table of contents - kotak securities · table of contents page no. page no. i. highlights, risk...

TABLE OF CONTENTS

Page No. Page No.

I. HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE 1

II. DEFINITIONS AND ABBREVIATIONS 5

III. CONSTITUTION OF THE FUND 7A . THE FUND 7

B . SPONSOR COMPANY 7

C . TRUSTEE COMPANY (THE TRUSTEE) 7

1 . Directors 82 . Rights, Obligations, Responsibilities

and Duties of the Trustee 83 . Trustee’s Fee 1 0

D . ASSET MANAGEMENT COMPANY 1 0

1 . Name and Address 1 02 . Directors on the Board of the AMC 1 03 . Powers, Functions and Responsibilities

of the AMC 1 24 . Condensed Financial Information

(for the last three fiscal years) 1 35 . Borrowing by the Mutual Fund 2 16 . Key Personnel of AMC 2 1

E. THE REGISTRAR 2 3

F. THE CUSTODIANS 2 3

G. BANKER 2 3

IV. INVESTMENT OF FUND 24

A . KOTAK QUARTERLY INTERVAL PLAN - SERIES 1 2 4

1 . Type of Scheme 2 42 . Investments Options 2 43 . Investment Objective 2 44 . Investment Strategy 2 45 . The Risk Profile and Investment Pattern 2 56 . Overview of Debt Market 2 57 . Fundamental Attributes and Changes Therein 2 5

B . POLICIES AND REGULATIONS APPLICABLETO THE SCHEME 2 5

i. Investment of Subscription Money 2 5ii. Borrowing Power 2 6iii. Policy on Inter Scheme Transfers 2 6iv. Mode of Investment 2 6v. Investments by the AMC in the Fund 2 6vi. Investment Limitation and Restrictions 2 7vii. Computation of Net Asset Value 2 7viii. Valuation Norms 2 8ix. Accounting Policies 2 9x. Recording of Investment Decisions 5 5

V. UNITS 56A . UNITS ON OFFER 3 0

1 . Minimum Subscription Amount 3 02 . New Fund Offer of the Scheme 3 03 . New Fund Offer Price 3 04 . Extension of New Fund Offer 3 05 . Continuous Offer 3 06 . Listing 3 0

7 . Minimum Purchase and Redemption Amount 3 08 . Applicable NAV for the scheme 3 09 . Facilities Offered to Investors under the Scheme 3 0

B . PURCHASE OF UNITS 3 1

1 . Who can invest? 3 1

2 . Purchase Price 3 13 . Mode of Payment 3 14 . Where to submit application forms? 3 25 . Choice of Option under the Scheme 3 26 . Joint Applicants 3 27 . Allotment 3 28 . Account Statement / Unit Certificate 3 39 . Refund 3 3

C . REDEMPTION OF UNITS 3 3

1 . Redemption Price 3 32 . How to Redeem? 3 33 . Liquidity / Spesified Transaction Priod 3 34 . Payment of Proceeds 3 35 . Redemption by NRIs/FIIs 3 36 . Effect of Redemptions 3 47 . Right to Limit Redemption 3 48 . Suspension or Redemption of Units 3 49 . Unclaimed Redemption and Dividend Amount 3 4

VI. LOADS AND RECURRING EXPENSES 35

A . LOAD STRUCTURE OF THE SCHEME 3 5

B . FEES AND EXPENSES OF THE SCHEME 3 5

1 . Expenses of Initial Issue 3 52 . Initial Issue Expenses incurred by the Schemes 3 5

VII. UNITHOLDERS’ RIGHTS AND SERVICES 39

A . UNITHOLDERS’ RIGHTS 3 9B . VOTING RIGHTS OF THE UNITHOLDERS 3 9C . ACCOUNT STATEMENTS 3 9D . USE OF POSTAL SERVICES FOR DISPATCH OF

DIVIDEND WARRANTS AND ACCOUNT STATEMENTS. 3 9E. NAV INFORMATION 4 0F. DISCLOSURE OF INFORMATION UNDER THE

REGULATIONS 4 0G. DURATION OF THE SCHEME 4 9H . PROCEDURE AND MANNER OF WINDING UP 4 9I. SERVICES TO UNITHOLDERS 5 0J. TAX BENEFITS OF INVESTING IN THE MUTUAL FUND 5 0

VIII. OTHER MATTERS

A . POWER TO MAKE RULES 5 2

B . POWER TO REMOVE DIFFICULTIES 5 2

C . TRANSACTIONS WITH ASSOCIATE COMPANIES 5 2

D . PENALTIES, PENDING LITIGATION OR

PROCEEDINGS 5 8

E. OMNIBUS CLAUSE 5 9

F. DOCUMENTS AVAILABLE FOR INSPECTION 5 9

Name of the Scheme KOTAK QUARTERLY INTERVAL PLAN – SERIES 1

Type of Scheme An interval debt fund

Investment Objective The investment objective of the Scheme is to generate returns throughinvestments in debt and money market instruments with a view to significantlyreduce the interest rate risk.

Investment in Debt / Money Market Instruments and Government Securities, normallymaturing in line with the interval period of the Plan.

Liquidity/ Specified Kotak Quarterly Interval Plan - Series1 will have Specified Transaction PeriodTransaction Period once in a quarter, during which period investor can Subscribe / Redeem / Switch-

ins/ Switch-outs, without payment of any entry / exit load. However, the AMCreserves the right to change / alter the “Specified Transaction Period”,depending on the prevailing market conditions and to protect the interest ofthe investors.Specified Transaction Period for Purchases/ Switch-ins/Redemptions/ Switch-outs would generally be One business day immediately after the end of thequarterly interval period In case such a day happens to be a non-working day,then the immediate next working day shall be considered as the SpecifiedTransaction Period.Redemption and switch-outs are allowed on all other working days other thanthe Specified Transaction Period also, subject to payment of applicable exit load.Subscription for purchase/switch-in of units will be accepted only on / duringthe Specified Transaction Period.

Fund Manager Mr. Deepak Agrawal

Benchmark Index CRISIL Liquid Fund Index

Options Growth, Dividend (Payout and Reinvestment) Options

Minimum Investment amount The minimum amount for investment is Rs. 5,000, each and in multiples ofRe. 1 for both Growth and Dividend Options.

Minimum Redemption amount Rs. 1,000 or 100 Units each for both Growth and Dividend Options.

If the holding is less than Rs. 1,000 or 100 Units, the entire balance will beredeemed as and when redemption request is received from the investor.

Entry Load Nil

Exit Load 1%, if redeemed anytime other than the Specified Transaction Period forRedemptions/Switch-outs.

No exit load will be charged on redemption during the Specified TransactionPeriod for Redemptions/ Switch-outs.

Initial Issue Expense Will be borne by the AMC

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I.HIGHLIGHTS, RISK FACTORS AND DUE DILIGENCE

Tax implications as per the provisions ofIncome Tax Act, 1961 and Wealth Tax Act, 1957,prevailing as on May 28, 2007:

No TDS on redemption irrespective of amountredeemed, for Unit holders Resident in India.

Investments in the Scheme are exempt from Wealth Tax.

Under Section 2(29A) of the Act, read withsection 2(42A) of the Act, a unit of a Mutual Fund istreated as a long term capital asset if the same is heldfor more than 12 months. If the unit is held for 12months or less, the same is treated as a short termcapital asset.

Dividends received under the Scheme are exempt fromincome tax in the hands of investors and the Schemewill pay dividend distribution tax.

RISK FACTORSMutual Funds and securities investments are subject tomarket risks and there is no assurance or guarantee thatthe objectives of the Scheme will be achieved.

As with any securities investment, the NAV of the Unitsissued under the Scheme can go up or down dependingon the factors and forces affecting the debt and moneymarkets.

Past performance of the Sponsor/Fund/AMC or that ofany Schemes of the Fund does not indicate the futureperformance of the Schemes of the Fund.

Kotak Quarterly Interval Plan - Series1, is only the nameof the Scheme and does not in any manner indicate thequality of the Scheme, its future prospects or returns.

The NAV of the Units issued under the Scheme may be

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affected, inter-alia, by changes in the market, interestrates, changes in credit rating, trading volumes,settlement periods and transfer procedures; the NAV isalso exposed to Price/Interest-Rate Risk and Credit Riskand may be affected inter-alia, by government policy,volatility and liquidity in the money markets and pressureon the exchange rate of the rupee.

Tax laws may change, affecting the return on investmentin Units.

In the event of receipt of a very large number ofredemption requests or very large value redemptionrequests or of a restructuring of the Scheme portfolio,there may be delays in the redemption of Units. Pleaserefer to the paragraph, ‘Right to limit Redemption’ inthis Offer Document.

As per SEBI Circular No. SEBI/IMD/Cir No.10/22701/03dated December 12, 2003 read with SEBI Circular No.SEBI/IMD/Cir No. 1/42529/05 dated June 14, 2005, eachscheme and individual plan(s) under the schemes shouldhave a minimum of 20 investors and no single investorshould account for more than 25% of the corpus ofsuch scheme/ plan(s). In case of close-ended scheme /plan, if either of the above two conditions are notfulfilled immediately after the close of the NFO and atthe time of allotment during specified transactionperiod, the provisions of Regulation 39(2)(c) of the SEBI(Mutual Funds) Regulations, 1996, would becomeapplicable automatically without any reference fromSEBI. Accordingly, the scheme / plans shall be woundup by following the guidelines prescribed by SEBI andthe investors (including existing investors) money wouldbe redeemed at applicable NAV.

SCHEME SPECIFIC RISK FACTORS AND SPECIALCONSIDERATIONS:a) The portfolio of Kotak Quarterly Interval Plan - Series1

will comprise of securities issued by central and stategovernment as also debt securities issued by corporatesas mentioned under the paragraph ‘the risk profile andinvestment pattern’. All such securities will normallymature in line with the maturity profile of the scheme.As the securities are normally held to maturity, theinterest rate risk is significantly mitigated. Different typesof securities in which the Scheme would invest as givenin the offer document carry different levels and typesof risk. Accordingly the scheme’s risk may increase ordecrease depending upon its investment pattern. Fore.g., corporate bonds carry a higher amount of risk thangovernment securities. Further even among corporatebonds, bonds, which are AAA rated, are comparativelyless risky than bonds, which are AA rated. The debtsecurities issued by the corporates do carry a credit riskas also the liquidity risk.

b) The Scheme will invest entirely in Debt/ Money MarketInstruments and Government securities. Liquidity inthese investments may be affected by trading volumes,settlement periods and transfer procedures. Thesefactors may also affect the Scheme’s ability to makeintended purchases/sales, cause potential losses to theScheme and result in the Scheme missing certaininvestment opportunities.

c) Different types of securities in which the scheme wouldinvest as given in the offer document carry differentlevels and types of risk. Accordingly the scheme’s riskmay increase or decrease depending upon its investmentpattern. E.g. corporate bonds carry higher amount of

risk than government securities. Further, even amongcorporate bonds, bonds, which are AAA rated, arecomparatively less risky than bonds, which are AA rated.

d) The Scheme may from time to time invest in domesticsecuritised debt, for instance, in asset backed securitiesor mortgage backed securities. Typically, investments insecuritised debt carry credit risk (where credit losses inthe underlying pool exceed credit enhancementprovided) and the reinvestment risk (which is higher ascompared to the normal corporate or sovereign debt).The underlying assets in securitised debt are receivablesarising from automobile loans, personal loans, loansagainst consumer durables, loans backed by mortgageof residential / commercial properties, etc.

e) ABS/MBS instruments reflect the proportionateundivided beneficial interest in the pool of loans anddo not represent the obligation of the issuer of ABS/MBS or the originator of the underlying receivables.Investments in securitised debt is largely guided byfollowing factors :

Attractive yields i.e. where securitised papers offer betteryields as compared to the other debt papers and alsoconsidering the risk profile of the securitised papers.

Diversification of the portfolio

Better performance

Broadly following types of loans are securitised:Auto Loans (cars / commercial vehicles /two wheelers)

Residential Mortgages or Housing Loans

Consumer Durable Loans

Personal Loans

Auto LoansThe underlying assets (cars etc.) are susceptible todepreciation in value whereas the loans are given at highloan to value ratios. Thus, after a few months, the value ofasset becomes lower than the loan outstanding. Theborrowers, therefore, may sometimes tend to default onloans and allow the vehicle to be repossessed.

These loans are also subject to model risk. i.e. if a particularautomobile model does not become popular, loans givenfor financing that model have a much higher likelihood ofturning bad. In such cases, loss on sale of repossessionvehicles is higher than usual.

Commercial vehicle loans are susceptible to the cyclicality inthe economy. In a downturn in economy, freight rates dropleading to higher defaults in commercial vehicle loans.Further, the second hand prices of these vehicles also declinein such economic environment.

Housing LoansHousing loans in India have shown very low default rateshistorically. However, in recent years, loans have been givenat high loan to value ratios and to a much younger borrowerclasses. The loans have not yet gone through the fulleconomic cycle and have not yet seen a period of decliningproperty prices. Thus the performance of these housing loansis yet to be tested and it need not conform to the historicalexperience of low default rates.

Consumer Durable LoansThe underlying security for such loans is easilytransferable without the bank’s knowledge and hencerepossession is difficult.

The underlying security for such loans is also susceptible

to quick depreciation in value. This gives the borrowersa high incentive to default.

Personal LoansThese are unsecured loans. In case of a default, the bankhas no security to fall back on. The lender has no controlover how the borrower has used the borrowed money.Further, all the above categories of loans have the followingcommon risks:

All the above loans are retail, relatively small value loans.There is a possibility that the borrower takes differentloans using the same income proof and thus the incomeis not sufficient to meet the debt service obligations ofall these loans.In India, there is no ready database available regardingpast credit record of borrowers. Thus, loans may begiven to borrowers with poor credit record.In retail loans, the risks due to frauds are high.

EXPLANATORY NOTE ON SPECIFIC RISKS INDEBT MARKETS AND CAPITAL MARKETSInvestments in Financial Instruments are faced with thefollowing kinds of risks.

Risks associated with Debt / Money Markets (i.e. Marketsin which Interest bearing Securities or DiscountedInstruments are traded)

a) Credit Risk:Securities carry a Credit risk of repayment of principal orinterest by the borrower. This risk depends on micro-economic factors such as financial soundness and ability ofthe borrower as also macro-economic factors such asIndustry performance, Competition from Imports,Competitiveness of Exports, Input costs, Trade barriers,Favourability of Foreign Currency conversion rates, etc.

Credit risks of most issuers of Debt securities are rated byIndependent and professionally run rating agencies. Ratingsof Credit issued by these agencies typically range from“AAA” (read as “Triple A” denoting “Highest Safety”) to“D” (denoting “Default”), with about 6 distinct ratingsbetween the two extremes.

The highest credit rating (i.e. lowest credit risk) commands alow yield for the borrower. Conversely, the lowest credit ratedborrower can raise funds at a relatively higher cost. On accountof a higher credit risk for lower rated borrowers lenders preferhigher rated instruments further justifying the lower yields.

Sovereign Risk: The Federal Government of a country(i.e. Central Govt. in case of India) is the issuer of the localcurrency in that country. The Government raises money tomeet its Capital and Revenue expenditure by issuing Debtor Discounted Securities. Since payment of interest andprincipal amount has a sovereign status implying no default,such securities are known as securities with sovereign credit.For domestic borrowers and lenders, the credit risk on suchSovereign credit is near zero and is popularly known as“risk-free security” or “Zero-Risk security”. Thus Zero-Riskis the lowest risk, even lower than a security with “AAA”rating and hence commands a yield, which is lower than ayield on “AAA” security.

b) Price-Risk or Interest-Rate Risk:From the perspective of coupon rates, Debt securities canbe classified in two categories, i.e., Fixed Income bearingSecurities and Floating Rate Securities. In Fixed IncomeBearing Securities, the Coupon rate is determined at thetime of investment and paid/received at the predeterminedfrequency. In the Floating Rate Securities, on the other hand,

the coupon rate changes - ‘floats’ - with the underlyingbenchmark rate, e.g., MIBOR, 1 yr. Treasury Bill.

Fixed Income Securities (such as Government Securities,bonds, debentures and money market instruments) wherea fixed return is offered, run price-risk. Generally, wheninterest rates rise, prices of fixed income securities fall andwhen interest rates drop, the prices increase. The extent offall or rise in the prices is a function of the existing coupon,the payment-frequency of such coupon, days to maturityand the increase or decrease in the level of interest rates. Theprices of Government Securities (existing and new) will beinfluenced only by movement in interest rates in the financialsystem. Whereas, in the case of corporate or institutionalfixed income securities, such as bonds or debentures, pricesare influenced not only by the change in interest rates butalso by credit rating of the security and liquidity thereof.

The following table indicates the likely impact of interestrate changes on prices of Government Securities. It will beseen that if interest rate rises by 1%, the prices of GovernmentSecurities fall in the range of 0.48% and 6.40% of the prices.On the other hand, if the interest rate declines by 1%, theprices rise in the range of 0.48% to 6.93% for respectivematurities shown by way of an illustration in the table below.

The NAV of the Units of the Scheme can go up or down dueto the price fluctuations caused by various factors that affectthe money markets.

Floating rate securities issued by a government (couponlinked to treasury bill benchmark or a real return inflationlinked bond) have the least sensitivity to interest ratemovements, as compared to other securities. The Governmentof India has already issued a few such securities and theInvestment Manager believes that such securities may becomeavailable in future as well. These securities can play animportant role in minimizing interest rate risk on a portfolio.

c) Risk of Rating Migration:The following table illustrates the impact of change of rating(credit worthiness) on the price of a hypothetical AA rated securitywith a maturity period of 3 years, a coupon of 10.00% p.a. anda market value of Rs. 100. If it is downgraded to A category,which commands a market yield of, say, 11.50% p.a., its marketvalue would drop to Rs. 98.76 (i.e. 1.24%) If the security is up-graded to AAA category which commands a market yield of,say, 9.60% p.a. its market value would increase to Rs103.48(i.e. by 3.48%). The figures shown in the table are only indicativeand are intended to demonstrate how the price of a securitycan be affected by change in credit rating.

Rating Yield(% p.a.) Market Value (Rs.)

A A 1 1 . 0 0 1 0 0 . 0 0If upgraded to AAA 9.60 1 0 3 . 4 8If downgraded to A 1 1 . 5 0 9 8 . 7 6

Existing Government Securities If Interest rate changes by

Security Maturity Coupon %p.a. 1% point 1% point

then Price changes by

6 Month 7.15 0.48% 0.48%

12 Month 7.50 0.92% 0.94%

3 Year 7.75 2.42% 2.46%

5 Year 7.90 3.81% 3.96%

10 Year 7.98 6.40% 6.93%

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d) Basis Risk:During the life of floating rate security or a swap theunderlying benchmark index may become less active andmay not capture the actual movement in the interest ratesor at times the benchmark may cease to exist. These typesof events may result in loss of value in the portfolio. Whereswaps are used to hedge an underlying fixed income security,basis risk could arise when the fixed income yield curve movesdifferently from that of the swap benchmark curve.

e) Spread Risk:In a floating rate security the coupon is expressed in termsof a spread or mark up over the benchmark rate. Howeverdepending upon the market conditions the spreads maymove adversely or favourably leading to fluctuation in NAV.

f) Reinvestment Risk:Investments in fixed income securities may carry reinvestmentrisk as interest rates prevailing on the interest or maturitydue dates may differ from the original coupon of the bond.Consequently the proceeds may get invested at a lower rate.

g) Liquidity Risk:The corporate debt market is relatively illiquid vis-a- vis thegovernment securities market. There could therefore bedifficulties in exiting from corporate bonds in times ofuncertainties. Liquidity in a scheme therefore may suffer.Even though the Government Securities market is more liquidcompared to that of other debt instruments, on occasions,there could be difficulties in transacting in the market dueto extreme volatility or unusual constriction in marketvolumes or on occasions when an unusually large transactionhas to be put through. In view of this, redemption may belimited or suspended after approval from the Boards ofDirectors of the AMC and the Trustee, under certaincircumstances as described elsewhere in this OfferDocument.

SPECIAL CONSIDERATIONSPrevention of Money LaunderingIn terms of the Prevention of Money Laundering Act, 2002,the Rules issued there under and the guidelines/circularsissued by SEBI regarding the Anti Money Laundering (AMLLaws), all intermediaries, including Mutual Funds, have toformulate and implement a “Know Your Client“programme, verify and maintain the record of identity andaddress (es) of investors.

In order to make the data capture and document submissioneasy and convenient for the investors, Mutual Fund Industryhas collectively entrusted this responsibility of collection ofdocuments relating to identity and address and recordkeeping to an independent agency (presently CDSL VenturesLimited) that will act as central record keeping agency(‘Central Agency’). PAN shall be the basis for the KYC exercise.

Investors who have done the KYC exercise shall quote thePAN to invest in the schemes of the mutual fund

PAN being mandatory for mutual fundsAs per Securities and Exchange Board of India (SEBI) Circulardated April 27, 2007, Permanent Account Number (PAN) shallbe the sole identification number for all participantstransacting in the securities market, irrespective of the amountof transaction with effect from July 2, 2007. SEBI has furtherclarified that the existing and potential investors who do nothave PAN already, should apply for PAN immediately and furnishevidence of having applied for PAN while transacting insecurities market until December 31, 2007.

In view of the above, with effect from July 2, 2007, it ismandatory for all existing and prospective investors(including joint holders, guardians of minors and NRIs) to

enclose a copy of PAN card or a copy of the evidence ofhaving applied for PAN Card (copy of Form 49A) to theapplication for investing in mutual fund schemes.

Wherever an application is for a total value of Rs. 50,000or more, the applicant or in the case of application in jointnames, each of the applicants, should mention his/herpermanent account number (PAN) allotted under the IncomeTax Act, 1961, along with a proof of the PAN. In case wherethe investor does not have a PAN, the investor has to submitto the mutual fund, Form 60/61 along with a proof ofaddress, as prescribed under Income Tax Act, 1961, alongwith application form. Any Application Form without thesedetails will not be accepted by the mutual fund.

Furnishing a copy of PAN card is mandatory with effect fromJanuary 1, 2008.

The copy of the PAN card as required above shall be attestedby the distributor/broker through whom transaction is doneOR if the transaction is done directly at the office of theKotak Mutual Fund or at investment service centers of CAMS(Registrar), the original PAN card may be produced forverification.

Transactions by unit holders/investors who fail to submitcopy of PAN or evidence of having applied for PAN (copy ofForm 49A) as explained above are liable to be rejected.

The investors should ensure that the amount invested inthe Scheme is through legitimate sources only and does notinvolve and are not designed for the purpose of anycontravention or evasion of any Act, Rules, Regulations,Notifications or Directions of the provisions of Income TaxAct, Anti Money Laundering Act, Anti Corruption Act andor any other applicable laws enacted by the Government ofIndia from time to time.

Any application may be accepted or rejected at the sole andabsolute discretion of the Trustee.

DUE DILIGENCE CERTIFICATEIt is confirmed that:1. The draft Offer Document forwarded to SEBI is in

accordance with the Securities and Exchange Board ofIndia (Mutual Funds) Regulations, 1996 as amendedup to date and the guidelines and directives issued bySEBI from time to time;

2. All legal requirements connected with the launching ofthe Scheme as also the guidelines, instructions, etc.,issued by the Government and any other competentauthority in this behalf, have been duly complied with;

3. The disclosures made in the Offer Document are true,fair and adequate to enable the investors to make awell informed decision regarding investment in theScheme;

4. According to the information given to us, ComputerAge Management Services (Pvt.) Limited, the Registrarand Transfer Agent, is registered with SEBI and till datesuch registration is valid; and

5. According to the information given to us, Deutsche BankAG, and Standard Chartered Bank, the Custodians, areregistered with SEBI and till date such registration is valid.

For Kotak Mahindra Asset ManagementCompany Limited

Asset Management Company for Kotak MahindraMutual Fund

Place : Mumbai V. R. NarasimhanDate : September 11, 2007 Chief Compliance Officer

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In this Offer Document, the following words and expressions shall have the meaning specified below, unless the contextotherwise requires

Applicable NAV Unless stated otherwise in the Offer Document, ‘Applicable NAV’ is the Net AssetValue at the close of a Business Day as of which the purchase or redemption issought by an investor and determined by the Fund.

Asset Management Company Kotak Mahindra Asset Management Company Limited, the Asset Management orAMC or Investment Manager Company incorporated under the Companies Act, 1956, and authorised by SEBI

to act as Investment Manager to the Schemes of Kotak Mahindra Mutual Fund.

Collection Bank Branches of Bank authorised to receive Applications for the New Fund Offer, asmentioned elsewhere in this Offer Document or as appointed/changed from timeto time.

Custodian(s) Deutsche Bank AG and Standard Chartered Bank, acting as Custodians to theScheme, or any other Custodian appointed by the Trustee.

Entry Load The charge that is paid by an Investor when he invests an amount in the Scheme.

Exit Load The charge that is paid by a Unitholder when he redeems Units from the Scheme.

F I I Foreign Institutional Investors, registered with SEBI under Securities and ExchangeBoard of India (Foreign Institutional Investors) Regulations, 1995.

Gilts / Government Securities created and issued by the Central Government and / or State Government.

Securities / G.Secs

IMA Investment Management Agreement dated 20th May 1996, entered into betweenthe Fund (acting through the Trustee) and the AMC and as amended up to date,or as may be amended from time to time.

Investor Service Centres or ISCs Designated branches of the AMC / other offices as may be designated by the AMCfrom time to time.

Interval Period Interval Period is the period of time elapsed between any two consecutive SpecifiedTransaction Periods. The period between two Specified Transaction Periods shall be90 days.

Kotak Quarterly Interval An interval debt fund

Plan – Series 1

Kotak Bank / Sponsor Kotak Mahindra Bank Limited.

KMMF / Fund / Mutual Fund Kotak Mahindra Mutual Fund, a trust set up under the provisions of The IndianTrusts Act, 1882.

KMTCL / Trustee Kotak Mahindra Trustee Company Limited, a company set up under the CompaniesAct, 1956, and approved by SEBI to act as the Trustee for the Schemes of KotakMahindra Mutual Fund.

Money Market Instruments Includes commercial papers, commercial bills, treasury bills, Government securitieshaving an unexpired maturity upto one year, call or notice money, certificate ofdeposit, usance bills, and any other like instruments as specified by the ReserveBank of India from time to time.

MIBOR The Mumbai Interbank Offered Rate published once every day by the National StockExchange and published twice every day by Reuters, as specifically applied to eachcontract.

Mutual Fund Regulations / Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amendedRegulations up to date, and such other regulations as may be in force from time to time.

NAV Net Asset Value of the Units of the Scheme (including the options thereunder) ascalculated in the manner provided in this Offer Document or as may be prescribedby Regulations from time to time. The NAV will be computed up to four decimalplaces.

NRI Non-Resident Indian and Person of Indian Origin as defined in Foreign ExchangeManagement Act, 1999.

I I . D E F I N I T I O N S A N D A B B R E V I A T I O N S

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Offer Document This document issued by Kotak Mahindra Mutual Fund, offering for subscriptionof Units of the Scheme.

Purchase Price Purchase Price, to an investor, of Units under the Scheme (including Optionsthereunder) computed in the manner indicated elsewhere in this Offer Document.

Redemption Price Redemption Price to an investor of Units under the Scheme (including Optionsthereunder) computed in the manner indicated elsewhere in this Offer Document.

Registrar Computer Age Management Services Private Limited (‘CAMS’), acting as Registrarto the Scheme, or any other Registrar appointed by the AMC.

Repo Sale of securities with simultaneous agreement to repurchase them at a later date.

Reserve Bank of India / RBI Reserve Bank of India, established under the Reserve Bank of India Act, 1934.

Reverse Repo Purchase of securities with a simultaneous agreement to sell them at a later date.

Scheme Kotak Quarterly Interval Plan - Series1. All references to the Scheme would deemto include the Plans and Options thereunder unless specifically mentioned.

SEBI The Securities and Exchange Board of India.

Specified Transaction Period Specified Transaction Period is the period during which units of the plan under thescheme are available for subscription/redemption/switch-in/switch-out withoutpayment of entry/exit load.

Transaction Points Centres designated by the Registrar, to accept investor transactions and scan themfor handling by the nearest ISC.

Trust Deed The Trust Deed entered into on 20th May 1996 between the Sponsor and theTrustee, as amended up to date, or as may be amended from time to time.

Trust Fund The corpus of the Trust, Unit capital and all property belonging to and/or vestedin the Trustee.

Unit The interest of the investors in the Scheme, which consists of each Unit representingone undivided share in the assets of the Scheme.

Unitholder A person who holds Unit(s) of the Scheme

Valuation Day For the Scheme, each Business Day and any other day when the Debt and/or moneymarkets are open in Mumbai.

Business Day A day other than:

i. Saturday and Sunday,

ii. A day on which the banks in Mumbai and RBI are closed for business/clearing.

iii. A day on which Purchase and Redemption is suspended by the AMC.

iv. A day on which the money markets are closed/not accessible.

Additionally, the days when the banks in any location where the AMC’s Investorservice center are located, are closed due to local holiday, such days will be treatedas non Business Days at such centers for the purpose of accepting subscriptions.However if the Investor service center in such location is open on such local holidays,only redemption and switch request will be accepted at those centers provided itis a Business Day for the scheme.

The AMC reserves the right to change the definition of Business Day. The AMCreserves the right to declare any day as a Business Day or otherwise at any or all ISCs.

Words and Expressions used Same meaning as in Trust Deed.in this Offer Document andnot defined

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I I I . C O N S T I T U T I O N O F T H E F U N D

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A. THE FUND

Kotak Mahindra Mutual Fund (KMMF) has been establishedas a Trust under the Indian Trusts Act, 1882. The Trust Deedestablishing KMMF and the Deed of Amendment has beenregistered under the Registration Act, 1908 by the officeof the Sub-Registrar of Assurances at Mumbai. KMMF hasbeen registered with SEBI vide registration number MF/038/98/1 dated 23rd June 1998.

B. SPONSOR COMPANY

Kotak Mahindra Bank Limited

The erstwhile Sponsor Company, Kotak Mahindra FinanceLimited (KMFL) was converted into Kotak Mahindra BankLimited (Kotak Bank) in March 2003 after being granted abanking license by the Reserve Bank of India. Thus, theSponsor of the Fund is Kotak Bank. KMFL promoted by Mr.Uday S. Kotak, Mr. S.A.A. Pinto and Kotak & Co., wasincorporated on November 21, 1985 under the name KotakCapital Management Finance Limited. In early 1986, thepromoters were joined by Late Mr. Harish Mahindra andMr. Anand G. Mahindra and the Company’s name waschanged to Kotak Mahindra Finance Limited.

Mr. Uday Kotak, a scion of the Kotak family, was anoutstanding student through school, Sydenham College(Bombay University) and Jamanalal Bajaj Institute ofManagement Studies (Bombay University). Mr. S. A. A. Pinto,trained as a lawyer, has held senior positions in well-knownorganisations like ICI and Grindlays Bank. For instance, hewas part of the team in Grindlays Bank, which started thefirst merchant banking unit in India in 1968. Mr. HarishMahindra an industrialist of repute played a prominent rolein social service and public life, thereby earning him highesteem. Mr. Anand Mahindra, an MBA from HarvardUniversity, is the Managing Director of one of India’s mostreputed industrial firms, Mahindra & Mahindra Limited.

KMFL started with a capital base of Rs. 30.88 lakh. Frombeing a provider of a single financial product, KMFL grewsubstantially during the seventeen years of its existence intoa highly diversified financial services company and has nowconverted into a Bank. As on March 31, 2007, the net worth(capital plus reserves & surplus) of Kotak Bank is Rs. 1,633.50crore and combined with its subsidiaries, the Group networth (before minority interest) is Rs. 3,232.96 crore. Thereare over 46,000 shareholders of Kotak Bank. The Sponsorand its subsidiaries/associates offer wide ranging financialservices such as loans, lease and hire purchase, consumerfinance, home loans, commercial vehicles and car finance,investment banking, stock broking, mutual funds, primarymarket distribution of equity and debt products and lifeinsurance. The group has offices (including representativeoffices and franchise offices) in 300 Indian cities and alsopresent internationally in Mauritius, London, Dubai, NewYork and Singapore. Kotak Mahindra (UK) Limited, asubsidiary of Kotak Bank, is the first company owned fromIndia to be registered with the Financial Services Authorityin UK. Kotak Mahindra Old Mutual Life Insurance Limitedis a joint venture between Kotak Bank and Old Mutual Plcbased in the UK and with large presence in the South Africaninsurance market. Some of the other subsidiaries of Kotak

Bank are Kotak Investment Advisors Ltd formerly known as(Kotak Mahindra Securities Limited), Kotak Mahindra PrimeLimited, Kotak Mahindra (International) Limited, KotakMahindra Trusteeship Services Limited (formerly known asKotak Mahindra Private-Equity Trustee Limited), KotakMahindra Investments Limited, Kotak Mahindra Inc., andKotak Forex Brokerage Limited.

The Sponsor has been consistently profitable and dividendpaying company since inception. All group companies areprofessionally run companies, employing over 10,800employees, including CAs, MBAs and Engineers.

The Sponsor has contributed Rupees One Lakh as the initialcontribution to the corpus for the setting up of the Trust.The Sponsor has also contributed Rupees One Lakh FiftyThousand as additional corpus. The Sponsor has vested thetrustee functions in the Trustee. The Sponsor is representedby directors on the boards of the Trustee and the AMC inaccordance with the Regulations.

Given below is a summary of the Sponsor’s financials:

(Rs. in crore)

Description Year Ended March 31

2007 2006 2005

Total Income 1,637.76 936.95 552.38

Profit Before Tax 203.25 173.60 118.39

Profit After Tax 141.37 118.23 84.89

Reserves 1,307.34 543.45 627.55

Net Worth 1,633.50 852.75 750.87

(capital plus reserves & surplus)

Earnings per Share (Rs.) 4.36 3.83 7.08

Book Value per Share (Rs.) 50.08 27.57 24.36

Dividend % 7% 6% 12.50%

Paid-up Equity Capital 326.16 309.29 123.32

Note: Prior period EPS and Book Value are not adjusted for bonusissue.

The Sponsor is neither responsible nor liable for any lossresulting from the operations of the Scheme.

C . TRUSTEE COMPANY (THE TRUSTEE)Kotak Mahindra Trustee Company Limited (The Trustee), acompany incorporated under the Companies Act, 1956, isthe Trustee of the Fund, by virtue of the Trust Deed madebetween the Sponsor and the Trustee.

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Mr. Amit Desai, 47, is a graduate in Commerce and Lawfrom the Bombay University. He is an advocate and has about20 years of experience in criminal, economic and revenue laws.

Mr. Desai is associated with the Sponsor.

Mr. Girish Sharedalal, 74, is a graduate in Commerceand Arts and also a Fellow of the Institute of CharteredAccountants of India. Formerly a Senior Partner of MessrsDalal, Desai and Kumana, a firm of Chartered Accountants,he has about 48 years of experience in the field of audit,taxation and management consultancy.

Mr. Tushar Mavani, 41, is a graduate in Commerce andLaw from the Bombay University. He is a partner with MessrsMulla& Mulla & Craigie Blunt & Caroe and has about 14years of experience in the legal field.

Mr. Anirudha Barwe, 68, is a post-graduate inMathematics and also a Certified Associate of Indian Instituteof Bankers, Mumbai. Mr. Barwe has about 43 years ofexperience in the field of banking and financial services. Mr.Barwe was actively associated with and responsible to a greatextent for the success of the Resurgent India Bond issue ofSBI. Mr. Barwe retired as the Managing Director of SBI CapitalMarkets Limited in October 1998. After retirement, Mr. Barweworked with IDFC as Chief Financial Officer for 3 years. Heis on the Board of Directors of 6-7 companies and also aschairman of Audit/Remuneration Committees. He is alsoassociated with Committees of NSE and BSE.

Mr. Chandrashekhar Sathe, 56, is a graduate with B.

Tech. (Chemical Engineering) from IIT, Mumbai. He has over30 years’ experience in Banking and Finance. He has beena part of the Senior Management team of the KotakMahindra Group since 1992 and was responsible for settingup the Fixed Income Securities capability of Kotak MahindraCapital Company. Prior to Kotak Mahindra, he was with theBank of Nova Scotia and Bank of Maharashtra and has wideranging experience in Banking, Finance, Administration,Credit, Foreign Exchange and Money Markets. Mr. Sathe isa widely consulted expert on Foreign Exchange and MoneyMarkets in India and is a frequent contributor to financialnewspapers, magazines and TV News channels. Mr. Sathewas the Chief Executive Officer of the AMC for the period,1st April, 1998 to 30th November, 2001 and currently headsthe Risk Management function at Kotak Mahindra BankLimited.

Mr. Sathe is associated with the Sponsor.

2. Rights, Obligations, Responsibilities andDuties of the Trustee

Pursuant to the Trust Deed constituting the Fund and interms of the Regulations, the rights and obligations of theTrustee are as under:

1. The Trustee has the legal ownership of the Trust Fund.The general superintendence and management of theTrust and all powers incidental to the purpose of thetrust vest absolutely in the Trustee subject to the TrustDeed.

1. Directors

The Directors of the Trustee are:

Names and Addresses Other Directorships

Mr. Amit Krishnakant Desai Minesota Finance Private LimitedAdvocate7, Shivtirth - 1,Bhulabhai Desai Road,Mumbai - 400 026Chairman

Mr. Girish Sharedalal The Ruby Mills LimitedChartered Accountant FDC Limited111, Landmark, Stovec Industries LimitedM. L. Dahanukar Marg, Stellar Asset Management Private LimitedMumbai - 400 026 Maulik & Kaji Financial Services Private Limited

Ratan Trading Private LimitedTrumac Engineering Company Pvt. Ltd.

Mr. Tushar A. Mavani Shanti Vijay Jewels Ltd.AdvocateAryan Mahal, 6th Floor,“C” Road, Churchgate,Mumbai - 400 020

Mr. Anirudha Barwe Jain Irrigation Systems LimitedDirector Sigma Laboratories LimitedB-1, Bageshree, IFCI Financial Services LimitedShankar Ghanekar Marg, ILFS Investsmart India LimitedPrabhadevi, Mumbai - 400 025 Zenith Birla (India) Ltd.

MSPL Ltd.

Mr. Chandrashekhar Sathe Kotak Investment Advisors LimitedService Kotak Forex Brokerage LimitedC-10, Shri Dattaguru Co-op. Housing Society, Kotak Mahindra Trusteeship Services Ltd.Deonar, Mumbai - 400 089 Kotak Mahindra Prime Limited

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2. The Trustee shall take into its custody or under itscontrol all the capital and property of every Scheme ofthe Mutual Fund and hold it in trust for the Unitholdersof the Scheme.

3. The Trustee is entitled to delegate any power and/orresponsibility vested in it to the AMC, which isaccountable to the Trustee and bound to carry out thefunctions assigned to it from time to time.Notwithstanding any such delegation, the TrusteeCompany is at all times responsible for the acts ofnegligence or acts of omission and commission of theAMC.

4. The Trustee shall ensure that the AMC and theCustodian duly fulfil l the functions respectivelyassigned to them under the Mutual Fund Regulations.

5. The Trustee shall ensure before the launch of anyScheme that the Asset Management Company has:-

a) systems in place for its back office, dealing roomand accounting;

b) appointed all key personnel including fundmanager(s) for the Scheme and submitted to theTrustee their resume containing particulars of theireducational qualifications and past experience inthe securities market within fifteen days of theirappointment;

c) appointed auditors to audit the accounts of theScheme;

d) appointed a compliance officer who shall beresponsible for monitoring the compliance of theSEBI Act, rules and regulations, notifications,guidelines, instructions, etc. issued by SEBI or theCentral Government and for redressal of investors’grievances;

e) appointed registrars and laid down parameters fortheir supervision;

f) prepared a compliance manual and designed internalcontrol mechanisms including internal audit systems; and

g) specified norms for empanelment of brokers andmarketing agents.

6. In carrying out responsibilities, the Trustee shallmaintain arms’ length relationship with othercompanies, or institutions or financial intermediariesor any body corporate with which it may be associated.

7. The Trustee shall not be liable to the Mutual Fund orthe Unitholders if the Mutual Fund suffers a decline inits net asset value or if any share or other securitycomprised in the Trust Fund depreciates in its marketvalue or fails to achieve any increase therein, unlesssuch decline, depreciation or failure is caused by thewillful default or gross negligence of the Trustee.

8. The Trustee shall not be under any liability on accountof anything done or omitted to be done or suffered tobe done by the Trustee in good faith, bona fide andafter due diligence and care, in accordance with or onthe advice of the AMC or any other professional person,firm or company.

9. For avoidance of doubt, it is hereby agreed anddeclared that references to the Trustee in this clauseshall be deemed to include references to the officers,servants and delegates of the Trustee.

10. The Trustee shall ensure that the AMC has beenmanaging the Scheme independently of other activitiesand has taken adequate steps to ensure that the

interest of the investors of no Scheme is beingcompromised with that of the investors of other Schemeor of other activities of the AMC.

11. The Trustee shall ensure that the Trust Fund shall beapplied and be available absolutely for the purposes ofthe Trust and shall not be applied directly or indirectlyfor any purpose other than the purposes referred tounder the Trust Deed.

12. The Trustee shall call for a meeting of the Unitholders :

a) whenever required to do so by SEBI in the interest ofthe Unitholders; or

b) whenever required to do so on the requisition madeby three-fourths of the Unitholders of any Scheme; or

c) when the majority of the Directors of the TrusteeCompany decide to wind up or prematurely redeemthe Units.

13. The Trustee shall ensure that no change in thefundamental attributes of any scheme or the trust orfees and expenses payable or any other change whichwould modify the scheme and affect the interest ofUnitholders, is carried out unless,

a) a written communication about the proposedchange is sent to each Unitholder and anadvertisement is given in one English daily newspaperhaving nationwide circulation as well as in anewspaper published in the language of the regionwhere the Head Office of the Mutual Fund is situated;and

b) the Unitholders are given an option to exit at theprevailing Net Asset Value without any Exit Load.

14. Subject to the provisions of the Mutual Fund Regulationsas amended from time to time, the consent of theUnitholders shall be obtained, entirely at the option ofthe Trustee, either at a meeting of the Unitholders orthrough postal ballot. Only one Unitholder in respect ofeach folio or account representing a holding shall voteand he shall have one vote in respect of each resolutionto be passed. The procedure of voting shall be as perthe directives issued by SEBI, from time to time.

15. The Trust Fund shall be held in trust and managed bythe Trustee in accordance with the Trust Deed.

16. The Trustee shall be accountable for, and be the custodianof, the funds and property of the respective Scheme andshall hold the same in trust for the benefit of theUnitholders in accordance with the Mutual FundRegulations and the provisions of the Trust Deed.

17. The Trust Deed shall not be amended without obtainingthe prior approval of SEBI, and approval of theUnitholders shall be obtained where it affects theirinterests.

18. The appointment of the AMC can be terminated by amajority of the Board of Directors of the Trustee or by75% of the Unitholders of the Scheme.

Modifications, if any, in the rights and/or obligations andduties of the Trustee are on account of amendments to theRegulations and the Regulations supercede/override theprovisions of the Trust Deed, wherever the two are in conflict.

The Compliance Officer reports directly to a director of theTrustee to carry out the supervisory role on behalf of theTrustee. In addition, the Trustee may seek any informationfrom time to time from the AMC. A reputed firm of CharteredAccountants has been appointed to carry out internal auditof the Fund on a periodic basis to facilitate monitoring the

2. Directors on the Board of the AMC

Names and Addresses Other Directorships

Mr. Uday S. Kotak Kotak Mahindra Bank Limited - Executive Vice Chairman & Managing DirectorKotak Mahindra Capital Company Limited - Chairman

62, NCPA Apartments, Kotak Mahindra Prime Limited - ChairmanDorabjee Tata Marg, Kotak Securities Limited - ChairmanNariman Point, Mumbai - 400 021 Kotak Mahindra Old Mutual Life Insurance Company Limited – Chairman

Kotak Forex Brokerage Limited

Chairman The Mahindra United World College of India (Section 25 - Company)Indian Institute of Banking and Finance(Section 25 - Company)Indian Council For Research on International Economic Relations (Section 25 -Company)Indian School of Business (Member of Executive Board)

Mr. R. C. Khanna Cooperheat India Private LimitedMonsanto India Limited

304, Bakhtavar, Schrader Duncan LimitedOpp. Colaba Post Office,Mumbai - 400 005.

Mr. Sukant Sadashiv Kelkar Macrofill Investments LimitedP. T. Five Star Textile Industries Limited, Indonesia

No. 1, Sindhula, Naperol Investments LimitedN. Gamadia Road, Harvard Plantations LimitedMumbai - 400 026. Britannia Industries Limited

The Bombay Dyeing & Mfg. Co. LimitedWadia BSN LimitedPlacid Plantations LimitedNowrosjee Wadia & Sons LimitedGo Airlines (India) Private LimitedTVS Infrastructure Pvt Ltd

Mr. Chengalath Jayaram Kotak Mahindra Bank LimitedKotak Securities Limited

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activities of the AMC. On a quarterly basis, an activity reportprepared by the AMC is discussed at the Board Meetingsof the Trustee. During the year 2006-2007, eight meetingsof the Board of Directors of the Trustee were held. Duringthe period April 2007 till date three meetings of the Boardof Directors of the Trustee were held. The Audit Committee,comprising four Directors of the Board of Directors of theTrustee, has been constituted pursuant to the SEBI circularMFD/CIR/010/024/2000 dated 17.01.2000 chaired by anIndependent Director. The Audit Committee has had sevenmeetings during the year 2006-07. During the period April2007 till date four meetings of the Audit Committee of theTrustee was held.

3. Trustee’s FeeThe Trustee shall, during the continuance of this Trust anduntil KMMF is finally wound up and whether or not KMMFis in the course of administration by or under the order ordiscretion of any court, be entitled to receive, in additionto the reimbursement of all costs, charges and expenses,a sum at the rate of 0.050% per annum of the Trust Fundas defined under the Trust Deed, or a sum of Rs.15,00,000/-, whichever is higher, payable monthly.

D. ASSET MANAGEMENT COMPANY

Kotak Mahindra Asset Management Company Limited, acompany incorporated under the Companies Act, 1956, onAugust 08,1994, has been appointed to act as the InvestmentManager to Kotak Mahindra Mutual Fund vide InvestmentManagement Agreement dated 20th May, 1996, as amendedup to date. It is a wholly owned subsidiary of the Sponsor,Kotak Bank.

The Investment Manager is entitled to charge a managementfee as prescribed by the Regulations for the services renderedby it to the Fund.

An approval by the Division of Funds, InvestmentManagement Department under the SEBI (Portfolio Manager)Regulations, 1993 and Mutual Funds Division of SEBI underthe SEBI (‘Mutual Funds’) Regulations, 1996, has beengranted to the Company for undertaking PortfolioManagement Service (PMS). There is no conflict of interestbetween the Mutual Fund and the PMS activity.

1.Name and AddressKotak Mahindra Asset Management Company Limited

5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400021.

Mr. Uday S. Kotak, 47, a graduate in Commerce, holdsa post-graduate degree in Business Administration from theJamnalal Bajaj Institute of Management Studies, BombayUniversity. Mr. Kotak is the Vice Chairman and ManagingDirector of the Sponsor, Kotak Mahindra Bank Ltd., and thechairman of various other companies, and has over 20 yearsof experience in the Financial Services industry.

Mr. Romesh C. Khanna, 80, is a graduate in Commercefrom London University, a Fellow of the Institute ofChartered Accountants of England & Wales, a Fellow of theInstitute of Chartered Accountants of India, an Associateof the Chartered Institute of Management Accountants,London and an Associate of the Institute of Cost and WorksAccountants of India. Till 31st March, 1998, Mr. Khannawas a partner in A.F. Ferguson & Co., a firm of CharteredAccountants. Mr. Khanna has over 54 years of experiencein Audit, Taxation, Finance and other related areas.

Mr. Sukant S. Kelkar, 66, is a postgraduate in commerce.He has about 40 years of experience in finance, capitalmarkets, and related areas. Mr. Kelkar has over 10 yearsexperience in the Bank of India, and has even been a foreignexchange dealer in London for 3 years during this tenure.Following this, Mr. Kelkar worked with Bombay DyeingManufacturing Company Limited for 31 years, finallyretiring as Executive Director in July 2001. He is on the Boardof major Wadia Group Companies as a Non- ExecutiveDirector.

Mr. Chengalath Jayaram, 50, is the Executive Directorof Kotak Mahindra Bank Ltd. and a member of theManagement Committee of the Kotak Mahindra Group.He currently heads the wealth management business forthe group including its international operations.

Mr. C.Jayaram joined Kotak in 1990 and since then has beenkeenly involved in creating innovative business directions forthe group where he used his in-depth understanding of thefinance sector and his educational background in managementeffectively. He played a crucial role in the setting up of the carfinance business and was the Managing Director of KotakSecurities for a span of four years.

Prior to joining Kotak, Mr.C. Jayaram had worked with ICICIand the consultancy division of A.F.Ferguson.

Mr. C. Jayaram is a postgraduate in the business managementfrom Indian Institute of Management, Calcutta (IIMC).

Currently Mr C. Jayaram is also the Vice Chairman of theFinancial Planning & Standard Board of India.

Mr. Bipin R. Shah, 75, a member of the Institute ofChartered Accountants of India, holds a Bachelor’s Degreein Commerce from Bombay University, and has 48 years ofwork experience. Mr. Shah began his career in 1956, withHindustan Lever Limited, where he held various SeniorCommercial Assignments, including the post of CommercialManager at its largest soaps, detergents and foods factoryin Bombay, Chief Buyer, Raw Materials and Head of FoodsBusiness. He became a Director of the company in 1979,assuming responsibility for Foods, Animal Feeds, AgriProducts and Exports Business, and managed a commendableturnaround of the company’s dairy business.

In 1981, Mr. Shah also became Chairman of another Unileversubsidiary, Lipton India Limited, which was facing losses andfinancial crisis. Mr. Shah was responsible for turning thecompany around, and for reviving employee and investorconfidence. Mr. Shah was also Chairman of Export Business offour Unilever Companies in India viz. Hindustan Lever Ltd., LiptonIndia Ltd., Brooke Bond India Ltd. and Ponds India Ltd.

On his retirement from the Lever Group of Companies in1992,Mr. Shah joined Indus Venture Management Ltd., where hewas the Vice Chairman until May 2006. Mr. Shah is also a nonExecutive Director on the Board of several companies.

Mr. Narayan S. A., 46, is a member of the Institute ofChartered Accountants of India, holds a Bachelor’s Degree inCommerce from Bombay University, and has spent 13 yearsin the Kotak Group, handling various responsibilities andPortfolios. He began his career as a consultant, handling severalstatutory and internal audit assignments, besides Companylaw and taxation matters. Mr. Narayan joined the Kotak Groupin 1991, as an Assistant Vice President in the OperationsDepartment, where he was responsible for accounts, auditand systems. In 1993, he became Vice President, handling theSouthern Region and Investment Portfolio of the Group,before going on to become Chief Operating Officer for KotakSecurities Limited in 1996. Mr. Narayan rose to becomeExecutive Director of Kotak Securities Limited in May 1997,and then took over as Managing Director of the company inJune 2003, a post he currently holds.

Mr. Uday Kotak, Mr. C. Jayaram and Mr. Narayan S.A. areassociated with the Sponsor.

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Satguru Simran’, Kotak Mahindra Prime Limited‘7th Floor, 3rd Road, Kotak Mahindra Investments LimitedAlmeida Park, Bandra (West), Kotak Mahindra (UK) LtdMumbai - 400 050. Kotak Mahindra Inc.

Financial Planning Standards

Mr. Bipin R. Shah Indus Capital Market Services Company Pvt. LimitedGlobal Pharmatech Pvt. Limited

8 D, Ilpala, ITTI Pvt. Limited220 Little Gibbs Road, Marico Industries LimitedMalabar Hill, Dolphin Offshore Enterprises (India) LimitedMumbai - 400 006. Jyothy Laboratories Limited

Procyon Offshore Services Ltd

Mr. Narayan S. A. Kotak Securities LimitedKotak Commodity Services Limited

1 Smruti, Pestom Sagar, Kotak Mahindra Asset Reconstruction Company LimitedPlot No. 27, Road No. 4,Chembur, Mumbai - 400 089.

3. Powers, Functions and Responsibilities ofthe AMC

Under the IMA, the AMC has been appointed as the AssetManagement Company, to provide management andadministrative services to the Trust and to deploy the fundsraised by KMMF under the Scheme. The Trustee hasauthorised the AMC to do all such acts and things on behalfof the Trust as are necessary for the discharge of theresponsibilities of the AMC. The duties and responsibilitiesof the AMC are as follows:

1. The Trustee has granted the AMC certainpowers and authorities as stipulated under theTrust Deed and may grant such other powersas may be deemed fit from time to time, andcommunicate the same in writing to the AMC.

2. The following are, inter alia, the specific powers:

a) to invest, acquire, hold, manage or dispose of all orany securities and to deal with, engage in and carryout all other functions and to transact all businesspertaining to KMMF;

b) to keep the moneys belonging to KMMF with banksand custodians, as the AMC may deem fit;

c) to determine the terms and conditions applicable tothe Scheme and to decide the category of personswho may participate in any Scheme and to formulate,introduce, make, announce or launch one or moreSchemes;

d) to issue, sell or purchase Units under any Scheme ofKMMF;

e) to ascertain, appropriate and distribute the surplusgenerally or under various Schemes or under anyScheme, to carry forward, reinvest or otherwise dealwith any surplus and to transfer such sums as theAMC may deem fit to one or more reserve fundswhich may be established at the discretion of theTrustee;

f) to sign, seal, execute, deliver and register accordingto law, all deeds, documents, and assurances inrespect of or in any manner relating to KMMF;

g) to do all acts, deeds, matters and things, which arenecessary for any object, purpose or in relation toKMMF in any manner or in relation to any Schemeof KMMF.

3. The AMC shall be responsible for making, floating andissuing Schemes for KMMF subject to prior approval ofthe Trustee and to the extent required in the MutualFund Regulations.

4. The AMC shall be responsible for investing andmanaging the funds mobilised under various Schemesin accordance with the provisions of the Trust Deed andMutual Fund Regulations.

5. The AMC shall make such disclosures or submit suchdocuments as may be required by the Trustee and /orSEBI and / or RBI.

6. The AMC shall provide management and administrativeservices for KMMF in accordance with the provisions ofIMA and any resolution passed by the Board of Directorsof the Trustee from time to time and communicated inwriting to the AMC.

7. The AMC shall be responsible for the day-to-daymanagement of KMMF.

8. The AMC shall provide the Trustee with all informationconcerning the operation of the various Schemes ofKMMF at such intervals and in such manner as required

by the Trustee.

9. The AMC shall maintain books and records of theoperation of various Schemes of KMMF to ensurecompliance with the Mutual Fund Regulations and shallsubmit a Scheme-wise report on the functioning of theFund to the Trustee on a quarterly basis or at suchintervals and in such manner as may be required orcalled for by the Trustee or SEBI.

10. The AMC shall be responsible for its acts of negligence,commission and omission and those of its employeesand/or the persons whose services have been engagedby the AMC and the AMC shall indemnify the Trusteeand each and every one of the Directors of the TrusteeCompany against all damages, losses, costs andconsequences and any liabilities whatsoever that mayarise on account of such acts of negligence and acts ofcommission and omission by any of the abovementioned persons.

11. No loss or damage or expenses incurred by the AMCor officers of the AMC or any delegate of the AMC,shall be met out of the Trust Fund.

12. The AMC is not exempted from or indemnified againstany liability for (i) negligence, dishonesty or fraud or (ii)failure to show the degree of care and diligence requiredof it while carrying out its duties. Notwithstandinganything contained in any contract or agreement or anytermination settlement, neither the AMC nor itsdirectors or other officers shall be absolved of liabilityto the Mutual Fund for their acts of commission oromission while holding such position or office.

13. The AMC hereby undertakes to hold harmless andindemnify the Trustee or procure the Trustee to be heldharmless and indemnified against all actions,proceedings, claims, and demands, cost and expensesincidental thereto, including all legal, professional andother expenses incurred, which may be brought against,suffered or incurred by the Trustee by reason of theperformance or non-performance by the AMC of itsduties. Such indemnification shall be by the AMC andnot out of the Trust Fund.

14. The AMC shall not be liable to the Trustee for any errorof judgment or mistake of law or for any loss sufferedunless such error of judgment or mistake constitutes orsuch loss is caused by any acts of commission or omissionor by fraud or willful default or negligence of the AMCor any of its agents or delegates. Without prejudice tothe generality of the foregoing, in particular (but withoutlimitation) the AMC shall not be liable to the MutualFund for any loss which may be sustained in thepurchase, holding or sale of any investments or otherassets by the mutual fund or on any of its assets as aresult of loss, delay, misdelivery or error in transmissionof cabled, telexed, telecopied, facsimiled, telegraphicor other communication unless such loss arose by anyacts of commission or omission or from fraud, bad faith,willful default or negligence in the performance or non-performance of its duties hereunder.

15. The AMC shall not be liable to the Trustee in the eventthat the Mutual Fund suffers a decline in its net assetvalue or fails to achieve any increase therein unless suchdecline or failure is caused by any acts of commissionor omission or by the default or negligence of the AMC,a bona fide error of judgment not being regarded asdefault or negligence nor as an act of commission oromission.

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4. Condensed Financial Information (for the last three fiscal years)

Kotak Gilt Savings Plan Kotak Gilt Investment Kotak Gilt InvestmentRegular Plan Provident Fund & Trust Plan

Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07

Date of Allotment 29 Dec 98 29 Dec 98 29 Dec 98 29 Dec 98 29 Dec 98 29 Dec 98 11 Nov 03 11 Nov 03 11 Nov 03

Beginning of Year / 1 Apr 04 1 Apr 05 1 Apr 06 1 Apr 04 1 Apr 05 1 Apr 06 1 Apr 04 1 Apr 05 1 Apr 06Allotment Date

End of Year / Last Date 31Mar 05 31Mar 06 31Mar 07 31Mar 05 31Mar 06 31Mar 07 31Mar 05 31 Mar 06 31Mar 07

NAV at beginning of year / 15.61 (G) 16.39 (G)/ 17.22 (G)/ 21.91(G) 21.96 (G) 22.59 (G) 21.93 (G) 22.07 (G)/ 22.80 (G)/Allotment Date (Rs.) 10.40 (MD)/ 10.97(AD)/ 11.52(AD)/ 10.54 (D) 10.56 (D) 10.87 (D) 10.79 (D) 10.75 (D) 10.73 (D)

10.44 (AD) 10.45 (MD) 10.46(MD)

Net Income per unit (Rs) 0.73 0.57 1.32 (0.32) 0.74 1.88 0.37 1.26 1.27

Dividends (Rs. per unit) *$$ 0.07 (MD) Nil 0.51 (MD) Nil Nil Nil 0.06 Nil Nil

Dividends (Rs. per unit) *†† 0.34 (MD) 0.44 (MD) 0.47 (MD) Nil Nil Nil Nil Nil 0.38

Dividends (Rs. per unit) * ^^ 0.32 (MD) 0.41 (MD) Nil Nil Nil Nil 0.03 0.30 (D) Nil

Transfer to reserves (Rs. crores) 3.17 (1.54) @ (65.22) 3.92 @ 4.01 (14.00) @

Nav as on : At the end of 16.39 (G)/ 17.22 (G)/ 18.18 (G)/ 21.96 (G)/ 22.59 (G)/ 23.57 (G)/ 22.07 (G)/ 22.80 (G)/ 23.88 (G)/the year / period (Rs.) 10.45(MD)/ 11.52(AD)/ 12.16(AD)/ 10.56 (D) 10.87 (D) 11.34 (D) 10.75 (D) 10.73 (D) 10.78 (D)

10.97 (AD) 10.46 (MD) 10.45 (MD)

Annualised return ** 5.04 7.78 7.51 0.26 11.88 10.94 0.66 2.23 2.96

Absolute return *** – – – – – – – – –

Net Assets at end of the year / 27.10 25.95 13.33 90.84 85.01 22.35 39.21 11.85 6.65period (Rs. crores)

Ratio of Recurring Expenses 1.18 % 1.00 % 1.00 % 1.65 % 1.65 % 1.65 % 1.25 % 1.25 % 1.25 %to Average Assets

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Kotak Bond Regular Plan Kotak Bond Kotak Bond Short Term(Formerly Kotak Bond Wholesale Plan) Deposit Plan Plan

Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07

Date of Allotment 25 Nov 99 25 Nov 99 25 Nov 99 25 Nov 99 25 Nov 99 25 Nov 99 2 May 02 2 May 02 2 May 02

Beginning of Year / Allotment Date 1 Apr 04 1 Apr 05 1 Apr 06 1 Apr 04 1 Apr 05 1 Apr 06 1 Apr 04 1 Apr 05 1 Apr 06

End of Year / Last Date 31 Mar 05 31 Mar 06 31 Mar 07 31 Mar 05 31 Mar 06 31 Mar 07 31 Mar 05 31 Mar 06 31 Mar 07

NAV at beginning of year / 17.25 (G) 11.70 (B)/ 12.23 (B)/ 16.80 (G)/ 16.98 (G)/ 17.63 (G)/ 10.40 (G) 11.93 (G)/ 12.59 (G)/Allotment Date(Rs.) 10.49 (QD) 10.30 (G)/ 18.35 (G)/ 10.70 (D) 10.75 (D) 11.17 (D) 10.08 (D) 10.06 (D) 10.08 (D)

11.53(AD)/ 11.73(AD)/ 12.26 (AD)/11.50(B) 17.55(QD) 10.31 (QD)

Net Income per unit (Rs) (0.31) 1.27 (18.64) (0.07) 0.78 (0.31) 2.36 1.02 3.66

Dividends (Rs. per unit) *$$ 0.06(QD) Nil 0.58 (QD) 0.06 Nil Nil 0.09 Nil 0.62(D)

Dividends (Rs. per unit) *†† 0.17(QD) 0.39(QD) 0.54(QD) Nil Nil Nil 0.32 0.46 (D) 0.58 (D)

Dividends (Rs. per unit) * ^^ 0.25(QD) 0.37(QD) Nil Nil Nil Nil 0.30 0.43 (D) Nil

Transfer to reserves (Rs. crores) (97.52) (9.23) @ (13.54) (1.90) @ (26.15) 5.60 @

Nav as on : At the end of 17.55 (G)/ 12.21 (B)/ 13.05 (B)/ 16.98 (G)/ 17.67 (G)/ 18.61(G) 11.93(G)/ 12.59 (G)/ 13.47 (G)/the year / period (Rs.) 10.30 (QD) 18.33 (G) 19.58 (G)/ 10.75 (D) 11.17 (D) 11.76 (D) 10.06 (D) 10.08 (D) 10.06 (D)

11.73(AD) 12.25(AD) 13.08 (AD)/11.70(B) 10.30(QD) 10.33(QD)

Annualised return ** 1.70 10.01 8.80 11.09 9.38 9.57 4.61 6.05 6.25

Absolute return *** – – – – – – – – –


Ratio of Recurring Expenses to 1.65% 1.65% 0.72% 2.25% 2.24% 2.25% 0.90 % 0.90 % 0.67 %Average Assets

14

Kotak Liquid Kotak Liquid Kotak LiquidInstitutional Plan Institutional Premium Plan


Date of Allotment 5 Oct 00 5 Oct 00 5 Oct 00 12 Mar 03 12 Mar 03 12 Mar 03 4 Nov 03 4 Nov 03 4 Nov 03



NAV at beginning of year / 12.67 (G) 13.22 (G) 13.90 (G) 12.71 (G)/ 13.31 (G)/ 14.06(G)/ 12.71 (G) 13.34 (G)/ 14.11 (G)Allotment Date(Rs.) 10.02 (D) 10.02 (D) 10.03 (D) 10.02 (WD) 12.23 (DD)/ 12.23(DD) 10.03 (WD) 12.23 (DD)/ 12.23 (DD)

12.23 (DD) 10.02 (WD) 10.03 (WD) 12.23 (DD) 10.03 (WD) 10.04 (WD)

Net Income per unit (Rs) 0.51 0.62 0.56 0.60 0.99 0.34 0.56 0.67 (0.72)

Dividends (Rs. per unit) *$$ 0.10 Nil 0.55 (D) 0.10(WD)/ Nil 0.58(WD)/ 0.11(WD)/ Nil 0.72 (DD)/0.13 (DD) 0.72 (DD) 0.13 (DD) 0.62 (WD)

Dividends (Rs. per unit) *†† 0.28 0.44 (D) 0.51 (D) 0.17 (WD) 0.59 (DD) 0.67 (DD) Nil 0.19 (DD) 0.71 (DD)0.25 (DD) 0.48 (WD) 0.54 (WD) 0.11 (WD) 0.57(WD)

Dividends (Rs. per unit) * ^^ 0.26 0.41 (D) Nil 0.28 (WD)/ 0.54 (DD)/ Nil 0.30 (WD)/ 0.56 (DD)/ Nil0.35 (DD) 0.44 (WD) 0.36 (DD) 0.45 (WD)

Transfer to reserves (Rs. crores) 30.90 32.26 @ (6.07) 1.61 @ 80.23 184.07 @

Nav as on : At the end of 13.22 (G)/ 13.90 (G)/ 14.80 (G)/ 13.31 (G)/ 14.06(G)/ 15.03 (G)/ 13.34 (G)/ 14.11 (G)/ 15.15 (G)/the year / period (Rs.) 10.02 (D) 10.03 (D) 10.03 (D) 10.02 (WD) 12.23 (DD)/ 12.23 (DD)/ 10.03 (WD)/ 12.23 (DD) 12.23 (DD)

12.23 (DD) 10.03 (WD) 10.03 (WD) 12.23 (DD) 10.04 (WD) 10.05 (WD)

Annualised return ** 4.33 6.18 6.23 4.78 5.17 5.59 4.87 5.25 5.85Absolute return *** – – – – – – – – –

Net Assets at end of the year / 372.98 454.38 328.07 268.84 201.86 332.98 2,291.77 2,605.70 1,995.40period (Rs. crores)Ratio of Recurring Expenses 1.00 % 1.00 % 1.00 % 0.57 % 0.55 % 0.67 % 0.42 % 0.37 % 0.26 %to Average Assets

Kotak Floater Kotak MNC Kotak Income PlusShort Term


Date of Allotment 14 Jul 03 14 Jul 03 14 Jul 03 4 Apr 00 4 Apr 00 4 Apr 00 2 Dec 03 2 Dec 03 2 Dec 03



NAV at beginning of year / 10.38 (G) 10.88 (G)/ 11.50 (G) 14.24 15.99 27.76 10.25 (G)/ 10.87 (G)/ 12.54 (G)Allotment Date(Rs.) 10.00 (WD)/ 10.01 (WD)/ 10.01 (WD) 10.02 (MD)/ 10.30 (MD) 11.13 (MD)

10.02 (MD) 10.03 (MD) 10.03 (MD) 10.02(QD) 10.30 (QD) 11.14 (QD)

Net Income per unit (Rs) 0.36 1.34 1.89 7.63 13.42 (3.61) 0.61 1.03 0.69

Dividends (Rs. per unit) *$$ 0.10 (WD)/ Nil Nil 4.50 Nil Nil 0.05 (MD) Nil Nil0.10 (MD)

Dividends (Rs. per unit) *†† 0.31 (WD)/ 0.48 (DD)/ 0.60 (WD)/ Nil Nil Nil 0.24 (MD)/ 0.62 (MD) 0.64(MD)/0.32 (MD) 0.48 (MD) 0.59 (WD) 0.29 (QD) 0.62 (QD) 0.67 (QD)

Dividends (Rs. per unit) * ^^ 0.29(WD)/ 0.45 (WD)/ 0.56 (WD)/ Nil Nil Nil 0.22 (MD)/ 0.57 (MD) 0.59(MD)/0.30 (MD) 0.45 (MD) 0.55 (MD) 0.16 (QD) 0.58 (QD) 0.62(QD)

Transfer to reserves (Rs. crores) 24.91 (9.53) @ 17.25 23.46 @ 1.65 12.48 @

Nav as on : At the end of 10.88 (G)/ 11.50 (G)/ 12.31 (G)/ 15.99 27.76 25.15 10.87 (G)/ 12.55 (G)/ 12.98(G)/the year / period (Rs.) 10.01 (WD)/ 10.01 (WD) 10.02 (WD)/ 10.30(MD)/ 11.13 (MD)/ 10.78 (MD)/

10.03 (MD) 10.03(MD) 10.05(MD) 10.30(QD) 11.14 (QD) 10.75 (QD)

Annualised return ** 4.90 5.28 @ 43.70 23.56 18.21 6.09 10.23 8.20

Absolute return *** – – – – – – – – –


Ratio of Recurring Expenses to 0.73 % 0.71 % 0.43 % 2.44 % 2.50 % 2.50 % 2.11 % 2.19 % 2.20 %Average Assets

15

Kotak 30 Kotak Balance Kotak Tech

Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07

Date of Allotment 29 Dec 98 29 Dec 98 29 Dec 98 29 Nov 99 29 Nov 99 29 Nov 99 4 Apr 00 4 Apr 00 4 Apr 00


End of Year / Last Date 31 Mar 05 31 Mar 06 31 Mar 07 31 Mar 05 31Mar 06 31 Mar 07 31 Mar 05 31 Mar 06 31 Mar 07

NAV at beginning of year / 25.19(G)/ 32.12 (G)/ 59.46 (G)/ 13.15 17.48 23.32 3.97 5.85 8.34Allotment Date (Rs.) 17.01(D) 19.90 (D) 33.75 (D)

Net Income per unit (Rs) 5.02 18.40 2.99 5.80 8.89 0.34 2.34 2.90 2.32

Dividends (Rs. per unit) *$$ 1.50 2.00 (D) Nil 0.50 5.25 1.00 Nil Nil Nil

Dividends (Rs. per unit) *†† Nil Nil 5.50 (D) Nil Nil Nil Nil Nil Nil

Dividends (Rs. per unit) * ^^ Nil Nil Nil Nil Nil Nil Nil Nil Nil

Transfer to reserves (Rs. crores) 26.21 174.32 @ 4.69 37.25 @ 40.15 27.45 @

Nav as on : At the end of 32.12 (G)/ 59.46 (G)/ 64.99 (G)/ 17.48 23.32 22.83 5.85 8.34 10.22the year / period (Rs.) 19.90 (D) 33.75 (D) 31.64 (D)

Annualised return ** 27.52 33.30 30.14 37.15 21.50 18.71 47.33 (2.98) 0.31

Absolute return *** – – – – – – – – –


Ratio of Recurring Expenses 2.39 % 2.37 % 2.31 % 2.50 % 2.50 % 2.49 % 2.25 % 2.25 % 2.25 %to Average Assets

Kotak Global India Kotak Floater Long Term

Apr 04 Apr 05 Apr 06 Apr 04 Apr 05 Apr 06 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07

Date of Allotment 30 Jan 04 30 Jan 04 30 Jan 04 13 Jan 04 13 Jan 04 13 Jan 04

Beginning of Year / Allotment Date 1 Apr 04 1 Apr 05 1 Apr 06 13 Aug 04 1 Apr 05 1 Apr 06

End of Year / Last Date 31 Mar 05 31 Mar 06 31 Mar 07 31 Mar 05 31 Mar 06 31 Mar 07

NAV at beginning of year / Allotment Date(Rs.) 9.57 (G) 13.86 (G)/ 24.15 (G)/ 10.00 (G)/ 10.33 (G)/ 10.89 (G)9.57 (D) 12.34 (D) 19.31 (D) 10.00 (WD)/ 10.01 (WD) 10.04 (WD)

10.02(MD) 10.02 (MD) 10.04 (MD)

Net Income per unit (Rs) 5.37 12.39 1.36 0.23 2.11 3.26

Dividends (Rs. per unit) *$$ (Comman) 1.50 2.00(D) Nil N.A. Nil Nil

Dividends (Rs. per unit) *†† (Individual) Nil Nil 2.50(D) 0.28 (WD)/ 0.44 (WD) 0.59 (WD)/0.27 (MD) 0.46 (MD) 0.59 (MD)

Dividends (Rs. per unit) * ^^ (Other) Nil Nil Nil 0.27 (WD)/ 0.41 (WD) 0.55 (WD)/0.25 (MD) 0.43 (MD) 0.55 (MD)

Transfer to reserves (Rs. crores) 65.43 59.29 @ 12.05 (6.23) @

Nav as on : At the end of 13.86(G)/ 24.15(G)/ 25.67(G)/ 10.33 (G)/ 10.90 (G)/ 11.67 (G)/the year / period (Rs.) 12.34(D) 19.31(D) 18.19(D) 10.02(WD)/ 10.03 (WD)/ 10.04 (WD)/

10.01(QD) 10.03 (MD) 10.04 (MD)

Annualised return ** 44.88 50.19 34.70 – 5.41 6.04

Absolute return *** – – – – – –

Net Assets at end of the year / 202.37 156.09 109.90 577.33 102.11 46.75period (Rs. crores)

Ratio of Recurring Expenses to Average Assets 2.27 % 2.30 % 2.36 % 0.80 % 0.78 % 0.60 %

16

Kotak Opportunities Kotak Equity FOF Kotak Flexi Debt

Sept 04 Apr 05 Apr 06 Aug 04 Apr 05 Apr 06 Apr 04 Dec 05 Apr 06Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07

Date of Allotment 9 Sept 04 9 Sept 04 9 Sept 04 9 Aug 04 9 Aug 04 9 Aug 04 6 Dec 04 6 Dec 04 6 Dec 04

Beginning of Year / 9 Sept 04 1 Apr 05 1 Apr 06 9 Aug 04 1 Apr 05 1 Apr 06 6 Dec 04 1 Apr 05 1 Apr 06Allotment Date

End of Year / Last Date 31Mar 05 31Mar 06 31Mar 07 31Mar 05 31Mar 06 31Mar 07 31Mar 05 31 Mar 06 31Mar 07

NAV at beginning of year / 10.00 (G) / 12.76 (G)/ 25.89 (G)/ 10.00 (G) 13.17 (G) 22.90 (G) 10.00 (G) 10.21 (G)/ 10.81 (G)/Allotment Date (Rs.) 10.00 (D) 12.02 (D) 18.17(D)/ 10.00 (D) 13.17 (D) 22.90 (D) 10.00 (D) 10.02 (QD) 10.04 (QD)

Net Income per unit (Rs) 3.39 6.37 0.55 5.32 12.45 1.20 0.20 1.13 1.71

Dividends (Rs. per unit) *$$ 0.75 5.50 (D) 1.50 (D) N.A. Nil Nil N.A. Nil Nil

Dividends (Rs. per unit) *†† Nil Nil Nil Nil Nil Nil 0.16 0.49 (QD) 0.56 (DD)0.58 (QD)

Dividends (Rs. per unit) * ^^ Nil Nil Nil Nil Nil Nil 0.15 0.46 (QD) 0.53 (DD)0.54 (QD)

Transfer to reserves (Rs. crores) 10.77 75.75 @ 30.61 32.21 @ 0.55 2.70 @

Nav as on : At the end of 12.76 (G)/ 25.89 (G)/ 27.94 (G)/ 13.17 (G)/ 22.90 (G)/ 24.13 (G)/ 10.21 (G)/ 10.81 (G)/ 11.64 (G)/the year / period (Rs.) 12.02(D) 18.17 7(D) 17.96(D)/ 13.17 (D) 22.90 (D) 24.13 (D) 10.02 (D) 10.04 (QD) 10.03 (QD)

Annualised return ** – 84.28 49.55 – 65.69 39.65 – 6.13 6.76

Absolute return *** – – – – – – – – –

Net Assets at end of the year / 47.73 231.24 221.96 95.21 90.70 71.95 104.08 95.90 236.82

period (Rs. crores)

Ratio of Recurring Expenses 2.46 % 2.45 % 2.34 % 0.74 % 0.74% 0.75 % 1.00 % 0.94 % 0.56 %to Average Assets

Kotak Midcap Kotak Dynamic FOF

Feb 05 Apr 05 Apr 06 Mar 05 Apr 05 Apr 06 Mar 05 Mar 06 Mar 07 Mar 05 Mar 06 Mar 07

Date of Allotment 24 Feb 05 24 Feb 05 24 Feb 05 31 Mar 05 31 Mar 05 31 Mar 05

Beginning of Year / Allotment Date 24 Feb 05 1 Apr 05 1 Apr 06 31 Mar 05 1 Apr 05 1 Apr 06

End of Year / Last Date 31 Mar 05 31 Mar 06 31 Mar 07 31 Mar 05 31 Mar 06 31 Mar 07

NAV at beginning of year / 10.00 (G) 10.10 (G)/ 19.79 (G)/ 10.00 (G) 10.00 (G)/ 16.80 (G)Allotment Date(Rs.) 10.00 (D) 10.10 (D) 19.04 (D) 10.00 (D)

Net Income per unit (Rs) 0.11 13.34 (2.16) 0.01 8.90 (3.65)

Dividends (Rs. per unit) *$$ Nil 0.50 (D) 4.00 (D) N.A. Nil Nil

Dividends (Rs. per unit) *†† Nil Nil Nil N.A. Nil Nil

Dividends (Rs. per unit) * ^^ Nil Nil Nil N.A. Nil Nil

Transfer to reserves (Rs. crores) 5.80 208.35 @ 0.05 40.99 @

Nav as on : At the end of 10.00 (G)/ 19.79 (G)/ 19.25 (G)/ 10.00 (G) 16.79 (G) 16.43 (G)the year / period (Rs.) 10.10 (D) 19.04 (D) 14.77 (D)

Annualised return ** – 84.10 35.84 – – 28.23

Absolute return *** – – – – 67.92 –

Net Assets at end of the year / 543.17 356.24 230.63 101.92 80.97 24.76period (Rs. crores)


17

Kotak Gilt Kotak Gilt Kotak Gilt Kotak Bond Kotak Bond Kotak Bond Kotak Kotak KotakSavings Investment Investment Regular Plan Deposit Short term Liquid Liquid- Liquid-

Plan Regular Provident (Formerly Plan Plan Regular Institutional InstitutionalFund & Wholesale Plan Plan Premium Plan

Trust Plan Plan)

Date of Allotment 29 Dec 98 29 Dec 98 11 Nov 03 25 Nov 99 25 Nov 99 02 May 02 05 Oct 00 12 Mar 03 04 Nov 03

Beginning of Year / Allotment Date 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07End of Year / Last Date 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07

NAV at beginning of year / 18.18 (G)/ 23.57 (G)/ 22.88 (G)/ 13.05 (B)/ 18.61 (DG)/ 13.47 (G)/ 14.80 (G)/ 15.03 (G)/ 15.15 (G)/Allotment Date (Rs.) 12.16 (AD)/ 11.34 (D) 10.78 (D) 19.58 (G)/ 11.76 (DD) 10.06 (D) 10.03 (D) 12.23 (DD)/ 12.23 (DD)/

10.45 (MD) 13.08 (AD)/ 10.03(WD) 10.05 (WD)10.33 (QD)

Net Income per unit (Rs) 0.23 0.49 0.67 0.72 0.56 0.18 0.28 0.30 0.48Dividends (Rs. per unit) $$ – 0.01 (D) 0.01(D) 0.02(WD)Dividends (Rs. per unit) * † 0.22 (MD) Nil Nil 0.13 (QD) Nil 0.41(D) 0.21(D) 0.28 (DD)/ 0.30 (DD)/(Individuals) 0.22 (WD) 0.23 (WD)Dividends (Rs. per unit) * ‡‡ 0.20 (MD) Nil Nil 0.12 (QD) Nil 0.38(D) 0.21(D) 0.28 (DD)/ 0.29 (DD)/(Others) 0.22 (WD) 0.23 (WD)Transfer to reserves (Rs. crores) @ @ @ @ @ @ @ @ @

Nav as on : At the end of 18.62 (G)/ 24.21 (G)/ 24.57 (G)/ 13.58 (B)/ 19.23 (DG)/ 14.10 (G)/ 15.23 (G)/ 15.49 (G)/ 15.63 (G)/the year / period (Rs.) 12.45 (AD)/ 11.65 (D) 11.09 (D) 20.38 (G)/ 12.15 (DD) 10.05 (D) 10.03 (D) 12.23 (DD)/ 12.23 (DD)/

10.45 (MD) 13.62 (AD)/ 10.03 (WD) 10.04 (WD)10.60 (QD)

Annualised return ** Aug 31, 2007 7.41 10.71 3.45 9.59 8.78 6.65 6.28 5.76 6.06Absolute return *** Aug 31, 2007 – – – – – – – – –Benchmark Return Aug 31, 2007 ~ – – 4.12 – – 5.51 5.23 5.23 5.23


Ratio of Recurring Expenses 1.00 % 1.65 % 1.25 % 0.50% 2.25 % 0.60 % 1.00 % 0.69 % 0.41 %to Average Assets

Latest NAV & Annualised Returns

Kotak Kotak Kotak 30 Kotak Kotak Kotak KotakFloater Global Balance Tech MNC Income

Short Term India Plus

Date of Allotment 14 Jul 03 30 Jan 04 29 Dec 98 25 Nov 99 04 Apr 00 04 Apr 00 02 Dec 03

Beginning of Year / Allotment Date 01 Apr 07 01 Apr 07 01 Apr 07 01 Apr 07 01 Apr 07 01 Apr 07 01 Apr 07

End of Year / Last Date 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07

NAV at beginning of year / 12.31 (G)/ 25.67 (G)/ 64.99 (G)/ 22.83 10.22 25.15 12.98 (G)/Allotment Date (Rs.) 10.02 (WD)/ 18.19 (D) 31.64 (D) 10.78 (MD)/

10.05 (MD) 10.75 (QD)

Net Income per unit (Rs) 0.36 3.27 8.57 3.66 -0.22 5.63 0.76

Dividends (Rs. per unit) (Common) 0.01 (WD) Nil 3.00 (D) Nil Nil Nil Nil

Dividends (Rs. per unit) *$$ (Individuals) 0.23 (WD)/ Nil Nil Nil Nil Nil 0.29 (MD)/0.25 (MD) 0.19 (QD)

Dividends (Rs. per unit) *†† (Others) 0.23 (WD) Nil Nil Nil Nil Nil 0.27 (MD)/0.25 (MD) 0.18 (QD)

Transfer to reserves (Rs. crores) @ @ @ @ @ @ @Nav as on : At the end of 12.71(G)/ 29.44 (G)/ 78.30 (G)/ 26.00 9.95 30.01 13.51 (G)/the year / period (Rs.) 10.02 (WD)/ 20.86 (D) 35.17 (D) 10.88 (MD)/

10.04 (MD) 10.97 (QD)

Annualised return ** Aug 31, 2007 5.97 35.13 31.26 21.79 -0.06 19.91 8.37Absolute return *** Aug 31, 2007 – – – – – – –Benchmark Return Aug 31, 2007 ~ 5.25 28.81 – 23.56 2.90 – 7.59Benchmark Return (S&P CNX Nifty) July 31, 2007 – – 20.46 – – 16.62 –Net Assets at end of the year / period (Rs. crores) 242.58 111.03 467.27 87.03 37.89 39.71 42.12Ratio of Recurring Expenses to Average Assets 0.45% 2.40 % 2.28 % 2.50 % 2.25 % 2.50 % 2.22 %

Kotak Kotak Kotak Kotak KotakMidcap Dynamic Equity Flexi Contra

FOF FOF Debt

Date of Allotment 24 Feb 05 31 Mar 05 09 Aug 04 06 Dec 04 27 Jul 05Beginning of Year / Allotment Date 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07End of Year / Last Date 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07

NAV at beginning of year / 19.25 (G)/ 16.43 (G) 24.13 (G)/ 11.64 (G)/ 13.85 (G)/Allotment Date (Rs.) 14.77 (D) 24.13 (D) 10.12 (DD) 13.85 (D)

10.03 (QD)Net Income per unit (Rs) 2.84 1.87 4.82 0.16 2.65Dividends (Rs. per unit) (Common) Nil Nil Nil Nil 2.00 (D)Dividends (Rs. per unit) * † (Individuals) Nil Nil Nil 0.30 (DD)/ Nil

0.18 (QD)Dividends (Rs. per unit) * ‡‡ (Others) Nil Nil Nil 0.24 (DD)/ Nil

0.17 (QD)Transfer to reserves (Rs. crores) @ @ @ @ @

Nav as on : At the end of 22.90 (G)/ 18.25 (G) 28.65 (G)/ 12.05 (G)/ 16.22 (G)/the year / period (Rs.) 17.57 (D) 28.65 (D) 10.03 (DD)/ 14.20 (D)

10.26 (QD)

Annualised return ** Aug 31, 2007 38.26 28.24 41.04 7.05 23.96

Absolute return *** Aug 31, 2007 – – – – –

Benchmark Return Aug 31, 2007 ~ 32.65 24.52 38.64 7.59 33.55

Benchmark Return (S&P CNX Nifty) July 31, 2007 – – – – –Net Assets at end of the year / period (Rs. crores) 275.57 26.47 74.84 6504.67 121.53Ratio of Recurring Expenses to Average Assets 2.34 % 0.75 % 0.75 % 0.33 % 2.41 %

18

Kotak Floater Kotak Kotak Kotak Kotak Kotak KotakLong Term Opportunities Equity Arbitrage Flexi FOF Flexi FOF Flexi FOF Tax Sever

Scheme Scheme Fund Series I Series II

Date of Allotment 13 Aug 05 09 Sept 05 29 Sept 05 20 Oct 05 07 Apr 06 28 Jul 06 23 Nov 05



NAV at beginning of year / 11.67 (G) 27.94 (G)/ 11.18 (G) 13.04 (G) 9.78 (G)/ 10.70 (G) 13.85 (G)/Allotment Date (Rs.) 10.04 (WD)/ 17.96 (D) 10.44 (D) 13.04 (D) 9.78 (D) 11.02 (D)

10.04 (MD)

Net Income per unit (Rs) 0.32 4.78 0.17 2.68 1.54 1.63 2.16

Dividends (Rs. per unit) (Common) Nil Nil 0.15 (D) Nil Nil Nil Nil

Dividends (Rs. per unit) *† (Individuals) 0 .30 (WD)/ Nil 0.13 (D) Nil Nil 0.53 (D) Nil0.33 (MD)

Dividends (Rs. per unit) * ‡ ‡ (Others) 0.28 (WD) Nil 0.12 (D) Nil Nil 0.49 (D) Nil0.31 (MD)

Transfer to reserves (Rs. crores) @ @ @ @ @ @ @

Nav as on : At the end of 12.12 (G)/ 31.01 (G)/ 11.63 (G)/ 15.38 (G)/ 10.39 (G)/ 11.15 (D) 16.57 (G)/the year / period (Rs.) 10.08 (WD)/ 21.22 (D) 10.57 (D) 15.38 (D) 10.39 (D) 13.18 (D)

10.04 (MD)

Annualised return ** Aug 31, 2007 6.49 49.39 8.14 25.91 2.68 9.81 32.84

Absolute return *** Aug 31, 2007 – – – – – – –

Benchmark Return Aug 31, 2007 ~ 5.69 38.83 6.40 4.71 14.99 26.46 32.50

Net Assets at end of the year / period (Rs. crores) 74.82 187.88 128.89 82.93 13.18 224.16 281.43

Ratio of Recurring Expenses to Average Assets 0.60 % 2.37 % 1.00 % 0.75 % 0.75 % 0.75 % 2.33 %

Kotak FMP Kotak FMP Kotak FMP Kotak FMP Kotak FMP Kotak FMP Kotak FMP 3M Series 12M Series 12M Series 13M Series 13M Series 13M Series 13M Series

24 1- Institutional 1- Retail 1- Institutional 1- Retail 2- Institutional 2- RetailPlan Plan Plan Plan Plan Plan

Date of Allotment 23 Aug 07 26 June 07 26 June 07 15 Mar 07 15 Mar 07 29 Mar 07 29 Mar 07Beginning of Year / Allotment Date 23 Aug 07 26 June 07 26 June 07 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07

End of Year / Last Date 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07NAV at beginning of year / 10.00 (G)/ 10.00 (G)/ 10.00 (G)/ 10.05 (G)/ 10.04 (G)/ 10.01 (G)/ 10.01 (G)/Allotment Date (Rs.) 10.00 (D) 10.00 (D) 10.00 (D) 10.05 (D) 10.04 (D) 10.01 (D) 10.01 (D)Net Income per unit (Rs) 0.02 0.18 0.17 0.49 0.46 0.49 0.45Dividends (Rs. per unit) * † (Individuals) Nil Nil Nil Nil Nil Nil Nil

Dividends (Rs. per unit) * ‡‡ (Others) Nil Nil Nil Nil Nil Nil Nil

Transfer to reserves (Rs.crores) @ @ @ @ @ @ @Nav as on : At the end of 10.02 (G)/ 10.18 (G)/ 10.17 (G)/ 10.54 (G)/ 10.50 (G)/ 10.49 (G)/ 10.45 G)/the year / period (Rs.) 10.02 (D) 10.18 (D) 10.17 (D) 10.54 (D) 10.50 (D) 10.49 (D) 10.45 (D)Annualised return ** Aug 31, 2007 – – – – – – –Absolute return *** Aug 31, 2007 0.18 1.80 1.76 5.38 5.01 4.88 4.55


Net Assets at end of 336.18 140.19 8.32 402.98 29.71 316.65 27.2the year / period (Rs. crores)

Ratio of Recurring Expenses 0.10 % 0.11 % 0.48% 0.25% 1.00 % 0.01 % 0.73 %to Average Assets

19

Kotak Kotak Twin Kotak Twin Kotak Kotak Kotak FMP Kotak FMP Kotak FMPLifestyle Advantage Advantage FMP Series Gold ETF 3M Series 3M Series 3M Series

Series II Series III 26 20 21 22

Date of Allotment 21 Mar 06 09 Jun 06 15 Sept 06 21 Mar 06 27 July 07 7 June 07 20 June 07 27 June 07

Beginning of Years / Allotment Date 01 Apr 07 01 Apr 07 01 Apr 07 01 Apr 07 27 July 07 7 June 07 20 June 07 27 June 07

End of Year / Last Date 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07

NAV at beginning of year / 11.64 (G)/ 10.27 (G)/ 10.02 (G)/ 10.51 (G)/ 100 10.00 (G)/ 10.00 (G)/ 10.00 (G)/Allotment Date (Rs.) 11.64 (D) 10.27 (D) 10.02 (D) 10.01 (D) 10.02 (D) 10.00 (D) 10.00 (D)

Net Income per unit (Rs) 1.44 0.48 0.30 0.38 0.44 0.20 0.16 0.14

Dividends (Rs. per unit) 1.75 (D) Nil Nil Nil Nil Nil Nil Nil(Comman)

Dividends (Rs. per unit) * † Nil Nil Nil Nil Nil Nil Nil Nil(Individuals)

Dividends (Rs. per unit) * ‡ ‡ Nil Nil Nil Nil Nil Nil Nil Nil(Others)

Transfer to reserves (Rs. crores) @ @ @ @ @ @ @ @

Nav as on : At the end of 12.96 (G)/ 10.69 (G)/ 10.29 (G)/ 10.90 (G)/ 896.80 10.20 (G)/ 10.16 (G)/ 10.14 (G)/ the year / period (Rs.) 11.22 (D) 10.69 (D) 10.29 (D) 10.37 (D) 10.20 (D) 10.16 (D) 10.14 (D)

Annualised return ** Aug 31, 2007 18.67 5.23 – 7.79 – – – –

Absolute return *** Aug 31, 2007 – – 2.88 – – 2.00 1.64 1.38

Benchmark Return Aug 31, 2007 ~ 21.23 10.43 8.39 5.38 $ 1.17 0.97 0.88

Net Assets at end of the year / 326.61 70.10 244.21 68.37 39.66 56.78 168.72 611.55period (Rs. crores)

Ratio of Recurring Expenses 2.23 % 1.42 % 1.40 % 0.25 % 1.00% 0.25 % 0.30 % 0.25 %to Average Assets

Kotak FMP Kotak FMP Kotak FMP Kotak FMP Kotak FMP Kotak FMP Kotak FMP 14M Series 14M Series 14M Series 14M Series 15M Series 15M Series 16M Series

1-Institutional 1-Retail 2-Institutional 2-Retail 1 2 1Plan Plan Plan Plan

Date of Allotment 21 Feb 07 21 Feb 07 22 Mar 07 22 Mar 07 14 Oct 06 5 Feb 07 28 Dec 06



NAV at beginning of year / 10.07 (G) 10.06 (G)/ 10.03 (G) 10.02 (G)/ 10.03 (G)/ 10.09 (G)/ 10.11 (G)/Allotment Date (Rs.) 10.01 (D) 10.02 (D) 10.01 (D) 10.01 (D) 10.01 (D)

Net Income per unit (Rs) 0.41 0.40 0.48 0.44 0.40 0.43 0.43

Dividends (Rs. per unit) * † (Individuals) Nil Nil Nil Nil Nil Nil Nil

Dividends (Rs. per unit) * ‡‡ (Others) Nil Nil Nil Nil Nil Nil Nil

Transfer to reserves (Rs.crores) @ @ @ @ @ @ @

Nav as on : At the end of 10.47 (G) 10.46 (G)/ 10.51 (G)/ 10.47 (G)/ 10.70 (G)/ 10.52 (G)/ 10.55 G)/the year / period (Rs.) 10.41 (D) 10.51 (D) 10.47 (D) 10.40 (D) 10.43 (D) 10.44 (D)

Annualised return ** Aug 31, 2007 – – – – – – –

Absolute return *** Aug 31, 2007 4.70 4.59 5.09 3.50 6.95 5.16 5.48


Net Assets at end of 16.75 5.78 306.49 10.11 162.72 74.47 83.08the year / period (Rs. crores)

Ratio of Recurring Expenses 0.20 % 0.40 % 0.14 % 1.04 % 0.05 % 0.20 % 0.20 %to Average Assets

20

Kotak Kotak Kotak Kotak Kotak FMP Kotak FMPDynamic Dynamic Emerging Wealth 15M Series 15M Series

Asset Fund of Equity Builder 3-Institutional 3-RetailAllocation Funds Scheme Series I Plan Plan

Date of Allotment 28 Dec 06 31 Mar 05 30 Mar 07 27 Feb 07 18 May 07 18 May 07

Beginning of Year / Allotment Date 1 Apr 07 1 Apr 07 1 Apr 07 1 Apr 07 18 May 07 18 May 07

End of Year / Last Date 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07 31 Aug 07

NAV at beginning of year / Allotment Date (Rs.) 9.3 0(G) 16.43 (G) 10.01 (G)/ 9.95 (G)/ 10.00 (G) 10.00 (G)/10.01 (D) 9.95 (D) 10.00 (D) 10.00 (D)

Net Income per unit (Rs) 2.78 1.87 1.62 0.21 0.34 0.33

Dividends (Rs. per unit) $$ – – – – Nil Nil

Dividends (Rs. per unit) * † (Individuals) – – – – Nil Nil

Dividends (Rs. per unit) * ‡‡ (Others) – – – – Nil Nil

Transfer to reserves (Rs.crores) @ @ @ @ @ @

Nav as on : At the end of the year / period (Rs.) 11.62 (G) 18.25 (G) 11.44 (G)/ 10.15 (G)/ 10.35 (G) 10.33 (G)/11.44 (D) 10.15 (D) 10.33 (D)

Annualised return ** Aug 31, 2007 – 28.33 – – – –

Absolute return *** Aug 31, 2007 16.17 – 14.41 1.52 3.45 3.33

Benchmark Return Aug 31, 2007 ~ 9.44 24.52 22.74 5.31 2.81 2.81

Net Assets at end of the year / period (Rs. crores) 685.14 26.47 256.60 279.92 81.73 27.56


Notes: G stands for Growth Option, D stands for Dividend Option,MD stands for Monthly Dividend Option, QD stands forQuarterly Dividend Option, WD stands for Weekly DividendOption, DD stands for Daily Dividend Option, AD stands forAnnual Dividend Option B stands for Bonus Option.

* Applicable to the dividend option in case of Schemes, whichhave Growth and Dividend Options.

** Annualised Return (Compounded Annualised Growth Rate)is calculated from the date of allotment of the Units till theend of the period mentioned against it. For the last periodin respect of the Scheme/Plan concerned, the annualised

return is computed from the date of allotment till August31, 2007. In case of returns available for periods less thanone year for the first accounting year, such returns havebeen expressed in absolute terms only.

*** Absolute Return is calculated from the date of allotment ofthe Units till the end of the period mentioned against it forthe Scheme where such period is less than one year. In caseof Scheme / Plan launched after Oct 13, 2006, the absolutereturn is also calculated from the date of allotment till August31, 2007. Annualised returns are computed for the GrowthOption of the Scheme. The Growth Option is not available

6. KEY PERSONNEL OF AMC

21

Name, Age, Designation, Business Experience

Educational Qualifications

Experience of over 15 years in the areas Corporate Finance and Treasury management amongothers. His prior assignments were with SBI Capital Markets Ltd and ITC Bhadrachalam Finance& Investments Ltd. After joining the Kotak Mahindra group in 1994, Mr. Kirkire has worked inseveral capacities across the group, in the fields of Investment Banking, Treasury and Sales andTrading in debt markets. Mr. Kirkire’s latest assignment was as Chief Investment Officer (Debt)overseeing the investment management function of the Fund in Fixed Income Securities.

Past experience of over 13 years in Institutional Equities. Worked as Equity research analyst(pharmaceuticals, technology), head of research and equity strategist. His prior assignments werewith HMG Financial Services in equity research and with Godrej and Boyce in evaluating companiesas vendors. Mr. Lobo’s last assignment was Head of Institutional Equities at Kotak Securities.

Experience of over 11 years in the fields of Operations, Systems, Finance, MIS, Accounting, Auditand Taxation. Prior to joining the Kotak Group in August 1994, Mr. Krishnan was a practicingChartered Accountant for two years, handling Accounting, Audit and Taxation matters for clients.Since joining the Kotak Group, Mr. Krishnan has handled major assignments like the US GAAPimplementation for the erstwhile Kotak Mahindra Finance Limited (KMFL) and subsidiary/groupcompanies, Systems Development and Implementation, for the Retail Assets Group and KMFL’stransition to Kotak Bank. Mr. Krishnan’s latest assignment was as Head - Operations, Retail Assets,at Kotak Bank, from where he joined Kotak Mutual in August 2004 as Senior Vice President.

Mr. Kailash Kulkarni was associated with MetLife India Insurance Co as Head of Agency Sales Hewas designated as Director Agency Sales. Prior to this he was with ICICI group in different capacitiesthe last being AGM Retail Banking for Mumbai region. He has total experience of over 16 yearsof which 11 are in the financial services industry and 5 years with a automobile company.

Mr. Sandesh Kirkire42 years

Chief Executive Officer

Mechanical Engineer, Masters degreein Management Studies from JamnalalBajaj Institute of Management Studies,Mumbai University.

Mr. Alroy Lobo4 gement

Mechanical Engineer, Masters degree inManagement Studies from SydenhamInstitute of Management, MumbaiUniversity.

Mr. R Krishnan37 years

Chief Operations Officer

Chartered Accountant and CostAccountant

Mr. Kailash Kulkarni40 years

Head of Sales

Post graduate in BusinessManagement from IMDR Pune

then the same has been computed assuming the declareddividend is re-invested on the next available NAV.

~ Benchmarks (as developed by AMFI): Kotak Gilt Savings:ISEC SIBEX; Kotak Gilt Investment- Regular and ProvidentFund and Trust Plans: I SEC COMPOSITE INDEX, Kotak BondShort Term Plan: CRISIL Short Term Bond Fund Index, KotakBond Regular Plan (Formerly Wholesale Plan), Kotak BondDeposit Plan, Kotak Flexi Debt, Kotak FMP 12M Series 1 -Institutional Plan, Kotak FMP 12M Series 1 - Retail Plan,Kotak FMP 13M Series 1 - Institutional Plan, Kotak FMP13M Series 1 - Retail Plan, Kotak FMP 13M Series 2 -Institutional Plan, Kotak FMP 13M Series 2 - Retail Plan,Kotak FM P 14M Series 1 - Institutional Plan, Kotak FMP14M Series 1 - Retail Plan, Kotak FMP 14M Series 2 -Institutional Plan, Kotak FMP 14M Series 2 - Retail Plan,Kotak FMP 15M Series 3 - Institutional Plan, Kotak FMP15M Series 3 - Retail Plan: CRISIL Composite Bond FundIndex, Kotak Liquid Regular Plan, Kotak Liquid InstitutionalPlan, Kotak Liquid Institutional Premium Plan, Kotak FloaterShort Term, Kotak Floater Long Term Scheme, Kotak EquityArbitrage Fund, Kotak FMP Series 26, Kotak FMP 3M Series20, Kotak FMP 3M Series 21, Kotak FMP 3M Series 22, FMP3M Series 24, Kotak FMP 15M Series 1, Kotak FMP 15MSeries 2, Kotak FMP 16M Series 1: CRISIL Liquid Fund Index,Kotak Income Plus, Kotak Twin Advantage Series II, KotakTwin Advantage Series III, Kotak Wealth Builder Series 1:CRISIL MIP Blended Index, Kotak Balance, Kotak DynamicFOF, Kotak Flexi FOF Series I, Kotak Flexi FOF Series II, Kotak

Dynamic Asset Allocation, Kotak Dynamic FOF: CRISIL BalancedFund Index.Benchmarks (as per Offer Document) used are: Kotak 30,Kotak MNC and Kotak Equity FOF - S & P CNX NIFTY; KotakGlobal India, Kotak Contra, Kotak Opportunities, Kotak TaxSaver, Kotak Lifestyle - S&P CNX 500, Kotak Tech - BSE Teck,Kotak Emerging Equity Scheme - BSE Midcap; Kotak Midcap– CNX Midcap; Kotak Gold ETF : Physical Gold

$ The Scheme’s performance will be benckmarked against theprice gold.

‡ NAV at which Units were first allotted under the respectiveoptions.

@ transfer to reserves will be done at the end of the year$$ applicable for the period between record date April 01, 2004

and July 20, 2004.†† applicable for the period between record date July 21, 2004

and March 31, 2005 for Individual / HUF unit holders.^^ applicable for the period between record date July 21, 2004

and March 31, 2005 for Other unit holders.† applicable to current period indicates Dividend paid from record

date Apr 01, 2007 to August 31, 2007 for Individual / HUFunit holders.

‡‡ applicable to current period indicates dividend paid from recorddate April 01, 2007 to August 31, 2007 for other unit holders.

5. Borrowing by the Mutual FundNo borrowing was made by any of the Schemes of KMMFtill the year ended March 31, 2007, and period ended August31, 2007.

22

Mr. Sanghavi more than 11 years of experience in Credit Appraisal & Credit Risk Management,Dealer Finance, Business Planning and Fund Management. He joined Kotak Group in 1997 andhas worked with Kotak Mahindra Primus Ltd., Kotak Mahindra Finance Ltd. & Kotak MahindraOld Mutual Life Insurance Ltd. Before joining Kotak group he had worked with IDBI for nearly2 years.

Experience of nearly 11 years in the field of financial services. Joined the AMC in February, 2004.Prior to that, Mr. Pisharodi was involved in the equity dealing function at SBI Funds ManagementPvt. Ltd. He started his career with Stock Holding Corporation of India Ltd., where he was involvedin objections clearance in the custodial services division and moved on to IDBI Capital Markets Pvt.Ltd., where he was part of the broking arm, and involved in equity sales and dealing.

Total experience of 6 years in the equity markets. Worked as an equity research analyst trackingthe automotive and cement sectors. His prior assignments were with the consulting firm Frost &Sullivan India as an automotive industry analyst and Indiainfoline.com as an equity research analyst.His last assignment was with Pioneer Intermediaries Pvt. Ltd in equity research.

Mr. Jain has close to 6 years of experience in financial engineering and equity research. He joinedthe equity markets in 2001 working with SBI Mutual Fund, ICICI Bank followed with SSKI securities.He joined the AMC in August 2005, as a part of the equity fund management team for evaluatinginvestment opportunities in equities.

Experience of 7 years. Having begun his career in foreign exchange banking at Corporation Bank,he then moved to IDBI Bank Ltd., where he managed money market treasury (trading and ALMmanagement). Prior to joining the Kotak Mahindra group, he also worked briefly at RanbaxyLaboratories Ltd., managing US$ 500 Million of foreign exchange treasury. Mr. Jain joined theAMC in 2003 as part of the Fund Management team.

Over six years of experience in the debt market. Before joining Kotak MF was working at SaharaIndia Financial Corporation managing the debt portfolio. Prior to that was working at Darashawsecurities as an IRS dealer.

Mr. Agrawal started his career with the AMC in September 2000 and moved to Debt FundManagement Team as research analyst in September 2001. Since April 2004, Mr Agrawal wasDealer in the debt fund management team



Mr. Krishna Sanghavi

33 years

Equity Fund Manager

Bachelor of Commerce,

Cost & Works Account from ICWAI,Master of Management Studies(Finance) from NMIMS, Mumbai

Chartered Financial Analyst from ICFAI

Mr. Sajit Pisharodi

35 years

Equity Fund Manager

Masters degree in BusinessAdministration

Mr. Abhijeet Dey32 years

Vice President

B.E. (Mechanical), Masters degree inManagement Studies from SydenhamInstitute of Management &Entrepreneurship Education, MumbaiUniversity.

Mr. Anurag Jain29 years

Equity Fund Manager

Chemical Engineer and holds a PostGraduate Diploma in Managementfrom IIM Kolkata

Mr. Ritesh Jain30 years

Debt Fund Manager

Graduate in Commerce from DelhiUniversity, and holds a post-graduation in Business Economicsfrom Indore University and a Diplomain Capital Markets from I.C.F.A.I.

Mr. Imran Sayed

37 years

Fund Manager - Debt

PGDBM from Symbiosis, awarded theCFA charter by CFA Institute and FRMcharter by GARP

Mr. Deepak Agrawal27 years

Debt Fund Manager

Post Graduate in Commerce fromMumbai University, a qualifiedchartered account and a companysecretary. Also cleared AIMR CFA Level

23

The Chief Executive Officer , Chief Strategist and GlobalHead Equities Asset Management and Research Team ofthe Fund are based on the registered office of the AMC on5th Floor, Bakhtawar, Nariman Point, Mumbai - 400 021.The Chief Operations Officer and the Compliance Officerare based at 91/92, 9th Floor, Sakhar Bhawan, 230, NarimanPoint, Mumbai - 400 021.

Fund Manager

Mr. Deepak Agrawal will be the Fund Manager for KotakQuarterly Interval Plan - Series1

Compliance Officer

Mr. V. R. NarasimhanKotak Mahindra Asset Management Company Limited91/92, 9th Floor, Sakhar Bhawan,230, Nariman Point, Mumbai 400 021

Auditors to the Scheme

Price Waterhouse252, Veer Savarkar Marg, Shivaji Park, Dadar,Mumbai - 400 028

C . THE REGISTRAR

The Mutual Fund has appointed Computer AgeManagement Services Pvt. Limited (‘CAMS’) to act as Registrarand Transfer Agent (‘the Registrar’) to the Scheme.Registered with SEBI under registration no. INR000002813,CAMS has been performing the functions of Registrar forall the Schemes of the Fund and the Trustee and the AMChave satisfied themselves that CAMS can provide the servicesrequired and has adequate facilities, including systemscapabilities and back up, to do so. As Registrar to theScheme, CAMS accepts and processes investors’ applicationsand advises the Mutual Fund in respect of the amountsreceived/disbursed for subscription/purchase/redemption.They also handle communications with investors, performdata entry services and dispatch Account Statements toUnitholders.

CAMS is responsible for carrying out diligently the functionsof Registrar and Transfer Agent, as set out in the agreemententered into with them and as per any modification madethereto from time to time.

The AMC has the right to appoint additional Registrars orchange the Registrar, if it deems fit.

D. THE CUSTODIANS

The Trustee has appointed Deutsche Bank A G, Mumbai andStandard Chartered Bank, Mumbai, as the Custodians (‘theCustodians’) for the Scheme. The Custodians are approvedby SEBI under Registration Nos. IN/CUS/003 and IN/CUS/06,respectively.

The Custodians keep in safe custody all the securities andother such instruments belonging to the Fund, ensuressmooth inflow/outflow of securities and such otherinstruments as and when necessary in the best interest ofthe investors; and ensures that the benefits due to theholdings are recovered.

The Custodians charge the Mutual Fund fees in accordancewith the terms of the custodian agreement:

The Trustee has the right to appoint additional Custodiansor change the Custodian, if it deems fit.

To perform custodial services for securities of the Fund, theCustodians are bound to exercise the same degree of careas it exercises in respect of its own property. It is obligatoryfor the Custodians to ensure that all the services renderedto KMMF are professional, prompt, cost effective and efficientin nature. A Custodian agreement, which, inter-alia, sets outthe responsibilities and functions of a Custodian, has beenentered into with the Custodians.

E. BANKER

The Banker to the New Fund Offer will be as under:

Name of the Bank HDFC Bank Limited

SEBI Registration No INBI00000063

Applications for the New Fund Offer will be accepted at thedesignated collection centres of the Bank, as mentionedelsewhere in this Offer Document.

The AMC has the right to appoint additional Bankers to theNew Fund Offer and change the Banker or any of the Bankersappointed subsequently, if it deems fit.

Mr. Narasimhan was associated with NSDL- the first depository in the country since its inception.He was designated as Senior Vice President at NSDL immediately before joining Kotak AMC. Hehas total experience of over 25 years of which four years was as faculty at university level, about10 years in a state level development financial institution, about three years in a national levelmarket regulator and about 10 years in the depository.

Mr. V. R Narasimhan50 years

Compliance Officer and CompanySecretary

Post graduate in commerce, businessadministration and member of theInstitute of company secretaries of India.



I V . I N V E S T M E N T O F F U N D

24

A. KOTAK QUARTERLY INTERVAL PLAN – SERIES 11. Type of SchemeAn Interval Debt Fund

2. Investments OptionsThe plan under the scheme will be available in two options:

a) Growth OptionUnder this option, there will be no distribution of incomeand the return to investors will only be by way of capitalgains, if any, through redemption, at prices related toApplicable NAV, of Units held by them.

b) Dividend (Payout and Reinvestment) OptionUnder this option, the Trustee may at any time decideto distribute by way of dividend, the surplus by way ofrealised profit and interest, net of losses, expenses andtaxes, if any, to Unitholders if, in the opinion of theTrustee, such surplus is available and adequate fordistribution. The Trustee’s decision with regard to suchavailability and adequacy of surplus, rate, timing andfrequency of distribution shall be final. The dividendwill be paid to only those Unitholders whose namesappear on the register of Unitholders of the Scheme /Option at the close of the business hours on the recorddate, which will be announced in advance. The Fund isrequired to dispatch dividend warrants within 30 daysof the date of declaration of the dividend.

The Unitholder in the Dividend Option will have the choiceof receiving the dividend or having it reinvested. DividendReinvestment option shall be available during the specifiedtransaction period only for purchase/switch-ins. Under thereinvestment option, dividend amounts will be reinvestedin the Dividend Reinvestment Option at the Applicable NAVannounced immediately following the record date. Eventhough the asset portfolio will be un-segregated, the NAVsof the growth option and dividend option respectively, inthe Scheme will be distinctly different after declaration ofthe first dividend to the extent of distributed income, taxand surcharge thereon paid, where applicable, and expensesrelating to the distribution of the dividends.

3. Investment ObjectiveThe investment objective of the Scheme is to generate returnsthrough investments in debt and money market instrumentswith a view to significantly reduce the interest rate risk.

There is no assurance that the investment objectiveof the Scheme will be achieved.The performance of Kotak Quarterly Interval Plan – Series 1will be measured against CRISIL Liquid Fund Index.

Portfolio TurnoverThe Scheme has no specific target relating to turnover ofsecurities. The turnover is due to the sale and purchase ofsecurities. This may arise due to more than one reason. Onewould be redemption of units by investors. The other wouldbe due to change or anticipation of change in the ratingsof securities.

4. Investment StrategyFor the purpose of achieving the investment objective, theScheme and the Plans thereunder will invest in a portfolioof Debt and Money Market securities normally maturing inline with the with the interval period of the Plan.

The AMC has an internal policy for selection of assets of theportfolio. The portfolio is constructed taking into account

ratings from different rating agencies, rating migration,credit premium over the price of a sovereign security, generaleconomic conditions and such other criteria. Such an internalpolicy from time to time lays down maximum/minimumexposure for different ratings, norms for investing in unratedpaper, liquidity norms, and so on. Through such norms, theScheme is expected to maintain a high quality portfolio andmanage credit risk well.

Investment in unrated debt securities will be made with theprior approval of the Board of the AMC. Such investmentswould be within the parameters approved by the Board ofthe Trustee. Where the proposed investment is not withinthe parameters as mentioned above, approval of the Boardsof both the AMC and the Trustee will be taken before makingthe investment. Investment in unrated debt securities willbe made subject to prescribed SEBI Regulations.

Investments may be made in instruments, which, in theopinion of the Fund Manager, are of an acceptable creditrisk and chance of default is minimum. The Fund Managerwill generally be guided by, but not restrained by, the ratingsannounced by various rating agencies on the assets in theportfolio.

The Scheme may invest in listed/unlisted and/or rated/unrateddebt or money market instruments/securities, Gilts/Government Securities, securities issued/guaranteed by theCentral/State Governments, securities issued by public/privatesector companies/corporations, financial institutions and/or money market instruments such as commercial paper,certificates of deposit, permitted securities under a repoagreement etc. These instruments may carry fixed rate ofreturn or floating rate of return or may be issued on discountbasis. The Scheme may also invest in call money/term moneymarket as per the RBI guidelines in this respect.

To avoid duplication of portfolios and to reduce expenses,the Scheme may invest in any other Scheme of the Fund tothe extent permitted by the Regulations. In such an event,as per the Regulations, the AMC cannot charge managementfees on the amounts of the Scheme so invested.

5. The Risk Profile and Investment PatternThe asset allocation under Kotak Quarterly Interval Plan –Series 1, under normal circumstances, will be as follows:

Investments Indicative Allocation Risk Profile

(% to net assets)

*Debt and Money Market 100 Low to mediuminstruments andGovernment Securities

* Debt instruments shall be deemed to include securitised debts(excluding foreign securitised debt) and investment insecuritised debts shall not exceed 50% of the net assets ofthe Scheme.

Pending deployment of the funds of the Scheme in termsof the investment objective, the Fund can invest the fundsof the Scheme in short term deposits of scheduledcommercial banks as per the guidelines given in SEBI Circularno. SEBI/IMD/CIR No. 1/91171/07 dated April 16 2007.

The Scheme may hold cash from time to time.

The asset allocation shown above is indicative and maychange for a short term on defensive considerations. Whenthe allocation of securitised debt in the portfolio goes above

25

50%, review and rebalancing will be conducted within 10Business days.

6. Overview of Debt MarketThe Indian Debt Market has grown in size substantially overthe years. The Reserve Bank of India has been taking stepsto make the Indian Debt Market efficient and vibrant. Broadly,the debt market is divided in two parts viz. the Money Marketand the Debt market. Money market instruments have a tenorof less than one year while debt market instruments have atenor of more than one year. Money market instruments aretypically commercial paper, certificates of deposit, treasurybills, trade bills, repos, interbank call deposit receipts etc.Debt market comprises typically of securities issued byGovernments (Central and State), Banks, FinancialInstitutions, and Companies in the private and public sector,Corporations, Statutory Bodies etc.

The debt securities are mainly traded over the telephonedirectly or through brokers. The National Stock Exchangeof India has a separate trading platform called the WholesaleDebt Market segment where trades put through memberbrokers are reported. The debt market is very liquid withthe daily trades in the region of Rs.2500-5000 crores.

RBI has introduced the Negotiated Dealing System (NDS)platform for screen-based trading in Government Securitiesand Money Market instruments. Most of the marketparticipants are now operating through NDS.

Promoted by major banks and financial institutions, TheClearing Corporation of India Ltd. (CCIL), was incorporatedon April 30, 2001. The CCIL guarantees the settlement ofall trades executed through NDS. The clearing andsettlement risks viz., Counter party Credit Risk andOperational Risk are mitigated by CCIL thereby facilitatinga smooth settlement process.

The following table gives approximate yields prevailing ason August 14, 2007 on some of the money and debt marketinstruments. These yields are indicative and do not indicateyields that may be obtained in future as interest rates keepchanging.

Instrument Yield Range(% per annum)

Inter bank Call Money 6.10 – 6.25

91 Day Treasury Bill 6.20 – 6.50

364 Day Treasury Bill 7.25 – 7.40

P1+ Commercial Paper 90 Days 7.75 – 7.90

3-Year Government of India Security 7.85 – 7.95



Generally, for instruments issued by a non-Governmententity, the yield is higher than the yield on a GovernmentSecurity with corresponding maturity. The difference, knownas credit spread, depends on the credit rating of the entity.Investors must note that the yields shown above are theyields prevailing on August 14, 2007 and they are likely tochange consequent to changes in economic conditions andRBI policy.

7. Fundamental Attributes and Changes ThereinThe open-ended character of the Scheme, the investmentobjective, the investment pattern, investment strategy termsof the Scheme restricted to liquidity provisions andaggregate fees and expenses to be charged, constitute thefundamental attributes.

In accordance with Regulation 18 (15A), the Trustee shallensure that there are no changes carried out in thefundamental attributes of the Scheme or the trust or feesand expenses payable or any other change which wouldmodify the Scheme and affect the interest of Unitholders,unless;

(i) a written communication about the proposed changeis sent to each Unitholder and an advertisement is givenin one English daily newspaper having nationwidecirculation as well as in a newspaper published in thelanguage of the region where the Head Office of theFund is situated; and

(ii) the Unitholders are given an option to exit at theprevailing Net Asset Value without any Exit Load.

The exercise of rights reserved by the Trustee under this OfferDocument vis-à-vis prospective investments in the Schemeshall not constitute change in the fundamental attributes ofthe Scheme (Refer paragraph ‘Power to remove difficulties’in Chapter VIII ‘Other Matters’).

B . POLICIES AND REGULATIONS APPLICABLE TOTHE SCHEME

i . Investment of Subscription MoneyOn receiving the minimum subscription amount for theScheme during the New Fund, the Fund may commenceinvestment in instruments / securities as indicated in thesub-paragraph ‘Risk Profile and Investment Pattern’ in thisOffer Document. On allotment of Units, the income earnedout of such investments will be merged into the investmentsof the Scheme.

ii. Borrowing PowerTo meet the temporary liquidity needs of the Scheme for thepurpose of repurchase, redemption, or payment of incometo Unitholders, each Scheme may borrow upto 20% of itsnet assets for a period of upto six months or as may bepermitted by the pertinent rules and regulations. The Fundmay tie up with various banks/institutions for the above-mentioned facility. The Scheme may bear the interest chargedon borrowings.

iii. Policy on Inter Scheme TransfersTransfer of Investments from one Scheme to another scheme,present or to be floated in future, may be made at thediscretion of the Fund Manager, as per the current regulations,only if:

Such transfer is done at the prevailing market pricefor quoted instruments on spot basis; and

The securities so transferred is/are in conformity withthe Investment objective of the scheme to which suchtransfer has been made.

In case of any amendment in the Regulations, transfer ofInvestments from one Scheme to another scheme, presentor to be floated in future, may also be made, subject to theapplicable Regulations at the time of transfer, at the discretionof the Fund Manager.

iv. Mode of InvestmentThe securities in which the Investment Manager may invest,under the Scheme will be through the primary as well assecondary markets, private placement, preferential/firmallotments, auctions/book building, and such others. Thesesecurities may be those listed on the various stock exchangesrecognised by SEBI or unlisted securities and the investmentwill be in conformity with the pertinent rules and regulations,applicable at the time of making the investment.

26

v. Investments by the AMC in the FundThe AMC reserves the right to invest its own funds in theScheme as may be decided by the AMC from time to timeand in accordance with SEBI Circular no. SEBI/IMD/CIR No.10/22701/03 dated December 12, 2003 regarding minimumnumber of investors in the Scheme/ Plan. Under theRegulations, the AMC is not permitted to charge anyinvestment management and advisory services fee on itsown investment in the Scheme.

vi. Investment Limitation and RestrictionsThe following investment limitations and other restrictions,inter-alia, as contained in the Trust Deed and the Regulationsapply to the Scheme:

1. No loans may be advanced by the Mutual Fund and theFund shall not borrow except to meet temporary liquidityneeds of the Fund for the purpose of repurchase,redemption of Units or payment of interest or dividendsto Unitholders, provided the Fund shall not borrow morethan 20% of the net assets of the Scheme and theduration of such borrowing shall not exceed a periodof six months or as may be permitted by the Regulationsfrom time to time.

2. The Scheme may invest in another scheme, under thesame AMC or any other mutual fund provided that theaggregate interscheme investments made by all schemesunder the same AMC or any other mutual fund shallnot exceed 5% of the net assets of the Fund or anyother limit as prescribed by the Regulations from timeto time. The AMC is not permitted by the Regulationsto charge any investment management and advisoryservices fee on such investments.

3. The Fund shall buy and sell securities only againstdeliveries. In no case shall the Fund engage in shortselling, carry forward transactions or Badla financing.

Provided that the Fund may enter into derivativestransactions in a recognized stock exchange for thepurpose of hedging and portfolio balancing inaccordance with the guidelines issued by SEBI.

4. Pending deployment of the funds of the Scheme interms of the investment objective, the Fund can investthe funds of the Scheme in short term deposits ofscheduled commercial banks as per the guidelines givenin SEBI Circular no. SEBI/IMD/CIR No. 1/91171/07 datedApril 16 2007.

5. No Scheme shall make any investment in:

a) any unlisted security of an associate or groupcompany of the Sponsor; or

b) any security issued by way of private placement byany associate or group company of the Sponsor; or

c) the listed securities of group companies of theSponsor in excess of 25% of its net assets.

6. The Scheme shall not invest in any Fund of FundsScheme, foreign securities and derivative instruments.

7. The Scheme shall not invest more than 15% of its NetAssets in debt instruments, including debentures issuedby a single issuer which are rated not below investmentgrade; such limit may be extended to 20% of the NetAssets of the Scheme with the prior approval of theBoard of the Trustee and the Board of the AMC;

Provided that such limit will not be applicable toinvestments in Money Market Instruments andGovernment Securities.

8. The Scheme shall not invest more than 10% of its Net

Assets in unrated debt instruments, includingdebentures, (Irrespective of residual maturity period)issued by a single issuer and the total investment insuch instruments shall not exceed 25% of the Net Assetsof the scheme. All such investments shall be as per theparameters approved by the Boards of the Trustee andthe AMC.

9. Wherever investments are intended to be of a long-term nature, the securities shall be purchased ortransferred in the name of the Fund, on account of theScheme concerned.

10. Debentures, irrespective of any residual maturity period(above or below one year), shall attract the investmentrestrictions as applicable for debt instruments asspecified under Clause 1 and 1 A of Seventh Scheduleto the Regulations.

Modifications, if any, in the Investment Restrictions onaccount of amendments to the Regulations shallsupercede/override the provisions of the Trust Deed.

Apart from the above investment restrictions, the Fundfollows certain internal norms vis-à-vis limiting exposureto scrips, sectors, etc. and these are subject to changefrom time to time. Presently, the following are some ofthe internal restrictions followed:

1. In the case of schemes that invest in debt and moneymarket instruments, investment shall be made inaccordance with ratingwise and issuerwise limits setfor the purpose by the Credit Committee of the AMC.

2. The Board of Trustee has laid down parameters forinvestments in unrated debt securities. However, evenwhere an investment in any unrated debt security(ies)is made as per the said parameters, the prior approvalof the Credit Committee and the Board of the AMCshall be obtained and subsequently, such investmentswill be reported to the Board of Trustee in theimmediately next Board Meeting. Where theproposed investment is not within the parametersas mentioned above, approval of the Boards of boththe AMC and the Trustee shall be taken beforemaking the investment.

vii. Computation of Net Asset ValueThe NAV of the Units of the scheme will be computed bydividing the net assets of the scheme by the number ofUnits outstanding on the valuation date.

viii. Valuation NormsThe Fund shall value its investments according to thevaluation norms, as specified in the Eighth Schedule of theRegulations, or such guidelines / recommendations as maybe specified by SEBI/AMFI from time to time.

The broad valuation norms are detailed below:

Traded SecuritiesTraded securities shall be valued at the last quoted price onThe National Stock Exchange (NSE). However, if the securitiesare not listed on NSE, the securities shall be valued at theprice quoted at the exchange where they are principallytraded.

When on a particular valuation day, a security has not beentraded on NSE but has been traded on another stockexchange, the value at which it is traded on that stockexchange shall be used.

When a security (other than debt securities) is not traded onany stock exchange on a particular valuation day, the valueat which it was traded on NSE or any other stock exchange

27

as the case may be, on the earliest previous day may beused, provided that such day is not more than thirty daysprior to the valuation date.

Thinly Traded Securities / Non-Traded Securities:Thinly Traded/ Non-Traded Debt SecuritiesA debt security (other than Government Securities) shall beconsidered as a thinly traded security if on the valuationdate, there are no individual trades in that security inmarketable lots (currently Rs 5 crore) on the principal stockexchange or any other stock exchange.

Non-traded/ Thinly traded Debt securitieswould be valued as per the norms set below:a) Thinly Traded/ Non Traded Debt Securities of Upto

182 Days to Maturity:As the money market securities are valued on the basis ofamortization (cost plus accrued interest till the beginningof the day plus the difference between the redemption valueand the cost spread uniformly over the remaining maturityperiod of the instruments) a similar process should beadopted for non-traded debt securities with residualmaturity of upto 182 days. Debt securities purchased withresidual maturity of upto 182 days are to be valued at cost(including accrued interest till the beginning of the day)plus the difference between the redemption value (inclusiveof interest) and cost spread uniformly over the remainingmaturity period of the instrument. In case of a debt securitywith maturity greater than 182 days at the time of purchase,the last valuation price plus accrued interest should be usedinstead of purchase cost. All other non-traded NonGovernment debt instruments shall be valued using themethod suggested below.

b) Thinly Traded /Non Traded Debt Securities of Over182 Days to Maturity :

For the purpose of valuation, all Non Traded Debt Securitieswould be classified into “Investment grade” and “NonInvestment grade” securities based on their credit ratings.The non-investment grade securities would further beclassified as “Performing” and “Non Performing” assets.

a. All Non Government investment grade debtsecurities, classified as not traded, shall be valuedon yield to maturity basis as described below.

b. All Non Government non investment gradeperforming debt securities would be valued at adiscount of 25% to the face value.

c. All Non Government non-investment grade non-performing debt securities would be valued basedon the provisioning norms.

The approach in valuation of non-traded debt securities isbased on the concept of using spreads over the benchmarkrate to arrive at the yields for pricing the non-traded security.

The Yields for pricing the non-traded debt security wouldbe arrived at using the process as defined below.

Step AA Risk Free Benchmark Yield is built using the governmentsecurities (GOI Sec) as the base. GOI Secs are used as thebenchmarks as they are traded regularly; free of credit risk;and traded across different maturity spectrums every week.

Step BA Matrix of spreads (based on the credit risk) are built formarking up the benchmark yields. The matrix is built basedon traded corporate paper on the wholesale debt segmentof an appropriate stock exchange and the primary market

issuances. The matrix is restricted only to investment gradecorporate paper.

Step CThe yields as calculated above are Marked-up/Marked-downfor ill-liquidity risk.

Step DThe Yields so arrived are used to price the portfolio

As per the recommendation of AMFI, CRISIL Bond ValuationMatrix is used to arrive at yields for pricing the portfolio.

Money Market InstrumentsInvestments in call money, bills purchased underrediscounting scheme and short term deposits with banksshall be valued at cost plus accrual. Money marketinstruments other than call money, bills purchased underrediscounting scheme and short term deposits with banks,shall be valued at the last traded price on the National StockExchange (NSE), and where not traded, shall be valued at thelast traded price plus amortization on the basis of the lasttraded price.

Government securitiesTraded and non- traded Government Securities shall be valuedas per the prices for Government Securities released by anagency suggested by AMFI for the sake of uniformity incalculation of NAVs across all mutual funds. Accordingly,traded and non-traded government securities are valued atprices obtained from The Credit Rating Information Servicesof India Limited.

Repo transactionsWhere instruments have been bought on ‘repo’ basis, theinstrument shall be valued at the resale price after deductionof applicable interest up to the date of resale. Where aninstrument has been sold on a ‘repo’ basis, adjustment shallbe made for the difference between the repurchase price(after deduction of applicable interest up to the date ofrepurchase) and the value of the instrument. If the repurchaseprice exceeds the value, the depreciation shall be providedfor and if the repurchase price is lower than the value, creditshall be taken for the appreciation.

The valuation guidelines as outlined above are as per theRegulations prevailing at present and are subject to changefrom time to time, in conformity with changes made by SEBI.

All other guidelines, not covered above and as specified inthe Mutual Fund Regulations, as well as any additions/modifications thereto as may be specified by SEBI from timeto time, shall be adhered to for the purpose of valuation.

b) Accrual of expenses and incomesAll expenses and incomes accrued up to the valuation dateshall be considered for the computation of net asset value.For this purpose, while major expenses like managementfees and other periodic expenses shall be accrued on a dayto day basis, other minor expenses and income need not beso accrued, provided the non-accrual does not affect theNAV calculations by more than 1%.

c) Recording of Securities and Units in the booksAny change in the portfolio of securities and in the numberof Units held shall be recorded in the books not later thanthe first valuation date following the date of transaction. Ifthis is not possible given the frequency of the Net AssetValue disclosure, the recording may be delayed up to a periodof seven days following the date of the transaction, providedthat as a result of the non-recording, the Net Asset Valuecalculations shall not be affected by more than 1%. In case

the Net Asset Value is affected by more than 1% due tosuch non-recording of transactions, the investors or theScheme, as the case may be shall be paid the difference inthe manner provided in the Regulations.

d) Calculation of NAVNAV of Units under the Scheme can be calculated as shownbelow:

Market or Fair Value of Current assets Current Liabilities andScheme’s investments + including Accrued – provisions including Income accrued expenses

No. of Units outstanding under the Scheme/Option.

NAV for the Scheme and the repurchase prices of the Unitswill be calculated and announced at the close of eachBusiness Day.

Computation of NAV will be done after taking into accountdividends declared, if any, and the distribution tax thereon,if applicable. The income earned and the profits realized inrespect of the Units remain invested and are reflected in theNAV of the Units.

ix. Accounting PoliciesIn accordance with the Mutual Fund Regulations, the Fundfollows the accounting policies and standards stated below:

1. For the Scheme, the AMC shall keep and maintainproper books of accounts, records and documents, soas to explain its transactions and to disclose at any pointof time the financial position of the Scheme and inparticular give a true and fair view of the state of affairsof the Fund.

2. For the purposes of the financial statements, theMutual Fund shall mark all investments to market andcarry investments in the balance sheet at market value.However, since the unrealised gain arising out ofappreciation on investments cannot be distributed,provision shall be made for exclusion of this item whenarriving at distributable income.

3. For investments, which are not quoted on a stockexchange, dividend income shall be recognised on thedate of declaration.

4. In respect of all interest-bearing investments, incomeshall be accrued on a day-to-day basis as it is earned.Therefore, when such investments are purchased,interest paid for the period from the last interest duedate upto the date of purchase shall not be treated asa cost of purchase but shall be debited to InterestRecoverable Account. Similarly, interest received at thetime of sale for the period from the last interest duedate up to the date of sale shall not be treated as anaddition to sale value but shall be credited to InterestRecoverable Account.

5. In determining the holding cost of investments and thegains or loss on sale of investments, the “average cost”method shall be followed.

6. Transactions for purchase or sale of investments shallbe recognized as of the trade date and not as of thesettlement date, so that the effect of all investmentstraded during a financial year is recorded and reflectedin the financial statements for that year. Whereinvestment transactions take place outside the stockmarket, for example, acquisitions through privateplacement or purchases or sales through private treaty,the transaction shall be recorded, in the event of apurchase, as of the date on which the Scheme obtains

an enforceable obligation to pay the price or, in theevent of a sale, when the Scheme obtains an enforceableright to collect the proceeds of sale or an enforceableobligation to deliver the instruments sold.

7. Where income receivable on investments has beenaccrued and has not been received for the periodspecified in the guidelines issued by SEBI, provision shallbe made by debiting to the revenue account the incomeso accrued in the manner specified by SEBI in this behalf.

8. When Units are repurchased, the difference betweenthe purchase price and the face value of the Unit, ifpositive shall be debited to reserves and, if negative,shall be credited to reserves, the face value being debitedto the capital account. Accordingly, upon redemptionof units, the net premium or discount to the face valueof units is adjusted against the unit premium reserveof the Scheme / Options, after an appropriate portionof the issue proceeds and redemption payout is creditedor debited respectively to the income equalisationreserve. The unit premium reserve is available fordividend distribution except to the extent it isrepresented by unrealised net appreciation in value ofinvestments.

9. When Units are sold an appropriate part of the saleproceeds shall be credited to an Equalisation Accountand when Units are repurchased an appropriate amountdebited to the Equalisation Account. The net balanceon this account shall be credited or debited to theRevenue Account. The balance on the EqualisationAccount debited or credited to the Revenue Accountshall not decrease or increase the net income of theFund but is only an adjustment to the distributablesurplus. It shall, therefore, be reflected in the RevenueAccount only after the net income of the Fund isdetermined. Accordingly, Income equalisation reserveis maintained by crediting (or debiting) the incomeequalisation reserve account in respect of purchase ofunits (or redemption of units) by an appropriateamount, which represents the distributable income atthe time of purchase (or redemption). The balance inthe income equalisation reserve account is transferredto the revenue account at the end of the year. The costof investments acquired or purchased shall includebrokerage, stamp duty, applicable taxes and any chargecustomarily included in the broker’s bought note. Inrespect of privately placed debt instruments any front-end discount offered shall be reduced from the cost ofthe investment.

10. For the Scheme, Initial Issue Expenses compriseBrokerage Agents’ commission, advertising andmarketing costs, registrar expenses, etc. and printingand dispatch costs. In case the Initial Issue Expenses areborne by the Scheme, the extent of expenses not metout of the entry load, if any, collected during the NewFund Offer, if any, may be amortised over the tenure ofthe scheme.

11. Load Charges:

Load collected, if any, shall be retained under a separateaccount in the Scheme and shall be used as stated inthe SEBI Regulations.

12. Following the issue of the Guidance Note on‘Accounting for Investments in the Financial Statementsof Mutual Funds’ by the Institute of CharteredAccountants of India (pursuant to the Eleventh Scheduleof the SEBI Regulations) net unrealised appreciation/

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NAV =

depreciation in value of investments (includingderivatives) is determined separately for each categoryof investments. Further, the change in net unrealisedappreciation / depreciation, if any, between the twoBalance Sheet dates/ date of determination isrecognised in the revenue account. Unrealisedappreciation is reduced from the distributable incomeat the time of income distribution. At the end of thefinancial year the balance in revenue account includingnet change in unrealised appreciation / depreciation invalue of investments (including derivatives) is transferredto the revenue reserve.

The identification and provisioning of Non PerformingAssets (Debt Securities) shall be in accordance with circularno. MFD/CIR/8/92/2000 dated September 18, 2000 andmodifications thereto vide circular no. MFD/CIR/14/088/2001 dated March 28, 2001, issued by SEBI. The circulardated September 18, 2000 also contains provisions for thetreatment of income accrued on Non Performing Assets(NPA), treatment of assets on reclassification as performingassets, receipt of past dues, disclosures of NPAs on a halfyearly basis along with the half yearly portfolio of therelevant Scheme etc.

The accounting policies and standards as outlined aboveare in accordance with the present Mutual Fund Regulationsand are subject to change in accordance with changes inthe Mutual Fund Regulations.

All other policies and standards as specified in the MutualFund Regulations, as well as any additions/modificationsthereto as may be specified by SEBI from time to time shallbe adhered to while preparing the books of accounts andfinancial statements of the Fund.

The Trustee may, at its discretion, require the Fund to followmore conservative accounting norms than as required by theRegulations in respect of non-performing assets or assets indefault.

x. Recording of Investment DecisionsIn respect of debt instruments, records in support of eachinvestment decision will be maintained. Investments inGovernment securities, as they do not carry any credit risk,will be based on the relevant portfolio strategy. In respectof corporate bonds, as they carry a credit risk, in addition tothe duration objective, exposure limits for investment in aparticular company will be determined from time to time,and investments in these companies will be made withinthese exposure limits.

The decision of making investments will be exercised by theFund Managers based on the relevant norms/policy approvedby the Board of the AMC. The role of Mr. Sandesh Kirkire,Chief Executive Officer of the AMC revolves around ensuringthat due diligence is exercised while making investmentdecisions, that processes and procedures are followed, andreview is undertaken vis-à-vis norms, policies, mechanismsetc. laid down by the Board of the AMC. Performance of theScheme will periodically be tabled before the Boards of theAMC and the Trustee respectively. Performance of the Schemevis-à-vis benchmark indices would be monitored by theBoards of the Trustee and the AMC periodically. Further, theBoards of the Trustee and the AMC will also review theperformance of the Scheme in the light of performance ofthe mutual fund industry as published from time to time byindependent research agencies and financial newspapersand journals.

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V . U N I T S

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A. UNITS ON OFFER1. Minimum Subscription AmountThe Fund seeks to collect a minimum subscription amountof Rs. 50,00,000/- (Rupees Fifty Lakhs Only) under the Planduring the New Fund Offer. In the event this amount is notraised during the New Fund Offer, the amount collected willbe refunded to the applicants as mentioned under sub-paragraph ‘Refund’ under paragraph ‘Purchase of Units’ inthis Offer Document.There is no upper limit on the total amount that may becollected. After the minimum subscription amount has beencollected, all valid applications are assured of full allotment.

2. New Fund Offer PeriodThe New Fund offer for the Scheme is from September 17,2007 to September 18, 2007.

The Trustee also reserves the right to increase / decrease thenumber of business days under the Specified Transaction Periodand alter / modify / change the Specified Transaction Period.

Such revision shall be notified by way of a notice suitablydisplayed as mentioned above.

3. New Fund Offer PriceThe New Fund Offer price of Kotak Quarterly Interval Plan– Series 1 will be Rs. 10 per Unit.

4. Extension of New Fund OfferThe Trustee reserves the right to extend the closing date,subject to the condition that the New Fund Offer shall notbe kept open for more than 30 days. Any such extensionshall be announced by way of a notice in one nationalnewspaper.

5. Continuous OfferThis being an interval fund, the Units will be offered forPurchase/Switch-in by investors after the New Fund Offer ofthe Scheme only during the Specified Transaction Period,however, the Unitholders can Redeem/Switch-out their unitsat the redemption price as mentioned under sub-paragraph‘Redemption Price’ under paragraph ‘Redemption of Units’mentioned elsewhere in this Offer Document.

6. ListingThe Scheme, after the New Fund Offer, on a continuousbasis will offer for Redemption of Units at NAV related priceon every Business Day, subject to applicable exit load.However, no exit load will be levied when redemption iseffected on the Specified Transaction date. Hence, it is notnecessary to list the units on the stock exchange.

The Trustee, however, has the right to list the Units under theScheme on any stock exchange/s for better distribution andadditional convenience to existing/prospective Unitholders.Even if the Units are listed, the Fund may continue to offerredemption facility as specified in this Offer Document. Anylisting will come only as an additional facility to investors whowish to use the services of a stock exchange for the purposeof transacting business in the Units of the Scheme.

7. Minimum Purchase and Redemption AmountThe minimum purchase during the New Fund Offer andredemption amount for Kotak Quarterly Interval Plan - Series1is as follows:Purchase during New Fund OfferFor both Growth and Dividend Options Rs. 5,000/- eachand in multiples of Re.1, thereafter. In case of investorsopting to switch into the Scheme from existing Schemes/Plan/Options of the Fund during the NFO period and

Specified Transaction Period, the minimum amount is Rs.5000 and in multiples of Re. 0.01 thereof.

Redemption from existing Unit AccountsFor both Growth and Dividend Options each Rs. 1,000 or100 Units ** If the holding is less than Rs. 1,000 or 100 Units, the entire

balance will be redeemed as and when redemption requestis received from the investor.

8. Applicable NAV for the schemeFor the purpose of all purchase, redemption and switchtransactions, the Applicable NAV is as follows:

For Valid Applications acceptedUpto 3 p.m. on a Business Day, the NAV of such Business Day

After 3 p.m. on a Business Day, the NAV of the followingBusiness Day

Further, where the AMC or the Registrar has provided afacility to the investors to redeem /switch-out of the Schemethrough the medium of Internet by logging onto specificweb-sites or telephone and where investors have signed upfor using these facilities, the Applicable NAVs will be asprovided above.

9. Facilities Offered to Investors under the Schemea) Nomination FacilityIn terms of SEBI Notification dated June 2002 nominationcan be made only by individuals on their on behalf, singlyor jointly. If the Units are held jointly, all joint Unit Holderswill sign the nomination form. Other than an individual, noperson including but not limited to a Company, BodyCorporate, PSU, AOP, BOI, Society, Trust, Partnership Firm,Karta of HUF, Bank, FII and a holder of POA can nominate.

Unit Holder/s can, at the time an application is made or bysubsequently writing to a Investor Service Centre, request fora Nomination Form in order to nominate any one person toreceive the Units upon his/her death subject to the necessarycompletion of the necessary formalities eg. Proof of the deathof the Unit Holder, signature of the nominee, furnishing proofof guardianship in case the nominee is a minor, execution ofIndemnity Bond of or such other documents as may berequired from the nominee in favour of and to the satisfactionof the Fund, the AMC, or the Trustee.If the nominee is a minor, then the name and address of theguardian of such nominee shall be provided. An NRI can bea nominee subject to the Exchange Control Regulationsfrom time to time. Other than an individual, no personincluding but not limited to Company, Body Corporate, PSU,AOP, BOI, Society, Trust (other than religious or charitabletrust), Partnership Firm, Karta of HUF, Bank, FII, and a holderof POA can be a nominee.

Nomination in respect of the Units stands rescinded upon theredemption of Units. Cancellation of nomination can be madeonly by those individuals who hold Units on their own behalfsingly or jointly and who made the original nomination. Oncancellation of the nomination the nomination shall standrescinded and the AMC/Fund shall not be under any obligationto transfer the Units in favour of the nominee.

Transfer of Units/payment to the nominee of the sums shallbe valid and effectual against any demand made upon theTrust/AMC and shall discharge the Trust/AMC of all liabilitytowards the estate of the deceased Unit Holder and his/hersuccessors and legal heirs, executors and administrators.

If the Fund or the AMC or the Trustee were to incur, suffer,or any claim, demand, liabilities, proceedings or actions are

31

filed or made or initiated against any of them in respect ofor in connection with the nomination, they shall be entitledto be indemnified absolutely for any loss, expenses, costs,and charges that any of them may suffer or incur absolutelyfrom the investor’s estate.

b) TransmissionIn case Units are held in a single name by the Unit Holder,Units shall be transmitted in favour of the nominee where theUnit Holder has appointed a nominee upon production ofdeath certificate or any other documents to the satisfactionof the Fund, AMC/Trustee or Registrar. If the Unit Holder hasnot appointed a nominee, the Units shall be transmitted infavour of the Unit Holder’s executor/administrator of its estate/Legal heir(s) as the case may be on production of deathcertificate or any other documents to the satisfaction of theFund, AMC/Trustee or Registrar.

In case Units are held jointly by more than one registered UnitHolder, then upon death of any one of the Unit Holder, Unitsshall be transmitted in favour of the surviving named Holder(s)on production of a death certificate or any other documentto the satisfaction of the Fund, AMC/Trustee or Registrar.The rights in the Units will vest in the nominee, if the jointholders have nominated any person, upon the death of allJoint Unit Holders upon the nominee producing a deathcertificate or any other document to the satisfaction of theFund, AMC/Trustee or Registrar.

c) Fractional UnitsPurchases, redemptions and account balances of Units arecalculated upto three decimal places. Fractional Units in noway affect the investor’s ability to redeem the Units, eitherin part or in full, standing to the credit of the Unitholder.

d) SwitchingA switch out has the effect of redemption from the Scheme.All terms and conditions pertaining to redemption in theScheme shall apply to a switch out.

Unitholders under the Scheme have the option to switch-out part or all of their unit holdings in the Plans/Optionsunder the Scheme to any another Scheme/Plan/Option ofthe Fund, or within the Scheme from one Plan to anotherat applicable loads. However, no exit load would be charged,where the investor chooses to switch his investments intoany other scheme / plan/ option of Kotak Mutual Fund onthe Specified Transaction Date, and from one option toanother option under the same scheme on any day.

Switch-in into the Scheme/Plan/Option can be done onlyduring the Specified Transaction Period

Systematic Investment Plan (SIP), Systematic Withdrawal Plan(SWP) and Systematic Transfer Plan (STP) are not availableunder this Scheme.e) How to SwitchThe request for a switch can be either in terms of amountor in terms of the number of Units. Instructions for switchingmay be provided by completing a Switch Request form,which would be available at any of the Official AcceptancePoints or at the office of the Registrar at Chennai. The dulycompleted form must be submitted at any of the OfficialAcceptance Points or at the office of the Registrar at Chennai,on any Business Day.

The switch is effected by redeeming Units from a Scheme/Plan/Option and investing the net proceeds in the otherScheme/Plan/Option.

f) Transaction through electronic modeThe AMC may from time to time offer various facilities tothe unitholders through electronic mode such as internet,mobile phones, Kiosk, etc. to facilitate transactions in units

of the scheme. The AMC may enter into such arrangements/agreements as it may deem fit to give effect to the above.

However, investors intending to take benefit of these facilitiesshould note that they should use these services at their ownrisk. The Fund, the AMC, the Trustee, along with its directors,employees and representatives shall not be liable for anydamages or injuries arising out of or in connection with theuse of internet, mobile phones, Kiosk, etc or its non-useincluding, without limitation, non-availability or failure ofperformance, loss or corruption of data, loss of or damageto property (including profit and goodwill), work stoppage,computer failure or malfunctioning, or interruption ofbusiness; error, omission, interruption, deletion, defect, delayin operation or transmission, computer virus, communicationline failure, unauthorised access or use of information.

B . PURCHASE OF UNITS1. Who can invest?The following are eligible to apply for purchase of the Units:

Resident Indian Adult Individuals, either singly or jointly(not exceeding three).Parents/Lawful guardians on behalf of Minors.Companies, corporate bodies, registered in India.Registered Societies and Co-operative Societiesauthorised to invest in such Units.Religious and Charitable Trusts under the provisions of11(5) of the Income Tax Act, 1961 read with Rule 17Cof the Income Tax Rules, 1962.Trustees of private trusts authorised to invest in mutualfund schemes under their trust deeds.Partner(s) of Partnership Firms.Association of Persons or Body of Individuals, whetherincorporated or not.Hindu Undivided Families (HUFs).Banks (including Co-operative Banks and Regional RuralBanks) and Financial Institutions and InvestmentInstitutions.Non-Resident Indians/Persons of Indian origin residentabroad (NRIs) on full repatriation or non-repatriationbasis.Other Mutual Funds registered with SEBI.Foreign Institutional Investors (FIIs) registered with SEBI.International Multilateral Agencies approved by theGovernment of India.Army/Navy/Air Force, Para-Military Units and other eligibleinstitutions.Scientific and Industrial Research Organizations.Provident/Pension/Gratuity and such other Funds as andwhen permitted to invest.Universities and Educational Institutions.

Other schemes of Kotak Mahindra Mutual Fund may, subjectto the conditions and limits prescribed in the SEBI Regulationsand/or by the Trustee, AMC or Sponsor, subscribe to theUnits under the Scheme.

The list given above is indicative and the applicable law, ifany, shall supersede the list.

2. Purchase PriceFor purchase during New Fund Offer for the scheme will beRs. 10/- per Unit

3. Mode of Paymenta) Resident InvestorsResident investors may make payment for the Units by anyof the following means:

By local Cheques payable in the city in which the

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application form is submitted.

By a Demand Draft payable in the city in which theapplication form is submitted and drawn on a bankwhich is a member of the Bankers Clearing House ofthat city.

Bank Charges for issue of DDs / Fund Transfer shall be borneby the Scheme only in respect of investors who invest fromlocations where there are no ISCs / Transaction Points.

The ceiling on Bank Charges would be restricted to SBI DDCharges. Where Demand Drafts, as stated above are issued,the investor must, in the Application Form clearly indicatethe Investment Amount, DD Charges and Net Amount. Inthe absence of this indication, units will be allotted for theamount appearing on the face of the instrument. The AMC/ Fund would not accept any requests for refund of DDCharges.

In any other manner that may be, from time to time,accepted by the AMC for the smooth and efficientfunctioning of the Scheme.

PLEASE NOTE THAT THE FOLLOWING ARE NOT ACCEPTEDOutstation Cheques

Post Dated Cheques

All cheques and drafts should be crossed “Account PayeeOnly” and drawn in favour of KOTAK QUARTERLYINTERVAL PLAN - SERIES 1

b) NRIsRepatriation BasisRBI has granted a general permission to Mutual Funds, whichare referred to in clause (23D) of Section 10 of the IncomeTax Act, 1961, to issue and repurchase Units of the Schemethat are approved by SEBI, to NRIs. Further general permissionhas also been granted to send such Units to NRIs at theirplaces of residence or location as the case may be. NRIapplications on a repatriation basis will be accepted, if theamount representing the investment is received by inwardremittance through normal banking channels or by debit toNRE/FCNR account of the non-resident investor maintainedwith an authorised dealer in India.Non-Repatriation BasisIn the case of NRIs/Persons of Indian Origin seeking to applyfor Units on a non-repatriation basis, the applications willbe accepted, if the amount representing the investment isreceived by inward remittance through normal bankingchannels or by debit to the NRE/FCNR/NRO account of thenon-resident investor maintained with an authorised dealerin India.

Payment whether on a repatriation or a non-repatriationbasis, shall be made by Cheques/Demand Drafts crossed“Account Payee Only”, in a similar fashion as in the caseof resident investors.

c) FI IsRBI has granted a general permission to Mutual Funds, whichare referred to in clause (23D) of Section 10 of the IncomeTax Act, 1961, to issue and repurchase Units of the Schemethat are approved by SEBI to and from FIIs. Further a generalpermission has also been granted to send such Units /instruments out of India to their global custodians.Applications of FIIs on a repatriation basis will be acceptedif the amount representing the investment is received byinward remittance through normal banking channels or outof funds held in Foreign Currency Account or Non-residentRupee Account maintained by the FIIs with a designatedbranch of an authorised dealer with the approval of RBI.

d) Applicants under Power of Attorney,

Companies/Corporate Bodies / RegisteredSocieties/ Trusts/Partnerships

In the case of an application under a Power of Attorney orby a limited company, body corporate, registered society,trust or partnership, the relevant Power of Attorney or therelevant resolution or authority to make the application orthe Trust Deed or the Partnership Deed as the case may be,or duly certified copy thereof, along with a certified copy ofthe Memorandum and Articles of Association and/or bye-laws must be lodged at the office of the Registrar at Chennai,within 7 (Seven) days from the date of the application underthe New Fund, failing which the application is liable to berejected or a request for redemption may not be processed.Note: The Trustee, at its discretion, may alter or add othermodes of payment.

4. Where to submit application forms?Investors may submit completed Application Forms as under:

During the New Fund Offer

1. KMAMCL Authorised Collection Centres

2. Designated Collection BanksThe addresses of the ISCs, Transaction Points,Registrar and Collection Banks respectively aregiven elsewhere in this Offer Document.Application Forms, if sent by post, must be accompanied byCheques or Demand Drafts payable at the place where theapplication is being sent, and sent to any of the placesmentioned above.

As per the directives issued by SEBI it is mandatoryfor an investor to declare his/her bank accountnumber. To safeguard the interest of Unitholders fromloss or theft of their refund orders/redemption cheques,investors are requested to provide their bank details in theApplication Form.Any application may be accepted or rejected at the sole andabsolute discretion of the Trustee.

5. Choice of Option under the SchemeIf the applicant does not indicate his choice of Option in theApplication Form, the Fund accepts the application as beingfor the Dividend Option. If the applicant does not indicatethe choice of the dividend payout / re-investment in theapplication form, then the Fund will accept it as anapplication for reinvestment option.

The Investor, however, is free to switch from the Scheme/Plan/Option to any other open-ended Scheme/Plan/ Optionof his choice as mentioned under sub - paragraph‘Switching’ under paragraph ‘Facilities Offered to Investorsunder the Scheme’ in this Offer Document.

6. Joint ApplicantsIf an Account has more than one holder, only the first-namedholder (as determined by the records of the Registrar) willreceive all notices and correspondence with respect to theAccount. Such Unitholder will receive the proceeds of anyredemption requests or dividends or other distributions. Inaddition, such holder will have the voting rights, aspermitted, associated with such Units.

In the case of holdings specified as ‘jointly’, all requestshave to be signed by all the joint holders. However, in thecase of holdings specified as ‘any one or survivor’, any oneof the joint holders may sign such requests.

7. AllotmentSubject to the receipt of the specified Minimum SubscriptionAmount for the Scheme, full allotment will be made to allvalid applications received during the New Fund Offer. TheTrustee reserves the right, at their discretion without

33

assigning any reason thereof, to reject any application.Allotment will be completed within 30 (Thirty) days afterthe closure of the New Fund Offer.

8. Account Statement / Unit CertificateAn Account Statement, stating the number of Units allotted,will be sent to each Unitholder within 30 (Thirty) days fromthe date of the closure of the New Fund Offer of the Scheme.The Account Statement will be non-transferable.

Non-transferable Unit Certificates will be sent, if an applicantso desires, within 30 (Thirty) days after the receipt of arequest for the certificate. Units held, either in the form ofAccount Statements or Unit Certificates are non-transferable. The Trustee reserves the right to make the Unitstransferable at a later date subject to the Regulations issuedfrom time to time.

All Units rank pari passu amongst Units within the sameScheme/Plan/Option as to assets and earnings.

9. RefundRefund of subscription money to applicants in the case ofminimum subscription amount not being raised or applicationsrejected for any other reason whatsoever, will be made within30 (Thirty) days from the end of the New Fund Offer. No interestwill be payable on any subscription money so refunded withinthe said 30 (Thirty) days. If the Mutual Fund refunds the amountafter the said 30 (Thirty) days, interest at the rate of 15% p.a.will be paid to the applicant and borne by the AMC for theperiod from the day following the date of expiry of the said 30(Thirty) days until the actual date of the refund. Refund orderswill be marked “Account Payee only” and drawn in thename of the applicant in the case of a sole applicant and in thename of the first applicant in all other cases. In both cases, thebank name and bank account number, as specified in theapplication, will be mentioned in the refund order. The bankand/or collection charges, if any, will be borne by the applicant.

All refund cheques will be mailed by Registered Post or as perthe Regulations.

C . REDEMPTION OF UNITSThe Units can be redeemed at the Redemption Price(mentioned elsewhere in this Offer Document).Units purchased by cheque may not be redeemed until afterrealisation of the cheque.

A Unitholder has the option to request for redemption eitherin amount in rupees or in number of Units. If the redemptionrequest indicates both amount in rupees and number ofUnits, the latter will be considered as being requested.Where a rupee amount is specified or deemed to bespecified for redemption, the number of Units redeemedwill be computed as the amount redeemed divided by theRedemption Price. Alternatively, a Unitholder can requestclosure of his account, in which case, the entire Unit balancelying to the credit of his account will be redeemed.

The Fund reserves the right to redeem the entire amountlying to the credit of the Unitholder’s account in the Scheme/Plan/Option if the Redemption request amount exceeds thebalance lying to the credit of the Unitholder’s said account.The number of Units redeemed is subtracted from theUnitholder’s account and a statement to this effect is issuedto the Unitholder.1. Redemption PriceThe Redemption Price calculated is explained in thefollowing example:

Redemption Price = Applicable NAV$ x (1 - Exit Load)*Eg: If Applicable NAV = Rs. 10/-; Exit Load =1.00%, thenRedemption Price = 10 x (1-1.00%)

= Rs. 9.90/-

The Redemption Price for every Business Day is published intwo daily newspapers.

The repurchase price shall not be lower than 95% of the NAV.

2. How to Redeem?Pre-printed redemption request form will be sent to theUnitholders along with the Account Statement. These formswill also be available at any of the Investor Service Centresand at the office of the Registrar at Chennai.The fully completed form, can be submitted at any of the InvestorService Centres listed in the Offer Document or can be sent tothe office of the Registrar at Chennai, in person or by post.

Where the Unitholder has opted to transact through the Internet,he may redeem his units through the website of the Registrar,i.e. www.camsonline.com and/or through any other website,through which redemption may be facilitated in future.

The Unitholder may either request mailing of the redemptionproceeds to his/her address or to be retained at the ISC forcollection by him/her. If the Unitholder opts for the “D-Kredit” facility, he can receive the amount by a direct creditto his bank account.

3. Liquidity / Specified Transaction PeriodKotak Quarterly Interval Plan - Series1 will have SpecifiedTransaction Period once in a quarter, during which periodinvestor can Subscribe / Redeem / Switch-ins/ Switch-outs,without payment of any entry / exit load. However, the AMCreserves the right to change / alter the “Specified TransactionPeriod”, depending on the prevailing market conditions andto protect the interest of the investors.

Specified Transaction Period for Purchases/ Switch-ins/Redemptions/ Switch-outs would generally be One businessday immediately after the end of the quarterly interval period.In case such a day happens to be a non-working day, thenthe immediate next working day shall be considered as theSpecified Transaction Period.Redemption and switch-outs are allowed on all other workingdays other than the Specified Transaction Period also, subjectto payment of applicable exit load.

Subscription for purchase/switch-in of units will be acceptedonly on / during the Specified Transaction Period.

4. Payment of ProceedsRedemption proceeds will be paid by cheques, marked“Account Payee only” and drawn in the name of the soleholder/first-named holder (as determine by the records ofthe Registrar). The Bank Name and No., as specified in theRegistrar’s records, will be mentioned in the cheque, whichwill be payable at par at all the cities designated by the Fundfrom time to time. If the Unitholder resides in any othercity, he will be paid by a Demand Draft payable atthe city of his residence.Redemption cheques will generally be sent to the Unitholder’saddress, (or, if there is more than one joint holder, the addressof the first-named holder) as per the Registrar’s records, bycourier within 3 (Three) Business Days from the day when thevalid request is accepted at the ISC, but in any case, not laterthan 10 (Ten) Business Days from the date of redemption.(Please refer sub-paragraph ‘Applicable NAV’ under paragraph‘Units on Offer’ in this Chapter for cut-off times for receivingthe redemption request).

Redemption proceeds may also be paid to the Unitholder inany other manner viz., through ECS, Direct Credit in to Bankaccount, RTGS facility offered RBI or through Banker’s cheque,etc as the AMC may decide, from time to time for the smoothand efficient functioning of the Scheme.

5. Redemption by NRIs/FIIsCredit balances in the account of NRIs may be redeemed by

34

such investor in accordance with the procedure describedabove in paragraph 2. Such redemption proceeds (afterpayment of taxes) may be,

(a) credited at the NRI investor’s option, to his NRO accountwhere the payment for the purchase of the Units soldwas made out of funds held in NRO account, or

(b) remitted abroad or at the NRI investor’s option, creditedto his NRE/FCNR/NRO account, where the Units werepurchased on repatriation basis and the payment forpurchase of the Units sold was made by inwardremittance through normal banking channels or out ofthe funds held in NRE/FCNR account.

In case of an FII, the designated branch of an authoriseddealer may allow remittance of net redemption proceeds (afterpayment of taxes) or the same may be credited to its NonResident Rupee Account or the Foreign Currency Account.

6. Effect of Redemptionsa) On the FundAfter every redemption, the Unit Capital and Reserves of therelevant Scheme stand reduced by an amount equivalent tothe product of the number of Units redeemed and theApplicable NAV as on the date of redemption. Units onceredeemed are extinguished and cannot be re-issued.

b) On the Unitholder’s accountThe balances in the Unitholder’s account stand reduced bythe number of Units redeemed. The following tableillustrates a typical redemption case wherein an exit load of1.00% is charged.

Calculation of Redeemed If Exit Load of 1.00% isUnits explained chargeable

Unit Balance before Redemption 2305 .235

NAV on date of redemption (A) Rs. 10.412

Exit Load Chargeable (B) Rs. 0.1041(10.412 x 1.00%)

Redemption Price (C) = (A) – (B) 10 .3079

If Redemption request is in Rs Rs. 3500

Redemption price Rs. 10.3079(10.412-0.1041)

No. of Units redeemed 339 .546(3500 ÷ 10.3079)

No of Units left 1965 .689(2305.235-339.546)

If Redemption request is in Units 350 Units

Redemption amount will be Rs. 3607.758(350 x 10.3079)

No of Units left 1955 .235(2305.235-350)

Note: The example in the table above, which includes the loadand NAV figures, is hypothetical and assumed for the sole purposeof the illustration.

7. Right to Limit RedemptionThe Board of Directors of the Trustee and the AMC may, inthe general interest of the Unitholders of the Scheme underthis Offer Document and keeping in view the unforeseencircumstances/unusual market conditions, limit the totalnumber of Units which may be redeemed on any BusinessDay to 5% of the total number of Units then issued andoutstanding under the Scheme or to such other percentageas the said Boards may determine. In such a case, the

approval of both the Boards, giving details of circumstancesand justification for the proposed action shall be informedto SEBI in advance.

Any Units, which, by virtue of these limitations, are notredeemed on a particular Day, are carried forward forredemption to the next Day for which NAV is declared, in theorder in which the requests for redemption were received.Redemptions so carried forward are priced on the basis ofthe Redemption Price of the Day on which redemption ismade. Under such circumstances, to the extent multipleredemption requests are received at the same time on asingle Business Day, redemptions will be made on pro-ratabasis, based on the size of each redemption request, thebalance amount being carried forward for redemption tothe next Day(s) for which NAV is declared.

8. Suspension or Redemption of UnitsThe redemption of Units may be suspended temporarily orindefinitely when any of the following conditions exist:

1. The markets stop functioning or trading isrestricted;

2. The banking system or securities settlement system isnot function for any reason including but not limitedto strike by bank employees

3. Extreme volatility occurs in the money market /debenture/bond market / foreign exchange market,which, in the opinion of the Investment Manager, isprejudicial or to the disadvantage to the interests of theinvestors;

4. There is a natural calamity, civil strife, completebreakdown of law and order, war, act of God or forcemajeure; and or

5. SEBI, by order, so directs.

In case of suspension of redemption, the approval of theBoards of Directors of the Trustee and the AMC, givingdetails of circumstances and justification for the proposedaction shall be informed to SEBI in advance.

9. Unclaimed Redemption and Dividend AmountAs per circular no. MFD/CIR/9/120/2000, dated November24, 2000 issued by SEBI, the unclaimed redemption anddividend amounts shall be deployed by the Fund in call moneymarket or money market instruments only. The investmentmanagement fee charged by the AMC for managing suchunclaimed amounts shall not exceed 50 basis points. Thecircular also specifies that investors who claim these amountsduring a period of three years from the due date shall be paidat the prevailing Net Asset Value. Thus, after a period of threeyears, this amount can be transferred to a pool account andthe investors can claim the said amounts at the NAV prevailingat the end of the third year.

In terms of the circular, the onus is on the AMC to make acontinuous effort to remind investors through letters to taketheir unclaimed amounts. The information on amountunclaimed and number of such investors for each Schemeshall be disclosed in the annual report sent to the Unitholders.

The AMC will invest the unclaimed redemption/dividendamounts under the Scheme in bank fixed deposits. In caseof a request from the investor claiming the unpaid redemption/dividend amounts due to him; the investor will be paid thesame along with the interest on such investment. Also theinvestors will be reminded through periodic communicationsto claim their unclaimed amounts. The AMC may charge feesfor managing these unclaimed redemption/dividend amountsas permitted under the Regulations.

A. LOAD STRUCTURE OF THE SCHEMEExit Load: 1%, if redeemed anytime other than thespecified transaction period for Redemptions/Switch-outs.No exit load will be charged on redemption during theSpecified Transaction Period for Redemptions/ Switch-outs.B . FEES AND EXPENSES OF THE SCHEMEAs per the provisions of the Regulations, as amendedup to date, the following fees and expenses areapplicable to the Scheme:1. Expenses of Initial IssueAs per the Regulations, the Initial Issue expenses

V I . L O A D S A N D R E C U R R I N G E X P E N S E S

35

Scheme Launched in Initial Issue Borne by Borne by the AmountExpenses AMC Scheme** available for(Rs. Lakhs) (Rs. Lakhs) (Rs. Lakhs) investment

KotakGilt December 1998 Combined116 In full – 100Investment, Kotak Gilt SavingsKotak 30

Kotak Bond, October 1999 58 In full – 100Kotak Balance 133 48 85 98.50

Kotak Tech Kotak MNC February 2000 556 234 322 98.50115 49 66

Kotak Liquid October 2000 7.62 In full - 100

Kotak Bond Short Term April 2002 2.77 In full - 100

Kotak FMP (1) May 2002 2.90 In full - 100

Kotak FMP (2) June 2002 7.93 In full - 100

Kotak FMP (3) June 2002 - - - -

Kotak FMP (4) July 2002 - - - -

Kotak FMP (5) July 2002 - - - -

Kotak FMP (6) March 2003 4.52 In full - 100


Kotak Floater Short Term Scheme July 2003 1.11 In full - 100

Kotak Income Plus October 2003 259.82 1.50 258.31 98

Kotak Dynamic Income December 2003 2.77 In full - 100

Kotak Global India December 2003 1014.57 1.09 1013.48 97.17


Kotak Equity FOF July 2004 695.46 0.21 695.25 96.25

Kotak Opportunities July 2004 187.27 0.06 187.21 97.18

Kotak Floater Long Term Scheme August 2004 4.68 In full - 100

Kotak Flexi Debt Scheme November 2004 1.94 In full - 100

Kotak Midcap December 2004 1932.08 - In full 96.59

Kotak FMP Series 8 February 2005 0.98 In full - 100

Kotak FMP Series 1 March 2005 4.38 In full - 100



comprising Broker/Agent’s commission, advertising,publicity, marketing, registrar expenses, etc. shall notexceed 6% of the amount collected under the Scheme.For the Scheme and Plan thereunder, any such expensesshall be borne by AMC.As such, for every Rs. 100 contributed by the investor,the entire amount of Rs. 100 will be available to theScheme for investment.2. Initial Issue Expenses incurred by the SchemesThe initial issue expenses for all the schemes aresummarised below:

Kotak Dynamic Fund of Funds March 2005 235.53 0.02 235.51 97.75

Kotak Contra Scheme June 2005 2154.14 - In full 96.58

Kotak Cash Plus September 2005 6.26 In full - 100

Kotak Flexi Fund of Funds September 2005 1120.77 - In full 96.82

Kotak Tax Saver Scheme September 2005 802.97 275.41 527.55 94

Kotak FMP Series 12 November 2005 0.98 In full - 100

Kotak FMP Series 15 January 2006 0.01 In full - 100

Kotak FMP Series 14 January 2006 0.13 In full - 100











Kotak Lifestyle Fund January 2006 3375.32 - In full 95.59

Kotak FMP Series 24 May 2006 0.01 In full - 100

Kotak Flexi Fund of Funds Sr.1 February 2006 366.88 - In full 96.88

Kotak FMP Series 27 May 2006 0.02 In full - 100

Kotak Twin Advantage Sr. II April 2006 251.24 - In full 97.35

Kotak FMP 6M Series 1 June 2006 0.03 - In full 99.97

Kotak FMP 3M Series 1 June 2006 0.02 - In full 99.98

Kotak FMP 3M Series 2 July 2006 0.01 - In full 99.99

Kotak FMP Series 26 July 2006 0.10 - In full 99.90

Kotak Flexi Fund of Funds Sr. II June 2006 1382.50 - In full 95.98

Kotak Twin Advantage Sr. III July 2006 992.82 - In full 96.85

Kotak FMP 3M Series 3 September 2006 0.01 - In full 99.99

Kotak FMP 3M Series 4 September 2006 0.01 - In full 99.99

Kotak FMP 3M Series 5 October 2006 0.01 - In full 99.99

Kotak FMP 15M Series 1 October 2006 0.09 - In full 99.91

Kotak FMP 6M Series 2 November 2006 0.03 - In full 99.97



Kotak Dynamic Asset Allocation November 2006 2689.76 - In full 96.01

Kotak FMP 16M Series 1 December 2006 0.09 In full - 100

Kotak FMP 3M Series 7 December 2006 0.01 - In full 99.99

Kotak FMP 3M Series 8 January 2007 0.01 - In full 99.99

Kotak FMP 3M Series 9 January 2007 0.01 - In full 99.99

Kotak FMP 3M Series 10 February 2007 0.01 - In full 99.99

Kotak FMP 14M series 1 February 2007 0.18 - In full 99.82

Kotak Wealth Builder Sr. 1 January 2007 4.49 - In Full 95.51

36


out of Rs.100

3. RECURRING EXPENSES OF THE SCHEMEThe estimate of the ongoing fees and expenses of operatingthe Scheme on an annual basis, expressed as a percentageof the amount of the Scheme’s daily average net assets isgiven in the table below. The purpose of the table is toassist the investor in understanding the various heads ofcosts and expenses that an investor of the Scheme will beardirectly or indirectly.

Description (% per annum ofdaily average netassets)

Investment Management and Advisory 0 .50Services Fees payable to AMCTrustee Fees 0 .05Custodian Fees 0 .05Marketing and Selling Expense 0 .50(incl. Agents commission)Registrar and Transfer Agent Fees 0 .10Other Operational Expenses attributable 0.30to the scheme (including rating fees and service tax)

TOTAL ANNUAL RECURRING EXPENSES (ESTIMATED) 1.50

These estimates are made in good faith by the InvestmentManager and are subject to change, both inter se and asan increase or decrease in the estimated total annualrecurring expenses. Though the Investment Manager willmake efforts to keep the recurring expenses to the minimum,

Kotak FMP 3M Series 11 February 2007 0.01 In Full - 100

Kotak FMP 13M Series 1 March 2007 0.12 - In Full 99.88



Kotak Emerging Equity Scheme February 2007 1612.10 113.38 1498.73 94.02

Kotak FMP 3M Series 12 March 2007 # In Full - 100

Kotak FMP 3M Series 13 March 2007 # In Full - 100

Kotak FMP 3M Series 14 March 2007 # In full - 100

Kotak FMP 3M Series 15 April 2007 # In Full - 100

Kotak FMP 3M Series 16 April 2007 # In Full - 100

otak FMP 3M Series 17 May 2007 # In full - 100

Kotak FMP 3M Series 18 May 2007 # In full - 100

Kotak FMP 15M Series 3 May 2007 0.19 - In Full 99.81

Kotak FMP 3M Series 19 June 2007 # In Full - 100




Kotak FMP 12M Series 1 June 2007 0.12 - In Full 99.88


Kotak Gold ETF June 2007 90.09 72.23 17.96 99.57

Kotak FMP 3M Series 24 August 2007 # In Full - 100

# less than 0.05 lakhs** The initial issue expenses borne by the schemes are being amortised as per the Regulations.The Initial Issue Expenses of the schemes did not vary adversely from the estimated expenses of the respective schemes.


out of Rs.100

37

actual expenses under any head and / or the total expensesmay be more or less than the estimates. The InvestmentManager retains the right to charge the actual expenses tothe Fund, however the expenses charged will not exceed thestatutory limit prescribed by the Regulations.The above estimates are based on an amount of Rs. 100crores for the Scheme and may change to the extent assetsare lower or higher.The recurring expenses of the Scheme (including investmentand advisory fees) will be subject to the following maximumlimits (as a percentage of Weekly Average Net Assets) as perRegulation 52(6). Expenses over and above the permitted limitunder the applicable Regulations will be borne by the AMC.

Weekly Average Net Assets (Rs.)

First 100 crores 2.25%Next 300 crores 2.00%Next 300 crores 1.75%Balance Assets 1.50%

The AMC may charge the Scheme with investment andadvisory fees subject to the currently applicable maximumlimits (as a percentage of Weekly Average Net Assets of theScheme) as per Regulation 52(2).

Weekly Average Net Assets outstanding Fees chargeablein each accounting year (Rs.)

First 100 crores 1.25%On Balance Assets 1.00%

A. UNITHOLDERS’ RIGHTS1. Unitholders under the Scheme have a proportionate

right in the beneficial ownership of the assets of theScheme and to the dividend declared, if any, by theFund under the Scheme.

2. The Trustee shall be bound to make such disclosuresto the Unitholders as are essential in order to keepthem informed about any relevant information,especially which may have an adverse bearing on theirinvestments.

3. If the Fund declares a dividend under the Scheme, it isrequired to dispatch dividend warrants within 30 daysfrom the date of declaration of the dividend.

4. The Fund is required to dispatch redemption chequeswithin 10 Business Days from the date of redemption.If the Fund fails to send the redemption cheques afterthe said 10 Business days, interest at the rate of 15%p.a. will be paid to the applicant and borne by theAMC for the period from the day following the dateof expiry of the said 10 Business days until the actualdate of the refund.

5. The appointment of an AMC for the Fund may, withthe prior approval of SEBI, be terminated by 75% ofthe Unitholders or by a majority of the Board ofDirectors of the Trustee.

6. Unitholders have the right to inspect all the documentslisted under the heading “Documents Available forInspection”.

7. 75% of the Unitholders of the Scheme can pass aresolution to wind up the Scheme.

8. The Trustee is obliged to convene a meeting of theUnitholders of the Scheme on the requisition of 75%of the Unitholders of the Scheme.

9. The Trustee is obliged to obtain the consent of theUnitholders -

a) whenever required to do so by SEBI in the interestof the Unitholders; or

b) whenever required to do so on a requisition madeby three-fourths of the Unitholders of any Scheme; or

c) when the majority of the Board of Directors of theTrustee decides to wind up or prematurely redeemthe Units.

10. The Trustee shall ensure that no change in thefundamental attributes of any scheme or the trust orfees and expenses payable or any other change whichwould modify the scheme and affects the interest ofUnitholders, is carried out unless,

i. a written communication about the proposed changeis sent to each Unitholder and an advertisement isgiven in one English daily newspaper havingnationwide circulation as well as in a newspaperpublished in the language of the region where theHead Office of the Fund is situated; and

ii. the Unitholders are given an option to exit at theprevailing Net Asset Value without any Exit Load.

11. For any change in the scheme features, the addendumdetailing such changes will be attached to the offerdocuments and abridged offer documents. The

V I I . U N I T H O L D E R S ’ R I G H T S A N D S E R V I C E S

addendum will be circulated to all the distributors/brokers so that the same can be attached to all offerdocuments and abridged offer documents already instock. The addendum will also be sent alongwith thenewsletter sent to the Unitholders after the changes.Arrangements will be made to display the changes/modifications in the offer document in the form of anotice in all the investor service centres and distributors/brokers office.

B . VOTING RIGHTS OF THE UNITHOLDERSSubject to the provisions of the Regulations as amendedfrom time to time, the consent of the Unitholders shall beobtained, entirely at the option of the Trustee, either at ameeting of the Unitholders or through postal ballot. Onlyone Unitholder in respect of each folio or accountrepresenting a holding shall vote and he shall have one votein respect of each resolution to be passed.

C . ACCOUNT STATEMENTAn Account Statement, stating the number of Units allotted/redeemed, will be sent to each Unitholder within 30 (Thirty)days from the date of the transaction. An Account Statementmay be sent to a Unitholder using e-mail with the consentof the Unitholder. Account Statements to be issued in lieuof Unit Certificates under the Scheme are non-transferable.These Account Statements shall not be construed as proofof title and are only computer printed statements, indicatingthe details of transactions under the Scheme concernedduring the relevant financial year and giving the closingbalance of Units for the information of Unitholders. TheTrustee may issue a Unit Certificate in lieu of AccountStatement in respect of Units held, to those Unitholderswho request for the same, after receipt of a specific requestfrom the Unitholder concerned, at the cost and expense ofthe Unitholder or otherwise, as may be decided from timeto time. Any discrepancy in the Account Statement / UnitCertificate should be brought to the notice of the Fund/AMC immediately. Contents of the Account Statement / UnitCertificate will be deemed to be correct if no error is reportedwithin 30 days from the date of Account Statement / UnitCertificate. Further, the Trustee also reserves the right toissue, on an ongoing basis, in lieu of Account Statements,Transaction Confirmation Slips, therein indicating the priceand the Units debited or credited to the Account of theInvestor/Unitholder, along with the closing balance of hisAccount. Under this system, a periodical statement ofholdings of the Investor in the relevant Scheme of KMMFwill be given.

D. USE OF POSTAL SERVICES FOR DISPATCH OFDIVIDEND WARRANTS AND ACCOUNTSTATEMENTS

The investor is aware that the mutual fund needs to useintermediaries such as post office, local and internationalcouriers, banks and other intermediaries for correspondencewith the investor and for making payments to the investorby cheques, drafts, warrants through ecs etc. the investorexpressly agrees and authorizes the mutual fund tocorrespond with the investor or make payments to theinvestor through intermediaries including but not limitedto post office, local and international couriers and banks.The investor clearly understands the mutual fund uses suchintermediaries for the convenience of the investor and such

38

intermediaries are agents of the investor and not of themutual fund. The mutual fund is not responsible for delayedreceipt or non-receipt of any correspondence or paymentthrough such intermediaries.

E. NAV INFORMATIONThe NAVs of the Scheme will be calculated and announcedby the Fund on each Business Day in at least two dailynewspapers. NAV information will also be posted, on adaily basis, on the Fund’s website - www.kotakmutual.comand on the AMFI website - www.amfiindia.com by 10.00am, the following business day. In case of any delay beyondthe stipulated time frame, which may normally be due tonon-receipt of NAVs in time from the underlying schemes,in posting the NAVs of the Scheme, the reasons for suchdelay would be explained to AMFI and SEBI.

Investors may obtain information on loads on any BusinessDay by calling the office of the AMC or any of the InvestorService Centres. Information on applicability of loads willalso be provided in the Account Statements.

F. DISCLOSURE OF INFORMATION UNDER THEREGULATIONS

1. The Schemewise Annual Report / an abridged summarythereof, will be prepared and mailed to all Unitholders;as soon as may be but not later than six months fromthe date of closure of the relevant financial year.Whenever the report is sent in summary form, the fullAnnual Report will be made available for inspection atthe Registered Office of the Trustee and a copy, madeavailable on request to the Unitholders on payment ofa nominal fee.

2. The unaudited financial results will be publishedthrough an advertisement in one English dailynewspaper circulating in the whole of India and in anewspaper published in the language of the regionwhere the Registered Office of the Trustee is situated,before the expiry of one month from the close of eachhalf year, that is the 31st of March and the 30th ofSeptember. The same will also be posted on the websiteof the Fund and that of AMFI.

3. A complete statement of the portfolio of the Schemewill either be sent to all Unitholders, or published byway of an advertisement, before the expiry of one monthfrom the close of each half year, that is the 31st ofMarch and the 30th of September, in one English dailynewspaper circulating in the whole of India and in anewspaper published in the language of the regionwhere the head office of the Trustee is situated. Thesame will also be posted on the website of the Fund.

4) In case any company has invested more than 5% of theNet Asset Value of any scheme of the Fund, investmentmade by that scheme or any other scheme of the Fundin that company or its subsidiaries will be disclosed, asrequired by the Regulations, to the Trustee and in thehalf-yearly and annual accounts, with justification forsuch investments. As on March 31, 2007, the followingcompanies have made investments in the schemes ofthe Fund in excess of 5% of the net asset value andduring this period, other schemes of the Fund investedin these companies.

(Rs. In Lakhs)

Company Schemes Investing Aggregate invested in Schemes(s)/Plan(s) investments

by the Company made by theScheme(s)in the

Company

AIA Engineering Limited Kotak FMP 3M Series 14 Kotak Balance 60.08

Ashok Leyland Ltd. Kotak FMP Series II Kotak Equity Arbitrage Fund 322.52

Kotak Midcap 226.71

Asian Paints(India) Ltd. Kotak FMP 6M Series 2 Kotak Balance 114.15 Kotak Global India 138.01 Kotak Lifestyle 835.66

B L Kashyap and Sons Ltd. Kotak FMP Series 13 Kotak Tax Saver 250.94

Bajaj Auto Ltd. Kotak Equity Arbitrage Fund Kotak 30 2108.24 Kotak Balance 742.82 Kotak Equity Arbitrage Fund 64.88 Kotak Income Plus 77.93 Kotak Lifestyle 2031.84 Kotak Opportunities 1975.28

Kotak Tax Saver 189.63Balaji Telefilms Ltd. Kotak Equity Arbitrage Fund Kotak Lifestyle 256.17Balrampur Chini Mills Ltd. Kotak Floater Long Term Kotak Balance 402.87 Kotak Bond Short Term 1000.00 Kotak Liquid 28300.00 Kotak Flexi Debt 1000.00 Kotak Floater Short Term 1000.00

Kotak Midcap 99.16 Kotak Opportunities 949.78

Bank Of Baroda Kotak Bond Short Term Plan Kotak 30 14.60 Kotak FMP- Series XVIII 1129.26

39

Kotak Liquid 1042.43Kotak Equity Arbitrage Fund 955.71

Kotak Contra 36.07 Kotak Flexi Debt 1129.23 Kotak Opportunities 6.67

Bank of India Kotak Flexi Debt Kotak 30 956.17 Kotak Equity Arbitrage Fund 312.38 Kotak Opportunities 290.38 Kotak Tax Saver 168.12

Bharti Airtel Ltd. Kotak Floater Short Term Kotak 30 8750.16 Kotak Balance 623.40 Kotak MNC 580.52 Kotak Equity Arbitrage Fund 97.84 Kotak Income Plus 286.89 Kotak Lifestyle 5824.91 Kotak Opportunities 1340.88 Kotak Tax Saver 1398.85 Kotak Dynamic Asset 195.67

Allocation

Birla Corporation Ltd. Kotak FMP 13M Series 2 Kotak Floater Short Term 2000.00 Kotak Midcap 668.57

Corporation Bank Kotak MNC Kotak Bond Short Term 949.71 Kotak Liquid 10445.68 Kotak Equity Arbitrage Fund 4.26 Kotak Flexi Debt 1423.88 Kotak Floater Short Term 949.25 Kotak Income Plus 950.39 Kotak Midcap 1686.25

Dabur India Ltd. Kotak FMP 3M Series 13 Kotak 30 1043.16Kotak Balance 486.14

Kotak Income Plus 39.48 Kotak Lifestyle 1766.69 Kotak Opportunities 2127.01 Kotak Dynamic Asset

Allocation 14.29

Dalmia Cement (Bharat) Ltd. Kotak Floater Short Term Kotak Tax Saver 188.37

Dewan Housing Finance Kotak Floater Short Term Kotak Floater Short Term 1500.00Corporation Ltd.Financial Technologies Kotak Equity Arbitrage Fund Kotak Technology 105.64(India) Ltd Kotak Opportunities 557.04 Kotak Tax Saver 43.69

Finolex Cables Ltd. Kotak Bond Short Term Plan Kotak Liquid 3514.88Kotak Floater Short Term 1500.00Kotak Midcap 758.64

Global Trade Finance Ltd. Kotak Floater Short Term Kotak Bond Short Term 1200.00 Kotak Floater Long Term 600.00 Kotak FMP 3m Series 1 1000.00 Kotak FMP 3m Series 2 1500.00 Kotak FMP Series 20 1500.00 Kotak FMP Series I 2500.00

40

(Rs. In Lakhs)



Company

Kotak FMP Series XII 3000.00 Kotak FMP Series XVI 500.00 Kotak FMP Series XVIII 3500.00 Kotak Liquid 76600.00 Kotak Flexi Debt 3300.00 Kotak Floater Short Term 5100.00

Grasim Industries Ltd. Kotak Flexi Debt Kotak 30 2706.45 Kotak Balance 454.86 Kotak Bond 505.58 Kotak Equity Arbitrage Fund 100.76 Kotak Contra 1609.50 Kotak Flexi Debt 518.51 Kotak Income Plus 45.14 Kotak Opportunities 228.54

Gujarat Gas Company Ltd. Kotak Bond Short Term Plan Kotak 30 351.14 Kotak Balance 273.74 Kotak Income Plus 39.73 Kotak Midcap 1275.66

HDFC Bank Ltd. Kotak Floater Short Term Kotak Bond Short Term 3459.85 Kotak Floater Long Term 5333.56 Kotak FMP- Series 19 2350.59 Kotak FMP- Series I 2613.57 Kotak FMP- Series XVIII 2450.01 Kotak Liquid 112830.86 Kotak Flexi Debt 964.27 Kotak Floater Short Term 5544.46 Kotak Income Plus 3992.90 Kotak Midcap 964.27

HDFC Ltd. Kotak Opportunities Kotak 30 4945.94 Kotak Balance 1514.35 Kotak Bond 2454.75 Kotak Bond Short Term 15859.87 Kotak Floater Long Term 2037.28 Kotak FMP 3m Series 3 2119.72 Kotak FMP- Series 19 986.87 Kotak FMP- Series XII 998.66 Kotak FMP- Series XIV 1023.08 Kotak FMP- Series XVI 992.39 Kotak FMP- Series XVII 2449.36 Kotak Liquid 131259.47 Kotak Equity Arbitrage Fund 5449.79 Kotak Contra 984.27 Kotak Flexi Debt 4220.70 Kotak Floater Short Term 15955.31 Kotak Global India 492.13 Kotak Income Plus 490.09 Kotak Lifestyle 3429.44 Kotak Midcap 1982.31

Kotak Opportunities 608.30Kotak Tax Saver 383.62

41

(Rs. In Lakhs)



Company

Kotak Twin Advantage Sr III 5534.76Kotak Wealth Builder Series I 4007.79Kotak Dynamic Asset 2568.86AllocationKotak FMP 15m Series 1 982.00

Hero Honda Motors Ltd. Kotak FMP Series XVIII Kotak MNC 56.36 Kotak Income Plus 30.66 Kotak Opportunities 1237.31 Kotak Dynamic Asset 24.01

Allocation

Hindalco Industries Ltd. Kotak Bond Short Term Plan Kotak 30 1360.07 Kotak Balance 403.33 Kotak Bond Short Term 551.49 Kotak Liquid 6354.40 Kotak Equity Arbitrage Fund 998.34 Kotak Contra 3378.20 Kotak Global India 1501.65 Kotak Income Plus 94.38 Kotak Opportunities 1895.21 Kotak Tax Saver 461.57

Hindustan Lever Ltd. Kotak FMP Series 19 Kotak 30 4514.60 Kotak Balance 1168.79 Kotak MNC 626.80 Kotak Equity Arbitrage Fund 59.60 Kotak Contra 1727.69 Kotak Income Plus 78.35 Kotak Lifestyle 4203.35 Kotak Midcap 644.96 Kotak Opportunities 891.95 Kotak Tax Saver 487.16 Kotak Dynamic Asset 77.70

Allocation

ICICI Bank Ltd. Kotak Liquid Kotak 30 943.52 Kotak Bond 739.31 Kotak Bond Short Term 2865.61 Kotak Floater Long Term 13836.74 Kotak FMP- Series 13 3681.41 Kotak FMP- Series 25 2488.68 Kotak Liquid 115334.67 Kotak Equity Arbitrage Fund 371.04 Kotak Flexi Debt 7776.58 Kotak Floater Short Term 20928.85 Kotak Income Plus 606.49 Kotak Lifestyle 3787.71 Kotak Opportunities 954.80 Kotak Tax Saver 520.87 Kotak Twin Advantage Sr II 1317.23

ICICI Securities Ltd. Kotak Floater Short Term Kotak Floater Long Term 500.00 Kotak FMP- Series XVI 1023.61 Kotak Liquid 16444.70

42

(Rs. In Lakhs)



Company

Kotak Equity Arbitrage Fund 1938.27 Kotak Contra 3000.00 Kotak Floater Short Term 3000.00

IFCI Ltd. Kotak Floater Short Term Kotak Equity Arbitrage Fund 143.86

ITC Ltd. Kotak Liquid Kotak 30 1858.35 Kotak MNC 2128.92 Kotak Equity Arbitrage Fund 475.53 Kotak Income Plus 206.88

Kotak Lifestyle 1564.46 Kotak Opportunities 325.57

Indian Petrochemical Kotak FMP 3M Series 11 Kotak Equity Arbitrage Fund 463.08Corporation Ltd. Kotak Dynamic Asset 14.08

Allocation

Indo Gulf Fertiliser Ltd. Kotak Bond Short Term Plan Kotak 30 854.95 Kotak Contra 1358.32 Kotak Tax Saver 194.85

Industrial Development Kotak Bond Short Term Plan Kotak 30 1589.63Bank Of India. Kotak Balance 1585.09

Kotak Bond 5203.08Kotak Bond Short Term 1007.52Kotak Floater Long Term 14143.39Kotak FMP- Series XIV 504.58Kotak FMP- Series XVI 2468.60Kotak FMP- Series XXI 1484.18Kotak Liquid 52088.47Kotak MNC 629.73Kotak Equity Arbitrage Fund 4054.69Kotak Contra 2735.25Kotak Flexi Debt 1036.42Kotak Floater Short Term 38159.98Kotak Income Plus 2800.19Kotak Midcap 2640.26Kotak Opportunities 294.18

Infrastructure Development Kotak Bond Short Term Plan Kotak 30 413.25Finance Co. Ltd Kotak Bond 485.23 Kotak Floater Long Term 3523.97 Kotak FMP- Series 25 2000.00 Kotak FMP- Series XII 988.92 Kotak Liquid 28966.53 Kotak Equity Arbitrage Fund 4829.74 Kotak Flexi Debt 508.72 Kotak Floater Short Term 17664.19

JM Financial Products Kotak Liquid Kotak Bond Short Term 1000.00PVT. LTD. Kotak Liquid 11600.00 Kotak Flexi Debt 6000.00 Kotak Floater Short Term 4000.00

Jagran Prakashan Ltd Kotak Bond Short Term Plan Kotak Lifestyle 1212.38 Kotak Tax Saver 274.52

Jammu & Kashmir Bank Kotak Equity Arbitrage Fund Kotak Bond Short Term 1427.38 Kotak Floater Long Term 3811.60

43

(Rs. In Lakhs)



Company

Kotak FMP 3m Series 3 4910.64 Kotak FMP- Series 19 980.63 Kotak FMP- Series 25 1380.68 Kotak FMP- Series I 2360.60 Kotak FMP- Series XII 1494.76 Kotak FMP- Series XVII 1953.84 Kotak FMP- Series XVIII 4899.19 Kotak Liquid 74920.20 Kotak MNC 490.92 Kotak Contra 490.92 Kotak Flexi Debt 5305.59 Kotak Floater Short Term 13316.52 Kotak Global India 490.92 Kotak Income Plus 520.56 Kotak Opportunities 490.92

Jet Airways (India) Ltd. Kotak Floater Long Term Kotak 30 363.77 Kotak Equity Arbitrage Fund 297.53 Kotak Lifestyle 887.51

Kalpataru Power Kotak FMP 3M Series 4 Kotak Midcap 741.63Transmission Ltd. Kotak Opportunities 234.14

Kotak Mahindra Bank Ltd. Kotak Liquid KotakFMP 3m Series 14 4851.44

Larsen and Toubro Ltd. Kotak FMP Series 23 Kotak 30 4271.10 Kotak Balance 542.88 Kotak Liquid 4500.00 Kotak Global India 137.59 Kotak Income Plus 28.16 Kotak Opportunities 1376.81 Kotak Dynamic Asset 66.45

Allocation

MRF Ltd. Kotak Income Plus Kotak Income Plus 5.78 Kotak Midcap 1693.96Mahindra & Mahindra Ltd. Kotak Floater Long Term Kotak 30 4947.90

Kotak Balance 1116.24Kotak Equity Arbitrage Fund 12.38

Kotak Contra 952.24Kotak Global India 93.47Kotak Income Plus 40.73Kotak Lifestyle 2073.58

Kotak Opportunities 3166.27 Kotak Dynamic Asset 36.19

AllocationMaruti Udyog Ltd. Kotak Floater Short Term Kotak 30 342.83 Kotak MNC 988.69 Kotak Contra 625.08 Kotak Lifestyle 348.49National Housing Bank Kotak Floater Short Term Kotak Bond Short Term 512.87 Kotak Floater Long Term 6493.46 Kotak FMP- Series XVI 2522.69 Kotak Liquid 58670.40 Kotak Flexi Debt 1511.86 Kotak Floater Short Term 13515.51

44

(Rs. In Lakhs)Company Schemes Investing Aggregate

invested in Schemes(s)/Plan(s) investmentsby the Company made by the

Scheme(s)in theCompany

Kotak Midcap 1486.83

Navneet Publications Kotak Bond Short Term Plan Kotak Liquid 3005.47Kotak Contra 500.00

Kotak Flexi Debt 500.00 Kotak Floater Short Term 1500.00Patni Computer Kotak FMP 3M Series 4 Kotak Technology 248.54Systems (P) Ltd. Kotak Equity Arbitrage Fund 32.54Polaris Software Lab Ltd. Kotak FMP Series XV Kotak Equity Arbitrage Fund 204.07Punjab National Bank Kotak Bond Short Term Plan Kotak 30 4830.83 Kotak Balance 468.12 Kotak Bond Short Term 1061.45 Kotak FMP- Series XIV 3361.00 Kotak Liquid 26426.00 Kotak Equity Arbitrage Fund 1166.75 Kotak Contra 4199.71 Kotak Floater Short Term 1450.71 Kotak Income Plus 98.41 Kotak Lifestyle 2703.01 Kotak Midcap 507.00 Kotak Opportunities 1459.50 Kotak Tax Saver 246.73Raymond Ltd. Kotak FMP Series XVI Kotak Balance 194.41 Kotak Bond Short Term 500.00 Kotak Floater Long Term 900.00 Kotak FMP 3m Series 7 1100.00 Kotak FMP- Series I 300.00 Kotak FMP- Series XII 700.00 Kotak FMP- Series XV 500.00 Kotak FMP- Series XVI 700.00 Kotak FMP- Series XVII 1200.00 Kotak Liquid 37703.50 Kotak Contra 4532.61 Kotak Flexi Debt 2500.00 Kotak Floater Short Term 7700.00 Kotak Global India 181.01 Kotak Lifestyle 1424.02 Kotak Tax Saver 302.24Reliance Kotak Floater Long Term Kotak 30 3153.82Communications Ltd. Kotak Balance 420.16 Kotak Liquid 4000.00 Kotak Equity Arbitrage Fund 221.13 Kotak Floater Short Term 1000.00 Kotak Global India 390.56 Kotak Income Plus 158.97 Kotak Lifestyle 2848.52 Kotak Opportunities 1071.69 Kotak Tax Saver 675.73 Kotak Dynamic Asset 142.34

AllocationReliance Industries Ltd. Kotak Floater Short Term Kotak 30 5539.96 Kotak Balance 977.16 Kotak Bond 1097.94 Kotak Bond Short Term 2072.75

45

(Rs. In Lakhs)



Company

Kotak Floater Long Term 1592.13 Kotak Liquid 1562.87 Kotak Equity Arbitrage Fund 4088.04 Kotak Contra 683.35 Kotak Flexi Debt 547.97 Kotak Floater Short Term 1573.41 Kotak Income Plus 661.71 Kotak Opportunities 2666.67 Kotak Tax Saver 448.14Reliance Petroleum Ltd. Kotak Liquid Kotak 30 74.03 Kotak Balance 22.82 Kotak Contra 81.13 Kotak Income Plus 18.29 Kotak Midcap 85.30 Kotak Opportunities 66.57 Kotak Tax Saver 32.12Sasken Communication Kotak Bond Short Term Plan Kotak Technology 156.27Technologies Ltd. Kotak Contra 433.62 Kotak Global India 259.78 Kotak Midcap 512.56 Kotak Tax Saver 225.03Sesa Goa Ltd. Kotak FMP Series XVII Kotak Balance 103.51 Kotak MNC 99.67 Kotak Cash Plus 47.39 Kotak Global India 1013.22 Kotak Income Plus 56.18 Kotak Midcap 2129.61 Kotak Opportunities 1207.80State Bank Of India. Kotak Global India Kotak 30 3707.43 Kotak Balance 481.29 Kotak Bond 2303.11 Kotak Bond Short Term 545.02 Kotak Floater Long Term 1632.73 Kotak Liquid 3825.86 Kotak Equity Arbitrage Fund 994.09 Kotak Flexi Debt 543.67 Kotak Floater Short Term 2729.89 Kotak Income Plus 162.60State Bank of Kotak Opportunities Kotak FMP- Series XV 982.85Bikaner & Jaipur Kotak FMP- Series XXI 1424.92State Bank of Hyderabad Kotak MNC Kotak Bond 1161.34 Kotak Bond Short Term 509.04 Kotak FMP 3m Series 8 965.99 Kotak Liquid 9901.60 Kotak Flexi Debt 4243.92 Kotak Floater Short Term 948.42Sterlite Industries Kotak Flexi Debt Kotak 30 3004.12(India) Ltd Kotak Balance 456.54 Kotak Bond 1000.00 Kotak Bond Short Term 1800.00 Kotak Floater Long Term 4100.00

Kotak FMP- Series XVI 1500.00Kotak FMP- Series XVIII 1100.00Kotak Liquid 27400.00

46

(Rs. In Lakhs)



Company

Kotak Equity Arbitrage Fund 792.24Kotak Contra 3770.37Kotak Floater Short Term 7900.00Kotak Global India 618.54Kotak Income Plus 500.00Kotak Midcap 7830.70Kotak Opportunities 2221.75Kotak Tax Saver 500.00

Tata Chemicals Ltd. Kotak Bond Short Term Plan Kotak Equity Arbitrage Fund 39.16Kotak Contra 1686.58Kotak Midcap 705.82Kotak Opportunities 874.47Kotak Tax Saver 189.33

Tata Consultancy Kotak Bond Short Term Plan Kotak 30 4013.89Services Ltd. Kotak Balance 61.38 Kotak Technology 978.96 Kotak Equity Arbitrage Fund 218.80 Kotak Contra 2747.25 Kotak Global India 2077.85 Kotak Income Plus 304.16Tata Sons Ltd. Kotak FMP Series 19 Kotak Bond 390.55 Kotak Bond Short Term 1562.20 Kotak Floater Long Term 3439.54 Kotak Liquid 531.37 Kotak Flexi Debt 4887.42 Kotak Floater Short Term 484.82 Kotak Twin Advantage Sr II 390.55 Kotak Twin Advantage Sr III 2343.30Tata Steel Limited Kotak Liquid Kotak 30 1757.66

Kotak Balance 1043.52Kotak Equity Arbitrage Fund 1651.16Kotak Contra 4253.14]Kotak Global India 1167.44Kotak Income Plus 307.09Kotak Opportunities 1212.44

The Great Eastern Kotak FMP Series 20 Kotak Equity Arbitrage Fund 338.54Shipping Company Ltd. Kotak Contra 792.23

Kotak Midcap 560.35Kotak Tax Saver 382.25

Thermax Ltd. Kotak FMP 3M Series 8 Kotak Global India 18.50Kotak Tax Saver 747.29

UCO Bank Kotak Floater Long Term Kotak 30 491.53Kotak Bond Short Term 958.99Kotak Floater Long Term 2832.68Kotak FMP- Series I 983.99Kotak FMP- Series XIV 4177.54Kotak FMP- Series XVII 1962.72Kotak Liquid 43862.48Kotak Flexi Debt 470.89Kotak Floater Short Term 5183.06Kotak Global India 491.53Kotak Opportunities 491.53

UTI Bank Ltd. Kotak Bond Short Term Plan Kotak Bond 508.53

47

(Rs. In Lakhs)



Company

48

These investments comprise debt and equity instruments and were made solely on the basis of sound fundamentals ofthese companies.

Kotak Bond Short Term 1509.99Kotak Floater Long Term 5860.93Kotak FMP- Series 23 491.31Kotak FMP- Series VIII 2493.48Kotak FMP- Series XXI 2308.89Kotak Liquid 76094.18Kotak Equity Arbitrage Fund 1015.09Kotak Flexi Debt 4475.49Kotak Floater Short Term 15461.02Kotak Income Plus 37.59Kotak Lifestyle 1826.34Kotak Opportunities 128.20

Videsh Sanchar Nigam Ltd. Kotak FMP Series XII Kotak 30 753.98Kotak Equity Arbitrage Fund 197.38Kotak Contra 1322.65Kotak Global India 274.24Kotak Opportunities 249.96

Wipro Ltd. Kotak Floater Short Term Kotak 30 1870.96Kotak Balance 177.09Kotak Technology 762.30Kotak Global India 1164.90

(Rs. In Lakhs)



Company

G. DURATION OF THE SCHEME

The duration of the Scheme is valid upto three years fromthe date of allotment. However, the Scheme may be woundup if:-

i. There are changes in the capital markets, fiscal lawsor legal system, or any event or series of event occurs,which, in the opinion of the Trustee, requires theScheme to be wound up; or

ii. 75% of the Unitholders of the Scheme pass aresolution that the Scheme be wound up; or

iii. SEBI directs the Scheme to be wound up in theinterests of the Unitholders.

Where the Scheme is to be wound up pursuant to the aboveRegulations, the Trustee shall give notice of the circumstancesleading to the winding up of the Scheme:-

i. to SEBI; and

ii. in two daily newspapers having circulation all overIndia and also in a vernacular newspaper circulatingin the place where the Mutual Fund is established.

H. PROCEDURE AND MANNER OF WINDING UP

i. The Trustee shall call a meeting of the Unitholdersto consider and pass necessary resolutions by simplemajority of the Unitholders present and voting at themeeting for authorising the Trustee or any otherperson to take steps for winding up the Schemeconcerned.

ii. a) The Trustee or the person authorised as above,shall dispose off the assets of the Schemeconcerned in the best interest of the Unitholdersof that Scheme.

b) The proceeds of the sale made in pursuance ofthe above, shall, in the first instance, be utilisedtowards discharge of such liabilities as are properlydue under the Scheme and after making appropriateprovision for meeting the expenses connected withsuch winding up, the balance shall be paid to theUnitholders in proportion to their respective interestsin the assets of the Scheme as on the date when thedecision for the winding up was taken.

iii. On completion of the winding up, the Trustee shallforward to the Board and the Unitholders, a report onthe winding up containing particulars such ascircumstances leading to the winding up, steps takenfor the disposal of the assets of the Fund before windingup, expenses of the Fund for winding up, net assetsavailable for distribution to the Unitholders and acertificate from the Auditors of the Scheme concerned.

iv. Notwithstanding anything contained herein, theprovisions of the Regulations in respect of disclosureof half-yearly reports and annual reports shallcontinue to apply.

After the receipt of the report referred to above under‘Procedure and Manner of Winding Up’, if SEBI is satisfiedthat all measures for winding up of the Scheme concernedhave been completed, the Scheme shall cease to exist.

49

I . SERVICES TO UNITHOLDERS

1. Investor ServicesIt is the endeavour of the Fund to provide consistently highquality service to its investors. This encompasses allinteraction by the clients with the Fund. The Fund strives toupgrade the quality of services through implementation oftechnology and through ensuring quality consciousnessamongst its service personnel and agencies associated withit. The AMC has introduced Systematic Transfer Plan as wellas a facility under Systematic Withdrawal Plan to withdrawautomatically the amount of appreciation, if any, on amonthly or a quarterly basis for various schemes launchedby Kotak Mahindra Mutual Fund. However, no such facilityis currently offered under the scheme.

The Fund strives to provide a high degree of conveniencefor the investors’ dealings with itself and it is the constantendeavour of the Fund to increase this level of convenience.

2. Facilitating Enquiries and Transactions

a. Investor Service Centres in important cities

CAMS, which is the Registrar to the Fund, provides InvestorServices through its ISCs. Unitholders’ enquiries andtransactions during business hours are entertained at theISCs at the addresses listed elsewhere in this Offer Document.

b. Master Account

Unless otherwise requested by the Unitholder, one MasterAccount Number is assigned for one entity investing indifferent Schemes of the Fund, provided while investing fora second time or any time thereafter, the Unitholder quoteshis existing Account Number. In such a case oneconsolidated Account Statement is provided.

c. Meeting in Person

A responsible official of the Asset Management Companywill be available every business day between 3.00 p.m. and4.00 p.m. for a personal meeting with any Unitholder at theRegistered Office of the AMC. The purpose of this facilityis to discuss the investment needs of the client, address anyqueries on the Mutual Fund and to provide other services.

d. Finding Solutions to Problems

The Fund will follow up with the Investor Service Centres and theRegistrar on complaints and enquiries received from investors.The Fund will strive to speedily resolve investor complaints.

e. Unitholder Grievances Redressal Mechanism

Investor grievances will normally be received at the AMCoffice or at any of the Investor Services Centres or directlyby the Registrar. All grievances will then be forwarded tothe Registrar, if required, for necessary action. Thecomplaints will closely be followed up with the Registrar toensure timely redressal and prompt investor service.

Mr. R. Chandrasekaran, has been appointed as the InvestorRelations Officer for the Fund. All related queries should beaddressed to him:

Mr. R. ChandrasekaranKotak Mahindra Asset Management Company Limited91/92, 9th Floor, Sakhar Bhavan,230, Nariman Point, Mumbai - 400 021Tel: 6638 4444 / Fax: 6638 4455e-mail: [email protected]

f) History of Investor Complaints for the period

April 01, 2004 to August 31, 2007:These were mostly in the nature of queries and requests,and were attended to as follows:

I . TAX BENEFITS OF INVESTING IN THE MUTUALFUND

The information set out below outlines the tax implicationswith respect to the Unit holders of the Scheme and withrespect to the Mutual Fund and is based on relevantprovisions of the Indian Income Tax Act, 1961 and WealthTax Act, 1957 (collectively known as “the relevantprovisions”), and prevailing as on May 28, 2007.

Price Waterhouse does not make any representation on theprocedures for ascertaining the tax implications nor do theymake any representations regarding any legal interpretations.Further, except for the above procedure, Price Waterhousehas not performed any other services in connection with anyother data or information included in the Offer Document.

Price Waterhouse does not make any representation on theprocedures for ascertaining the tax implications nor do theymake any representations regarding any legal interpretations.Further, except for the above procedure, Price Waterhousehas not performed any other services in connection with anyother data or information included in the Offer Document.

THE FOLLOWING INFORMATION IS PROVIDED FORGENERAL INFORMATION PURPOSES ONLY. IN VIEWOF THE INDIVIDUAL NATURE OF TAX IMPLICATIONS,EACH INVESTOR IS ADVISED TO CONSULT HIS OR HEROWN TAX ADVISER WITH RESPECT TO THE SPECIFICTAX IMPLICATIONS ARISING OUT OF HIS OR HERPARTICIPATION IN THE SCHEME.

A. For the Unit holders1. Income from Mutual Fund received by Unit holders

would be tax free in the hands of the Unit holders asper the provisions of section 10(35) of the Income-taxAct, 1961 (the Act).

2. The characterization of gains / losses arising from sale/ transfer of units as capital gains or business incomewould depend on the classification of the said units bythe unit holder. It would depend on whether the unitholder has classified such units as capital assets or asstock in trade.

3. Under Section 2(29A) of the Act, read with section 2(42A)of the Act, a unit of a Mutual Fund is treated as a longterm capital asset if the same is held for more than 12months. If the unit is held for 12 months or less, thesame is treated as a short term capital asset.

Description No. of Resolved within Pendingqueries

received

1 Day 2 Days 3 Days >3 Days

Change of 57034 53277 1424 720 1611 2Address

Change of 55927 51249 1757 951 1970 0Bank Mandate

Non- receipt 314 199 62 19 34 0of accountStatement

Others Queries 141514 105173 11482 6375 18306 178

Total 254789 209898 14725 8065 21921 180

Service 100.00 82.38 5.77 3.16 8.60 0.07Standard

Long term capital gains on sale of units, will be taxedunder section 112 of the Act. Under Section 112 of theAct, capital gains arising on the transfer of long termcapital assets are subject to tax at the rate of 20%. Thecapital gains will be computed by deducting theexpenditure incurred wholly and exclusively in connectionwith such transfer and the cost inflated as indexed costof acquisition of the unit from the sale consideration.However, the maximum tax payable on long term capitalgains on units is restricted to 10% of capital gainscalculated without indexation of the cost of acquisition.Short term capital gains arising to a unit holder will betaxed at the normal rate applicable to that unit holderas per the provisions of the Act. The capital gains willbe computed by deducting expenditure incurred inconnection with such transfer and cost of acquisitionof the unit from the sale consideration.The taxable/total income and the tax payable arisingfrom short term capital gains shall be computed inaccordance with the tax rates applicable to the investor.In addition to the aforesaid tax, in the case of anindividual, HUF or Association of Persons (AOP), wherethe income exceeds Rs. 1,000,000 a surcharge of 10%,in the case of domestic companies, where the incomeexceeds Rs. 10,000,000 a surcharge of 10%; in case offoreign companies, where the income exceedsRs. 10,000,000 a surcharge of 2.5% and in case of anartificial juridical person a surcharge of 10%, of suchtax liability is also payable. A 3% education cess(inclusive of 1% of an additional cess for Secondaryand Higher Education) on total income tax (includingsurcharge) is payable by all categories of taxpayers.

4. The short term capital loss resulting from sale of unitswould be available for setting off against any othercapital gains made by the investor and would reducethe tax liability of the investor to that extent. However,losses on transfer of long term capital assets would beallowed to be set-off only against gains from transferof long-term capital assets and the balance long-termcapital loss may be carried forward separately for aperiod of eight assessment years to be set off onlyagainst long-term capital gains.

5. Where a person buys any units within a period of threemonths before the record date and sells such units withinnine months after such date, the dividend income onsuch units being exempt from tax, then the capital loss,if any, on such sale to the extent of dividend incomecannot be set off against other gains.

6. Where a person buys units (original units) within a periodof three months before the record date, receives bonusunits on such original units, and then sells all or any ofthe original units within a period of nine months fromthe record date and continues to hold the bonus units,then the loss incurred on the original units shall not beallowed to be set off against other gains but shall bedeemed to be the cost of acquisition of the bonus units.

7. However, in cases which are not covered by clause 6 above,the cost of acquisition of bonus units for the investorswould be NIL, as provided by section 55(2) of the Act.

8. The long term capital gains on transfer of units wouldbe exempt from tax under Section 54EC of the Act,subject to fulfillment of certain conditions specified inthe section. This section requires investments inspecified bonds. However, if the amount invested is lessthan the capital gains realized, only proportionate capitalgains would be exempt from tax.

9. No deduction of tax at source shall be made from incomecredited or paid by a mutual fund to a Unitholder.

10. As per circular no. 715 dated August 8, 1995 issued bythe CBDT in case of resident Unitholders, no tax is requiredto be deducted at source from capital gains arising at thetime of repurchase or redemption of the units.Under Section 195 of the Act, in case of schemes otherthan equity oriented scheme, the Mutual Fund isrequired to deduct tax at source at the rate of 20% onany long term capital gains chargeable to tax if the payeeUnitholder is a non resident. In respect to short-termcapital gains, tax is required to be deducted at sourceat the rate of 30% if the payee Unitholder is a non-resident non-corporate and at the rate of 40% if thepayee Unitholder is a foreign company.In addition to the aforesaid tax, in the case of anindividual, HUF or Association of Persons (AOP), wherethe income exceeds Rs. 1,000,000 a surcharge of 10%,in the case of domestic companies, where the incomeexceeds Rs. 10,000,000 a surcharge of 10%, in case offoreign companies, where the income exceedsRs. 10,000,000, a surcharge of 2.5% and in case of anartificial juridical person a surcharge of 10% of such taxliability is also payable. A 3% education cess (inclusiveof 1% of an additional cess for Secondary and HigherEducation) on total income tax (including surcharge) ispayable by all categories of taxpayers.

11. As per circular no. 728 dated October 30, 1995 issuedby the CBDT, in the case of a remittance to a countrywith which a Double Tax Avoidance Agreement (DTAA)is in force, the tax should be deducted at the rateprovided in the Finance Act of the relevant year or at therate provided in the DTAA, whichever is more beneficialto the assessee. In order for the Unitholder to obtainthe benefit of a lower rate available under a DTAA, theUnitholder will be required to provide the Mutual Fundwith a certificate obtained from his Assessing Officerstating his eligibility for the lower rate.

12. Mutual Fund units are exempt from wealth tax.

B. For the Mutual Fund1. Kotak Mahindra Mutual Fund is a Mutual Fund

registered with SEBI and as such is eligible for benefitsunder Section 10(23D) of the Act. Accordingly, its entireincome is exempt from tax.

2. Mutual Funds (other than equity oriented funds) arerequired to pay dividend distribution tax at the rate of14.1625% , in the case of distributions to individualsand HUFs. An increased rate of 22.66% , is applicablefor distributions made to persons other than anindividual or a HUF.

3. Mutual funds which are ‘Money Market Mutual Fund’or ‘Liquid Fund’ are required to pay dividenddistribution tax at the rate of 28.325% (includingsurcharge @10%, education cess @2% and Secondaryand higher education cess at the rate of 1%).Money market mutual fund means a money market mutualfund as defined in sub-clause (p) of clause 2 of the SEBI(Mutual Funds) Regulations, 1996.”

“liquid fund” means a scheme or plan of a mutual fundwhich is classified by the SEBI as a liquid fund in accordancewith the guidelines issued by it in this behalf under the SEBIAct, 1992 or regulations made thereunder.

50

Period Scheme Security Instrument Nature of AmountSubscribed (Rs.inLakhs)

2004- 2005 Kotak 30 Gateway Distriparks Ltd. Equity 1 2 3 8 . 5 9Kotak 30 ICICI Bank Ltd Equity 3 6 9 . 6 0Kotak 30 National Thermal Power Corporation Ltd. Equity 1 3 2 9 . 0 3Kotak 30 New Delhi Television Limited Equity 6 0 0 . 6 0Kotak 30 Punjab National Bank Equity 1 4 7 4 . 2 0Kotak Balance Gateway Distriparks Ltd. Equity 2 3 2 . 6 3Kotak Balance ICICI Bank Ltd Equity 1 1 3 . 4 0Kotak Balance National Thermal Power Corporation Ltd. Equity 2 5 8 . 9 7Kotak Balance New Delhi Television Limited Equity 3 0 9 . 4 0Kotak Balance Punjab National Bank Equity 2 7 5 . 8 9Kotak Income Plus Dena Bank Equity 2 5 1 . 1 0Kotak Income Plus Gateway Distriparks Ltd. Equity 4 6 9 . 5 4Kotak Income Plus ICICI Bank Ltd Equity 8 6 1 . 0 0Kotak Income Plus National Thermal Power Corporation Ltd. Equity 1 1 5 6 . 9 8Kotak Income Plus New Delhi Television Limited Equity 1 1 9 0 . 0 0Kotak Income Plus Punjab National Bank Equity 5 6 2 . 7 7Kotak Opportunities Gateway Distriparks Ltd. Equity 3 7 4 . 3 5Kotak Opportunities National Thermal Power Corporation Ltd. Equity 4 7 2 . 3 2Kotak Opportunities Punjab National Bank Equity 4 4 5 . 0 7Kotak Opportunities Dena Bank Equity 2 1 6 . 0 0Kotak Midcap Dena Bank Equity 7 4 7 . 9 0Kotak Midcap Gateway Distriparks Ltd. Equity 2 8 7 9 . 9 7Kotak Midcap Jet Airways (India) Ltd. Equity 2499 .50Kotak Midcap Punjab National Bank Equity 5090 .14

LIC Housing Finance Ltd. Debt 2500 .00Pass Through Certificate - VE Debt 2500 .00Trust VIII series A SeniorGateway Distriparks Ltd. Equity 1238 .59

Kotak 30 ICICI Bank Ltd Equity 369 .60Kotak 30 National Thermal Power Corporation Ltd. Equity 1329 .03

V I I I . O T H E R M A T T E R S

A. POWER TO MAKE RULESSubject to the Regulations, the Trustee may, from time totime, prescribe such terms and make such rules as may benecessary for the purpose of giving effect to the Scheme,with power to the AMC to add to, alter or amend all or anyof the terms and rules that may be framed from time to time.

B . POWER TO REMOVE DIFFICULTIESIf any difficulty arises in giving effect to the provisions ofthe Scheme, the Trustee may, subject to the Regulations, doanything not inconsistent with such provisions, whichappears to it to be necessary, desirable or expedient, for thepurpose of removing such difficulty. Without diluting inany way the powers granted to the Trustee as aforesaid, theTrustee has the following powers:

1. Right to change the load structure;

2. Right to change minimum amounts of purchase andredemption;

3. Right to determine frequency and amount of dividend;and the right not to declare dividend, wheredistributable surplus is inadequate; and

4. Right to add to or alter the modes of payment by theinvestor for purchase of Units.

The exercise of these powers, reserved by the Trusteeunder this Offer Document vis-a-vis prospectiveinvestments in any of the scheme, shall not constitutechange in the fundamental attributes of the Scheme.

C . TRANSACTIONS WITH ASSOCIATE COMPANIESThe Fund may from time to time, for the purpose of

conducting its normal business, use the services of KotakSecurities Limited, which is a stock-broking company (anassociate company), the Sponsor and various subsidiaries ofthe Sponsor. These subsidiaries of the Sponsor, as on thedate of this Offer Document, include Kotak MahindraInvestments Limited (formerly known as Hamko FinancialServices Limited) an investment company; Kotak MahindraTrustee Company Limited (Trustee to the Fund); KotakMahindra Primus Limited, an auto finance company; KotakInvestment Advisors Ltd formerly known as (Kotak MahindraSecurities Limited), a broker on NSE in the Regular debtmarket segment; Kotak Mahindra Capital Company Limited,a Category 1 Merchant Banker registered with SEBI and aPrimary Dealer appointed by RBI; Kotak Mahindra(International) Limited; Kotak Mahindra (UK) Limited; GlobalInvestment Opportunities Fund Limited, an investmentcompany, the subsidiary companies of Kotak MahindraCapital Company Limited; Kotak Mahindra Old Mutual LifeInsurance Company Limited, the life insurance joint ventureof Kotak Mahindra Bank Limited; Kotak Mahindra Private -Equity Trustee Company Limited, a private venture fund andKotak Forex Brokerage Limited, a company dealing in foreignexchange and Kotak Mahindra Inc.

The Fund has neither invested in Group Companies, nortaken any underwriting obligations with respect to issues ofassociate companies.

Following subscriptions have been made in issues leadmanaged, arranged or book-running lead managed by KotakMahindra Capital Company Limited during the period fromApril 1, 2004 to March 31, 2007.

51

Kotak 30 New Delhi Television Limited Equity 600 .60Kotak 30 Punjab National Bank Equity 1474 .20Kotak Balance Gateway Distriparks Ltd. Equity 232 .63Kotak Balance ICICI Bank Ltd Equity 113 .40Kotak Balance National Thermal Power Corporation Ltd. Equity 258 .97Kotak Balance New Delhi Television Limited Equity 309 .40Kotak Balance Punjab National Bank Equity 275 .89Kotak Income Plus Dena Bank Equity 251 .10Kotak Income Plus Gateway Distriparks Ltd. Equity 469 .54Kotak Income Plus ICICI Bank Ltd Equity 861 .00Kotak Income Plus National Thermal Power Corporation Ltd. Equity 1156 .98Kotak Income Plus New Delhi Television Limited Equity 1190 .00Kotak Income Plus Punjab National Bank Equity 562 .77Kotak Opportunities Gateway Distriparks Ltd. Equity 374 .35Kotak Opportunities National Thermal Power Corporation Ltd. Equity 472 .32Kotak Opportunities Punjab National Bank Equity 445 .07Kotak Opportunities Dena Bank Equity 216 .00Kotak Midcap Dena Bank Equity 747 .90Kotak Midcap Gateway Distriparks Ltd. Equity 2879 .97Kotak Midcap Jet Airways (India) Ltd. Equity 2499 .50Kotak Midcap Punjab National Bank Equity 5090 .14Kotak Liquid LIC Housing Finance Ltd. Debt 2500 .00Kotak Liquid Pass Through Certificate - VE Debt 2500 .00

Trust VIII series A Senior

2005- 2006 Kotak 30 Allahbad Bank (Option I) Equity 421 .88Kotak 30 Allahbad Bank (Option II) Equity 153 .75Kotak 30 IL&FS Investsmart Ltd Equity 4 3 7 . 5Kotak 30 Infrastructure Development Equity 474 .85

Finance Company LtdKotak 30 HT Media Ltd Equity 1313 .85Kotak 30 Punj Lloyd Ltd Equity 1 8 9 0Kotak 30 Andhra Bank Equity 1 8 9 0Kotak 30 Bank of Baroda Equity 293 .25Kotak 30 GVK Power & Infrastructure Ltd Equity 1407 .4Kotak 30 Union Bank of India Equity 2 2 8 8Kotak 30 Mahindra & Mahindra Financial Services Equity 2 1 7 0Kotak Balance Allahbad Bank (Option I) Equity 1 1 2 . 5Kotak Balance Allahbad Bank (Option II) Equity 4 0 . 9 6Kotak Balance IL&FS Investsmart Ltd Equity 1 2 5Kotak Balance Infrastructure Development Equity 325 .04

Finance Company LtdKotak Balance HT Media Ltd Equity 575 .77Kotak Balance PVR Ltd Equity 6 6 0Kotak Balance Punj Lloyd Ltd Equity 6 1 6Kotak Balance Andhra Bank Equity 535 .95Kotak Balance Gujrat State Petronet Equity 5 8 3 . 2Kotak Balance GVK Power & Infrastructure Ltd Equity 3 5 3 . 4Kotak Balance Union Bank of India Equity 6 7 1Kotak Balance Mahindra & Mahindra Financial Services Equity 6 4 4Kotak Tech Allsec Technologies Equity 249 .96Kotak Income Plus Allahbad Bank (Option I) Equity 1 1 2 . 5Kotak Income Plus Allahbad Bank (Option II) Equity 4 0 . 9 6Kotak Income Plus IL&FS Investsmart Ltd Equity 1 2 5Kotak Income Plus Infrastructure Development Equity 390 .73

Finance Company LtdKotak Income Plus HT Media Ltd Equity 305 .79Kotak Income Plus PVR Ltd Equity 3 9 6Kotak Income Plus Punj Lloyd Ltd Equity 4 0 6Kotak Income Plus Gujrat State Petronet Equity 4 8 6Kotak Income Plus GVK Power & Infrastructure Ltd Equity 3 4 7 . 2Kotak Income Plus Union Bank of India Equity 4 3 4 . 5Kotak Income Plus Mahindra & Mahindra Financial Services Equity 5 8 8Kotak Opportunities Allahbad Bank (Option I) Equity 168 .75Kotak Opportunities Allahbad Bank (Option II) Equity 61 .5Kotak Opportunities IL&FS Investsmart Ltd Equity 1 8 7 . 5


52

Kotak Opportunities Infrastructure Development Equity 633 .35Finance Company Ltd.

Kotak Opportunities HT Media Ltd Equity 590 .72Kotak Opportunities PVR Ltd Equity 7 3 2Kotak Opportunities Punj Lloyd Ltd Equity 7 2 8Kotak Opportunities Andhra Bank Equity 8 7 7 . 5Kotak Opportunities Gujrat State Petronet Equity 9 9 6 . 3Kotak Opportunities GVK Power & Infrastructure Ltd Equity 6 9 4 . 4Kotak Opportunities Union Bank of India Equity 1072 .5Kotak Opportunities Mahindra & Mahindra Financial Services Equity 1 1 3 4Kotak Midcap Allahbad Bank (Option I) Equity 703 .13Kotak Midcap Allahbad Bank (Option II) Equity 256 .21Kotak Midcap Allsec Technologies Equity 249 .96Kotak Midcap IL&FS Investsmart Ltd Equity 1 1 2 5Kotak Midcap Infrastructure Development Equity 3388 .24

Finance Company LtdKotak Midcap HT Media Ltd Equity 2655 .87Kotak Midcap PVR Ltd Equity 2 3 6 4Kotak Midcap Punj Lloyd Ltd Equity 2 3 8 0Kotak Midcap Andhra Bank Equity 2 2 9 5Kotak Midcap Gujrat State Petronet Equity 2 4 8 4Kotak Midcap GVK Power & Infrastructure Ltd Equity 1661 .6Kotak Midcap Mahindra & Mahindra Financial Services Equity 2 4 7 1Kotak Contra Infrastructure Development Equity 946 .94

Finance Company LtdKotak Contra Punj Lloyd Ltd Equity 3 3 9 5Kotak Contra Andhra Bank Equity 2 7 0 0Kotak Contra Bank of Baroda Equity 7 2 4 . 5Kotak Contra Gujrat State Petronet Equity 2902 .5Kotak Contra GVK Power & Infrastructure Ltd Equity 1 9 5 3Kotak Contra Union Bank of India Equity 2 6 8 4Kotak Contra Mahindra & Mahindra Financial Services Equity 2 5 8 3Kotak Tax Saver PVR Ltd Equity 6 8 4Kotak Tax Saver Punj Lloyd Ltd Equity 6 9 3Kotak Tax Saver Andhra Bank Equity 7 1 5 . 5Kotak Tax Saver Gujrat State Petronet Equity 7 8 3Kotak Tax Saver GVK Power & Infrastructure Ltd Equity 5 4 5 . 6Kotak Tax Saver Mahindra & Mahindra Financial Services Equity 8 4 0Kotak Lifestyle Mahindra & Mahindra Financial Services Equity 1 4 4 2

2006 - 2007 Kotak 30 Sun TV Limited Equity 2 5 . 5 9Kotak Opportunites Sun TV Limited Equity 1 7 . 8 2Kotak Balance Sun TV Limited Equity 7 .32Kotak Income Plus Sun TV Limited Equity 7 .37Kotak Tax Saver Sun TV Limited Equity 1 0 . 6 4Kotak Lifestyle Sun TV Limited Equity 66.85Kotak Midcap Sun TV Limited Equity 28.14Kotak Contra Sun TV Limited Equity 28.00Kotak 30 Tech Mahindra Ltd. Equity 21.26Kotak Opportunites Tech Mahindra Ltd. Equity 20.94Kotak Income Plus Tech Mahindra Ltd. Equity 8.58Kotak Balance Tech Mahindra Ltd. Equity 7.68Kotak MNC Tech Mahindra Ltd. Equity 3.69Kotak Tech Tech Mahindra Ltd. Equity 3.40Kotak Global India Tech Mahindra Ltd. Equity 9.11Tax Saver Tech Mahindra Ltd. Equity 8.77Kotak Midcap Tech Mahindra Ltd. Equity 18.72Kotak Contra Tech Mahindra Ltd. Equity 17.64Kotak 30 Sobha Developers Ltd. Equity 28.67Kotak Opportunites Sobha Developers Ltd. Equity 21.38Kotak Midcap Sobha Developers Ltd. Equity 18.94Kotak Contra Sobha Developers Ltd. Equity 13.31Kotak Income Plus Sobha Developers Ltd. Equity 5.54Kotak Balance Sobha Developers Ltd. Equity 7.87Kotak Lifestyle Sobha Developers Ltd. Equity 31.74Kotak Tax Saver Sobha Developers Ltd. Equity 11.65


53

Kotak 30 Global Broadcast News Ltd Equity 15.88Kotak Opportunites Global Broadcast News Ltd Equity 8.88Kotak Midcap Global Broadcast News Ltd Equity 8.25Kotak Contra Global Broadcast News Ltd Equity 5.25Kotak Income Plus Global Broadcast News Ltd Equity 3.25Kotak Balance Global Broadcast News Ltd Equity 3.25Kotak Lifestyle Global Broadcast News Ltd Equity 13.00Kotak Tax Saver Global Broadcast News Ltd Equity 5.63Kotak Opportunites Power Finance Corporation Ltd. Equity 20.40Kotak Midcap Power Finance Corporation Ltd. Equity 19.72Kotak Contra Power Finance Corporation Ltd. Equity 12.04Kotak Income Plus Power Finance Corporation Ltd. Equity 5.18Kotak Balance Power Finance Corporation Ltd. Equity 7.89Kotak Tax Saver Power Finance Corporation Ltd. Equity 14.45Kotak Opportunites Indian Bank Equity 20.37Kotak Midcap Indian Bank Equity 19.59Kotak Contra Indian Bank Equity 12.13Kotak Income Plus Indian Bank Equity 6.83Kotak Balance Indian Bank Equity 7.81Kotak Tax Saver Indian Bank Equity 14.71Kotak Opportunites MindTree Consulting Ltd. Equity 19.34Kotak Midcap MindTree Consulting Ltd. Equity 18.52Kotak Contra MindTree Consulting Ltd. Equity 11.48Kotak Income Plus MindTree Consulting Ltd. Equity 6.76Kotak Balance MindTree Consulting Ltd. Equity 7.52Kotak Tech MindTree Consulting Ltd. Equity 3.63Kotak Global India MindTree Consulting Ltd. Equity 8.94Kotak Tax Saver MindTree Consulting Ltd. Equity 14.21Kotak 30 ICRA Limited. Equity 28.55Kotak MNC ICRA Limited. Equity 2.81


54

During the last three fiscal years, the Fund has had the following transactions with associate companies:(Rs. in Lakhs)

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Gilt Gilt Gilt Bond Bond 30 Balance Tech MNC Income

Savings Investment Serial Short Term PlusPlan Plan Plans Plan

Commission / 2004-05 0.21 15.00 # 18.56 7.73 47.26 2.65 2.77 4.00 2.48 KotakPromotional 2005-06 0.15 7.01 5.21 1.01 17.30 5.65 2.88 1.17 1.04 Securitiesexpenses for 2006-07 0.09 2.12 - 0.52 22.30 4.91 2.28 0.98 1.53 Ltd.Distribution ofUnits

Brokerage 2004-05 - - - - - 8.65 0.57 0.07 3.51 0.89 Kotaktowards 2005-06 - - - - - 6.71 0.56 0.40 2.61 0.32 SecuritiesPurchase and 2006-07 - - - - - 3.05 1.47 - 0.05 0.20 Ltd.Sale ofInvestments

Commission / 2004-05 0.07 0.01 - 0.01 0.06 - # - - - KotakPromotional 2005-06 0.06 0.01 - 0.01 - - - - - Mahindraexpenses for 2006-07 0.02 # - 0.01 - - - - - CapitalDistribution of CompanuUnits LTD.

Commission / 2004-05 0.02 12.84 - 0.55 4.68 49.03 0.33 0.52 12.62 6.89 KotakPromotional 2005-06 0.43 6.93 0.06 5.70 64.98 26.61 0.35 3.00 1.35 Mahindraexpenses for 2006-07 0.40 2.59 1.37 8.01 131.25 13.11 0.22 0.28 0.90 BankDistribution of Units LTD.

Charges on 2004-05 0.02 # - 0.26 - 1.61 0.20 - - 0.46 Kotakbanking 2005-06 0.02 # 0.01 # 3.63 0.84 0.12 1.01 1.35 MahindraServices 2006-07 0.01 # 0.01 - 6.31 1.54 0.07 0.09 0.90 Bank LTD.

Commission / 2005-06 - - - - 0.11 - - - - KotakPromotional 2006-07 - - - - 0.15 - - - - Mahindraexpenses for Inc.Distribution of Units

(Rs. in Lakhs)

55

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Dynamic Flexi Contra FMP FMP FMP FMP Cash FlexiFunds Tax

FOF Debt Series VIII Series II Series IV Series I Plus Funds Saver

Commission / 2004-05 1.11 0.07 - - # # KotakPromotional 2005-06 0.75 0.25 115.84 - - - 3.88 0.05 57.14 Securitiesexpenses for 2006-07 0.10 10.05 - 0.65 - 13.99 Ltd.Distribution ofUnits

Brokerage 2004-05 - - - - - - Kotaktowards 2005-06 - - 14.64 - - - - 16.53 - 1.36 SecuritiesPurchase and 2006-07 - 4.69 - 12.32 - 1.32 Ltd.Sale ofInvestments

Commission / 2004-05 - # - - - - KotakPromotional 2005-06 - - - - - - - - - Mahindraexpenses for 2006-07 - - - - - - CapitalDistribution of CompanuUnits LTD.

Commission / 2004-05 224.83 1.79 0.18 0.01 0.04 0.01 KotakPromotional 2005-06 - 12.61 697.51 0.06 0.13 2.58 4.73 0.10 0.02 Mahindraexpenses for 2006-07 11.33 24.68 0.42 3.62 - 1.64 BankDistribution of LTD.Units

Charges on 2004-05 - # - - - - Kotakbanking 2005-06 - 0.01 1.39 # - # 10.17 - - MahindraServices 2006-07 0.01 0.61 - 10.32 - - Bank LTD.

Commission / 2005-06 - - 6.65 - - - - - - - KotakPromotional 2006-07 - 0.84 - - - Mahindraexpenses for Inc.Distribution of

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Global Liquid Mahindra Floater Dynamic FMP Equity Opportuni- Floater Midcap

India Fixed Short Income (8) FOF ties LongMaturity Term Term

Plans

Commission / 2004-05 56.01 110.43 8.66 0.70 0.01 235.78 43.05 1.71 46.47 KotakPromotional 2005-06 13.88 120.14 7.88 3.66 29.06 3.52 72.90 Securitiesexpenses for 2006-07 7.38 86.55 1.98 1.92 9.60 1.00 12.20 Ltd.Distribution ofUnits

Brokerage 2004-05 4.15 - - - - 2.26 - 5.75 Kotaktowards 2005-06 3.03 - - - 1.06 - 8.87 SecuritiesPurchase and 2006-07 1.36 - - - - 6.37 - 4.52 Ltd.Sale ofInvestments

Commission / 2004-05 - 0.04 # - - - # - KotakPromotional 2005-06 - 0.25 - - - - - Mahindraexpenses for 2006-07 - - - - - - - CapitalDistribution of CompanuUnits LTD.

Commission / 2004-05 42.13 29.39 16.99 1.58 3.02 52.87 29.84 7.50 323.83 KotakPromotional 2005-06 10.86 57.16 11.66 9.84 98.46 5.74 326.25 Mahindraexpenses for 2006-07 8.05 80.70 14.77 1.92 137.10 2.16 52.15 BankDistribution of LTD.Units

Charges on 2004-05 - - - - - 0.43 0.40 - 1.20 Kotakbanking 2005-06 0.46 0.02 # # 0.50 # 1.31 MahindraServices 2006-07 0.93 0.05 - - - 2.87 - 1.06 Bank LTD.

Commission / 2005-06 - 0.54 - - - - - - - - KotakPromotional 2006-07 - 1.49 - - - - - Mahindraexpenses for Inc.

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Lifestyle FMP Flexi Fund Flexi Fund Twin Twin FMP 13M FMP 13M FMP 14M FMP 14M

Fund Series 26 of Funds of Funds Advantage Advantage Series 1 Series 2 Series 1 Series 2Series I Series II Series II Series III

Commission / 2005-06 132.67 KotakPromotional 2006-07 12.41 0.08 - 0.19 2.34 13.84 1.68 0.08 0.04 0.48 Securitiesexpenses for Ltd.Distribution ofUnits

Brokerage 2005-06 - Kotaktowards 2006-07 9.23 - - - 0.41 3.01 - - - - SecuritiesPurchase and Ltd.Sale ofInvestments

Commission / 2005-06 - KotakPromotional 2006-07 - - - - - - Mahindraexpenses for CapitalDistribution of CompanuUnits LTD.

Commission / 2005-06 1638.13 0.05 KotakPromotional 2006-07 100.19 0.05 2.48 1372.84 75.86 251.24 3.82 8.42 0.27 1.12 Mahindraexpenses for BankDistribution of LTD.Units

Charges on 2005-06 1.57 Kotakbanking 2006-07 2.57 # - 0.12 1.70 9.06 - - # - MahindraServices Bank LTD.

Commission / 2005-06 - KotakPromotional 2006-07 - - - - - - Mahindraexpenses for Inc.Distribution of Units

56

(Rs. in Lakhs)

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction FMP 15 M FMP 15 M FMP 24 FMP 25 FMP 3M FMP 3M FMP 3 M FMP 3 M FMP 3 M FMP 3 M

Series 1 Series 2 Series 8 Series 9 Series 10 Series 11 Series 12 Series 13

Commission / 2006-07 0.03 0.01 - - - - - - 0.02 # KotakPromotional Securitiesexpenses for Ltd.Distribution ofUnits

Brokerage 2006-07 - - - - - - - - - - Kotaktowards SecuritiesPurchase and Ltd.Sale ofInvestments

Commission / 2006-07 - - - - - - - - - - KotakPromotional Mahindraexpenses for CapitalDistribution of CompanuUnits LTD.

Commission / 2006-07 0.05 0.77 0.56 - - - - - 0.09 0.04 KotakPromotional Mahindraexpenses for BankDistribution of LTD.Units

Charges on 2006-07 # # - # # # # # - - Kotakbanking MahindraServices Bank LTD.

Commission / 2006-07 - - - - - - - - - - KotakPromotional Mahindraexpenses for Inc.Distribution ofUnits

The above information has been disclosed in good faith as per the information available to the AMC.

(Rs. in Lakhs)

57

# : less than 0.005 lakhsThese transactions were made at arms length and within the limits set by the Regulations, wherever applicable.Commission and brokerage were paid at the same rates as were applied to other distributors and brokers.

D. PENALTIES, PENDING LITIGATION OR PROCEEDINGS

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction FMP 3 M FMP FMP 6M FMP 6M Dynamic Wealth Emerging

Series 14 Series 13 Series 2 Series 3 Asset Builder EquityAllocation Series 1

Commission / 2006-07 # - - - 86.76 89.13 75.04 KotakPromotional Securitiesexpenses for Ltd.Distribution of Units

Brokerage towards 2006-07 - - - - 23.78 0.67 - KotakPurchase and SecuritiesSale of Investments Ltd.

Commission / 2006-07 - - - - - - - KotakPromotional Mahindraexpenses for CapitalDistribution of Units Companu LTD.

Commission / 2006-07 0.03 - - - 2241.69 314.47 399.03 KotakPromotional Mahindraexpenses for BankDistribution of Units LTD.Charges on 2006-07 - # # # 32.70 2.13 - Kotakbanking Services Mahindra

Bank LTD.

Commission / 2006-07 - - - - - - - KotakPromotional Mahindraexpenses for Inc.Distribution of Units

None

None

a. All cases of penalties (indicating nature of penalty) awarded by SEBI under the SEBI Actor any of its regulations against the Sponsor of the Mutual Fund or any company associatedwith the Sponsor in any capacity including the Asset Management Company, TrusteeCompany/Board of Trustees, or any of the directors or key personnel (specifically the fundmanagers) of the Asset Management Company and Trustee Company.For Sponsor and its associates, other than the penalties as mentioned above, the penaltiesawarded by any financial regulatory body, including stock exchanges, for defaults in respectof shareholders, debenture holders and depositors shall also be disclosed. Additionally,penalties awarded for any economic offence and violation of any securities laws.

Details of all cases of suspensions and cancellation of certificate of registration (forirregularities / violations in financial services sector or for defaults in respect of shareholders, debenture holders and depositors) of the AMC, Trustee Company and sponsoror any associate of the sponsor shall be disclosed for the last 10 years.

b. Any pending material litigation proceedings incidental to the business of the MutualFund to which the Sponsor of the Mutual Fund or any company associated with theSponsor in any capacity including the AMC, Board of Trustees /Trustee Company or anyof the directors or key personnel is a party.Any pending criminal cases against the Sponsor or any company associated with theSponsor in any capacity including the AMC, Board of Trustees/Trustee Company or anyof the directors or key personnel.

c. Any deficiency in the systems and operations of the Sponsor of the Mutual Fund or anycompany associated with the sponsor in any capacity including the AMC or the TrusteeCompany which SEBI has specifically advised to be disclosed in the offer document, orwhich has been notified by any other regulatory agency.

d. Any enquiry/adjudication proceedings under the SEBI Act and the Regulations madethereunder, that are in progress against the Sponsor of the Mutual Fund or any companyassociated with the Sponsor in any capacity such as the AMC, Board of Trustees/TrusteeCompany or any of the Directors or key personnel of the Asset Management Company.

None

None

None

None

None

E. OMNIBUS CLAUSESubject to SEBI Regulation permitting:

Besides the AMC, the Trustee/Sponsor may also absorbexpenditures in addition to the limits laid down underRegulation 52 of SEBI Regulations.

Further, any amendment/clarification and guidelines in theform of notes or circulars issued from time to time by SEBIfor the operation and management of mutual fund shall beapplicable.

F. DOCUMENTS AVAILABLE FOR INSPECTIONFollowing documents are available for inspection by theprospective investors between 11.00 a.m. and 1.00 p.m. onany day (excluding Saturdays, Sundays and public holidays),at the office of the Mutual Fund:-

1. Copy of the Registration Certificate from SEBI

2. Copy of the Trust Deed and the Deed of Amendment.

3. Copy of the Investment Management Agreement andthe supplemental agreement.

4. Copy of the Memorandum and Articles of Associationof the Trustee.

5. Copy of the Memorandum and Articles of Associationof the AMC.

6. Copy of the Custodian agreement

7. Copy of the Registrar agreement

8. Consent of Auditors to act in the said capacity

58

9. A copy of this Offer Document

10. Copy of the SEBI (Mutual Funds) Regulations, 1996

11. Copy of the Indian Trusts Act, 1882.

All points mentioned in the Standard Observations issuedby SEBI vide their ‘Instructions for filing Offer Documentwith SEBI dated December 26, 2003 have been incorporatedin this Offer Document.

Notwithstanding anything contained in this Offer Document,the provisions of the SEBI (Mutual Funds) Regulations, 1996and the Guidelines thereunder shall be applicable.

Investors may ascertain about any further change after thedate of this Offer Document from the ISCs, as given on theinside back cover of the Offer Document, or the registeredoffice of AMC or from distributors/brokers.Note: The Scheme under this Offer Document was approved bythe Trustee at their meeting held on June 15, 2007

For and on behalf of the Board of Directors ofKOTAK MAHINDRA ASSET MANAGEMENT

COMPANY LIMITED[Asset Management Company for Kotak

Mahindra Mutual Fund]

Place : Mumbai Sandesh KirkireDate : September 11, 2007 Chief Executive Officer

The following short names have been used in this Offer Document:

Short Name Used Scheme / Plan Name

Kotak Gilt Savings Kotak Mahindra Gilt Unit Scheme ’98 - Savings Plan

Kotak Gilt Investment Kotak Mahindra Gilt Unit Scheme ’98 - Investment Plan

Kotak 30 Kotak Mahindra 30 Unit Scheme

Kotak Bond Kotak Mahindra Bond Unit Scheme 99

Kotak Bond Short Term Kotak Mahindra Bond Unit Scheme 99 - Short Term Plan

Kotak Balance Kotak Mahindra Balance Unit Scheme 99

Kotak Tech Kotak Mahindra Technology Scheme

Kotak MNC Kotak Mahindra MNC Scheme

Kotak Liquid Kotak Mahindra Liquid Scheme

Kotak Income Plus Kotak Mahindra Income Plus Scheme

Kotak Midcap Kotak Midcap Scheme

Kotak Global India Kotak Mahindra Global India Scheme

Kotak Flexi Debt Kotak Mahindra Flexi Debt Scheme

Kotak Contra Kotak Contra Scheme

Kotak Dynamic FOF Kotak Dynamic Fund of Funds Scheme

Kotak Equit Arbitrage Kotak Equit Arbitrage Fund

Kotak Flexi Funds of Fund Kotak Flexi Funds of Funds

Kotak Tax Saver Kotak Tax Saver Scheme

5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021Tel.: (022) 6638 4444 l Fax : (022) 6638 4455

E-mail : [email protected] l Website : www.kotakmutual.com