Kotak Mahindra Mutual Fund

8/6/2019 Kotak Mahindra Mutual Fund

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This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further detailsof the Scheme(s) / Mutual Fund, Due diligence certif icate by the AMC, Key Personnel, Investors' rights & services, Risk Factors, Penalties & PendingLitigations, Associate Transactions, etc. investors should, before investment, refer to the Combined Offer Document / Offer Document(s) available freeof cost at any of the Official Acceptance Points or distributors or from the website www.kotakmutual.com.

The Scheme(s) particulars have been prepared in accordance with Securit ies and Exchange Board of India (Mutual Funds) Regulations, 1996, as amendedtill date, and filed with Securities and Exchange Board of India (SEBI). The Units being offered for public subscription have not been approved ordisapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.

KEY INFORMATION MEMORANDUM

& APPLICATION FORMS

Kotak Mahindra Mutual Fund5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021

THE SPONSORKotak Mahindra Bank Ltd.36-38A, Nariman Bhavan227, Nariman Point, Mumbai 400 021

THE TRUSTEEKotak Mahindra Trustee Co. Ltd.5A, 5th Floor, Bakhtawar229, Nariman Point, Mumbai 400 021

THE ASSET MANAGEMENT COMPANYKotak Mahindra Asset Management Co. Ltd.5A, 5th Floor, Bakhtawar229, Nariman Point, Mumbai 400 021

THE DATE OF THIS KEY INFORMATION MEMORANDUM IS APRIL 28, 2007.

CONTINUOUS OFFER:

Units of all Schemes available at prices related to Applicable NAV

KOTAK 30Kotak Mahindra 30 Unit Scheme

An Open-Ended Equity Growth Scheme

Continuous Offer from 21-Jan-1999

KOTAK GLOBAL INDIA

Kotak Mahindra Global India SchemeAn Open-Ended Equity Growth Scheme

Continuous Offer from 3-Feb-2004

KOTAK OPPORTUNITIES

Kotak OpportunitiesAn Open-Ended Equity Growth Scheme

Continuous Offer from 10-Sep-2004

KOTAK M ID-CAPKotak Midcap Scheme


Continuous Offer from 25-Feb-2005

KOTAK TECH

Kotak Mahindra Technology SchemeAn Open-Ended Equity Growth Scheme

Continuous Offer from 2-May-2000

KOTAK MNC

Kotak Mahindra MNC SchemeAn Open-Ended Equity Growth Scheme

Continuous Offer from 2-May-2000

KOTAK CONTRA

Kotak Contra SchemeAn Open-Ended Equity Growth Scheme

Continuous Offer from 27-July-2005

KOTAK BOND SHORT TERM

Kotak Mahindra Bond Unit Scheme 99(Short Term Plan)

An Open-Ended Debt SchemeContinuous Offer from 3-May-2002

KOTAK FLEXI DEBT

Kotak Flexi Debt SchemeAn Open-Ended Debt Scheme

Continuous Offer from 7-Dec-2004

KOTAK TAX SAVERKotak Tax Saver Scheme

An Open-Ended Equity-Linked Savings Scheme

Continuous Offer from 25-Nov-2005

KOTAK LIQUID

Kotak Mahindra Liquid SchemeAn Open-Ended Debt Scheme

Continuous Offer from 6-Oct-2000

KOTAK FLOATER SHORT TERMKotak Floater Short Term Scheme

An Open-Ended Debt Scheme

Continuous Offer from 15-Jul-2003

KOTAK FLOATER LONG TERM

Kotak Floater Long Term SchemeAn Open-Ended Debt Scheme

Continuous Offer from 16-Aug-2004

KOTAK GILT SAVINGS

Kotak Mahindra Gilt Unit Scheme 98(Savings Plan)

An Open-Ended Dedicated Gilts SchemeContinuous Offer from 5-Jan-1999

KOTAK GILT INVESTMENT

Kotak Mahindra Gilt Unit Scheme 98(Investment Plan)

An Open-Ended Dedicated Gilts Scheme

Continuous Offer from 5-Jan-1999

KOTAK CASH PLUS

Kotak Cash PlusAn Open-Ended Income Oriented Scheme

Continuous Offer from 3-Oct-2005

KOTAK LIFESTYLE FUND

Kotak Lifestyle FundAn Open-Ended Equity Growth Scheme

Continuous Offer from 24-Mar-2006

KOTAK BALANCE

Kotak Mahindra BalanceUnit Scheme 99

An Open-Ended Balanced SchemeContinuous Offer from 29-Nov-1999

KOTAK INCOME PLUSKotak Mahindra Income Plus Scheme

An Open-Ended Income Scheme

Continuous Offer from 3-Dec-2003

KOTAK EQUITY FOF

Kotak Equity FOFAn Open-Ended Equity Fund of Funds Scheme

Continuous Offer from 10-Aug-2004

KOTAK BOND

Kotak Mahindra Bond Unit Scheme 99An Open-Ended Debt Scheme

Continuous Offer from 29-Nov-1999


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2

(210mm x 297mm)

Name of Scheme

Investment Objective

Asset Allocation Pattern(Indicative Allocation)

Options

MinimumApplication andRedemptionAmount /Number of Units

Benchmark Index

Dividend Policy

Fund Manager(s)

Performance of the Schemes as on 30 M arch, 2007*

Expenses of the Scheme

Nature of Scheme

Applicable NAV (Continuous Offer)for Purchase / Switch / Redemption

Initial Purchase

Additional Purchase

Frequency

Load Structure

RecurringExpenses (% p.a.of Daily AverageNet Assets)

Estimated as perOffer Document

Compounded AnnualisedReturns (%)

Last 1 year

Last 3 years

Last 5 years

Since Inception

Inception Date

KOTAK MAHINDRA 30 UNIT SCHEME(KOTAK 30)


To generate capital appreciation from a portfolio ofpredominantly equity and equity related securities withinvestment in, generally, not more than 30 stocks.

Equity and Equity Debt and MoneyRelated Securit ies Market Securit ies

60% - 100% 0% - 40%

Growth, Dividend

Rs. 5,000

Rs. 1,000 and above

S&P CNX Nifty

At Trustees discretion(For detailed Dividend Policy, please refer page no. 17)

Mr. Krishna Sanghvi

Kotak 30 S&P CNX Nifty(Dividend Option)

9.37 11.78

37.58 29.73

40.82 27.41

30.14 19.59

29-Dec-1998

For valid applications accepted: up to 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 following Business Day.The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to the

investors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephoneand where investors have signed up for using these facilities. These applicable NAVs will also apply to SystematicInvestment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP).

New Fund Offering Period

Continuous Offer

Initial Issue Expenses : Not Applicable

Entry Load: [1] Where the purchase amount / switch in amount is equal to or more than Rs. 5 crores: Nil [2] Where the switch

in is from an Equity / Balanced / Equity FOF Scheme to an Equity / Balanced / Equity FOF Scheme: Nil [3] Whereinvestments are made by FIIs or sub a/c of FIIs: Nil [4] Where investments is made by Fund-of-Funds as definedunder SEBI Regulations: Nil [5] Where units are allotted upon reinvestment of Dividends: Nil [6] Cases not coveredabove: 2.25%

Exit Load: For exit within 6 months for investments less than Rs. 5 crores: 1% Cases not covered above : Nil

2.50%

Actual for previousFinancial Year

(Unaudited)

2.29%


To generate capital appreciation f rom a diversified portfolioof predominantly equity and equity related securities issuedby Globally Competitive Indian Companies.


65% to 100% 0% to 35%

S&P CNX 500

Mr. Nikunj Doshi and Mr. Anurag Jain

2.50%

2.37%

KOTAK M AHINDRA GLOBAL INDIA SCHEME(KOTAK GLOBAL INDIA)

Kotak Global India S&P CNX 500(Growth Option)

6.96 8.42

39.08 29.70

34.70 14.40

30-Jan-2004

Risk ProfileMutual Fund investments are subject to market risks. Please read the Offer Document(s) carefully for details on RiskFactors before investment.

(For further details and limits specified by the Regulations, please refer page no. 17)

Key Information Memorandum

Equity Schemes

Rs. 1,000 or 100 unitsRedemption

Returns assumed reinvestment of the tax free dividend declared

Past Performance may or may not be sustained in future

* March 31, 2007 being a non-business day.


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3

3(210mm x 297mm)

Name of Scheme



Options


Benchmark Index

Dividend Policy

Fund Manager


Nature of Scheme

Applicable NAV (Continuous Offer) for

Purchase / Switch / Redemption

Initial Purchase

Additional Purchase

Redemption

Frequency

Load Structure



KOTAK OPPORTUNITIES


To generate capital appreciation f rom a diversified portfolioof equity and equity related securities.


65% to 95% 5% to 35%

Growth, Dividend

Rs. 5,000

Rs. 1,000 and above

Rs. 1,000 or 100 units

S&P CNX 500

At Trustees discretion

Mr. Nikunj Doshi

For valid applications accepted:

up to 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 following Business Day.

The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephoneand where investors have signed up for using these facilities.These applicable NAVs will also apply to SystematicInvestment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP).


Continuous Offer





2.50%

Actual for previousFinancial Year(Unaudited)

2.34%

(For detailed Dividend Policy, please refer page no. 17)

Performance of the Growth Opt ion of the Schemes as on 30 March, 2007*


Last 1 year

Since Inception

Inception Date

Kotak S&P CNX 500Opportunities

9.75 8.42

49.55 37.36

9-Sep-2004

Kotak M id-cap CNX Mid-Cap

-1.63 2.91

35.84 45.10

24-Feb-2005




Equity Schemes

KOTAK MID-CAP SCHEME (KOTAK MID-CAP)


To generate capital appreciation f rom a diversified portf olioof equity and equity related securities.

Equity and Equity Debt andrelated instruments Money Market

Securities65% to 100%

Midcap stocks Other thanMidcap stocks 0% to 35%

65% to 100% 0% to 35%

CNX Mid-Cap

2.50%

2.34%


* Absolute Returns



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4

(210mm x 297mm)

Name of Scheme



Option


Dividend Policy


Nature of Scheme

Applicable NAV (Continuous Offer) forPurchase / Switch / Redemption

Initial Purchase

Additional Purchase

Redemption

Frequency

Load Structure

KOTAK M AHINDRA TECHNOLOGY SCHEME(KOTAK TECH)


To generate capital appreciation from a portfolio ofpredominantly equity and equity related securities in theinformation technology sector.

Equity and Equity Debt and Money

Related Securit ies Market Securit ies

60% - 100% 0% - 40%

Rs. 5,000

Rs. 1,000 and above



up to 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 following Business Day.

The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephone

and where investors have signed up for using these facilities. These applicable NAVs will also apply to SystematicInvestment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP)


Continuous Offer





KOTAK MAHINDRA MNC SCHEME(KOTAK MNC)


To generate capital appreciation f rom a port foli o ofpredominantly equity and equity related securities issued bymultinational companies.

Equity and Equity Debt and Money

Related Securit ies Market Securit ies

60% - 100% 0% - 40%

At Trustees discretion(For detailed Dividend Policy, please refer page no. 17)


Benchmark Index

Fund Managers



BSE IT Index

Mr. Nikunj Doshi and Mr. Anurag Jain

2.25%

Actual for previousFinancial Year

(Unaudited)

2.25%

BSE Sensex and S&P CNX Nifty

2.50%

2.50%

Performance of the Schemes as on 30 M arch, 2007*


Last 1 year

Last 3 years

Last 5 years

Since Inception

Inception Date

Kotak Tech BSE IT Index

21.93 20.40

36.77 41.70

27.68 24.82

0.31 -0.01

4-April-2000

Kotak MNC BSE Sensex S&P CNX Nifty

-8.29 15.61 11.78

31.75 33.29 29.73

31.97 30.17 27.41

18.21 15.79 15.12

4-April-2000



Equity Schemes





5/30


6/30

6

(210mm x 297mm)


Equity Schemes

Name of Scheme


Options


Benchmark Index

Dividend Policy

Fund Manager


Nature of Scheme

Applicable NAV (Continuous Offer)for Purchase / Switch / Redemption(Switch-out and Redemption availableafter expiry of lock in period of3 years)

Initial Purchase

Additional Purchase

Redemption (afterexpiry of lock inperiod of 3 years)

Frequency

Load Structure

RecurringExpenses(% p.a. of DailyAverage Net

Assets)


KOTAK TAX SAVER SCHEME (KOTAK TAX SAVER)

An Open-Ended Equity-Linked Savings Scheme

Equit y and Equit y related Securit ies Debt and Money Market Securit ies*

80% to 100% 0% to 20%

* Debt securit ies shall be deemed to include securitised debts (excluding foreign securitised debt) and investment insecuritised debts shall not exceed 50% of the debt component of the Scheme. Investments may be made in foreigndebt securities not exceeding 20% of the debt component of the Scheme. However, investments made in foreign debt

securities would not include investment in foreign securitised debt. Investments may be made in GDRs/ADRs notexceeding 20% of net assets of the Scheme. The Scheme may engage in stock lending not exceeding 20% of thenet assets of the Scheme.

Growth, Dividend

Rs. 500 and in multiples of Rs. 500

Rs. 500 and in multiples of Rs. 500

Rs. 1000 or all Units if the amount is less than Rs. 1000

S&P CNX 500


Mr. Nikunj Doshi

For the purpose of all purchases and switch-ins, redemptions and switch-outs (after expiry of lock-in period of 3 years),the Applicable NAV is as follows:

For Valid Applications accepted :

l upto 3 p.m. on a Business Day, the NAV of such Business Day

l after 3 p.m. on a Business Day, the NAV of the following Business Day

Further, where the AMC or the Registrar has provided a facility to the investors to redeem/switch-in/switch-out of theScheme through the medium of Internet by logging onto specific web-sites or telephone and where investors havesigned up for using these facilities, the Applicable NAVs will be as provided above. These Applicable NAVs will alsoapply to Systematic Investment Plan, Systematic Withdrawal Plan and Systematic Transfer Plan.

Continuous Offer Entry Load: [1] Where the purchase amount / switch in amount is equal to or more than Rs. 5 crores: Nil [2] Where the switch


Exit Load: Nil

2.50%


Risk ProfileMutual Fund Investments are subject to market risks. Please refer the Offer Document carefully for details on risk factorsbefore investment.


Investment Objective To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enableinvestors to avail the income tax rebate, as permitted from time to time.

New Fund Offering Period Initial Issue Expenses : Not Applicable

Actual for previousFinancial Year (Unaudited)

2.37%



Last 1 year

Last 3 yearsLast 5 years

Since Inception

Inception Date

Kotak S&P CNX 500Tax Saver

8.08 8.42

27.13 27.98

23-Nov-2005

Performance of the Scheme as on 30 March, 2007*



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7

7(210mm x 297mm)

Name of Scheme

Asset Allocation Pattern

(Indicative Allocation)

Options

MinimumApplication and

RedemptionAmount /Number of Units

Benchmark Index

Dividend Policy

Fund Manager


Nature of Scheme

Applicable NAV (Continuous Offer)for Purchase / Switch / Redemption

Frequency

Load Structure

RecurringExpenses

(% p.a. of DailyAverage NetAssets)


KOTAK LIFESTYLE FUND


Equity and Equity related Securities* Debt & Money Market Instruments ** Securitised Debt65% to 100% 0% to 35% 0% to 18%

* If permit ted by SEBI under extant regulations/guidelines, t he scheme may also engage in stock lending, not exceeding20% of the net assets of the Scheme, provided t he minimum corpus of the scheme is Rs.100 Crores. The schememay upto 25% of net assets invest in ADR/GDRs and foreign equity securities, subject to applicable regulations.

* * Debt instruments shall include investments in Foreign Debt Securities not exceeding 25% of the net assets of thedebt component.

However, no investments will be made in foreign securitised debt. From time to time the Scheme may hold cash.Investments will also be made in derivative instruments not exceeding 25% of the net assets of the Scheme.

Growth, Dividend

Initial Purchase Rs. 5,000

Additional Purchase Rs. 1,000 and above

Redemption Rs. 1,000 or 100 unitsIf t he holding is less than Rs. 1000 or 100 Units, the entire balance will be redeemed as and when redemption requestis received from the investor.

S&P CNX 500


Mr. Nikunj Doshi

For the purpose of all purchase, redemption and switch transactions, the Applicable NAV is as follows:





Continuous Offer Entry Load: [1] Where the purchase amount / switch in amount is equal to or more than Rs. 5 crores: Nil [2] Where the switch

in is from an Equity / Balanced / Equity FOF Scheme to an Equity / Balanced / Equity FOF Scheme: Nil [3] Whereinvestments are made by FIIs or sub a/c of FIIs: Nil [4] Where investments is made by Fund-of-Funds as defined

under SEBI Regulations: Nil [5] Where units are allotted upon reinvestment of Dividends: Nil [6] Cases not coveredabove: 2.25%


2.50%


Risk Profile Mutual Fund Investments are subject to market risks. Please refer the Offer Document carefully for details on risk factorsbefore investment.


Investment Objective The investment objective of the fund is to generate long-term capital appreciation from a portfolio of equity and equity

related securities, generally diversified across companies, which are likely to benefit by changing lifestyle and risingconsumerism in India.

Performance of the Scheme as on 30 M arch, 2007*


New Fund Offering Period Initial Issue Expenses : Not Applicable


Equity Schemes


2.19%

Compounded Annualised Returns (% )

Last 1 year

Since Inception

Inception Date

Kotak Lifestyle Fund S&P CNX 500

13.17 8.42

14.42 14.40

21-Mar-2006



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8

(210mm x 297mm)

Name of Scheme



Options


Benchmark Index

Dividend Policy


Nature of Scheme


Initial Purchase

Additional Purchase

Frequency

Record Date(s)

Load Structure


Estimated as per OfferDocument

Growth, Dividend

Rs. 5,000

Rs. 1,000 and above

For valid applications accepted: up to 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 following Business Day.The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to the investorsto transact in the Schemes through the medium of Internet by logging onto specific websites or telephone and where investorshave signed up for using these facilities. These applicable NAVs will also apply to Systematic Investment Plan (SIP), SystematicWithdrawal Plan (SWP) and Systematic Transfer Plan (STP)

New Fund Offering PeriodContinuous Offer


KOTAK MAHINDRA BALANCE UNIT SCHEME 99(KOTAK BALANCE)

An Open-Ended Balanced Scheme

To achieve growth by investing in equity and equity relatedinstruments, balanced with income generation by investing indebt and money market instruments.

Equity and Equity Debt and MoneyRelated Inst ruments Market Inst ruments

51% 49%

CRISIL Balanced Fund Index

Half Yearly


Entry Load: [1] Where the purchase amount / switch in amount is

equal to or more than Rs. 5 crores: Nil [2] Where theswitch in is from an Equity / Balanced / Equity FOFScheme to an Equity / Balanced / Equity FOF Scheme: Nil[3] Where investments are made by FIIs or sub a/c ofFIIs: Nil [4] Where investments is made by Fund-of-Fundsas defined under SEBI Regulations: Nil [5] Where unitsare allotted upon reinvestment of Dividends: Nil[6] Cases not covered above: 2.25%

Exit Load: For exit within 6 months for investments less than Rs.

5 crores: 1%

Cases not covered above : Nil

2.50%

2.44%


Performance of the Schemes as on 30 March, 2007*

Compounded Annualised Returns(%)

Last 1 year

Last 3 years

Last 5 yearsSince Inception

Inception Date

Kotak CRISIL BalancedBalance Fund Index

2.84 10.37

27.56 18.03

27.02 18.9118.71

25-Nov-1999

25th March and 25th of September every year.

Risk Profile Mutual Fund investments are subject to market risks. Please read the Offer Document(s) carefully for details on Risk Factorsbefore investment.


KOTAK M AHINDRA INCOME PLUS SCHEME(KOTAK INCOME PLUS)

An Open-Ended Income Scheme

To enhance returns over a portfolio of debt instruments witha moderate exposure in equity and equity related instruments.

Debt and Money Equity and EquityMarket Inst ruments Related Inst ruments

Upto 100% Upto 20%

CRISIL MIP Blended Index

Monthly, Quarterly

Entry Load: NIL

2.25%

2.21%

Kotak Income Plus CRISIL MIP(Growth Option) Blended Index

3.72 5.67

8.23 6.33

8.15 6.79%

2-Dec-2003

12th of every month (Monthly Dividend Option), 20th of March, June,September and December (Quarterly Dividend Option).

Exit Load:

For investment s upto Rs. 10 Lacs : 0.50%, if redeemedwithin six months

For investments above Rs. 10 Lacs : NIL

Fund Managers Mr. Krishna Sanghvi and Mr. Ritesh Jain

Rs.1,000 or 100 unitsRedemption



However, the equity exposure can vary between 50% and 70%of the net assets of the Scheme. If the exposure falls below t hesaid lower limit or exceeds the upper limit, it will be restoredwithin seven (7) Business Days.


Hybrid Schemes



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9

9(210mm x 297mm)

Name of Scheme



(Indicative Allocation)

Options


Benchmark Index

Dividend Policy

Fund Manager


Nature of Scheme


Initial Purchase

Additional Purchase

Redemption

Frequency

Load Structure

RecurringExpenses

(% p.a. of DailyAverage NetAssets)

Estimated as per

Offer Document

KOTAK EQUITY FOF

An Open-Ended Equity Fund of Funds Scheme

To generate long term capital appreciation f rom a port folio created by investing predominantly in open-ended diversifiedequity schemes of Mutual Funds registered with SEBI.

Open-Ended DiversifiedEquity Schemes

90% to 100%

Growth, Dividend

Rs. 5,000

Rs. 1,000 and above


S&P CNX Nifty


Mr. Sajit Pisharodi


up to 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 following Business Day.The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephoneand where investors have signed up for using these facilities.These applicable NAVs will also apply to SystematicInvestment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP).


Continuous Offer





0.75%


0.75%


Performance of the Growth Option of the Scheme as on 30 March, 2007*




Fund of Funds Scheme

Inter bank call and / or reverse repo and/or short termfixed deposits and / or schemes which invest predominantlyin money market or floating rate securities

0% to 10%

Compounded Annualised

Returns (%)

Last 1 year

Since Inception

Inception Date

Kotak S&P CNX Nifty

Equity FOF

6.03 11.78

39.65 37.72

9-Aug-2004




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10

(210mm x 297mm)

Name of Scheme

Plans



Options


Benchmark Index

Dividend Policy


Nature of Scheme


Initial Purchase

Additional Purchase

Redemption

Frequency

Record Date(s)

Load Structure

RecurringExpenses(% p.a. of DailyAverage NetAssets)


KOTAK MAHINDRA BOND UNIT SCHEME 99 (KOTAK BOND)


To create a portfolio of debt instruments of dif ferent maturit ies so as to spread the risk across a wide maturity horizonand different kinds of issuers in the debt markets.

Growth and Dividend

Rs. 5,000

Rs. 1,000 and above


CRISIL Composite Bond Fund Index

Quarterly


up to 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 following Business Day.

The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to the investorsto transact in the Schemes / Plans through the medium of Internet by logging onto specific websites or telephone and whereinvestors have signed up for using these facilities.These applicable NAVs will also apply to Systematic Investment Plan (SIP),Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP).


Continuous Offer


Entry Load : NIL

Exit Load : For investments upto Rs. 10 Lacs : 0.50%, if

redeemed within six months.For investments above Rs. 10 Lacs : NIL

2.25%


0.89%

Deposit

Growth, Dividend and Bonus

Quarterly, Annual

Entry Load : NIL

Exit Load : NIL

1.65%

Regular


20th of March, June, September and December of everyyear.

20th of March, June, September and December of everyyear (Quarterly Dividend Option); 12th of March of everyyear (Annual Dividend Option)


Compounded Annualised Returns (% )

Last 1 year

Last 3 yearsLast 5 years

Since Inception

Inception Date

Kot ak Bond CRISIL Composit eDeposit Plan Bond Fund Index

5.24 3.68

3.49 2.406.18 5.29

8.81

25-Nov-1999

Kot ak Bond CRISIL CompositeRegular Plan Bond Fund Index

6.74 3.68

4.32 2.406.92 5.29

9.57

25-Nov-1999

Risk Profile Mutual Fund investments are subject to market risks. Please read the Offer Document(s) carefully for details on RiskFactors before investment.



Debt Scheme

Fund Manager Mr. Ritesh Jain

Debt instruments with Debt and Money Marketmaturity more than instruments with maturity

one year less than one year

25% to 100% 10% to 100%

Debt instruments with Debt and Money Marketmaturity more than instruments with maturity

one year less than one year

25% to 100% 10% to 100%


0.89%

Debt instruments are deemed to include securitised debt and investment in securit ised debt shall not exceed 50% ofthe net assets of the Scheme.



11/30


12/30

12

(210mm x 297mm)

Name of Scheme



Options

MinimumApplication and

RedemptionAmount /Number of Units

Benchmark Index

Dividend Policy

Fund Managers


Nature of Scheme


Initial Purchase(Non-SIP)

Additional Purchase

(Non-SIP)

Redemption

Frequency

Load Structure

RecurringExpenses(% p.a. of DailyAverage NetAssets)


KOTAK CASH PLUS FUND (KOTAK CASH PLUS)

An Open-Ended Income Oriented Scheme

The investment objective of the scheme is to generate income from investment in debt and money market securitiesand by availing arbitrage opportunities between prices of spot and derivatives markets.

Investments Indicative Allocation

Debt and Money Market instruments(including margin money deployed for defensive transactions) 30% to 100%

Debt instruments (with a maturity of more than one year) 0% to 10%

Equity combined with sale in futures market 0% to 70%

Securitised Debt 0% to 25%

Growth, Dividend

Rs. 5,000

Rs. 1,000

Rs.1,000 or 100 units

If the holding is less than Rs. 1000 or 100 Units, the entire balance will be redeemed as and when redemption requestis received from the investor.

Crisil Liquid Fund Index


Mr. Ritesh Jain and Mr. Sajit Pisharodi

For the purpose of all purchase, redemption and switch transactions, the Applicable NAV is as follows:






Continuous Offer


Entry Load : NILExit Load : 0.5% if redeemed within 30 days from the date of allotment of units.

2.25%


Risk ProfileMutual Fund Investments are subject to market risks. Please refer the Offer Document carefully for details on risk factorsbefore investment.



Debt Scheme

Performance of the Scheme as on 30 March, 2007*



Last 1 year

Since Inception

Inception Date

Kotak Cash Crisil LiquidPlus Fund Fund Index

8.34 6.39

7.62 5.15

29-Sept.-2005

Actual for previousinancial Year (Unaudited)

1.00%

Record Date(s) Monthly



13/30

13

13(210mm x 297mm)

Name of Scheme



Options


Benchmark Index

Dividend Policy


Nature of Scheme


Initial Purchase

Additional Purchase

Redemption

Frequency

Record Date(s)

Load Structure



KOTAK FLOATER LONG TERM SCHEME


To reduce the interest rate risk associated with investmentsin fixed rate instruments by investing predominantly infloating rate securities, money market instruments andusing appropriate derivatives.

Growth, Weekly Dividend Re-investment, Monthly Dividend Re-investment

Rs. 5,000

Rs. 1,000 and above


CRISIL Liquid Fund Index

For valid applicationsaccepted:

up to 3 p.m. ona Business Day,the NAV of suchBusiness Day.

after 3 p.m. on aBusiness Day, theNAV of thef o l l o w i n gBusiness Day.

New Fund Offering PeriodContinuous Offer

Initial Issue Expenses : Not ApplicableEntry Load : NILExit Load :For investments upto Rs. 10 Lacs : 0.50%, if redeemedwithin six monthsFor investments above Rs. 10 Lacs : NIL

2.25%


0.60%

KOTAK FLOATER SHORT TERM SCHEME


To reduce the interest rate risk associated with investmentsin fixed rate instruments by investing predominantly infloating rate securities, money market instruments andusing appropriate derivatives.

Entry Load : NILExit Load : NIL

2.25%

0.36%

Floating Rate Debt securities &/or Fixed Rate Debtmoney market instruments, other Securitiesdebt securities with outstanding

maturity of upto 182 days

65% to 100% 0% to 35%

Floating Rate Debt securities &/or Fixed Rate Debtmoney market instruments, other Securitiesdebt securities with outstanding

maturity of upto 182 days

65% to 100% 0% to 35%

Weekly, Monthly

Every Monday (Weekly Dividend Re-investment Option),12th of every month (Monthly Dividend Re-investment Option)


Purchases / Switch-In:a) where the application is received upto 12.00 noon on a day and funds are available forutilization on the same day the closing NAV of the day immediately preceding the dayof receipt of application;

b) where the application is received after 12.00 noon on a day and funds are available forutilization on the same day the closing NAV of the day immediately preceding the nextbusiness day ; and

c) irrespective of the time of receipt of application, where the funds are not available forutilization on the day of the application the closing NAV of the day immediately precedingthe day on which the funds are available for utilization.

Redemption / Switch-Out:a) where the application is received upto 3.00 pm the closing NAV of the day immediately

preceding the next business day ; andb) where the application is received after 3.00 pm the closing NAV of t he next business day.



Last 1 year

Last 3 years

Since Inception

Inception Date

Kotak Floater CRISIL LiquidLong Term Fund Index

7.08 6.39

6.04 5.30

13-Aug-2004

Kotak Floater CRISIL LiquidShort Term Fund Index

7.09 6.39

5.87 5.13

5.76 4.93

14-July-2003



The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephoneand where investors have signed up for using these facilities.These applicable NAVs will also apply to Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP) andSystematic Transfer Plan (STP).

Fund Managers Mr. Ritesh Jain and Mr. Deepak Agrawal


Debt / Liquid Schemes

Past Performance may or may not be sustained in future* Absolute Returns

Mr. Ritesh Jain and Mr. Abhishek Bisen



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Name of Scheme

Plan



Nature of Scheme

KOTAK MAHINDRA LIQUID SCHEME (KOTAK LIQUID)


To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of dif ferentmaturities so as to spread risk across different kinds of issuers in the debt markets.

Debt and Money Market instruments (including interbank call and repo)

100%

Regular


Liquid Scheme

Options


Benchmark Index

Dividend Policy

Fund Manager



Initial Purchase

Additional Purchase

Redemption

Frequency

Record Date(s)

Load Structure



Growth, Dividend Re-investment

Rs. 5,000

Rs. 1,000 and above



Weekly

Every Monday

Mr. Ritesh Jain

Purchases / Switch-In:a) where the application is received upto 12.00 noon on a day and funds are available for ut ilization on the same

day the closing NAV of the day immediately preceding the day of receipt of application;b) where the application is received after 12.00 noon on a day and funds are available for utilization on t he same

day the closing NAV of the day immediately preceding the next business day ; andc) irrespective of the time of receipt of application, where the funds are not available for ut ilization on the day of

the application the closing NAV of the day immediately preceding the day on which the funds are available forutilization.

Redemption / Switch-Out:a) where the application is received upto 3.00 pm the closing NAV of the day immediately preceding the next business

day ; andb) where the application is received after 3.00 pm the closing NAV of the next business day.


Continuous Offer


Entry Load : NILExit Load : NIL

1.00%


0.30%



Last 1 year

Last 3 years

Last 5 years

Since Inception

Inception Date

Kotak Liquid CRISIL LiquidRegular Plan Fund Index

6.52 6.39

5.32 5.13

5.49 5.16

6.23 5.59

5-Oct-2000

Performance of the Growth Option of the Scheme as on 30 March, 2007*


The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephoneand where investors have signed up for using these facilities. These applicable NAVs will also apply to SystematicInvestment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP).





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Name of Scheme

Plans



Options


Benchmark Index

Dividend Policy

Fund Manager


Nature of Scheme


Initial Purchase

Additional Purchase

Redemption

Frequency

Record Date(s)

Load Structure



KOTAK MAHINDRA LIQUID SCHEME (KOTAK LIQUID)


To provide reasonable returns and high level of liquidity by investing in debt and money market instruments of dif ferentmaturities so as to spread risk across different kind of issuers in the debt market.

Debt and Money Market instruments (includinginterbank call and repo)

100%

Growth, Daily Dividend Re-investment, Weekly DividendRe-investment

Rs. 1,00,00,000


Daily, Weekly

Every day for which NAV is declared (Daily Dividend Re-investment), Every Monday (Weekly Dividend)

Mr. Ritesh Jain

Purchases / Switch-In:

a) where the application is received upto 12.00 noon on a day and funds are available for ut ilization on the sameday the closing NAV of the day immediately preceding the day of receipt of application;b) where the application is received after 12.00 noon on a day and funds are available for ut ilization on the same

day the closing NAV of the day immediately preceding the next business day ; andc) irrespective of the time of receipt of application, where the funds are not available for ut ilization on the day of

the application the closing NAV of the day immediately preceding the day on which the funds are available forutilization.

Redemption / Switch-Out:a) where the application is received upto 3.00 pm the closing NAV of the day immediately preceding the next business

day ; andb) where the application is received after 3.00 pm the closing NAV of the next business day.The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes through the medium of Internet by logging onto specific websites or telephoneand where investors have signed up for using these facilities.


Continuous Offer


Entry Load : NIL

Exit Load : NIL

0.75%


0.30%

Institutional

Rs. 5,00,00,000

0.65%

Institutional Premium


Performance of the Grow th Opt ion of the Schemes as on 30 March, 2007*


Last 1 year (absolute)

Last 3 years

Last 5 years

Since Inception

Inception Date

Kotak Liquid CRISIL LiquidInst itut ional Plan Fund Index

6.89 6.39

5.44 5.13

5.65 5.16

5.59 5.59

14-Mar-2003

Kotak Liquid CRISIL LiquidInstitutional Premium Plan Fund Index

7.32 6.39

5.49 5.13

5.85 5.59

4-Nov-2003



Growth, Daily Dividend Re-investment, Weekly Dividend


Liquid Schemes

Rs. 1,000 and above



Debt and Money Market instruments (includinginterbank call and repo)

100%

0.30%



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Name of Scheme

Plans



Options


Benchmark Index

Dividend Policy

Fund Manager(s)


Nature of Scheme

Applicable NAV (Continuous Offer) forPurchase / Switch / Redemption / Put

Initial Purchase

Additional Purchase

Redemption / Put

Frequency

Record Date(s)

Load Structure



KOTAK MAHINDRA GILT UNIT SCHEME 98 (KOTAK GILT)

An Open-Ended Dedicated Gilts Scheme

To generate risk-free returns through investments in sovereign securities issued by t he Central and / or State

Government(s) and / or reverse repos in such securities.Portf olio of securities will have a Weighted Average Maturityof up to 4 years

Growth, Dividend

Rs. 5,000

Rs. 1,000 and above


I-Sec Si-Bex

Monthly, Annual

12th of the month concerned (Monthly Dividend Option).The record date for the Annual Dividend Option is notfixed.


up to 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 following Business Day.The Applicable NAVs will be as provided above even where the AMC or the Registrar has provided a facility to theinvestors to transact in the Schemes / Plans through the medium of Internet by logging onto specific websites ortelephone and where investors have signed up for using these facilities. These applicable NAVs will also apply toSystematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP)


Continuous Offer


Entry Load: NIL

Exit Load: NIL

1.65%


1.00%

Savings

No restriction on maturity of securities

Growth, Dividend

I-Sec Composite Index

Quarterly

20th of March, June, September and December of everyyear.

Entry Load: NIL

Exit Load: NIL

1.65%

1.57%

Investment InvestmentRegular Provident Fund & Trust




Last 1 year (absolute)

Last 3 years

Last 5 years

Since Inception

Inception Date

Kotak Gilt I-Sec Si-BexSavings Plan

5.54 5.91

5.22 4.82

5.44 6.01

7.51

29-Dec-1998

Kotak Gilt I-Sec Kotak Gilt I-SecInvestment Composite Investment PF Composite

Regular Plan Index & Trust Plan Index

4.22 5.30 4.65 5.30

2.51 3.24 2.92 3.24

6.74

10.94 2.96 3.04

29-Dec-1998 11-Nov-2003


1.65%


Entry Load: NIL

Exit Load: NIL

Mr. Ritesh Jain


Gilt Scheme


1.57%

Mr. Ritesh Jain and Mr. Abhishek Bhisen



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Within ten Business Days of the receipt of the redemption request at the Official Acceptance Points / Authorised Centre of Kotak Mahindra MutualFund.

Kotak Mahindra Trustee Company Limited

The NAVs will be declared on all Business Days and will be published in 2 newspapers. NAVs can also be viewed on www.kotakmutual.com

and www.amfiindia.com. The NAVs of Kotak Liquid and Kotak Floater Short Term Scheme shall be calculated on each calendar day.Under the Dividend Option(s), the Trustee may decide to distribute by way of dividend, the surplus by way of realised profits, dividends and interest,net of losses, expenses and taxes, if any, to the Unitholders concerned, if such surplus is available and adequate for distribution in the opinionof the Trustee. The Trustee's decision with regards to such availability and adequacy of surplus, rate, timing and frequency of distributions shallbe final. The Unitholder has the option of receiving the dividend or having the same reinvested. However, any dividend declared under the DividendRe-investment Option(s) of the Scheme(s) / Plan(s) concerned shall be compulsorily re-invested. Dividend amounts will be reinvested in the sameoption at the Applicable NAV announced for the first Business Day immediately after the date of the declaration of dividend. Where the recorddate(s) for the Dividend Option of the Scheme(s) / Plan(s) concerned is not a Business Day, the Record Date shall be the immediately succeedingBusiness Day.

Under the Daily Dividend Re-invesment Option(s), growth in NAV as represented by distributable surplus (i.e. realised profit , dividends and interest,net of losses, expenses and taxes, if any) will be distributed as dividend to the Unitholders in the Option(s). The Dividend will be declared onevery day for which NAV is declared; the previous such day being the Record Date. The dividend will be due to only those Unitholders whosenames appear in the register of Unitholders on the Record Date. Dividend amounts will be reinvested in the Option concerned at the ApplicableNAV announced immediately after the Record Date. In the event of unavailability of distributable surplus, dividend will not be declared.

In Kotak Cash Plus, the record date for the purpose shall be Monday immediately preceding the last Thursday of the Month (the Futures & Optionsexpiry date), or is such day is not a Business Day, the immediately succeeding Business Day.

The Investment Manager retains the right to charge the actual expenses to the Scheme / Plan, however the expenses charged will not exceedthe statutory limits prescribed by the Regulations.

The recurring expenses of the Scheme(s) / Plan(s) (including investment and advisory fees ) are presently subject to the following maximum limits(as a percentage of Weekly Average Net Assets) as per Regulation 52. Expenses over and above the permit ted l imit under the applicable Regulationswill be borne by the AMC.

Weekly Average Kotak Gi lt Investment Plan / Kotak Gi lt Savings Plan / Kotak 30 / Kotak Balance / Kotak MNC / Net Assets (Rs.) Kotak Gi lt Provident Fund & Trust Plan / Kotak Bond / Kotak Tech / Kotak Global India /

Kotak Bond Short Term Plan / Kotak Liquid / Kotak Opportuni ties / Kotak Mid-Cap / Kotak Floater Short Term / Kotak Floater Long Term / Kotak Contra / Kotak Tax Saver /

Kotak Income Plus / Kotak Flexi Debt / Kotak Cash Plus Kotak Lifestyle

First 100 Crores 2.25% 2.50%

Next 300 Crores 2.00% 2.25%

Next 300 Crores 1.75% 2.00%

Balance Assets 1.50% 1.75%

In respect of Kotak Equity FOF, the total expenses will not exceed 0.75% of the daily average net assets.

The information set out below outlines the tax implications with respect to the Unit holders of the Scheme and with respect to the Mutual Fund and is based on relevantprovisions of t he Indian Income Tax Act, 1961 and Wealth Tax Act, 1957 (collectively known as " the relevant provisions"), and prevailing as on April 27, 2007.

Further, for this purpose the proposals of the Finance Bill, 2007 (Budget 2007) are also considered as the same has been presented in the Parliament and will becomelaw after it is approved by both the Houses of Parliament and receive the assent from the President of India. Since the information below is based on the relevant provisionsas on April 27, 2007 any subsequent changes in the relevant provisions could affect tax implications.

Price Waterhouse does not make any representation on the procedures for ascertaining the tax implications nor do they make any representations regarding any legalinterpretations. Further, except for the above procedure, Price Waterhouse has not performed any other services in connection with any other data or information includedin the Offer Document.

THEFOLLOWING INFORMATION IS PROVIDED FOR GENERAL INFORMATION PURPOSES ONLY. IN VIEW OFTHEINDIVIDUAL NATUREOF TAX IMPLICATIONS, EACH INVESTORISADVISED TO CONSULT HISORHEROWN TAX ADVISERWITH RESPECT TO THESPECIFIC TAX IMPLICATIONS ARISING OUT OF HIS OR HERPARTICIPATION IN THE SCHEME.

A. For the Unitholders

1. Income from Mutual Fund received by Unitholders would be tax free in the hands of the Unitholders as per the provisions of section 10(35) of the Income-tax Act,1961 (the Act).

2. The characterization of gains / losses arising from sale / transfer of unit s as capital gains or business income would depend on the classification of the said unitsby the unit holder. It would depend on whether the unit holder has classified such units as capital assets or as stock 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 long term capital asset if the same is held for morethan 12 months. If the unit is held for 12 months or less, the same is treated as a short term capital asset.

4. Taxation of Long Term Capital Gains

Under Section 112 of the Act, capital gains arising on the transfer of long term capital assets are subject to tax at the rate of 20%. The capital gains will be computedby deducting expenditure incurred in connection with such transfer and indexed cost of acquisition of the unit from the sale consideration. Further, the maximumtax payable on long term capital gains on such units is restricted to 10% of capital gains calculated without indexation of the cost of acquisition.

However, as per section 10(38) of the Act, long term capital gain arising from the sale of a unit of an equity oriented fund is exempt from tax. In such cases, atthe time of sale of units (redemption) the unit holder will have to pay a Securities Transaction Tax (STT) of 0.25% of the sale / redemption value.

The income by way of long term capital gains of a company would be taken into account in computing the book profits and Minimum Alternate Tax payable, ifany, u/s 115JB of the Act (irrespective of whether it is exempt u/s 10(38)).

Further, in case of an individual or HUF, being a resident, where the total income as reduced by the long term capital gains is below the maximum amount not chargeableto tax1 (i.e. Rs. 100,000 in case of all individuals, to Rs. 135,000 in case of women and to Rs.185, 000 in case of senior citizens), the long term capital gains shallbe reduced to the extent of the shortfall and only the balance long term capital gains will be subject to the flat rate of taxation.

5. Taxation of Short Term Capital Gains

Short term capital gains arising to a unit holder will be taxed at the normal rate applicable to that unit holder as per the provisions of the Act. The capital gainswill be computed by deducting expenditure incurred in connection with such transfer and cost of acquisition of the unit from the sale consideration.

The taxable/total income and the tax payable arising from short term capital gains shall be computed in accordance with the tax rates applicable to the investor.

However, as per section 111A of the Act, short term capital gain arising from the sale of a unit of an equity oriented fund is taxable at the rate of 10%. The provisionsrelated to minimum amount not chargeable to tax, surcharge and education cess described at clause 4 above would also apply to such short-term capital gains.In such cases, at the time of sale of units (redemption) the unit holder will have to pay STT of 0.25% of the sale / redemption value.

6. For the purposes of point 4 and 5 above,

An " equity oriented fund" is a fund where the investible funds are invested in equity shares of domestic companies to the extent of more than 65% of the tot alproceeds of such fund.

In addition to t he aforesaid tax, in t he case of an individual, HUF or Association of Persons (AOP), where the income exceeds Rs. 1,000,000, a surcharge of 10%,

Despatch of RedemptionProceeds

Name of theTrustee Company

Daily Net Asset Value

(NAV) PublicationDividend Policy

Tax Treatment forUnitholders and theMutual Fund

Recurring Expenses


Information Common to all Schemes


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For Investors' Grievancesplease contact

Unitholders Information Account Statement (on each transaction) and Annual Financial Results shall be provided to the investors by post / e-mail /courier. Half-yearly Scheme(s) / Plan(s) portfolio will either be mailed to unitholders or published in the newspaper as permitted

under SEBI (Mutual Fund) Regulations, 1996.


Information Common to all Schemes

158 Rayala Towers, 2nd Floor, Anna Salai, Chennai 600 002.

044 2852 1839 www.camsonline.com [email protected]

Computer AgeManagement ServicesPvt. Ltd. (Registrar)

in the case of domestic companies a surcharge of 10% 2, in case of foreign companies a surcharge of 2.5% 2 and in case of an artificial juridical person a surchargeof 10% of such tax liability is also payable. A 2% 3 education cess on total income tax (including surcharge) is payable by all categories of taxpayers.

7. The capital loss resulting from sale of units would be available for setting off against ot her capital gains made by the investor and would reduce the tax liabilityof the investor to that extent. However, losses on transfer of long term capital assets would be allowed to be set-off only against gains from transfer of long-termcapital assets and the balance long-term capital loss shall be carried forward separately for a period of eight assessment years to be set off only against long-termcapital gains. Further, as the long-term capital gains on sale of units of equity oriented fund are exempt from tax the losses from such units may not be allowedto be set off against other gains.

8. In terms of the provisions of section 80C of the Act, an Individual or a HUF is entitled to claim a deduction for investments made in specified securities etc. up toa maximum amount of Rs. 100,000. Subscription to any units of any Mutual Fund notified under clause (23D) of section 10 of the Act or from the Administratoror the specified company under any plan formulated in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specifyin this behalf, qualify for deduction under section 80C of the Act.

The Central Government has notified the Equity Linked Savings Scheme, 2005 ('ELSS, 2005') in this regard vide Notification No. 226 dated November 3, 2005 asamended by Notification No. 259 dated December 13, 2005.

The investors would be entitled to the benefit under section 80C of the Act for investments made under such schemes of the Fund, which are in accordance withELSS 2005, subject to the aggregate limit of Rs.100,000 provided under section 80C of the Act.

9. Where a person buys any units within a period of t hree months before the record date and sells such units within nine months after such date, the dividend incomeon such units being exempt from tax, then the capital loss, if any, on such sale to the extent of dividend income cannot be set off against other gains.

10. Where a person buys units (original units) with in a period of three months before the record date, receives bonus units on such original units, and then sells theoriginal units within a period of nine months from the 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 profits but shall be deemed to be the cost of acquisition of the bonus units.

11. However, in cases which are not covered by clause 6 above, the cost of acquisition of bonus units for the investors would be NIL, as provided by section 55(2) ofthe Act.

12. The long term capital gains on transfer of units would be exempt from tax under Section 54EC of the Act, subject to fulfillment of certain conditions specified in thesection. This section requires investments in specified bonds. However, if the amount invested is less than the capital gains realized, only proportionate capital gainswould be exempt from tax.

13. Where the units are treated as stock in trade and the profit s arising from the sale of units are taxed under the head "Profits & Gains of business or profession" , theSTT paid by the unit holder would not be allowed as deduction in computing the total income u/s 40(a)(ib) of the Act. However, in such a case, an amount equalto the STT paid by the unitholder can be claimed as a rebate from the tax payable on the income from such sale of units by virtue of the provisions of section 88Eof the Act. Similarly, no deduction would be allowed for STT while calculating capital gains.

14. No deduction of t ax at source shall be made from income credited or paid by a mutual fund to a Unit holder.

15. As per circular no. 715 dated August 8, 1995 issued by the CBDT in case of resident Unitholders, no tax is required to be deducted at source from capital gainsarising at the time of repurchase or redemption of the units.

Under Section 195 of the Act in case of schemes other than equity oriented scheme, the Mutual Fund is required to deduct tax at source at the rate of 20% onany long-term capital gains arising from units chargeable to tax if the payee Unitholder is a non-resident. In respect to short-term capital gains, tax is required tobe deducted at source at the rate of 30% if the payee Unitholder is a non-resident non-corporate and at the rate of 40% if the payee Unitholder is a foreign companyin case of schemes other than equity oriented scheme.

However, with respect to short-term capital gains arising from sale of equity oriented schemes, tax is required to be deducted at the rate of 10%. No deductionof tax is required to be made from long term capital gains arising to non residents from sale of units of equity oriented schemes.

In addition to t he aforesaid tax, in t he case of an individual, HUF or Association of Persons (AOP), where the income exceeds Rs. 1,000,000, a surcharge of 10% 2,in case of foreign companies a surcharge of 2.5% 2 and in case of an artificial juridical person a surcharge of 10% of such tax liability is also payable. A 2% 3 educationcess on total income tax (including surcharge) is payable by all categories of taxpayers.

16. As per circular no. 728 dated October 30, 1995 issued by the CBDT, in the case of a remittance to a country wi th wh ich a Double Tax Avoidance Agreement (DTAA)is in force, the tax should be deducted at the rate provided in the Finance Act of the relevant year or at the rate provided in the DTAA, whichever is more beneficialto the assessee. In order for the Unitholder to obtain the benefit of a lower rate available under a DTAA, the Unitholder will be required to provide the Mutual Fund

with a certificate obtained from his Assessing Officer stating his eligibility for the lower rate.17. Mutual Fund units are exempt from wealth tax.

B. For the Mutual Fund

1. Kotak Mahindra Mutual Fund is a Mutual Fund registered wit h SEBI and as such is eligible for benefit s under Section 10(23D) of the Act. Accordingly, its entire incomeis exempt from tax.

2. Mutual Funds (other than equity oriented funds) are required to pay dividend distribution tax at the rate of 14.025%4, in the case of distributions to individuals andHUFs. An increased rate of 22.44% 5, is applicable for distribut ions made to persons other than an individual or a HUF.

3. As proposed by the Finance Bill 2007 proposals, mutual funds which are 'M oney Market Mutual Fund'6 or 'Liquid Fund' 7 are required to pay dividend distributiontax at the rate of 28.325% (including surcharge @10%, education cess @2% and Secondary and higher education cess at the rate of 1%).

1 The Finance Bill 2007 (Budget 2007) proposes to increase the maximum amount not chargeable to tax to Rs. 110,000 in case of all individuals, Rs. 145,000 in caseof women and to Rs.195, 000 in case of senior citizens.

2 The Finance Bill 2007 (Budget 2007) proposes to levy surcharge only if the income exceeds Rs. 10,000,000.3 The Finance Bill 2007 (Budget 2007) proposes to levy an additional cess for 'Secondary and Higher Education Cess' at the rate of 1%4 The Finance Bill 2007 (Budget 2007) proposes to increase the rate of dividend distribution tax to 14.1625% (including surcharge @10%, education cess @2% and

Secondary and Higher Education Cess at the rate of 1%).5 The Finance Bill 2007 (Budget 2007) proposes to increase the rate of dividend distribution tax to 22.66%(including surcharge @10%, education cess @2% and

Secondary and Higher Education Cess at the rate of 1%).6 Money market mutual fund means a money market mutual fund as defined in sub-clause (p) of clause 2 of the SEBI (Mutual Funds) Regulations, 1996."7 " liquid fund" means a scheme or plan of a mut ual fund w hich is classified by the SEBI as a liquid fund in accordance with t he guidelines issued by it in this behalf

under the SEBI Act, 1992 or regulations made thereunder.

R. Chandrasekaran : 91/92, 9th Floor, Sakhar Bhavan, 230, Nariman Point, Mumbai 400 021.

022 6638 4444, 022 6638 4455 www.kotakmutual.com [email protected]

Registered Office : 5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021.

Kotak Mahindra AssetMangement CompanyLimited (InvestmentManager)


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GUIDELINES FOR FILLING UP THE COMMON APPLICATION FORM

1. GENERAL INFORMATION

a) Please fill up the Application Form legibly in English inCAPITAL LETTERS.

b) Please read this Memorandum and the respective Offer Documentcarefully before investing. Your application for allotment of units in theScheme(s) is construed to have been made with a full understanding ofthe terms and conditions applicable to it and the same is binding onyou in respect of your investment in the Scheme(s).

c) Application Forms incomplete in any respect or not accompanied by aCheque / Demand Draft are liable to be rejected. In case your investmentapplication gets rejected on account of the same being incomplete inany respect, your investment amount would be refunded withoutinterest within 30 days.

2. APPLICANT'S INFORMATION

a) If you are already a Unitholder in any scheme of the Fund and wish tomake your present investment in the same Account, please fill in theName of Sole/First Holder & Account No. in Section 1 , PAN details inSection 2 of the Application Form and then proceed to Section 4. Your

personal information and bank account details indicated for your accountwould also apply to this investment.

b) If you are applying for units in Kotak Mahindra Mutual Fund for the firsttime, please furnish your complete postal address with Pin Code (P.O.Box No. not enough)and your Contact Nos. This would help us reachyou faster.

c) If you also have Joint Applicant(s) for t he investment, please specify theMode of Operation. In the absence of this information from your end,the Mode of Operation would be presumed to be Joint .

All communication (including Account Statements and Redemption /Dividend / Refund Cheques) in the case of units held jointly would beaddressed to the First Holder.

d) Permanent Account Number (PAN) Information (Mandatory)

If the amount you propose to invest is Rs. 50,000/- or more then pleasefurnish your PAN details in section 2 and enclose a photocopy of PAN

Card /PAN Allotment Letter /Tax Refund of all applicants. In case of minorapplicants, please furnish the PAN details and PAN proof of the Guardian.In case you are not having a PAN then please furnish your declarationin Form 60 / Form 61 in duplicate.

Applications not complying with the above requirement areliable to be rejected.

3. BANK ACCOUNT DETAILS

a) Please furni sh the Name of your Bank, Branch and City (i.e clearingcircle in which the branch participates), Account Type and AccountNumber. This is mandatorily required as per SEBI. Applicationswithout this information will be deemed to be incomplete &would be rejected.

b) If your bank details furnished in the Application Form is of any ofthe banks through which we offer a Direct Credit Facility (listed inthe Application Form), Dividend / Redemption Proceeds will be

directly credited into your Bank Account . An Account Statementconfirming the transaction would be sent to you.

4. INVESTMENT DETAILS

a) Please specify your Investment Option in t he Application Form. Ifyou have chosen the Dividend Option, please indicate whether youwould like a payout or re-investment of your dividend as also thefrequency at which you would like to receive the same. If you donot indicate the choice of Dividend Option, Dividend re-investmentoption will be considered as the default option for all equityschemes.

Please refer the Schemes Snapshot table on next page foravailable options and dividend frequency of various schemes.

b) Please issue a separate Cheque / Demand Draft for each separateScheme / Plan.

c) Cheques should be crossed " A/c Payee Only" and drawn in favourof the Scheme in which you propose to i nvest. Details in last colum nof the Schemes Snapshot table.

d) If you are residing / located in a city / town w here we do not havean Official Acceptance Point, please draw a Demand Draft payableat your nearest city / town where we have an Official AcceptancePoint.

e) Payments by Cash, Stockinvests, Outstati on Cheques, Non-MICRCheques will not be accepted. Post dated cheques will not beaccepted except for investment s made under Systemati c InvestmentPlan.

5. NOMINATION DETAILS

a) The nomination can be made only by individuals applying for / holdingunits on their own behalf singly or jointly. Non-individuals including

society, t rust, body corporate, partnership fi rm, Karta of Hindu UndividedFamily, holder of Power of Attorney cannot nominate. If the units areheld jointly, all joint holders will sign the Nomination Form.

b) A minor can be nominated and in that event, name and address of theguardian of the minor nominee shall be provided by the unitholder.Nomination can also be in favour of the central government, stategovernment, a local authority, any person designated by virtue of hisoffice or a religious or charitable trust.

c) The Nominee shall not be a trust (other than a religious or charitabletrust), society, body corporate, partnership firm, Karta of Hindu UndividedFamily or a Power of Attorney holder. A non-resident Indian can be anominee subject to the exchange control regulations in force, f rom t imeto time.

d) Transfer of units in favour of a Nominee shall be valid discharge by KotakMahindra Asset Management Company Limited against the legal heir.

e) The cancellation of nomination can be made only by those individualswho hold units on their behalf singly or jointly and who made theoriginal nomination. On cancellation of the nomination, the nominationshall stand rescinded and Kotak Mahindra Asset Management CompanyLimited shall not be under any obligation to transfer the units in favourof the Nominee.

6. KOTAK FACILITIES

a) If you have an E-Mail address, you can choose to receive E-mailcommunicatio n from us in lieu of printed communication . Pleasefurnish your E-Mail ID and indicate the nature of communicationyou wish to receive over E-Mail.

b) If you wish to view your investments or transact over the Internet /Telephone, please fill in t he enclosed Int ernet / Phone TransactionsForm.

7. DECLARATION AND SIGNATURES

a) Signatures can be in English or in any other Indian language. Thumbimpressions must be attested by a Magistrate or a Notary Public ora Special Executive Magistrate under his/her official seal.

b) Applications by minors must be signed on their behalf by theirguardians.

c) If you are investing through your constit uted attor ney, pleaseensure that the POA document is signed by you and your Constit utedAttorney. The signature in the Application Form, then, needs toclearly indicate that the signature is on your behalf by t he Constit utedAttorney.


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(210mm x 297mm)

SCHEMES SNAPSHOT

Scheme - Plan Options Dividend Minimum Initial Min. Addl. Cheques(s)/DD to beAvailable # Frequency * Investment Investment drawn in favour of

(Rs.) (Rs.)

Kotak 30 G, DP & DR Trustees Discretion 5,000 1,000 Kotak 30

Kotak Global India G, DP & DR Trustees Discretion 5,000 1,000 Kotak Global IndiaKotak Opportunities G, DP & DR Trustees Discretion 5,000 1,000 Kotak Opportunities

Kotak Midcap G, DP & DR Trustees Discretion 5,000 1,000 Kotak Midcap

Kotak Tech Trustees Discretion 5,000 1,000 Kotak Tech

Kotak MNC Trustees Discretion 5,000 1,000 Kotak MNC

Kotak Contra G, DP & DR Trustees Discretion 5,000 1,000 Kotak Contra

Kotak Tax Saver G, DP & DR Trustees Discretion 500 500 Kotak Tax Saver

Kotak Lifestyle G, DP & DR Trustees Discretion 5,000 1,000 Kotak Lifestyle

Kotak Balance Half Yearly 5,000 1,000 Kotak Balance

Kotak Income Plus G, DP & DR Monthly, Quarterly 5,000 1,000 Kotak Income Plus

Kotak Equity FOF G, DP & DR Trustees Discretion 5,000 1,000 Kotak Equity FOF

Kotak Bond - Deposit G, DP & DR Quarterly 5,000 1,000 Kotak Bond

Kotak Bond - Regular G, DP, DR & B Quarterly, Annual 5,000 1,000 Kotak Bond

Kotak Bond - Short Term G & DR Monthly 5,000 1,000 Kotak Bond Short Term

Kotak Flexi Debt G, DP & DR Quarterly 5,000 1,000 Kotak Flexi Debt

Kotak Cash Plus G, DP & DR Monthly 5,000 1,000 Kotak Cash Plus

Kotak Floater Long Term G & DR Weekly, Monthly 5,000 1,000 Kotak Floater Long Term

Kotak Floater Short Term G & DR Weekly, Monthly 5,000 1,000 Kotak Floater Short Term

Kotak Liquid - Institutional G & DR Daily, Weekly 1,00,00,000 1,000 Kotak Liquid

Kotak Liquid - Institutional Premium G, DP & DR Daily, Weekly 5,00,00,000 1,000 Kotak Liquid

Kotak Liquid - Regular G & DR Weekly 5,000 1,000 Kotak Liquid

Kotak Gilt - Savings G, DP & DR Monthly, Annual 5,000 1,000 Kotak Gilt Savings

Kotak Gilt - Investment Regular G, DP & DR Quarterly 5,000 1,000 Kotak Gilt Investment

Kotak Gilt - PF & Trust G, DP & DR Quarterly 5,000 1,000 Kotak Gilt Investment

# G = Growth; DP = Dividend Payout; DR = Dividend Re-invest; B = Bonus. * Dividend distribution subject to availability & adequacy of distributable surplus.

CHECKLIST

Please ensure that :

+ Your Application Form is complete in all respects & signed by all applicants :

n Name, Address and Contact Details are mentioned in full.

n Bank Account Details are entered completely and correctly. 9 digit MICR Code of your bank is mentioned in the Application Form.

n Permanent Account Number (PAN) of all Appl icants is mentioned and necessary documents [refer Guidelines 2(d)] are enclosed, if the investment amount is

Rs. 50,000/- or more.

n Appropriate Investment Option is selected. If the Dividend Option is chosen, Dividend Payout or Re-investment and Dividend Frequency is indicated.

n If units are applied for Jointly, Mode of Operation of account is indicated.

+ Your Investment Cheque / DD is drawn in favour of Scheme / Plan (indicated in the last column of SchemesSnapshot table), dated and signed.

+ Application Number is mentioned on the reverse of the cheque.

+ If you have opted for any Kotak Facility, the relevant form is duly filled and submitted along with the Application Form.

+ A cancelled Cheque leaf of your Bank is enclosed in case your investment cheque is not from the same account.

+ Documents as listed below are submitted along with the Application Form (as applicable to your specific case).

Documents Companies Trusts Societies Partnership NRIs / FIIs Investments throughFirms PIOs Constituted Attorney

1. Resolution / Authorisation to invest 4 4 4 4 4

2. List of Authorised Signatories with Specimen Signature(s) 4 4 4 4 4 4

3. Memorandum & Articles of Association 4

4. Trust Deed 4

5. Bye-Laws 4

6. Partnership Deed 4

7. Notarised Power of Attorney 4

8. Account Debit / Foreign Inward Remittance Certificatefrom remitting Bank 4 4

All documents in 1 to 8 above should be originals / true copies certified by the Director / Trustee / Company Secretary / Authorised Signatory / Notary Public.


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Kotak Com FRM - SIP Investment Form's Instruction (210mm x 297mm)

SYSTEMATIC INVESTMENTS SNAPSHOT

Schemes where SIPs are allowed All open-ended schemes except Institutional & Institutional Premium Plans under Kotak Liquid scheme.

Frequency Monthly or Quarterly

Choice of Dates 1st, 7th, 14th & 21st

Minimum Investment Rs. 1000/- (Rs. 500 & in multiples of Rs. 500 in case of Kotak Tax Saver)

Minimum Installments 6 (All SIP installments should be for the same amount)

First SIP Can be done on any Day of the Month

Needs to be compulsorily a cheque

Second & Subsequent SIPs Only on specified SIP Dates (1st / 7th / 14t h / 21st) aft er a minimum gap of 28 days from date of first SIP. Can be through ECS Debit (in select locations) or Post-Dated Cheques based on your preference.

INSTRUCTIONS & INFORMATION1. Please refer the Key Information M emorandum and Offer Document of the respective Scheme(s) for Applicable NAV, Risk Factors, Load Structure and other information

before investing.

2. (i) Existing unitholders need not fill in the Investment Application Form. However, they must compulsorily mention their Account Number in t he Systematic InvestmentForm.

(ii) New Applicants need to compulsorily fill in all sections in the Investment Application Form except the section titled Investment Details in addition to SystematicInvestment Form. The Application No. must be compulsorily mentioned in the Systematic Investment Form.

3. If each SIP amount is >= Rs. 50,000/- t hen please furnish your PAN details and enclose a photocoy of PAN Card / PAN Allotment Letter / Tax Refund of all applicants.In case of minor applicants, please furnish the PAN details and PAN proof of t he Guardian. In case you are not having PAN then please furnish a declaration in Form 60 / 61in duplicate.

4. You can opt for Systematic Investment in the Scheme on a monthly / quarterly basis through post-dated cheques / auto-debti for a pre-defined amount. This facility isavailable only on specified dates of the month / quarter viz. 1s