest scrip (on the bases of market capitalisation) is the cutoff to determine the large cap and midcap segment.

NilEntry Load:

Exit Load:





4

Top 10 Sectors as on 30th Sep, 2017


Portfolio Benchmark against (Portfolio % from previous(Nifty 500) benchmark Weight) month

Financial Services 27.81 31.49 -3.68 28.44 -0.63

Energy 15.95 11.78 4.17 14.21 1.74

Automobile 9.24 9.09 0.15 9.68 -0.44

Consumer Goods 8.46 12.62 -4.17 8.49 -0.03

Cement & Cement Products 7.46 2.34 5.11 8.40 -0.94

Cash & Cash Equivalent 4.90 0.00 4.90 3.09 1.82

Industrial Manufacturing 4.76 2.96 1.80 4.99 -0.23

Construction 4.13 4.17 -0.04 4.49 -0.36

Fertilisers & Pesticides 3.46 1.03 2.44 3.76 -0.30

Healthcare Services 2.57 0.09 2.48 2.73 -0.16

Equity Market Brief





Kotak Opportunities




















To know more

Call : 1800-222-626 (Toll Free), Mumbai 61152100, Delhi 66306900 / 02, Chennai 28221333 / 45038171, Kolkata 64509802 / 03, Pune 64013395 / 96, Ahmedabad 26779888, Bangalore 66128050 / 51, Hyderabad 66178140 / 41.



Disclaimer

Kotak Opportunities is an open-ended equity growth scheme. Investment Objective: To generate capital appreciation from a diversified portfolio of equity & equity related instruments


5

Aug-29-17 27.9190 0.85

May-29-17 27.748 0.85

Feb-28-17 26.279 0.50

Nov-22-16 24.246 0.80

Aug-28-15 24.388 1.60

Aug-25-14 21.411 1.00

Nov-11-11 13.682 0.50

May-28-10 14.625 1.00

Sept-8-09 14.733 1.50

Mar-14-08 16.975 2.00

Jan-25-08 27.090 6.00

Sept-28-07 24.293 3.00

Sept-27-06 17.745 1.50

Mar-21-06 21.783 4.50

Feb-25-05 12.852 0.75

Dividend History



Kotak Opportunities* Performance (%) as on 29th September, 2017

Different plans have different expense structure. The performance details provided herein are of regular plan.^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 25 for other schemes managed by Mr. Harsha Upadhyaya.

Date Scheme Returns # (%) ## of 10000 in the(%) ^ Scheme ( ) Benchmark Additional

# (`) Benchmark ## (`)

Kotak Opportunities - Growth

Since Inception 20.18 14.92 14.61 110,334 61,501 59,361

Last 1 Year 18.01 16.30 13.67

Last 3 Years 15.76 10.26 7.11

Last 5 Years 18.37 13.79 11.40

Scheme Inception date is 09/09/2004. Mr. Harsha Upadhyaya has been managing the fund since 04/08/2012.

Nifty 500 Nifty 50 Current Value of Standard Investment (%) `

`



• Investment in portfolio of predominantly equity & equity related securities



Riskometer

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Reliance Industries Ltd. Petroleum Products 4.74%

HDFC Ltd. Finance 4.14%

ITC Ltd. Consumer Non Durables 3.68%

Hero MotoCorp Ltd. Auto 3.39%




Shree Cement Ltd. Cement 2.45%


About Kotak Emerging Equity

Ÿ The investment objective of Kotak Emerging Equity is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies.

Ÿ These companies are either at their nascent or developing stage and are under researched.

Ÿ Although relatively volatile in the short run, small and mid cap companies have the potential to deliver higher growth in the long term.

Portfolio Action

•

•

•

•

•

•

The portfolio continues to be pro-cyclical and tilted towards economic recovery. As a result we continue to be Overweight on sectors such as Financials, cement, capital goods & engineering, auto ancillary, media, and consumer discretionary.

In the short term we believe the GST implementation could be a disruptor for B2C businesses. However from a

medium term perspective post GST implementation, we anticipate that the organized players would become

stronger as unorganized sector would find it tough to do business in the changed environment and cede

market share to more organized players and portfolio is well positioned in those sectors where there is a large

portion of unorganized players.

From an earnings perspective we believe that 2QFY18 would be better than 1QFY18 however the results are

expected to be a mixed bag across consumer discretionary and FMCG sector. Private sector retail oriented

banks banks are expected to post strong growth while corporate banks are expected to post subdued results.

Other sectors which are expected to post strong results are: Oil & Gas, Metals, Autos. While we expect IT &

Pharma to post subdued results

In the IT and pharma sector we continue to have stock specific approach and continue to have UW stance on

both the sectors.

During the month the allocations to sectors remain largely unchanged with minor reduction in financials.

Post sharp run in the stocks in last 6 months, the overall view turns a little cautious on this space as valuations

are above long term averages.

Kotak Emerging Equity

Scheme FactsStructure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

An Open - Ended Equity Growth Scheme

`2,382.25 crs

`2,379.88 crs

Dividend 25.3460


Growth 37.0830


30th March 2007

S&P BSE Mid Small Cap

`5000


14.71%

0.92

0.94

30.40%


^ as on , 2017. Source: Value Research.


Portfolio Turnover

`

`

`

`

29th Sep

Market Cap. %

Load Structure

Large cap 18.34

Midcap 71.49

Small cap 5.16

Cash 5.01

As on 29th Sep, 2017.Source: Value Research definition.

NilEntry Load:

Exit Load:



Any exit load charged (net off Service Tax, if any) shall be credited back to the respective Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load.

6




Portfolio Benchmark against (Portfolio % from previousbenchmark Weight) month

Industrial Manufacturing 20.98 9.44 11.55 20.68 0.30

Financial Services 19.53 22.16 -2.63 21.09 -1.55

Consumer Goods 12.67 13.23 -0.57 10.26 2.40

Services 6.93 6.32 0.61 7.01 -0.07

Pharma 5.35 6.69 -1.34 6.29 -0.94

Cash & Cash Equivalent 5.01 0.00 5.01 4.66 0.36

Chemicals 4.86 2.68 2.18 4.45 0.41

Media & Entertainment 4.54 1.82 2.72 4.78 -0.24

Construction 4.27 5.41 -1.14 4.23 0.05

Automobile 4.19 5.96 -1.77 4.18 0.01

S&P BSE MidSmall Cap Index

Equity Market Brief





Kotak Emerging Equity




















To know more




Disclaimer

Kotak Emerging Equity Scheme is an open-ended equity growth scheme.Investment Objective: The investment objective of the scheme is to generate long-term capital appreciation from a portfolio of equity and equity related securities, by investing predominantly in mid and small cap companies.


7

Kotak Emerging Equity*Performance (%) as on , 201729th September

Different plans have different expense structure. The performance details provided herein are of regular plan.^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 25 for other schemes managed by Mr. Pankaj Tibrewal.


Since Inception 13.28 12.16 9.36 37,083 33,414 25,614

Last 1 Year 17.96 22.11 13.67

Last 3 Years 20.48 17.54 7.11

Last 5 Years 24.47 18.77 11.40

Date Scheme Returns Mid Small ## (%) of 10000 in the(%) ^ Scheme ( ) Benchmark Additional

Index # (%) # (`) Benchmark ## (`)

S&P BSE Nifty 50 Current Value of Standard Investment `

`Cap

Scheme Inception date is 30/03/2007. Mr. Pankaj Tibrewal has been managing the fund since 27/05/2010.

Kotak Emerging Equity Fund



• Investment in equity & equity related securities predominantly in mid & small cap companies



Riskometer

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Moderately

May-26-17 26.010 1.59May-27-16 21.196 1.30Apr-28-15 21.499 2.10May-02-14 13.073 0.50May-02-13 11.491 0.50Apr-29-11 10.573 0.75

Dividend History





Schaeffler India Ltd Industrial Products 3.32%

Atul Ltd. Chemicals 3.04%

The Ramco Cements Ltd Cement 2.64%

Federal Bank Ltd. Banks 2.48%

Motherson Sumi Systems Ltd. Auto Ancillaries 2.44%

Bata India Ltd. Consumer Durables 2.43%

RBL Bank Ltd Banks 2.35%

Solar Industries India Limited Chemicals 2.30%

Finolex Cables Ltd. Industrial Products 2.22%

HYBRID FUNDS

EQUITY DEBT

About Kotak Balance

Ÿ

instruments, balanced with income generation by investing in debt and money market instruments.

Ÿ The scheme thus provides capital appreciation potential of equities as well as stable returns of debt.

The investment objective of Kotak Balance is to achieve growth by investing in equity and equity related

Portfolio Action

For Equity

• The portfolio continues to be pro-cyclical and tilted towards economic recovery. As a result we continue to be overweight on sectors such as cement, capital goods & engineering, auto ancillary, media and consumer discretionary.

In the IT and pharma sector we continue to have stock specific approach. The fund continues the underweight stance on consumer staples, IT and Pharma.

During the months we marginally increased weightage to financials (insurance companies), capital goods & Oil & gas sector.

In the short term we believe the GST implementation could be a disruptor for B2C businesses. However from a medium term perspective post GST implementation, we anticipate that the organized players would become stronger as unorganized sector would find it tough to do business in the changed environment and cede market share to more organized players and portfolio is well positioned in those sectors where there is a large portion of unorganized players.

From an earnings perspective we believe that 2QFY18 would be better than 1QFY18 however the results are expected to be a mixed bag across consumer discretionary and FMCG sector. Private sector retail oriented banks banks are expected to post strong growth while corporate banks are expected to post subdued results. Other sectors which are expected to post strong results are: Oil & Gas, Metals, Autos. While we expect IT & Pharma to post subdued results.

The current largecap: midcap ratio remains at 65:35% in the fund.

•

•

•

•

•

For Debt

• In the scenario of RBI holding rates and market sentiments fuelling a sell-off in benchmark yields, our strategy will be to take the portfolio duration in the range of 5.00 and then moving back to the current levels in short to medium term future. We believe the market has priced in the supply pressure.

• We believe that there is good investment opportunity in SDLs. We believe that the supply pressure in these assets will provide an attractive entry point, in terms of pricing, in the coming months.

• We expect the yields as well as supply and inflation to peak in the coming months of October and November; whether the yield levels are at 6.70 or at 6.90 (low probability of occurrence), we expect them to be the peaks until any change in macro parameters or global event alters the direction of yield movements.

Kotak Balanceth30 September, 2017

Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^

An Open- Ended Balanced Scheme

`2,084.58 crs

`2,065.92 crs

Dividend 16.4040


Growth 23.0520


th25 November 1999

Crisil Balanced Fund - Aggressive Index

`5000


10.86%

1.14

0.47

22.69%

*Source: Value Research.


2017


Portfolio Turn over

`

`

`

`

Load Structure

Entry Load:

Exit Load:

Nil





9


Equity Market Brief





16.89

16.83

7.44

6.78

4.33

4.07

3.84

3.73

3.71

3.56

28.82

Banks

Debentures and Bonds

Government Dated Securities

Auto

Finance

Industrial Products

Consumer Non Durables

Media and Entertainment

CBLO & Term Deposits & Rev.Repo

Cement

Others

Kotak Balanceth30 September, 2017




















To know more




Disclaimer

Kotak Balance is an open-ended balanced scheme. Investment Objective: To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt & money market instruments.


10

Kotak Balance* Performance (%) as on , 201729th September

Different plans have different expense structure. The performance details provided herein are of regular plan.^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark.Please refer page no. 25-26 for top 3 and bottom 3 schemes managed by Pankaj Tibrewal & Mr. Abhishek Bisen.



• Investment in equity & equity related securities balanced with income generation by investing in debt & money market instruments



Riskometer

yletaredo

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LOW HIGH

Moderately

Sep-25-17 16.4830 0.11Aug-28-17 16.6866 0.11Jul-25-17 17.1274 0.12Jun-27-17 16.7970 0.11May-25-17 16.8061 0.11Apr-25-17 16.9880 0.11Mar-27-17 16.4515 0.11Feb-27-17 16.3220 0.11Jan-25-17 16.0710 0.11Dec-26-16 14.9970 0.10Dec-01-16 15.6912 0.11Oct-25-16 16.4100 0.08Sep-26-16 16.2900 0.08Aug-25-16 16.0150 0.08July-25-16 15.8590 0.08June-27-16 15.0860 0.08May-25-16 14.7180 0.07Apr-25-16 14.7740 0.07Mar-29-16 14.2410 0.07Feb-25-16 13.0750 0.07Jan-27-16 13.9837 0.07Dec-15-15 14.9360 0.07Sep-28-15 14.9840 0.50Mar-25-15 18.6410 3.00Sep-25-14 17.1450 0.50Mar-25-14 19.7320 4.85

Dividend History




Date Scheme Returns


Kotak Balance

Since Inception 14.89 N/A 11.47 119,333 N/A 69,489

Last 1 Year 10.08 11.79 13.67

Last 3 Years 11.07 8.57 7.11

Last 5 Years 12.45 10.93 11.40

Scheme Inception date is 25/11/1999. Mr. Abhishek Bisen has been managing the fund since 15/04/2008. Mr. Pankaj Tibrewal has been managing the fund since 25/08/2015.

Crisil Nifty 50 Current Value of Standard Investment Balanced ## of ̀ 10000 in the

(%) ̂ Aggressive Index Scheme ( ) Benchmark Additional # (%)

Fund (%)`

Bank Of Baroda CRISIL AA+ 4.75%


U P Power Corporation Ltd ( Guaranteed By

UP State Government ) FITCH IND AA(SO) 3.23%

6.57% Central Government SOV 3.19%

Syndicate Bank CARE AA- 2.52%




7.35% Central Government SOV 1.97%

Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 1.89%

About Kotak Equity Savings Fund

Ÿ It is an open-ended equity scheme which aims to generate income from cash- futures arbitrage positions and

at the same time allows you to participate in the equity market growth moderately.

Benefits of Kotak Equity Savings Fund

Ÿ Income -Aims to provide income from arbitrage opportunities in cash & derivatives segment of the equity

market

Ÿ Growth Potential - Potential for growth in the long term through moderate exposure in directional equity

(15%25% of net assets)

Ÿ Constant Mix Approach- - The unhedged equity portion has to be maintained in a small range (15%-

25%), hence the fund manager has to sell in a rising equity market and buy more in a falling equity market to

adopt a constant mix approach.

Ÿ Tax efficiency - The Fund is treated similar to equity funds for tax purposes .*

* Please consult your tax adviser with respect to the specific tax implications.

:

Portfolio Action

Directional Equity:

The directional equity was around 23.00%.

On the directional equity side, we have been running a conservative portfolio with a max exposure in mid cap stocks

being 20% at any point in time. Remaining 80% of the directional equity continues to be in large cap stocks

Apart from this, we have been overweight on commodity oriented sectors like cement, metals and Oil & Gas. The

major underweight sectors are Cap Goods, Technology and Auto.

Over the past 1.5 years, the exposure to metals has been increased gradually whereas the underweight in

Technology and Pharma continues. Amongst the defensives, utilities carries the maximum overweight.

Arbitrage:

The arbitrage portion continues to be managed in the same way we manage our arbitrage fund. In months, when

the arbitrage opportunities provide better returns than the debt papers, we deploy more money into arbitrage

trades.

The benefit is that in months when the arbitrage returns are sub optimal, we can deploy a lower amount in arbitrage

and still maintain the 'equity' taxation status. Stocks like HDFC Bank, IDFC, Maruti, Reliance Industries, etc have

yielded returns which are higher than the average of the entire arbitrage universe.

We have done some merger arbitrage trades viz. CMC-TCS and Shasun-Strides in the past. The blended annualized

returns were upwards of 14% in these trades. Recently, we have done merger arbitrage trades in Geometric-HCL

Tech and Cairn-Vedanta which have an expected return potential of more than 16% annualized. During the

divestment issue of CPSE ETF, we subscribed to the ETFs (at 5% discount) and shorted the futures of individual

constituents to bag more than 5% gain within a month. After one month, we exited this trade. So, a riskless profit

of absolute 5% was made within a month in this trade.

Debt:

We have been managing the debt portion in a very conservative manner till now.

The term deposits which are to be placed with the exchange for taking exposure in derivatives generally have a

tenure of 1 year.

On the debt side, we prefer to play accrual as compared to duration. A bulk of exposure on the debt side is into

papers with a residual maturity (or time to put option) of 2-3 years. A significant portion is also invested into our

own Liquid Fund. The benefit of investing in Liquid is that in case the arbitrage spreads expand, we can easily move

the money from liquid into arbitrage trades without worrying about the levels where the debt yields are quoting at

that point in time.

•

•

•

•

•

•

•

•

•

•

Kotak Equity Savings Fund

Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^


`1,036.28 crs

`961.62 crs

Direct Growth `13.1502

Growth `12.8858

Quarterly Dividend `11.0981

Direct Quarterly Dividend `11.1845

Monthly Dividend `11.1700

Direct Monthly Dividend `11.4076

th13 October 2014

75% of Nifty 50 Arbitrage Index & 25% in Nifty 50 (w.e.f. Nov 01, 2016)

` 5000 & in multiples of `1


3.32%

0.95

0.64

150.03%


^as on 29th Sep, 2017. Source: Value Research.


Portfolio Turnover

Load Structure

Entry Load:

Exit Load:

Nil

iupto 10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil.

ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%.

iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil.

Any exit load charged (net off Service Tax, if any) shall be credited back to the respective Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load.

) For redemption / switch out of


Equity Market Brief





11

Kotak Equity Savings Fundth30 September, 2017







market capitalization of 1880.887bn (as on








manages assets worth 1,10,854.01CR cr as


`

`




To know more




Disclaimer

Kotak Equity Savings Fund, an Open ended equity scheme. 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, and enhance returns with a moderate exposure in equity & equity related instruments.There is no assurance or guarantee that the investment objective of the scheme will be achieved.


12

Sep-12-17 11.3260 0.0600Aug-14-17 11.4110 0.0583Jul-12-17 11.1373 0.0500Jun-12-17 11.0760 0.0500May-12-17 10.9370 0.0500Apr-12-17 10.9100 0.0500Mar-14-17 10.7883 0.0500Feb-13-17 10.8090 0.0500Jan-12-17 10.6718 0.0500Dec-12-16 10.5773 0.0500Nov-15-16 10.5563 0.0500Oct-13-16 10.7780 0.0500Sep-12-16 10.7540 0.0500Aug-12-16 10.7340 0.0500Jul-12-16 10.6329 0.0420Jun-13-16 10.4812 0.0420

Quaterly Dividend OptionSep-20-17 11.3680 0.1750Jun-20-17 11.1180 0.1500Mar-20-17 10.8961 0.1500Dec-20-16 10.5796 0.1500Sep-20-16 10.8162 0.1500Jun-20-16 10.5437 0.1250

Dividend History




• Income from arbitrage opportunities in the equity market & long term capital growth

• Investment predominantly in arbitrage opportunities in the cash & derivatives segment of the equity market and equity & equity related securities

* Investors should consult their financial advisors if in doubt about whether the product is suitable for them.Investors understand that their principal will

be at moderately high risk

Riskometer

yletaredo

M

Moderate

Low

High

Low

High

LOW HIGH

ModeratelyKotak Equity Savings Fund * Performance (%) as on 29th September, 2017

The scheme has been in existence for less than 3 & 5 years

Different plans have different expense structure. The performance details provided herein are of regular plan.

^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark.Please refer page no. 25 - 26 for top 3 and bottom 3 schemes managed by Mr. Deepak Gupta & Mr. Abhishek Bisen.

Date Scheme Returns 50 of 10000 in the(%) ^ ## (%) Scheme ( ) Benchmark Additional

# (%) # (`) Benchmark ## (`)

Kotak Equity Savings Fund

Scheme Inception date is 13/10/2014. Mr. Deepak Gupta has been managing the fund since 13/10/2014. Mr. Abhishek Bisen has been managing the fund since 13/10/2014.

75% `

`

Nifty 50 Arbitrage Index

25% Nifty 50

Nifty Current Value of Standard Investment

Since Inception 8.93 6.96 7.57 12,886 12,207 12,415

Last 1 Year 10.16 7.02 13.67

Portfolio Detail % of Net assets

Unhedged Position 22.65

Cash Futures Arbitrage 40.93

Debt Instruments* 28.09

Cash and Cash equivalent and Net Current Asset 8.33

Total 100.00

*Debt Instruments includes redeemable preference shares

THEMATIC FUND

Kotak Infrastructure & Economic Reform Fund(formerly known as “PineBridge Infrastructure & Economic Reform Fund)


Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

Beta^

Sharpe^


`344.75 crs

`344.60 crs

Growth Direct 22.2690

Dividend Direct 22.2530

Standard Dividend 19.7150

Standard Growth 20.9810

th27 February 2008

S&P BSE 100



14.65%

0.90

0.62

27.91%



2017


Portfolio Turn over

`

`

`

`

Load Structure

Entry Load:

Exit Load:

Nil

I) For redemptions / switch outs (including SIP/STP) within 1 year from the date of allotment of units, irrespective of the amount of investment – 1%;

ii) For redemptions / switch outs (including SIP/STP) after 1 year from the date of allotment of units, irrespective of the amount of investment – NIL;

iii) Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme;

iv) Units issued on reinvestment of dividends shall not be subject to entry and exit load. (applicable for all plans)

14

About Kotak Infrastructure & Economic Reform Fund

Ÿ The investment objective of the Scheme is to generate long-term capital appreciation from a diversified

portfolio of predominantly (at least 65%) equity and equity-related securities of companies involved in

economic development of India as a result of potential investments in infrastructure and unfolding economic

reforms.

Ÿ There is no assurance that the investment objective of the Scheme will be achieved.

Portfolio Action

•

•

•

•

•

•

•

We believe investment cycle revival in India will be led by spending by government and this has been articulated well in the government budget, while private developers following public investments with a lag.

Given that the two biggest costs in an infrastructure project – commodities and interest rates have come

down, incremental project ordering will improve

While investment cycle is gradually improving with revival in government capex, housing and private sector

capex are yet to see meaningful traction.

We continue to remain significantly invested in the “flow” of infrastructure theme (i.e companies that benefit

from spending by various entities towards infrastructure creation) rather than “stock” or asset owners in the

portfolio

We continue to invest along a range of these sectors to play overall improvement in investment cycle.

We believe well managed companies in capital goods, cement, logistics, utilities and EPC companies will be

large beneficiaries with developers still reeling under regulatory uncertainties and/or large debt servicing.

During the month, we added to our exposure to select capital goods focused on government spending and

realty sector

Sector Allocation as on 30th Sep, 2017

Sector %

Industrial Products 20.83

Gas 15.24

Cement 12.61

Industrial Capital Goods 10.76

Construction 8.30

Transportation 6.28

Chemicals 5.21

Construction Project 5.08

Power 4.23

Petroleum Products 2.63

Others 8.83

Equity Market Brief





















* The numbers are converted using the

Rupee- USD reference rate published by the

Reserve Bank of India as on the respective

dates.

To know more




Disclaimer

Kotak Infrastructure & Economic Reform Fund investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly (at least 65%) equity and equity-related securities of companies involved in economic development of India as a result of potential investments in infrastructure and unfolding economic reforms. There is no assurance that the investment objective: of the Scheme will be achieved.


15

Kotak Infrastructure & Economic Reform Fund(formerly known as “PineBridge Infrastructure & Economic Reform Fund)

Kotak Infrastructure & Economic Reform Fund* (Div) Performance (%) as on 29th September, 2017

Date Scheme Returns ## (%) of 10000 in the(%) ^ # (%) Scheme ( )Benchmark Additional


Kotak Infrastructure & Economic Reform Fund

Since Inception 8.02 6.74 6.81 20,981 18,707 18,822

Last 1 Year 20.08 14.77 13.67

Last 3 Years 15.06 8.27 7.11

Last 5 Years 18.78 12.26 11.40

Scheme Inception date is 25/02/2008. Mr. Harish Krishnan has been managing the fund since 01/02/2015.

S&P BSE Nifty 50 Current Value of Standard Investment `100

`



• Long term capital appreciation by investing in equity and equity related instruments of companies contributing to infrastructure and economic development of India

* Investors should consult their financial advisors if in doubt about whether the product is suitable for them.Investors understand that their principal will

be at high risk

Riskometer

yletaredo

M

Moderate

Low

High

Low

High

LOW HIGH

Moderately

Feb-23-2017 17.5640 0.50

June-23-2015 15.2601 0.50

Dividend History




Top 10 Holdings as on 30th Sep, 2017

Different plans have different expense structure. The performance details provided herein are of regular plan.

^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 25 for other schemes managed by Mr. Harish Krishnan.

Shree Cement Ltd. Cement 6.08%

Indraprastha Gas Ltd. Gas 5.55%

Container Corporation of India Ltd. Transportation 4.30%

Bharat Earth Movers Ltd. Industrial Capital Goods 4.14%


GAIL (India) Ltd. Gas 4.05%

Schaeffler India Ltd Industrial Products 3.83%

Kirloskar Oil Engines Ltd. Industrial Products 3.70%

Solar Industries India Limited Chemicals 3.68%

SKF India Ltd Industrial Products 3.52%

DEBT FUND

7

Kotak Low Duration Fund(formerly known as “PineBridge India Short Term Fund”) th30 September, 2017

Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM

Portfolio Modified Duration

Average Maturity

An Open Ended Debt Scheme

`5,452.81 crs

`5,864.27 crs


Monthly Dividend Direct `1034.6399

Weekly Dividend Direct `1199.7049

Standard Growth `2053.6410

Standard Monthly Dividend `1019.5753

Standard Weekly Dividend `1015.0776

6th March, 2008

Crisil Liquid Fund Index



0.73%

7.98%

1.07 years

1.25 years



2017


Regular Dividend NA

Load Structure

Entry Load:

Exit Load:

Nil

Nil

Any exit load charged (net off Service Tax, if any) shall be credited back to the Scheme;

Note - Units issued on reinvestment of dividends shall not be subject to entry and exit load.

About Kotak Low Duration Plan

Ÿ The primary objective of the Scheme is to generate income through investment primarily in low duration debt &

money market securities.

Ÿ There is no assurance or guarantee that the investment objective of the scheme will be achieved.

Portfolio Action

•

•

•

Given the above outlook we intend to maintain the average maturity at the higher end of the indicated band.

The focus is to enhance the portfolio yield while maintaining the liquidity and maturity of the portfolio in the

indicated band.

We intend to maintain the modified duration in the range of 0.75 – 1.00 in October 2017

17

Asset Allocation as on 30th Sep, 2017

Debentures and Bonds 88.84%

Commercial Paper (CP)/Certificate of Deposits (CD) 12.79%

Treasury Bills 1.26%

Government Dated Securities 0.17%

Net Current Assets -3.06%

Debt Market Outlook

• September end saw yields hardening from 6.53% to 6.66%; this was mainly due to FOMC’s balancesheet unwinding decision and an increased likelihood of a Dec rate hike; Spike in crude prices following geo-political tensions; and RBI’s OMO actions aimed at reducing system liquidity. All of which led to increased supply of bonds.

• A sustained increase in crude prices may cause an increase in inflation and prove adverse for bond yields. However, we believe that the current spike in crude prices will be short-lived and prices will remain range bound in the $50-$60 p. barrel.

• We believe that most of the negative news have already been priced into the current yield levels and do not expect to see a significant selling and hardening of yields here onwards. Further, with inflation broadly under control, a slow GDP growth may force the RBI to remain relatively dovish and cut rates, in the near future.

• We are still in the easy rates scenario, but near term volatility may call for cautious decision-making.


(^) Fully or Party blocked against Interest Rate Swap (IRS)

Particulars 31 Aug 2017 30 Sept 2017

Avg. Maturity (in yrs) 1.02 1.25

Duration 0.84 1.07

Yield (in %) 7.80 7.98

Vedanta Ltd. CRISIL AA 10.06%

Karelides Traders Private Ltd. ( backed by unconditional and irrevocable undertaking by a wholly owned subsidiary of Piramal Enterprises Ltd ) ICRA AA-(SO) 6.77%

Dewan Housing Finance Corporation Ltd. CARE AAA 6.25%

AXIS Bank Ltd. CRISIL AA+ 6.03%

S D Corporation Private Ltd. ( DSRA Guarantee from

Shapoorji Pallonji and Company Private Limited) CARE AA+(SO) 5.68%

Manappuram Finance Ltd. ICRA AA- 4.69%

Nirma Ltd.(^) CRISIL AA 4.25%

Innovador Traders Pvt Ltd ( backed by unconditional

and irrevocable undertaking by Piramal ) ICRA AA-(SO) 3.94%

PNB Housing Finance Ltd. CRISIL A1+ 3.91%

Sahyadri Agencies Ltd ( Secured by Equity shares

of Jyothy Laboratories Ltd ) BRICKWORK BWR A(SO) 3.46%




















`

`

To know more




Disclaimer

Kotak Low Duration Fund is an open - ended debt scheme. Investment Objective: The primary objective of the Scheme is to generate income through investment primarily in low duration debt & money market securities. There is no assurance or guarantee that the investment objective of the scheme will be achieved.


18

Kotak Low Duration Fund* Performance (%) as on , 201729th September

Different plans have different expense structure. The performance details provided herein are of regular plan.^Past performance may or may not be sustained in future. *All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of `10,000/- investment made at inception. Source: ICRA MFI Explorer. Classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of Scheme Benchmark. ## Name of Additional Benchmark. Please refer page no. 25 for top 3 and bottom 3 schemes managed by Mr. Deepak Agrawal.

Since Inception 7.81 7.61 6.47 20,536 20,185 18,231

Last 1 Year 7.61 6.68 6.06

Last 3 Years 9.00 7.64 7.42

Last 5 Years 8.52 8.19 7.25

Scheme Inception date is 06/03/2008. Mr. Deepak Agrawal has been managing the fund since 01/02/2015.

Rating Profile as on 30th Sep, 2017

Kotak Low Duration Fund

Current Value of Standard Investmentof ` 10000 in the

CRISIL 1 Year T-Bill Index

## (%)

CRISIL LiquidFund

Index # (%)

Scheme Returns (%) ^

Date

Scheme (`)

Benchmark # (`)

Additional Benchmark ## (`)

Kotak Low Duration Fund(formerly known as )“PineBridge India Short Term Fund” th30 September, 2017


• Regular income over short term

• Income by focusing on low duration securities


Investors understand that their principal will be at moderate risk

Riskometer

yletaredo

M

Moderate

Low

High

Low

High

LOW HIGH

Moderately

64.56

32.58

5.92

--3.06

AA+, AA+(SO), AA, AA(SO), BWR AA, AA-, AA-(SO), BWR AA-(SO), IND AA-

A1+, AAA, AAA(SO), BWR A1+ (SO), IND A1+, IND A1+(SO), IND AAA, SOV

A, BWR A(SO), A-

Net Current Assets

Kotak Income Opportunitiesth30 September, 2017

Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM


Average Maturity

An Open- Ended Debt Scheme

`4,760.42 crs

`4,699.98 crs

Weekly Dividend `10.0107Weekly Dividend Direct `10.4368Monthly Dividend `10.3447Monthly Dividend Direct `10.5694Quarterly Dividend `10.6841Quarterly Dividend Direct `10.0649Annual Dividend `10.6312Annual Dividend Direct `14.5874Growth `18.5820Growth Direct `19.4219

th11 May 2010

Crisil Short Term Bond Fund Index

`5000/-


1.73%

8.39%

1.88 years

2.40 years



2017


Load Structure

Entry Load: Exit Load:

Nil) For redemption / switch out of upto

10% of the initial investment amount (limit) purchased or switched in within 1 year from the date of allotment: Nil.ii) If units redeemed or switched out are in excess of the limit within 1 year from the date of allotment: 1%.iii) If units are redeemed or switched out on or after 1 year from the date of allotment: Nil.iv) Any exit load charged (net off Service Tax, if any) shall be credited back to the respective Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load.

i

About Kotak Income Opportunities

Ÿ The investment objective of Kotak Income Opportunities is to generate income by investing in debt and money

market securities across the yield curve and credit spectrum.

Ÿ The scheme would also seek to maintain reasonable liquidity within the fund.

Ÿ The scheme invests in securities offering high accrual by taking on a marginally higher credit risk.

Ÿ The fund manager may also seek to capitalize on opportunity of potential credit rating upgrades from time to

time.

Ÿ The scheme is suitable for investors with a time horizon of 15 months plus.

Portfolio Action

•

• The endeavour is to enhance the portfolio yield by either selling low yielding assets to buy high yielding assets

or by utilising the cash to acquire high yielding assets.

• We intend to maintain the modified duration in the range of 1.75 – 2.25 in October 2017


19


Debentures and Bonds 94.31

Commercial Paper (CP)/Certificate of Deposits (CD) 2.75

Net Current Assets 2.59

CBLO & Term Deposits & Rev.Repo 0.35

Debt Market Outlook






Particulars 31 Aug 2017 30 Sep 2017


Duration 1.93 1.88

Yield (in %) 8.34 8.39



HDFC Ltd. CRISIL AAA 5.18%

HPCL Mittal Pipelines Ltd. ICRA AA 4.20%

Innovador Traders Pvt Ltd ( backed by unconditional

and irrevocable undertaking by Piramal ) ICRA AA-(SO) 4.20%

Reliance Jio Infocomm Ltd.(^) CRISIL AAA 4.09%

U P Power Corporation Ltd ( Guaranteed By UP

State Government ) FITCH IND AA(SO) 3.87%

HPCL Mittal Energy Ltd. ICRA AA 3.50%

Tata Motors Ltd. CARE AA+ 3.14%

Tata Power Renewable Energy Ltd. ( Guaranteed by

Tata Power Company Ltd) CARE AA(SO) 2.98%

Indiabulls Housing Finance Ltd. CARE AAA 2.80%


















`

`




To know more


Visit - assetmanagement.kotak.comEmail - [email protected]

Disclaimer

Kotak Income Opportunities is an open-ended debt scheme. Investment Objective: The investment objective of the scheme is to generate income by investing in debt /and money market securities across the yield curve and credit spectrum. The scheme would also seek to maintain reasonable liquidity within the fund. There is no assurance that or guarantee that the investment objective of the scheme will be achieved.


20

Kotak Income Opportunities Fund - Growth *Performance (%) as on , 201729th September


Since Inception 8.74 8.41 6.80 18,582 18,161 16,264

Last 1 Year 7.42 7.58 6.06

Last 3 Years 9.37 8.92 7.42

Last 5 Years 9.15 8.92 7.25



Kotak Income Opportunities Fund - Growth


CRISIL 1 Year T-Bill

Index ## (%)

Crisil Short Term

Bond Fund Index # (%)


Date

Scheme (`)

Benchmark # (`)


Kotak Income Opportunities


• Income over a medium term horizon

• Investment in debt & money market securities


Investors understand that their principal will be at moderately low risk

Riskometer

yletaredo

M

Moderate

Low

High

Low

High

LOW HIGH

Moderately

58.87

25.54

11.59

2.59

1.06

0.35

AA+, AA, AA(SO), BWR AA, IND AA(SO), AA-, AA-(SO), BWR AA-, IND AA-

A1+, AAA, IND A1+(SO), IND AAA(SO)

A+, BWR A+, IND A+, A, A-

Net Current Assets

Unrated


Kotak Medium Term Fundth30 September, 2017

Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM


Average Maturity


` crs

`4,601.74 crs

Quarterly Dividend `10.5278

Quarterly Dividend Direct `10.5360

Annual Dividend `10.8823

Annual Dividend Direct `14.5591

Growth `14.0372


21st March, 2014

CRISIL Composite Bond Fund Index



2.21%

8.45%

2.40 years

3.09 years

*Source: MFI Explorer.^ as on 29th Sep, 2017. Source: Value Research.

2017

4,618.09


Load Structure

Entry Load:

Exit Load:

Nil

i) For redemption / switch out of upto 15% of the initial investment amount (limit) purchased or switched in within 18 months from the date of allotment: Nil.

ii) If units redeemed or switched out are in excess of the limit within 18 months from the date of allotment: 2%.

iii) If units are redeemed or switched out on or after 18 months from the date of allotment: Nil.

iv) Any exit load charged (net off Service Tax if any) shall be credited back to the respective Scheme. Units issued on reinvestment of dividends shall not be subject to entry and exit load.



Debentures and Bonds 94.10%

Net Current Assets 2.51%

Commercial Paper (CP)/Certificate of Deposits (CD) 2.11%

CBLO & Term Deposits & Rev.Repo 0.95%

Government Dated Securities 0.33%

About Kotak Medium Term Plan

Ÿ Kotak Medium Term Fund, an open-ended debt scheme.

Ÿ The investment objective of the scheme is to generate regular income and capital appreciation by investing in a

portfolio of medium term debt and money market instruments.

Ÿ The fund has an average maturity floor of around 3 years and a ceiling of around 7 years.

Ÿ As a result, the fund occupies a mid-segment space between the long duration and the short duration bonds.

Likewise, the fund's merits also tend to be a balance of the long term and the short term bond funds.

Ÿ The fund operates largely on a Hold-Till-Maturity (HTM) strategy.

Portfolio Action

•

•

•


The endeavour is to enhance the portfolio yield by either selling low yield assets or buying high yielding assets

by utilising the cash.

We intend to maintain a modified duration in the range of 2.25 - 3.00 in October 2017

21

Debt Market Outlook








Duration 2.39 2.40

Yield (in %) 8.37 8.45

U P Power Corporation Ltd ( Guaranteed By UP State Government ) FITCH IND AA(SO) 7.13%

K Raheja IT Park (Hyderabad) Ltd. (Commercial Mortgage-Backed Securities) FITCH IND AAA(SO) 4.34%

Nuvoco Vistas Corporation Ltd. ( 100% subsidiary of Nirma Ltd.) CRISIL AA 4.31%

HPCL Mittal Energy Ltd. ICRA AA 3.22%


Vizag General Cargo Berth Private Ltd. ( backed by unconditional and irrevocable guarantee of Vedanta Ltd ) CRISIL AA(SO) 2.95%

Piramal Finance Limited ICRA AA 2.93%

Dalmia Cement (Bharat) Ltd(^) ICRA AA 2.92%

PNB Housing Finance Ltd. CARE AAA 2.91%




















`

`

To know more




Disclaimer

Kotak Medium Term Fund an open-ended debt scheme investment objective: of the scheme is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. There is no assurance or guarantee that the investment objective of the scheme will be achieved.


22

Kotak Medium Term Fund *Performance (%) as on , 201729th September



Kotak Medium Term Fund


CRISIL 10 YR Gilt Index ## (%)

CRISIL Composite Bond Fund Index # (%)


Date

Scheme (`)

Benchmark # (`)


Kotak Medium Term Fundth30 September, 2017


• Income over a medium term investment horizon

• Investment in debt, government securities & money market instruments with a portfolio weighted average maturity between 3-7 years


Investors understand that their principal will be at moderate risk

Riskometer

yletaredo

M

Moderate

Low

High

Low

High

LOW HIGH

Moderately

Since Inception 10.09 10.99 10.41 14,037 14,446 14,182

Last 1 Year 7.60 7.92 6.81

Last 3 Years 9.82 10.64 10.52

Scheme Inception date is 21/03/2014. Mr. Deepak Agrawal has been managing the fund since 22/06/2015.The scheme has been in existence for less than 5 years

53.65

32.42

8.13

2.51

1.25

1.09

0.95

AA+, AA, AA(SO), BWR AA, IND AA, IND AA(SO), AA-, AA-(SO), BWR AA-, IND AA-

A1+, AAA, AAA(SO), IND AAA, IND AAA(SO), SOV

A+, IND A+, A, A-

Net Current Assets

BBB-, CARE BBB+

Unrated


Kotak Bond Short Termth30 September, 2017

Scheme Facts

Structure



Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM


Average Maturity


`8,207.47 crs

`9,120.61 crs

Dividend `10.1244

Dividend Direct `10.3998

Half Yearly Dividend `11.6004

Half Yearly Dividend Direct `11.6991

Growth `31.7738


2nd May, 2002

Crisil Short - Term Bond Fund Index

(a) Dividend Re-investment & Growth - `5000 & above (b) Dividend Payout (Monthly Dividend) -`50,000& above

`1000 & in multiples of ` 1

1.91%

7.25%

1.97 years

2.34 years




Load Structure

Entry Load:

Exit Load:

Nil

Nil

About Kotak Bond Short Term

Ÿ The investment objective of Kotak Bond Short Term is to provide reasonable returns and high level of liquidity by

investing in debt and money market instruments of different maturities so as to spread the risk across different

kind of issuers in the debt market.

Ÿ The scheme is suitable for investors who may generally want to position themselves at the shorter end of the yield

curve with a time horizon of 6 months and more.

Portfolio Action

•

•

•


We believe that short term curve (2-3 year assets) are best point on the yield curve. While 5 year assets are the

highest yielding and therefore are likely to maintain adequate mix of assets in the portfolio.

We intend to maintain the modified duration in the range of 1.80 – 2.20 in October 2017


Debentures and Bonds 89.89

Government Dated Securities 14.58

Net Current Assets -4.47

Debt Market Outlook







Duration 1.89 1.97

Yield (in %) 7.06 7.25

23





















`

`

To know more




Disclaimer

Kotak Bond Short Term is an open-ended debt

scheme. Investment Objective: The investment

objective of the Scheme is to provide reasonable

returns and high level of liquidity by investing in debt

instruments such as bonds, debentures and

Government securities; and money market instrume

nts such as treasury bills,commercial papers,

certificates of deposit, including repos in permitted

securities of different maturities, so as to spread the

risk across different kinds of issuers in the debt

markets. The Schememay invest in the call

money/termmoney market in terms of RBI guidelines

in this respect. To reduce the risk of the portfolio, the

Scheme may also use various derivative and hedging

products from time to time, in the manner permitted

by SEBI.Subject to the maximum amount permitted

from time to time, the Scheme may invest in offshore

securities in the manner allowed by SEBI/RBI,

provided such investments are in conformity with the

investment objective of the Scheme and the

prevailing guidelines and Regulations.There is no

assurance that the investment objective of the

Scheme will be realised.

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

24

Kotak Bond Short Term

Kotak Bond Short Term* Performance (%) as on 29th September, 2017


Since Inception 7.78 7.30 5.97 31,774 29,635 24,456

Last 1 Year 6.88 7.58 6.06

Last 3 Years 8.53 8.92 7.42

Last 5 Years 8.47 8.92 7.25


Kotak Bond Short Term - Growth


CRISIL 1 Year

T-Bill Index ## (%)

Crisil Short Term Bond Fund Index

# (%)


Date

Scheme (`)

Benchmark # (`)



• Income over a medium term horizon

• Investment in debt & money market securities


Investors understand that their principal will be at moderately low risk

Riskometer

yletaredo

M

Moderate

Low

High

Low

High

LOW HIGH

ModeratelyRating Profile as on 30th Sep, 2017



Power Finance Corporation Ltd.(^) CRISIL AAA 12.74%

Reliance Jio Infocomm Ltd. CRISIL AAA 8.56%

Mahindra & Mahindra Financial Services Ltd. FITCH IND AAA 7.80%

HDFC Ltd. CRISIL AAA 7.60%

LIC Housing Finance Ltd. CRISIL AAA 6.49%

Nabha Power Ltd. ( backed by unconditional and

irrevocable guarantee by Larsen & Toubro Ltd ) ICRA AAA 6.35%

ONGC Manglore Petrochemicals Ltd. FITCH IND AAA 4.69%

Kotak Mahindra Prime Ltd. CRISIL AAA 4.55%

Small Industries Development Bank Of India CARE AAA 4.21%

Indiabulls Housing Finance Ltd. CARE AAA 3.34%

104.47

- 4.47

AAA, AAA(SO), IND AAA, SOV

Net Current Assets

25

Current Value of Investment of `10000 in the

#Other Mr. Pankaj TibrewalFunds managed by

$Other Funds managed by Mr. Harish Krishnan

Annexure - Returns (Fund Manager wise)

1 Year 3 Years 5 Years

Scheme Name Absolute Returns (%) CAGR Returns (%) CAGR Returns (%)

@Other Funds managed by Mr. Harsha Upadhyaya

InceptiondateSince inception

CAGR Returns

(%)

*Top 3 Funds Managed by Mr. Deepak Agarwal

^Top 3 Funds Managed by Mr. Deepak Gupta

^Bottom 3 Funds Managed by Mr. Deepak Gupta

*Bottom 3 Funds Managed by Mr. Deepak Agarwal

Kotak Tax Saver Scheme - Growth (%) 15.69 14.85 15.77 39,638 12.32 23-11-2005

Nifty 500 # (%) 16.30 10.26 13.79 38,129 11.95

Nifty 50 ## (%) 13.67 7.11 11.40 37,524 11.80

Kotak Midcap - Growth (%) 15.56 18.36 21.61 72,865 17.07 24-02-2005

Nifty Free Float Midcap 100 # (%) 17.48 16.62 18.20 60,978 15.43

Nifty 50 ## (%) 13.67 7.11 11.40 47,626 13.18

Kotak India Growth Fund - Series I - Growth (%) 13.31 NA NA 12,802 10.83 06-05-2015

Nifty 200 # (%) 15.28 NA NA 12,604 10.11

Nifty 50 ## (%) 13.67 NA NA 12,089 8.22

Kotak 50 - Dividend (%) 11.74 11.32 14.77 282,601 19.49 29-12-1998

Nifty 50 # (%) 13.67 7.11 11.40 112,171 13.75

S&P BSE SENSEX ## (%) 12.27 5.51 10.75 102,694 13.22

Kotak Banking ETF (%) 25.32 NA NA 13,293 10.68 10-12-2014

Nifty Bank # (%) 24.72 NA NA 13,028 9.89

Nifty 50 ## (%) 13.67 NA NA 11,715 5.80

Kotak Classic Equity Fund - Growth (%) 18.42 11.87 14.70 44,842 13.11 27-07-2005

Nifty 100 # (%) 14.70 8.66 12.67 44,031 12.94

Nifty 50 ## (%) 13.67 7.11 11.40 42,209 12.55

Kotak US Equity Fund - Growth (%) 15.31 9.79 NA 14,171 9.67 20-12-2013

S&P 500 International Total Return Net Index # (%) 16.33 12.82 NA 15,819 12.91

Nifty 50 ## (%) 13.67 7.11 NA 15,601 12.49

Kotak PSU Bank ETF (%) -2.69 -2.87 0.21 12,557 2.33 08-11-2007

Nifty PSU Bank # (%) -2.80 -3.39 -2.02 10,542 0.53

Nifty 50 ## (%) 13.67 7.11 11.40 17,177 5.62

Kotak Equity Arbitrage Fund - Growth (%) 6.03 6.85 7.77 24,144 7.62 29-09-2005

Nifty 50 Arbitrage Index # (%) 4.74 6.47 7.29 NA NA

Nifty 50 ## (%) 13.67 7.11 11.40 37,487 11.63

Kotak World Gold Fund - Growth (%) -19.26 -0.05 -10.42 9,095 -1.01 06-06-2008

Financial Times Gold Mines Total - Price # (%) -13.82 7.70 -9.67 8,544 -1.67

Nifty 50 ## (%) 13.67 7.11 11.40 21,152 8.37

Kotak Corporate Bond Fund - Growth (%) ^ 7.85 10.08 8.68 22,161 8.26 21-09-2007

CRISIL Composite Bond Fund # (%) 7.92 10.64 9.35 21,794 8.08

CRISIL 1 Year TBill ## (%) 6.06 7.42 7.25 18,680 6.43

Kotak Banking and PSU Debt Fund - Growth (%) ^ 7.76 8.75 9.00 38,315 7.42 29-12-1998

CRISIL Short Term Bond Fund # (%) 7.58 8.92 8.92 NA NA


Kotak Flexi Debt - Regular Plan - Growth (%) ̂ 7.71 9.88 9.54 21,908 8.75 26-05-2008

CRISIL Composite Bond Fund # (%) 7.92 10.64 9.35 20,867 8.18


Kotak Treasury Advantage Fund - Growth (%) 7.09 8.14 8.53 26,941 7.84 13-08-2004

CRISIL Liquid Fund # (%) 6.68 7.64 8.19 24,713 7.13


Kotak Floater - Short Term - Growth (%) 6.75 7.80 8.35 27,510 7.37 14-07-2003



Kotak Liquid - Regular Plan - Growth (%) 6.70 7.72 8.29 27,227 7.47 04-11-2003



26

**Top 3 Funds Managed by Mr. Abhishek Bisen

Current Value of Investment of `10000 in the

Annexure - Returns (Fund Manager wise)

Scheme Name Absolute Returns (%) CAGR Returns (%) CAGR Returns (%)

InceptiondateSince inception

CAGR Returns

**Bottom 3 Funds Managed by Mr. Abhishek Bisen

1 Year 3 Years 5 Years

Kotak Global Emerging Market Fund - Growth (%) 8.54 2.10 6.84 15,172 4.25 26-09-2007

MSCI Emerging Market index # (%) 17.43 4.33 5.92 15,076 4.18

Nifty 50 ## (%) 13.67 7.11 11.40 19,813 7.06

Kotak Monthly Income Plan - Growth (%) 8.10 10.57 10.75 29,216 8.06 02-12-2003

CRISIL MIP Blended # (%) 8.85 10.24 9.80 29,899 8.24

CRISIL 10 Year Gilt ## (%) 6.81 10.52 8.12 21,692 5.76

Kotak Multi Asset Allocation Fund - Growth (%) 7.50 8.18 7.80 17,042 8.29 21-01-2011

65% Crisil Short term Bond Fund ,25%

Nifty 50 & 10% Prices of Gold # (%) 7.79 8.25 8.81 17,658 8.87

CRISIL 10 Year Gilt ## (%) 6.81 10.52 8.12 16,410 7.68

Kotak Gold ETF (%) -7.03 2.66 -2.27 30,044 11.41 27-07-2007

Price of Gold # (%) -5.97 3.80 -1.18 33,896 12.74

CRISIL 10 Year Gilt ## (%) 6.81 10.52 8.12 20,160 7.13

Kotak Gold Fund - Growth (%) -7.12 1.46 -3.17 12,490 3.47 25-03-2011

Price of Gold # (%) -5.97 3.80 -1.18 14,182 5.50

CRISIL 10 Year Gilt ## (%) 6.81 10.52 8.12 16,006 7.48

Kotak Bond - Regular Plan - Growth (%) 4.29 9.35 8.10 47,775 9.15 25-11-1999

CRISIL Composite Bond Fund # (%) 7.92 10.64 9.35 NA NA

CRISIL 10 Year Gilt ## (%) 6.81 10.52 8.12 NA NA

@Mr. Harsha Upadhyaya manages 3 funds of Kotak Mutual fund.

Kotak Tax Saver Scheme - Growth, *Name of the Benchmark - Nifty 500, Scheme Inception date is 23/11/2005. Mr. Harsha Upadhyaya has been managing the fund since 25/08/2015.#Mr. Pankaj Tibrewal manages 3 funds of Kotak Mutual fund.

Kotak Midcap - Growth, *Name of the Benchmark - Nifty Free Float Midcap 100, Scheme Inception date is 24/02/2005. Mr. Pankaj Tibrewal has been managing the fund since 21/01/2010.$Mr. Harish Krishnan manages 3 funds of Kotak Mutual fund.

Kotak India Growth Fund - Series I - Regular Plan - Growth, *Name of the Benchmark - Nifty 200, Scheme Inception date is 06/05/2015. Mr. Harish Krishnan has been managing the fund since 06/05/2015

Kotak 50 - Dividend, *Name of the Benchmark - Nifty 50, Scheme Inception date is 29/12/1998. Mr. Harish Krishnan has been managing the fund since 15/11/2013.^Mr. Deepak Gupta manages 13 funds of Kotak Mutual fund.

Kotak Banking ETF, *Name of the Benchmark - Nifty Bank, Scheme Inception date is 10/12/2014. Mr. Deepak Gupta has been managing the fund since 24/11/2014.

Kotak Classic Equity Fund - Growth, *Name of the Benchmark - Nifty 100, Scheme Inception date is 27/07/2005. Mr. Deepak Gupta has been managing the fund since 01/01/2017.

Kotak US Equity Fund - Growth, *Name of the Benchmark - S&P 500 International Total Return Net Index, Scheme Inception date is 20/12/2013. Mr. Deepak Gupta has been managing the fund since 01/02/2015.

Kotak Equity Arbitrage Fund - Growth, *Name of the Benchmark - Nifty 50 Arbitrage Index, Scheme Inception date is 29/09/2005. Mr. Deepak Gupta has been managing the fund since 01/09/2008.

Kotak PSU Bank ETF, *Name of the Benchmark - Nifty PSU Bank , Scheme Inception date is 08/11/2007. Mr. Deepak Gupta has been managing the fund since 25/02/2011.

Kotak World Gold Fund - Growth, *Name of the Benchmark - Financial Times Gold Mines Total - Price, Scheme Inception date is 06/06/2008. Mr. Deepak Gupta has been managing the fund since 01/02/2015.*Mr. Deepak Agrawal manages 10 & All FMPs funds of Kotak Mutual fund.

Kotak Corporate Bond Fund - Growth, *Name of the Benchmark - CRISIL Composite Bond Fund, Scheme Inception date is 21/09/2007. Mr. Deepak Agrawal has been managing the fund since 01/02/2015.

Kotak Banking and PSU Debt Fund - Growth, *Name of the Benchmark - CRISIL Short Term Bond Fund, Scheme Inception date is 29/12/1998. Mr. Deepak Agrawal has been managing the fund since 01/08/2008.

Kotak Flexi Debt - Regular Plan - Growth, *Name of the Benchmark - CRISIL Composite Bond Fund, Scheme Inception date is 26/05/2008. Mr. Deepak Agrawal has been managing the fund since 25/11/2012.

Kotak Treasury Advantage Fund - Growth, *Name of the Benchmark - CRISIL Liquid Fund, Scheme Inception date is 13/08/2004. Mr. Deepak Agrawal has been managing the fund since 01/04/2008.

Kotak Floater - Short Term - Growth, *Name of the Benchmark - CRISIL Liquid Fund, Scheme Inception date is 14/07/2003. Mr. Deepak Agrawal has been managing the fund since 01/11/2006.

Kotak Liquid - Regular Plan - Growth, *Name of the Benchmark - CRISIL Liquid Fund, Scheme Inception date is 04/11/2003. Mr. Deepak Agrawal has been managing the fund since 01/05/2007.**Mr. Abhishek Bisen manages 9 funds of Kotak Mutual fund.

Kotak Global Emerging Market Fund - Growth, *Name of the Benchmark - MSCI Emerging Market index, Scheme Inception date is 26/09/2007. Mr. Abhishek Bisen has been managing the fund since 04/04/2011.

Kotak Monthly Income Plan - Growth, *Name of the Benchmark - CRISIL MIP Blended, Scheme Inception date is 02/12/2003. Mr. Abhishek Bisen has been managing the fund since 01/04/2008. Mr. Devender Singhal has been managing the fund since 25/08/2015.

Kotak Multi Asset Allocation Fund - Growth, *Name of the Benchmark - 65% Crisil Short term Bond Fund ,25% Nifty 50 & 10% Prices of Gold, Scheme Inception date is 21/01/2011. Mr. Abhishek Bisen has been managing the fund since 31/12/2010. Mr. Deepak Gupta has been managing the fund since 10/09/2013.

Kotak Bond - Regular Plan - Growth, *Name of the Benchmark - CRISIL Composite Bond Fund, Scheme Inception date is 25/11/1999. Mr. Abhishek Bisen has been managing the fund since 01/04/2008.

Kotak Gold ETF, *Name of the Benchmark - Price of Gold, Scheme Inception date is 27/07/2007. Mr. Abhishek Bisen has been managing the fund since 01/08/2008.

Kotak Gold Fund - Growth, *Name of the Benchmark - Price of Gold, Scheme Inception date is 25/03/2011. Mr. Abhishek Bisen has been managing the fund since 04/03/2011.

Different plans have different expense structure. The performance details provided herein are of regular plan

^Past performance may or may not be sustained in future.*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV.Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Source: ICRA MFI Explorer.

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funds in focus - kotak asset management · industrial manufacturing 3.59 1.71 1.88 3.67 -0.08 ......

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