Kotak Dynamic Bond Fund31 May, 2018st

Scheme Facts

Structure

Month end AUM* (as on 31st May )

NAV (as on 31st May 2018)

2018

Launch Date

Benchmark

Min. Initial Inv.

Additional Inv.

Standard Deviation^

YTM

Portfolio Modified Duration

Average Maturity

An open ended Dynamic Debt Scheme

26th May, 2008

CRISIL Composite Bond Fund Index

Regular Plan - 5000/-

1000 & in multiples of 1

8.65%

2.97 years

*Source: MFI Explorer.

^ as on 31st May, 2018. Source: ICRA MFIExplorer. Standard Deviation is calculated onAnnualised basis using 3 years history ofmonthly returns.

`784.42 crs

825.90 crs`

` `

`

`

`

`

`

`

Monthly

`

2.05%

3.73 years

Monthly Average AUM*

Monthly Dividend 21.6278

Dividend Direct 22.2919

Quarterly Dividend 10.8587

Quarterly Dividend Direct 10.6602

Growth 22.1847

Growth Direct 22.9255

Load Structure

Entry Load:

Exit Load:

(a) Regular Plan: Nil

Nil

Top 10 Companies as on , 201831st May

About Kotak Dynamic Bond Fund

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Kotak Dynamic Bond Fund is a debt scheme that seeks to maximize returns through active management of a

portfolio of debt and money market securities.

It invests dynamically across asset classes in high quality assets and has relatively lower risk / volatility profile, as

the mark to market component is low.

Portfolio Action

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

• We believe there is good earning opportunity in the short to medium-term government securities (2-5 years). For the

month of June, we will continue to stay invested in the 2 – 5 yr G-sec space to capture maximum value for the

investors.

• We intend to maintain the modified duration in the range of 2.50 – 4.00 in June 2018.

1

Asset Allocation as on 31st May, 2018

Government Dated Securities 61.85%

Debentures and Bonds 33.21%

Commercial Paper (CP)/Certificate of Deposits (CD) 5.02%

Net Current Assets -0.08%

Debt Market Outlook

• During the past month, we had expected a correction in yields on the back of OMO announcements by RBI.

However, with the OMO announcements falling short of market expectations and the crude prices continuing

to rise throughout the month, the corrections expected in the yield curve did not materialize.

• The benchmark 10-year gilt started the month of May at 7.73% levels and ended at 7.83% levels.

• In the coming month(s), with the country experiencing early onset of monsoon and the expectation of good,

above-average rainfall this season, it seems likely that our expectation of inflation peaking may hold well and

true.

• However, with fluctuating crude prices and rising global yields impacting Indian interest rates, we will continue

to maintain a conservative stance in our portfolios’ duration until further clarity emerges from global and

domestic market cues.

Particulars 31 May 2018

Avg. Maturity (in yrs) 3.73

Duration 2.97

Yield (in %) 8.65 8

30 Apr 2018

3.70

2.91

.17

8.21% State Government SOV 15.21%8.53% State Government SOV 13.04%8.27% State Government SOV 8.88%Sikka Ports & Terminals Ltd. ( MukeshAmbani Group ) CRISIL AAA 7.51%8.26% State Government SOV 6.35%8.06% State Government SOV 6.30%6.84% Central Government SOV 6.14%Bank Of Baroda CRISIL AA+ 5.53%U P Power Corporation Ltd ( GuaranteedBy UP State Government ) FITCH IND AA(SO) 3.99%Bhopal Dhule Transmission Company Ltd.( Operational power transmission project ) CRISIL AAA 3.82%

(Formerly Known As Kotak Flexi Debt Fund)

31 May, 2018st

About Kotak Mutual Fund

Kotak Mahindra Asset Management

Company Limited (KMAMC) is a wholly

owned subsidiary of Kotak Mahindra Bank

Limited (KMBL). KMBL has over two decades

of experience in financial services. KMBL has a

market capitalization of 2,543.038 bn (as on

31st May , 2018). KMAMC is the Asset

Manager for Kotak Mahindra Mutual Fund

(KMMF). It started operations in December

1998. KMMF offers schemes catering to

investors with varying risk - return profiles and

was the first fund house in the country to

launch a dedicated gilt scheme. KMAMC

manages assets worth 1,31,281.51 cr as on

31st May, 2018.

`

`

* The numbers are converted using the Rupee-

USD reference rate published by the Reserve

Bank of India as on the respective dates.

To know more

Call : 1800-222-626 (Toll Free), Mumbai61152100, Delhi 66306900 / 02, Chennai28221333 / 45038171, Kolkata 64509802 /03, Pune 64013395 / 96, Ahmedabad26779888, Bangalore 66128050 / 51,Hyderabad 66178140 / 41.

Visit - assetmanagement.kotak.comEmail - mutual@kotak.com

Disclaimer

Kotak Dynamic Bond FundInvestment Objective:

is an open-ended debtscheme. To maximizereturns through an active management of a portfolioof debt and money market securities.

Mutual Fund investments are subject to marketrisks, read all scheme related documentscarefully. Scheme Information Document (SID)and Statement of Additional Information (SAI)available on mutualfund.kotak.com

2

Kotak Dynamic Bond Fund *Performance (%) as on 31st May, 2018

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

^Past performance may or may not be sustained in future. *All payouts during the period have been reinvested in the units of thescheme at the then prevailing NAV. Returns > = 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data notavailable. Note: Point to Point (PTP) Returns in INR shows the value of 10,000/- investment made at inception. Source: ICRA MFIExplorer. Classification of schemes in short term & long term is based on the average maturity of the scheme. # Name of SchemeBenchmark. ## Name of Additional Benchmark. Please refer page no. 3 for top 3 and bottom 3 schemes managed by Mr. DeepakAgrawal.

`

We are comparing the performances of the funds with the total return Index.

^^Kotak Flexi Debt Fund is renamed as Kotak Dynamic Bond Fund with effect from 1st June 2018.

With Effect from 1st June 2018, the Benchmark is changed to Nifty Composite Debt Index from Crisil Composite Bond Fund Index.$

Since Inception 8.28 7.56 6.42 22,185 20,756 18,656

Last 1 Year 4.20 2.44 5.85 10,420 10,244 10,585

Last 3 Years 8.14 7.36 6.73 12,655 12,383 12,165

Last 5 Years 8.50 7.37 6.87 15,041 14,271 13,945

Scheme Inception date is 26/05/2008. Mr. Deepak Agrawal has been managing the fund since 25/11/2012.

Rating Profile as on , 201831st May

Kotak Dynamic Bond Fund - Growth^^

Current Value of Standard Investmentof 10000 in the`

CRISIL 1 YearT-Bill Index

## (%)

CrisilCompositeBond FundIndex #(%)

$

SchemeReturns(%) ^

Date

Scheme( )`

Benchmark# ( )`

AdditionalBenchmark ## ( )`

Kotak Dynamic Bond Fund

This product is suitable for investors who are seeking*:

• Income over a medium term investment horizon

• Investment in debt & money market securities

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

Investors understand that their principal willbe at moderately low risk

Riskometer

M

oderately Moderate

Low

Hig

h

Low

High

LOW HIGH

Moderately

85.84

14.24

-0.08

A1+, AAA, SOV

AA+, AA, IND AA, IND AA(SO)

Net Current Assets

(Formerly Known As Kotak Flexi Debt Fund)

31 May, 2018st

3

Kotak Dynamic Bond Fund

Bottom 3 Funds Managed by Mr. Deepak Agrawal

1 yearPeriod 3 years 5 years Since Inception

Kotak Banking and PSU Debt Fund - Growth

Kotak Medium Term Fund - Regular Plan - Growth

Kotak Bond Short Term Plan - Growth

4.87 4.90 7.48 7.41 8.20 8.12 7.27 NA

4.81 2.44 8.02 7.36 NA NA 9.03 9.02

4.53 4.90 7.08 7.41 7.43 8.12 7.59 7.14

BenchmarkReturns (%)^*

BenchmarkReturns (%)^*

BenchmarkReturns (%)^*

BenchmarkReturns (%)^*

SchemeReturns (%)^

SchemeReturns (%)^

SchemeReturns (%)^

SchemeReturns (%)^

Mr. Deepak Agrawal manages 10 & All FMPs funds of Kotak Mutual fund.

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

Kotak Medium Term Fund - Regular Plan - Growth, *Name of the Benchmark - CRISIL Composite Bond Fund, Scheme Inception date is 21/03/2014. Mr. Deepak Agrawal hasbeen managing the fund since 22/06/2015.

Kotak Bond Short Term Plan - Growth, *Name of the Benchmark - CRISIL Short Term Bond Fund, Scheme Inception date is 02/05/2002. Mr. Deepak Agrawal has beenmanaging the fund since 11/07/2007.

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

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

We are comparing the performances of the funds with the total return Index.

Top 3 Funds Managed by Mr. Deepak Agrawal

Mr. Deepak Agrawal manages 10 & All FMPs funds of Kotak Mutual fund.

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

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

Kotak Low Duration Fund - Growth, *Name of the Benchmark - CRISIL Liquid Fund, Scheme Inception date is 06/03/2008. Mr. Deepak Agrawal has been managingthe fund since 01/02/2015.

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

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

We are comparing the performances of the funds with the total return Index.

1 yearPeriod 3 years 5 years Since Inception

Kotak Money Market Scheme - Growth

Kotak Liquid - Regular Plan - Growth

Kotak Low Duration Fund - Growth

6.82 6.88 7.35 7.25 8.08 8.03 7.35 6.89

6.80 6.88 7.29 7.25 8.02 8.03 7.44 6.95

6.52 6.88 8.01 7.25 8.10 8.03 7.70 7.57

BenchmarkReturns (%)^*

BenchmarkReturns (%)^*

BenchmarkReturns (%)^*

BenchmarkReturns (%)^*

SchemeReturns (%)^

SchemeReturns (%)^

SchemeReturns (%)^

SchemeReturns (%)^

(Formerly Known As Kotak Flexi Debt Fund)