SCHEME INFORMATION DOCUMENT

(SID)

KOTAK TECHNOLOGY FUND

An open ended equity scheme investing in Technology & technology related Sectors

Scheme Benchmark

This product is suitable for investors who are Modera Modera

tely tely
seeking*: Mode
rate High Mode
rate High
to e Hi to e Hi
w rat gh w rat gh
Lo de Lo de
o o
• Long term capital growth M M

Very

Very
Low

Low
• Investment in portfolio of predominantly equity

High

High
& equity related securities of Technology &
Technology related sectors Investors understand that their principal will be at Investors understand that their principal will be at
very high risk very high risk
S&P BSE Teck Index (TRI) IT TRI

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may
vary post NFO when actual investments are made)

Units at `10 each during the New Fund Offer

Continuous Offer for Units at NAV based prices.
NFO Opens on: Monday, February 12, 2024 NFO Closes on: Monday, February 26, 2024
Scheme Re-opens on or before: Thursday, March 07, 2024

Name of Mutual Fund Kotak Mahindra Mutual Fund

Name of Asset Management Company Kotak Mahindra Asset Management Company Ltd
CIN: U65991MH1994PLC080009
Name of Trustee Company Kotak Mahindra Trustee Company Ltd
CIN: U65990MH1995PLC090279
Registered Address of the Companies 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051
Corporate Office Address of 2nd Floor, 12-BKC, Plot No. C-12, G-Block, Bandra Kurla Complex, Bandra East,
Asset Management Company Mumbai - 400 051
Website www.kotakmf.com

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds)
Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due
Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI
nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.
The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know
before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document
after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers.
The investors are advised to refer to the Statement of Additional Information (SAI) for details of Kotak Mahindra Mutual Fund, Tax and
Legal issues and general information on www.kotakmf.com
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please
contact your nearest Investor Service Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

This Scheme Information Document is dated January 29, 2024.

 TABLE OF CONTENTS

I. HIGHLIGHTS/SUMMARY OF THE SCHEME............................................................... 3

II. INTRODUCTION .............................................................................................................. 7
A. Risk Factors ........................................................................................................................ 7
B. Requirement of Minimum Investors in the Scheme ......................................................... 20
C. Special Considerations ...................................................................................................... 20
D. Definitions ........................................................................................................................ 23
E. Due Diligence by the Asset Management Company ........................................................ 27
III. INFORMATION ABOUT THE SCHEME ...................................................................... 28
A. Type of the scheme ........................................................................................................... 28
B. What is the investment objective of the scheme? ............................................................. 28
C. How will the scheme allocate its assets? .......................................................................... 28
D. Where will the scheme invest? ......................................................................................... 30
E. What is the investment strategy? ...................................................................................... 37
F. Fundamental Attributes ..................................................................................................... 49
G. How will the scheme benchmark its performance? .......................................................... 49
H. Who manages the scheme? ............................................................................................... 50
I. What are The Investment Restrictions? ............................................................................ 52
J. Additional Scheme Related Disclosures ........................................................................... 61
K. How has the scheme performed? ...................................................................................... 61
IV. UNITS AND OFFER ........................................................................................................ 62
A. New Fund Offer (NFO) .................................................................................................... 62
B. Ongoing Offer Details....................................................................................................... 70
C. Periodic Disclosures........................................................................................................ 113
D. Computation of NAV...................................................................................................... 120
V. FEES AND EXPENSES ................................................................................................. 121
A. New Fund Offer (NFO) Expenses .................................................................................. 121
B. Annual Scheme Recurring Expenses .............................................................................. 121
C. Load structure ................................................................................................................. 125
VI. RIGHTS OF UNITHOLDERS ....................................................................................... 126
VII. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF
INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN
TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY
AUTHORITY ................................................................................................................. 127

2
I. HIGHLIGHTS/SUMMARY OF THE SCHEME

Scheme Name Kotak Technology Fund

Type of Scheme An open ended equity scheme investing in Technology & technology related
sectors
Scheme Code KOTM/O/E/SEC/24/01/0119
Investment Objective The investment objective of the scheme is to generate long-term capital
appreciation from a portfolio that is invested predominantly in equity and
equity related securities of Technology & technology related sectors

However, there is no assurance that the objective of the scheme will be

achieved.
Liquidity The Scheme offers Units for Subscription and Redemption at NAV based
prices on each Business Day on an ongoing basis.

As per SEBI (Mutual Fund) Regulations read with Para 14.1 of SEBI Master
circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023,
the redemption or repurchase proceeds shall be dispatched within 3 working
days from the date of receipt of redemption requests or repurchase requests.

A penal interest of 15% per annum or such other rate as may be prescribed by
SEBI from time to time, shall be paid in case the redemption or repurchase
proceeds are not transferred within the prescribed timelines.

In case of exceptional situations listed in AMFI Circular No. AMFI/35P/MEM-

COR/74/2022-23 dated January 16, 2023, the scheme shall be allowed
additional timelines for transfer of redemption or repurchase proceeds to the
unitholders.
Benchmark Index 1. Benchmark - S&P BSE Teck Index (Total Return Index)
2. Benchmark Rationale –
The S&P BSE Teck Index comprises constituents of the S&P BSE 500 that are
classified as members of the media & publishing, information technology &
telecommunications sectors as defined by the BSE industry classification
system. The composition of the aforesaid benchmark is such that, it is most
suited for comparing the performance of the scheme. The AMC/Trustees
reserves right to change benchmark in future for measuring performance of the
scheme and as per the guidelines and directives issued by SEBI from time to
time.
Transparency / NAV The NAVs of the Scheme will be calculated and updated on every Business
disclosure day on AMFI’s website (www.amfiindia.com) and Kotak Mahindra Mutual
Fund (www.kotakmf.com) by 11.00 p.m. The First NAV of the scheme shall
be declared within 5 working days from the date of allotment.

In case the scheme has exposure in overseas securities/Mutual Fund units, the
NAV will be published post receipt of the Price/ NAV of the overseas
investments. Based on the current scheme exposure, the NAV will be published
on the website of AMFI (www.amfiindia.com) and Kotak Mahindra Mutual
Fund (www.kotakmf.com) by 10.00 a.m. of the following business day.

Delay in uploading of NAV beyond the aforesaid respective timing on every

business day shall be explained in writing to AMFI. In case the NAVs are not
available before the commencement of business hours on the following
business day due to any reason, a press release for revised NAV shall be issued.
3
 Unitholders may avail the facility to receive the latest available NAVs through
SMS by submitting a specific request in this regard to the AMC/Mutual Fund.
Also, information regarding NAVs can be obtained by the Unit holders /
Investors by visiting the nearest ISC.

In terms of SEBI regulations, a complete statement of the Scheme portfolio

will be sent to all unitholders, within ten days from the close of each month /
half-year whose email addresses are registered with the Mutual Fund.

The portfolio of the scheme (along with ISIN) shall also be disclosed on the
website of Mutual Fund (www.kotakmf.com) and on the website of AMFI
(www.amfiindia.com) on a monthly and half-yearly basis within 10 days from
the close of each month/ half-year respectively in a user-friendly and
downloadable spreadsheet format.
Plans Direct Plan and Regular Plan

Direct Plan: This Plan is only for investors who purchase /subscribe Units in a
Scheme directly with the Fund and is not available for investors who route
their investments through a Distributor.

Regular Plan: This Plan is for investors who wish to route their investment
through any distributor.

The portfolio of both plans will be unsegregated.

Default Plan Investors subscribing under Direct Plan of the Scheme will have to indicate
“Direct Plan” against the Scheme name in the application form e.g “Kotak
Technology Fund – Direct Plan.”

Investors should also indicate “Direct” in the ARN column of the application
form.
If the application is received incomplete with respect to not selecting
Regular/Direct Plan, the application will be processed as under:

Broker Code Plan Default Plan to be

Scenario mentioned by the mentioned by captured
investor the investor
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not Mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the
application form, the application shall be processed under Regular Plan. The
AMC shall contact and obtain the correct ARN code within 30 calendar days of
the receipt of the application form from the investor/ distributor. In case, the
correct code is not received within 30 calendar days, the AMC shall reprocess
the transaction under Direct Plan from the date of application without any exit
load.
4
Options Growth and Income Distribution cum capital withdrawal (IDCW) (Payout and
Reinvestment)

The NAVs of the above Options will be different and separately declared; the
portfolio of investments remaining the same.

Investors are requested to note that, where the actual amount of IDCW payout
(for units held in Physical) is less than Rs. 500/-, then such IDCW will be
compulsorily reinvested.

The AMC reserves the right to introduce further Options as and when deemed
fit.
Choice of default  If applicant does not indicate the choice of option between growth and
option IDCW option in the application form, then the scheme will accept it as an
application for growth option under respective plan.

 If applicant does not indicate the choice of IDCW sub-option between

Payout IDCW and reinvestment IDCW then the scheme will accept it as an
application for reinvestment IDCW
Income Distribution At the discretion of the Trustees
cum capital
withdrawal (IDCW)
Frequency is
declared subject to
availability and
adequacy of
distributable surplus
SIP/SWP/STP/Trans Available
fer of IDCW
Plan/FSIP
Trigger
Facilities/VTP/SSIP/
SSWP/SSTP/ SIP
Pause
SIP/ & Dates Investors can select SIP date as any date from 1st to 31st of a given month/
quarter. In case the chosen date is a non-business day, the SIP will be
processed on the immediate next Business Day
FSIP Frequency & Investors can select FSIP date as any date from 1st to 31st of a given month/
Dates quarter. In case the chosen date is a /non-business day, the FSIP will be
processed on the immediate next Business Day.
SSIP/SSWP SSIP- Investors can select SSIP date as any date from 1st to 31st of a given
Frequency and Dates month/quarter. SSWP- Investors can select SSWP date as any date from 1st, 7th,
14th, 21st & 25th of a given month or quarter.
SWP/STP Frequency Daily (Only for STP), Weekly (Only for STP), Monthly and Quarterly
SWP Dates Any date
STP Dates Any Day
SWP/STP Fixed Sum or Entire Appreciation
Minimum
Investment size as
mentioned below
Initial Purchase Rs. 100/- and any amount thereafter
(Non- SIP)

5
Additional Purchase Rs. 100/- and any amount thereafter
(Non- SIP)
SIP Purchase Rs. 100/- and any amount thereafter
Minimum
Redemption Size as The minimum redemption amount for all plans will be Rs. 100/- or 100 units or
mentioned below - In account balance, whichever is lower.
Rupees/ Units
Minimum balance to There is no minimum balance requirement.
be maintained and
consequences of non-
maintenance.
Cheques/ Drafts to Regular Plan: Cheques should be drawn in favor of Kotak Technology Fund
favour
Direct Plan: Cheques should be drawn in favor of Kotak Technology Fund –
Direct Plan

Loads:
Entry Load In terms of Para 10.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD-
PoD1/P/CIR/2023/74 dated May 19, 2023, no entry load will be charged on
purchase / additional purchase / switch-in. The commission as specified in the
aforesaid circular, if any, on investment made by the investor shall be paid by
the investor directly to the Distributor, based on his assessment of various
factors including the service rendered by the Distributor.
Exit Load  For redemption / switch out within 30 days from the date of allotment:
1%
 If units are redeemed or switched out on or after 30 days from the date of
allotment: NIL
Any exit load charged (net off Goods and Services tax, if any) shall be credited
back to the Scheme. Units issued on reinvestment of IDCWs shall not be
subject to entry and exit load
Accepting of cash At present, applications for investing in scheme through cash are not accepted
transactions by Kotak AMC. Information in this regard will be provided to Investors as and
when the facility is made available.
Dematerialization Unit holders will have an Option to hold the units by way of an Account
(Demat) Statement or in Dematerialized (‘Demat’) form. Unit holders opting to hold the
units in Demat form must provide their Demat Account details in the specified
section of the application form/transaction feed. The Applicant intending to
hold the units in Demat form are required to have a beneficiary account with a
Depository Participant (DP) registered with NSDL / CDSL and will be
required to indicate in the application the DP's name, DP ID Number and the
Beneficiary Account Number of the applicant held with the DP at the time of
purchasing Units. Unitholders are requested to note that request for conversion
of units held in Account Statement (non-demat) form into Demat (electronic)
form or vice versa should be submitted to their Depository Participants. The
demat request to depository must be submitted for all units in a folio. In case
Unit holders do not provide their Demat account details or the Demat details
provided in the application form are incomplete / incorrect or do not match
with the details with the Depository records, the Units will be allotted in
account statement mode provided the application is otherwise complete in all
respect and accordingly an account statement shall be sent to them

6
II. INTRODUCTION

A. Risk Factors

Standard Risk Factors:

 Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement
risk, liquidity risk, default risk including the possible loss of principal.
 As the price / value / interest rates of the securities in which the scheme invests fluctuates, the
value of your investment in the scheme may go up or down. The value of investments may be
affected, inter-alia, by changes in the market, interest rates, changes in credit rating, trading
volumes, settlement periods and transfer procedures; the NAV is also exposed to Price/Interest-
Rate Risk and Credit Risk and may be affected inter-alia, by government policy, volatility and
liquidity in the money markets and pressure on the exchange rate of the rupee
 Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the
scheme.
 Kotak Technology Fund is only name of the scheme and does not in any manner indicate either
the quality of the scheme or its future prospects and returns.
 The sponsor is not responsible or liable for any loss resulting from the operation of any of the
scheme beyond the contribution of Rs.2,50,000 made by it towards setting up the Mutual Fund.
 The scheme under this scheme information document is not a guaranteed or assured return
scheme.

Scheme Specific Risk Factors

 The scheme will be largely affected by the risks associated with technology and technology
related stocks. The Scheme will mainly invest in technology and technology related sectors
thereby limiting its exposure to Technology sector. This will limit the capability of the Scheme to
invest in other sectors.
 The scheme will be subjected to concentration risk as the fund is mandated to invest in particular
sector. This may result in the Portfolio NAV to be more volatile as compared to a diversified
portfolio.
 Accordingly, the scheme may also face a relatively higher liquidity risk owing to larger
concentrations in their exposures in the event of any significant redemptions occurring in the
scheme.
 Owing to high concentration risk being a sectoral scheme, risk of capital loss is relatively high.
 Also, as with all equity investing, there is the risk that companies in technology sector will not
achieve its expected earnings results, or that an unexpected change in the market or within the
company may occur, both of which may adversely affect investment results. Thus, investing in a
sector specific fund could involve potentially greater volatility and risk.

Risks associated with Capital Markets or Equity Markets (i.e. Markets in which Equity Shares
or Equity oriented instruments are issued and traded)

 Price fluctuations and Volatility:

Mutual Funds, like securities investments, are subject to market and other risks and there can be
neither a guarantee against loss resulting from an investment in the Scheme nor any assurance
that the objective of the Scheme will be achieved. The NAV of the Units issued under the
Scheme can go up or down because of various factors that affect the capital market in general,
such as, but not limited to, changes in interest rates, government policy and volatility in the
capital markets. Pressure on the exchange rate of the Rupee may also affect security prices.

7
 Concentration / Sector Risk:
When a Mutual Fund Scheme, by mandate, restricts its investments only to a particular sector;
there arises a risk called concentration risk. If the sector, for any reason, fails to perform, the
portfolio value will plummet and the Investment Manager will not be able to diversify the
investment in any other sector. Investments under this scheme will be in a portfolio of diversified
equity or equity related stocks spanning across a few selected sectors. Hence the concentration
risks could be high.

 Liquidity Risks:
Liquidity in Equity investments may be affected by trading volumes, settlement periods and
transfer procedures. These factors may also affect the Scheme’s ability to make intended
purchases/sales, cause potential losses to the Scheme and result in the Scheme missing certain
investment opportunities. These factors can also affect the time taken by KMMF for redemption
of Units, which could be significant in the event of receipt of a very large number of redemption
requests or very large value redemption requests. In view of this, redemption may be limited or
suspended after approval from the Boards of Directors of the AMC and the Trustee, under
certain circumstances as described in the Statement of Additional Information.

 Potential Loss associated with Derivative Trading pertaining to Equity Markets:

a) In case of investments in index futures, the risk would be the same as in the case of investments
in a portfolio of shares representing an index. The extent of loss is the same as in the underlying
stocks. In case futures are used for hedging a portfolio of stocks, which is different from the
index stocks, the extent of loss could be more or less depending on the coefficient of variation of
such portfolio with respect to the index; such coefficient is known as Beta.
b) The risk (loss) for an options buyer is limited to the premium paid, while the risk (loss) of an
options writer is unlimited, the latter's gains being limited to the premiums earned. The writer of
a put option bears a risk of loss if the value of the underlying asset declines below the exercise
price. The writer of a call option bears a risk of loss if the value of the underlying asset increases
above the exercise price.

 Potential Loss associated with Securities Lending:-

In the case of securities lending the additional risk is that there can be temporary illiquidity of the
securities that are lent out and the scheme may not be able to sell such lent-out securities,
resulting in an opportunity loss. In case of a default by counterparty, the loss to the scheme can
be equivalent to the securities lent.

Risks associated with Debt / Money Markets (i.e. Markets in which Interest bearing Securities or
Discounted Instruments are traded)

i. Credit Risk:
Securities carry a Credit risk of repayment of principal or interest by the borrower. This risk depends
on micro-economic factors such as financial soundness and ability of the borrower as also macro-
economic factors such as Industry 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 by Independent and professionally run rating
agencies. Ratings of Credit issued by these agencies typically range from "AAA" (read as "Triple A"
denoting "Highest Safety") to "D" (denoting "Default"), with about 6 distinct ratings between the two
extremes.

The highest credit rating (i.e. lowest credit risk) commands a low yield for the borrower. Conversely,
the lowest credit rated borrower can raise funds at a relatively higher cost. On account of a higher

8
credit risk for lower rated borrowers lenders prefer higher rated instruments further justifying the
lower yields.

ii. Price-Risk or Interest-Rate Risk:

From the perspective of coupon rates, Debt securities can be classified in two categories, i.e., Fixed
Income bearing Securities and Floating Rate Securities. In Fixed Income Bearing Securities, the
Coupon rate is determined at the time of investment and paid/received at the predetermined
frequency. In the Floating Rate Securities, on the other hand, the coupon rate changes - 'floats' - with
the underlying benchmark rate, e.g., MIBOR, 1 yr. Treasury Bill.

Fixed Income Securities (such as Government Securities, bonds, debentures and money market
instruments) where a fixed return is offered, run price-risk. Generally, when interest rates rise, prices
of fixed income securities fall and when interest rates drop, the prices increase. The extent of fall or
rise in the prices is a function of the existing coupon, the payment-frequency of such coupon, days to
maturity and the increase or decrease in the level of interest rates. The prices of Government
Securities (existing and new) will be influenced only by movement in interest rates in the financial
system. Whereas, in the case of corporate or institutional fixed income securities, such as bonds or
debentures, prices are influenced not only by the change in interest rates but also by credit rating of
the security and liquidity thereof.

Floating rate securities issued by a government (coupon linked to treasury bill benchmark or a real
return inflation linked bond) have the least sensitivity to interest rate movements, as compared to
other securities. The Government of India has already issued a few such securities and the Investment
Manager believes that such securities may become available in future as well. These securities can
play an important role in minimizing interest rate risk on a portfolio.

iii. Risk of Rating Migration:

The following table illustrates the impact of change of rating (credit worthiness) on the price of a
hypothetical AA rated security with a maturity period of 3 years, a coupon of 10.00% p.a. and a
market value of Rs. 100. If it is downgraded to A category, which commands a market yield of, say,
11.50% p.a., its market value 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 indicative and are intended to
demonstrate how the price of a security can be affected by change in credit rating.

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

AA 11.00 100.00
If upgraded to AAA 9.60 103.48
If downgraded to A 11.50 98.76

iv. Basis Risk:

During the life of floating rate security or a swap the underlying benchmark index may become less
active and may not capture the actual movement in the interest rates or at times the benchmark may
cease to exist. These types of events may result in loss of value in the portfolio. Where swaps are used
to hedge an underlying fixed income security, basis risk could arise when the fixed income yield
curve moves differently from that of the swap benchmark curve.

v. Spread Risk:
In a floating rate security, the coupon is expressed in terms of a spread or mark up over the
benchmark rate. However, depending upon the market conditions the spreads may move adversely or
favourably leading to fluctuation in NAV.

9
vi. Reinvestment Risk:

Investments in fixed income securities may carry reinvestment risk as interest rates prevailing on the
interest or maturity due dates may differ from the original coupon of the bond. Consequently, the
proceeds may get invested at a lower rate.

vii. Liquidity Risk:

The corporate debt market is relatively illiquid vis-a- vis the government securities market. There
could therefore be difficulties in exiting from corporate bonds in times of uncertainties. Liquidity in a
scheme therefore may suffer. Even though the Government Securities market is more liquid compared
to that of other debt instruments, on occasions, there could be difficulties in transacting in the market
due to extreme volatility or unusual constriction in market volumes or on occasions when an
unusually large transaction has to be put through. In view of this, redemption may be limited or
suspended after approval from the Boards of Directors of the AMC and the Trustee, under certain
circumstances as described elsewhere in the SAI.

Risk Associated with Investment in Derivatives Market

Derivative products are leveraged instruments and can provide disproportionate gains as well as
disproportionate losses to the investor. Execution of such strategies depends upon the ability of the
fund manager to identify such opportunities. Identification and execution of the strategies to be
pursued by the fund manager involve uncertainty and decision of fund manager may not always be
profitable. No assurance can be given that the fund manager will be able to identify or execute such
strategies. The risks associated with the use of derivatives are different from or possibly greater than,
the risks associated with investing directly in securities and other traditional investment.

The Scheme may use derivative instruments such as index futures, stock futures, index options, stock
options, warrants, convertible securities or any other derivative instruments that are permissible or
may be permissible in future under applicable regulations, as would be commensurate with the
investment objective of the Scheme

The risks associated with the use of derivatives are different from or possibly greater than the risks
associated with investing directly in securities and other traditional investments. There are certain
risks inherent in aforesaid derivatives instruments. These are:

a) Basis Risk – This risk arises when the derivative instrument used to hedge the underlying asset
does not match the movement of the underlying being hedged for e.g. mismatch between the
maturity date of the futures and the actual selling date of the asset.

b) Limitations on upside: Derivatives when used as hedging tool can also limit the profits from a
genuine investment transaction.

c) Liquidity risk pertains to how saleable a security is in the market. All securities/instruments
irrespective of whether they are equity, bonds or derivatives may be exposed to liquidity risk
(when the sellers outnumber buyers) which may impact returns while exiting opportunities.

d) In case of investments in index futures, the risk would be the same as in the case of investments
in a portfolio of shares representing an index. The extent of loss is the same as in the underlying
stocks. In case futures are used for hedging a portfolio of stocks, which is different from the
index stocks, the extent of loss could be more or less depending on the coefficient of variation of
such portfolio with respect to the index; such coefficient is known as Beta.

10
 e) The risk related to hedging for use of derivatives, (apart from the derivatives risk mentioned
above) is that event of risk, which we were anticipating and hedged our position to mitigate it,
does not happen. In such case, the cost incurred in hedging the position would be a avoidable
charge to the scheme net assets.

f) Credit Risk –With the phased implementation of physical settlement of stocks in equity
derivative segment, though there is an element of risk of stock / funds not being received, the
same is mitigated due to settlement guarantee similar to equity cash market segment.

g) Interest Rate Risk – interest rate is one of the variables while valuing derivatives such as futures
& options. For example, with everything remaining constant, when interest rates increase, the
price of Call option would increase. Thus, fluctuations in interest rates would result in volatility
in the valuation of derivatives.

h) Model Risk - A variety of models can be used to value options. Hence, the risk to the scheme is
that the fund manager buys a particular option using a particular valuation model (on the basis of
which the option seems to be fairly priced or cheap) but the market is valuing it using another
valuation model and according to which the option may be expensive.

i) The risk (loss) for an option buyer is limited to the premium paid, while the risk (loss) of an
option writer is unlimited, the latter’s gain being limited to the premiums earned. However, in
the case of the scheme, all option positions will have underlying assets and therefore all losses
due to price-movement beyond the strike price will actually be an opportunity loss. The writer of
a put option bears a risk of loss if the value of the underlying asset declines below the strike
price. The writer of a call option bears a risk of loss if the value of the underlying asset increases
above the strike price.

Risks associated with Covered Call Strategy:

 The risk associated with a covered call is the loss of upside, i.e. If the underlying price rises
above the strike, the short call loses its value as much as the underlying stock gains

 The Scheme may write covered call option only in case it has adequate number of underlying
equity shares as per regulatory requirement. This means to set aside a portion of investment in
underlying equity shares. In case of change in view, the scheme may not be able to sell the
underlying equity shares immediately. If covered call options are sold to the maximum extent
allowed by regulatory authority.

 The covered call options need to be unwound before the stock positions can be liquidated. This
may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call
option contracts have been written become illiquid. Hence, the scheme may not be able to sell the
underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares
and result in loss of opportunity.

Risks associated with Securitised Debt:

The Scheme may from time to time invest in domestic securitised debt, for instance, in asset backed
securities (ABS) or mortgage backed securities (MBS). Typically, investments in securitised debt
carry credit risk (where credit losses in the underlying pool exceed credit enhancement provided, (if
any) and the reinvestment risk (which is higher as compared to the normal corporate or sovereign
debt). The underlying assets in securitised debt are receivables arising from automobile loans,
personal loans, loans against consumer durables, loans backed by mortgage of residential /
commercial properties, underlying single loans etc.

11
ABS/MBS instruments reflect the proportionate undivided beneficial interest in the pool of loans and
do not represent the obligation of the issuer of ABS/MBS or the originator of the underlying
receivables. Investments in securitised debt is largely guided by following factors:
 Attractive yields i.e. where securitised papers offer better yields as compared to the other debt
papers and also considering the risk profile of the securitised papers.
 Diversification of the portfolio
 Better performance

Broadly following types of loans are securitised:

a) Auto Loans
The underlying assets (cars etc.) are susceptible to depreciation in value whereas the loans are given at
high loan to value ratios. Thus, after a few months, the value of asset becomes lower than the loan
outstanding. The borrowers, therefore, may sometimes tend to default on loans and allow the vehicle
to be repossessed.

These loans are also subject to model risk. i.e. if a particular automobile model does not become
popular, loans given for financing that model have a much higher likelihood of turning bad. In such
cases, loss on sale of repossession vehicles is higher than usual.

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

b) Housing Loans
Housing loans in India have shown very low default rates historically. However, in recent years, loans
have been given at high loan to value ratios and to a much younger borrower classes. The loans have
not yet gone through the full economic cycle and have not yet seen a period of declining property
prices. Thus the performance of these housing loans is yet to be tested and it need not conform to the
historical experience of low default rates.

c) Consumer Durable Loans

 The underlying security for such loans is easily transferable without the bank's knowledge and
hence repossession is difficult.
 The underlying security for such loans is also susceptible to quick depreciation in value. This
gives the borrowers a high incentive to default.

d) Personal Loans
These are unsecured loans. In case of a default, the bank has no security to fall back on. The lender
has no control over how the borrower has used the borrowed money.

Further, all the above categories of loans have the following common risks:
 All the above loans are retail, relatively small value loans. There is a possibility that the
borrower takes different loans using the same income proof and thus the income is not
sufficient to meet the debt service obligations of all these loans.
 In India, there is no ready database available regarding past credit record of borrowers. Thus,
loans may be given to borrowers with poor credit record.
 In retail loans, the risks due to frauds are high.

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e) Single Loan PTC
A single loan PTC is a securitization transaction in which a loan given by an originator (Bank/ NBFC/
FI etc.) to a single entity (obligor) is converted into pass through certificates and sold to investors. The
transaction involves the assignment of the loan and the underlying receivables by the originator to a
trust, which funds the purchase by issuing PTCs to investors at the discounted value of the
receivables. The PTCs are rated by a rating agency, which is based on the financial strength of the
obligor alone, as the PTCs have no recourse to the originator.

The advantage of a single loan PTC is that the rating represents the credit risk of a single entity (the
obligor) and is hence easy to understand and track over the tenure of the PTC. The primary risk is that
of all securitized instruments, which are not traded as often in the secondary market and hence carry
an illiquidity risk. The structure involves an assignment of the loan by the originator to the trustee
who then has no interest in monitoring the credit quality of the originator. The originator that is most
often a bank is in the best position to monitor the credit quality of the originator. The investor then has
to rely on an external rating agency to monitor the PTC. Since the AMC relies on the documentation
provided by the originator, there is a risk to the extent of the underlying documentation between the
seller and underlying borrower.

Risk associated with investment in Government securities and Tri-Party Repo on Government
securities or treasury bills:
The mutual fund is a member of securities segment and Triparty repo on Government securities or
treasury bills trade settlement of the Clearing Corporation of India (CCIL). All transactions of the
mutual fund in government securities and in Triparty repo on Government securities or treasury bills o
trades are settled centrally through the infrastructure and settlement systems provided by CCIL; thus
reducing the settlement and counter party risks considerably for transactions in the said segments.

The members are required to contribute towards margin obligation (Initial / Mark to Market etc.) as
per bye-laws of CCIL as also an amount as communicated by CCIL from time to time to the default
fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case
of default by any member in discharging their obligation. As per the waterfall mechanism, after the
defaulter’s margins and the defaulter’s contribution to the default fund have been appropriated,
CCIL’s contribution is used to meet the losses. Post utilization of CCIL’s contribution if there is a
residual loss, it is appropriated from the default fund contributions of the non-defaulting members as
determined by CCIL.

Thus the scheme is subject to risk of the initial margin and default fund contribution being invoked in
the event of failure of any settlement obligations. In addition, the fund contribution is allowed to be
used to meet the residual loss in case of default by the other clearing member (the defaulting
member).

CCIL maintains two separate Default Funds in respect of its Securities Segment, one with a view to
meet losses arising out of any default by its members from outright and repo trades and the other for
meeting losses arising out of any default by its members from Triparty repo on Government securities
or treasury bills trades. The mutual fund is exposed to the extent of its contribution to the default fund
of CCIL, in the event that the contribution of the mutual fund is called upon to absorb settlement/
default losses of another member by CCIL, as a result the scheme may lose an amount equivalent to
its contribution to the default fund.

Risk envisaged and mitigation measures for repo transactions:

Credit risks could arise if the counterparty does not return the security as contracted or interest
received by the counter party on due date. This risk is largely mitigated, as the choice of
counterparties is largely restricted and their credit rating is taken into account before entering into
such transactions. Additionally, appropriate haircuts are applied on the market value of the underlying

13
securities based on the tenor and illiquidity of the underlying security. Also operational risks are
lower as such trades are settled on a DVP basis. In the event of the scheme being unable to pay back
the money to the counterparty as contracted, the counter party may dispose of the assets (as they have
sufficient margin) and the net proceeds may be refunded to us. Thus the scheme may in remote cases
suffer losses. This risk is normally mitigated by better cash flow planning to take care of such
repayments.

The above risks will not arise for repo transactions where settlement is guaranteed by a Clearing
Corporation.

Risks associated with Investing in Structured Obligation (SO) & Credit Enhancement (CE)
rated securities:
The risks factors stated below for the Structured Obligations & Credit Enhancement are in addition to
the risk factors associated with debt instruments.

 Credit rating agencies assign CE rating to an instrument based on any identifiable credit
enhancement for the debt instrument issued by an issuer. The credit enhancement could be in
various forms such as guarantee, shortfall undertaking, letter of comfort, pledge of shares listed
on stock exchanges etc. from the issuers, promoters or another entity. This entity could be either
related or non-related to the issuer like a bank, financial institution, etc. Hence, for CE rated
instruments evaluation of the credit enhancement provider, as well as the issuer is undertaken to
determine the issuer rating.

 SO transactions are asset backed/ mortgage backed securities, securitized paper backed by
hypothecation of loan receivables, securities backed by trade receivables, credit card receivables
etc. In case of SO rated issuer, the underlying loan pools or securitization, etc. is assessed to
arrive at rating for the issuer.

 Liquidity Risk: SO rated securities are often complex structures, with a variety of credit
enhancements. Debt securities lack a well-developed secondary market in India, and due to the
credit enhanced nature of CE securities as well as structured nature of SO securities, the liquidity
in the market for these instruments is low as compared to similar rated debt instruments. Hence,
lower liquidity of such instruments, could lead to inability of the scheme to sell such debt
instruments and generate liquidity for the scheme or higher impact cost when such instruments are
sold. Where equity shares are provided as collateral there is the risk of sharp price volatility of
underlying securities which may lead to erosion in value of collateral as also low liquidity of the
underlying shares which may affect the ability of the scheme to enforce collateral and recover
capital and interest obligations.

 Credit Risk: The credit risk of debt instruments which are CE rated derives rating based on the
combined strength of the issuer as well as the structure. Hence, any weakness in either the issuer
or the structure could have an adverse credit impact on the debt instrument. The weakness in
structure could arise due to inability of the investors to enforce the structure due to issues such as
legal risk, inability to sell the underlying collateral or enforce guarantee, etc. In case of SO
transactions, comingling risk and risk of servicer increases the overall risk for the securitized debt
or assets backed transactions. Therefore, apart from issuer level credit risk such debt instruments
are also susceptible to structure related credit risk.

14
Risk factors associated with REITS/InvITs:
 Market Risk – Units of REITS & InvITs are subject to market and other risks. The value of these
units can go up or down because of various factors that affect the capital market in general, such
as, but not limited to, changes in interest rates, government policy and volatility in the capital
markets
 Liquidity Risk - Liquidity in units of REITs & InvITs may be affected by trading volumes,
settlement periods and transfer procedures. These factors may also affect the Scheme’s ability to
make intended purchases/sales, cause potential losses to the Scheme and result in the Scheme
missing certain investment opportunities. These factors can also affect the time taken by Kotak
Mahindra Mutual Fund for redemption of Units, which could be significant in the event of receipt
of a very large number of redemption requests or very large value redemption requests. In view of
this, redemption may be limited or suspended after approval from the Boards of Directors of the
AMC and the Trustee, under certain circumstances as described in the Statement of Additional
Information. REITs and InvITs currently only have a nascent primary market. As such, in absence
of the secondary market, the invested units cannot be redeemed except where the issuer is offering
a buyback or delisting the units.
 Re-investment Risk – Investments in REITs & InvITs may carry reinvestment risk as there could
be repatriation of funds by the Trusts in form of buyback of units or Income Distribution cum
capital withdrawal (IDCW) pay-outs, etc. Consequently, the proceeds may get invested at a lower
rate
 Performance Risk - InvITs and REITS carry a performance risk by way of repayment of
principal or of interest by the borrower. REITs & InvITs are likely to have volatile cash flows as
the repayment dates would not necessarily be pre scheduled.

The above are some of the common risks associated with investments in REITs & InvITs. There can
be no assurance that a Scheme's investment objectives will be achieved, or that there will be no loss of
capital.

Risk Factors Associated with investing in Foreign Securities:

Subject to necessary approvals and within the investment objectives of the Scheme, the Scheme may
invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the
nature of the securities market of the country, repatriation of capital due to exchange controls and
political circumstances. However, in case the overall industry limit or such other limit as prescribed by
SEBI has been breached, the Scheme may not in a position to invest in foreign securities temporarily.

To manage risks associated with foreign currency and interest rate exposure, the scheme may use
derivatives for efficient portfolio management including hedging and in accordance with conditions as
may be stipulated under the Regulations or by the RBI from time to time.

Overseas investments will be made subject to any/all approvals, conditions thereof as may be
stipulated under the Regulations or by RBI and provided such investments do not result in expenses to
the Fund in excess of the ceiling on expenses prescribed by and consistent with costs and expenses
attendant to international investing.

The Fund may, where necessary, appoint other intermediaries of repute as advisors, custodian/sub-
custodians etc. for managing and administering such investments. The appointment of such
intermediaries shall be in accordance with the applicable requirements of SEBI and within the
permissible ceilings of expenses. The fees and expenses would illustratively include, besides the
investment management fees, custody fees and costs, fees of appointed advisors and sub-managers,
transaction costs and overseas regulatory costs.

To the extent that the assets of the Scheme will be invested in securities denominated in foreign
currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely
15
affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The
repatriation of capital to India may also be hampered by changes in regulations concerning exchange
controls or political circumstances as well as the application to it of other restrictions on investment.

Currency Risk:
Investments in overseas securities/mutual fund units are subject to currency risk. Returns to investors
are the result of a combination of returns from investments and from movements in exchange rates.
For example, if the Rupee appreciates vis-à-vis the US $, the extent of appreciation will lead to
reduction in the yield to the investor. However, if the Rupee appreciates against the US $ by an
amount in excess of the interest earned on the investment, the returns can even be negative. Again, in
case the Rupee depreciates vis-à-vis the US $, the extent of depreciation will lead to a corresponding
increase in the yield to the investor. Going forward, the Rupee may depreciate (lose value) or
appreciate (increase value) against the currencies of the countries where the Scheme will invest.

Exhaustion of overseas limit Risk

The Scheme can make overseas investments subject to a maximum of US $ 1 billion per Mutual Fund,
within the overall industry limit of US $ 7 billion or such limits as may be prescribed by SEBI from
time to time. The Scheme therefore may or may not be able to utilise the limit of USD 1 billion due to
the USD 7 billion limit being exhausted by other Mutual Funds. Further, the scheme can make
investments in overseas Exchange Traded Fund (ETFs) subject to a maximum of US $ 300 million per
Mutual Fund, within the overall industry limit of US $ 1 billion.

As and when the investment limits at Mutual Fund level/Industry level are exhausted or nearing
exhaustion, the scheme may temporarily suspend deployment of funds in overseas funds/securities.

Risk associated with Securities Lending:

In the case of securities lending the additional risk is that there can be temporary illiquidity of the
securities that are lent out and the Fund may not be able to sell such lent-out securities, resulting in an
opportunity loss. In case of a default by counterparty, the loss to the Fund can be equivalent to the
securities lent.

Risks associated with Short Selling:

Short-selling is the sale of shares or securities that the seller does not own at the time of trading.
Instead, he borrows it from someone who already owns it. Later, the short seller buys back the
stock/security he shorted and returns the stock/security to the lender to close out the loan. The security
being short sold might be illiquid or become illiquid and covering of the security might occur at a
much higher price level than anticipated, leading to losses. Purchasing a security entails the risk of the
security price going down. Short selling is subject to risks related to fluctuations in market price, and
settlement/liquidity risks. If required by the regulations, short selling may entail margin money to be
deposited with the clearing house and daily mark to market of the prices and margins. This may
impact fund pricing and may induce liquidity risks if the fund is not able to provide adequate margins
to the clearing house. Failure to meet margin requirements may result in penalties being imposed by
the exchanges and clearing house

Risks associated with segregated portfolio

 Investor holding units of segregated portfolio may not able to liquidate their holding till the time
realisable value is recovered.
 Security comprising of segregated portfolio may realise lower value or may realise zero value.
Listing of units of segregated portfolio in recognised stock exchange does not necessarily guarantee
their liquidity. There may not be active trading of units in the stock market. Further trading price of
units on the stock market may be significantly lower than the prevailing NAV.

16
Risks associated with Units of Mutual Fund Schemes
Investment in units of Mutual Fund scheme involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal. As the price / value /
interest rates of the underlying securities in which the mutual fund scheme invests fluctuates, the value
of units of mutual fund scheme may go up or down. The value of underlying securities may be
affected, inter-alia, by changes in the market, interest rates, changes in credit rating, trading volumes,
settlement periods and transfer procedures; the NAV is also exposed to Price/Interest-Rate Risk and
Credit Risk and may be affected inter-alia, by government policy, volatility and liquidity in the money
markets and pressure on the exchange rate of the rupee. Investment in units of mutual fund scheme is
also exposed to risk of suspension of subscriptions / redemptions of the units, change in fundamental
attributes etc. Since the Scheme may invest in schemes of Mutual Funds, scheme specific risk factors
of each such mutual fund schemes will be applicable to the Scheme portfolio.

Risk Control/Risk Mitigation:

Type of Risks Measures/ Strategies to control risks

Equity Markets/ Investment strategy
Equity Oriented The scheme will comply with the prescribed SEBI limits on exposure. Risk is
Instruments monitored and necessary action would be taken on the portfolio, if required.
Attribution analysis is done to monitor the under or over performance vis a vis
the benchmark and the reasons for the same.

Portfolio volatility & Concentration

The overall volatility of the portfolio would be maintained in line with the
investment objective of the scheme. Volatility is inherent to an equity scheme.
The scheme may use derivatives to limit the portfolio volatility.

The Scheme will try and mitigate this risk by investing in sufficiently large
number of companies within the Technology sector space, so as to maintain
optimum diversification and keep stock specific concentration risk relatively
low.

Liquidity
The scheme predominantly invests across market capitalisation which are
actively traded and thereby liquid. The fund manager may also keep some
portion of the portfolio in debt and money market instruments and/or cash
within the specified asset allocation framework for the purpose of meeting
redemptions. The liquidity would be monitored and necessary action would be
taken on the portfolio if required. Stock turnover is monitored at regular
intervals. Also the fund manager may deploy the assets in debt/money market
instruments with a short term duration, which can provide liquidity to the
portfolio..
Debt and Money • Credit Risk: Management analysis will be used for identifying company
Market specific risks. Management’s past track record will also be studied. In order
instruments to assess financial risk a detailed assessment of the issuer’s financial
statements will be undertaken.

• Price-Risk or Interest-Rate Risk: The Scheme may primarily invest the debt
portion of the portfolio in short term debt & money market instruments,
units of Liquid and Overnight schemes thereby mitigating the price
volatility due to interest rate changes generally associated with long-term
securities.

17
 • Risk of Rating Migration: The Scheme may primarily invest the debt
portion of the portfolio in short-term debt & money market instruments,
units of Liquid and Overnight schemes thereby mitigating the risk of rating
migration generally associated with long-term securities

• Basis Risk: The debt allocation of scheme is primarily as a cash

management strategy and such strategy returns are expected to reflect the
very short term interest rate hence investment is done in short term debt and
money market instruments.

• Spread Risk: The Scheme may primarily invest the debt portion of the
portfolio in short-term debt & money market instruments, units of Liquid
and Overnight schemes thereby mitigating the risk of spread expansion
which is generally associated with long-term securities

• Reinvestment Risk: The debt allocation of scheme is primarily as a cash

management strategy and such strategy returns are expected to reflect the
very short term interest rate hence investment is done in short term debt and
money market instruments. Reinvestment risks will be limited to the extent
of debt instruments, which will be a very small portion of the overall
portfolio value.

• Liquidity Risk: The Scheme may, however, endeavor to minimize liquidity

risk by primarily investing the debt portion of the portfolio in relatively
liquid short-term debt & money market instruments, units of Liquid and
Overnight schemes.
Derivatives The Scheme may invest in derivative for the purpose of hedging, portfolio
balancing and other purposes as may be permitted under the Regulations.
Equity Derivatives will be used in the form of Index Options, Index Futures,
Stock Options and Stock Futures and other instruments as may be permitted by
SEBI. Exchange traded derivatives are listed and traded on stock exchanges.
Exposure with respect to derivatives shall be in line with regulatory limits and
the limits specified in the SID.
Securities The SLB shall be operated through Clearing Corporation/Clearing House of
Lending stock exchanges having nation-wide terminals who are registered as Approved
Intermediaries (AIs).” The risk is adequately covered as Securities Lending &
Borrowing (SLB) is an Exchange traded product. Exchange offers an
anonymous trading platform and gives the players the advantage of settlement
guarantee without the worries of counter party default. However, the Fund may
not be able to sell such lent securities during contract period or have to recall
the securities which may be at higher than the premium at which the security is
lent.
Currency The scheme subject to applicable regulations shall have the option to enter into
forward contracts for the purposes of hedging against the foreign exchange
fluctuations. The Schemes may employ various measures (as permitted by
SEBI/RBI) including but not restricted to currency hedging (such as currency
options and forward currency exchange contracts, currency futures, written call
options and purchased put options on currencies and currency swaps), to
manage foreign exchange movements arising out of investment in foreign
securities.

All currency derivatives trade, if any will be done only through the stock
exchange platform.

18
 Repo This risk is largely mitigated, as the choice of counterparties is largely
Transactions restricted and their credit rating is taken into account before entering into such
transactions. Also operational risks are lower as such trades are settled on a
DVP basis. In the event the counterparty is unable to pay back the money to the
scheme as contracted on maturity, the scheme may dispose of the assets (as
they have sufficient margin) and the net proceeds may be refunded to the
counterparty.

The risks will not arise for repo transactions where settlement is guaranteed by
a Clearing Corporation.

Securitized Debt In addition to careful scrutiny of credit profile of borrower/pool additional

security in the form of adequate cash collaterals and other securities may be
obtained
Segregated In such an eventuality it will be AMC’s endeavor to realise the segregated
Portfolio holding in the best interest of the investor at the earliest.
REITs and The Mutual fund will comply with the prescribed SEBI limits on exposure. The
InvITS scheme will endeavour to invest in liquid REITs & InvITs.
Structured Scheme wise investments as prescribed by the regulations limits the exposure
Obligation (SO) to such securities. Additionally, covenants of such structured papers are
& Credit reviewed periodically for adequate maintenance of covers as prescribed in the
Enhancement Information Memorandum of such papers.
(CE) rated
securities
Government As a member of securities segment and Triparty repo segment, maintenance of
securities and sufficient margin is a mandatory requirement. CCIL monitors these on a real
Triparty repo on time basis and requests the participants to provide sufficient margin to enable
Government the trades etc. Also there are stringent conditions / requirements before
securities or registering any participants by CCIL in these segments. Since settlement is
treasury bills guaranteed the loss on this account could be minimal though there could be an
opportunity loss.
Units of mutual Mutual Fund portfolios are generally well diversified and typically endeavor to
fund schemes provide liquidly normally within T+2

While these measures are expected to mitigate the above risks to a large extent, there can be no
assurance that these risks would be completely eliminated.

The measures mention above is based on current market conditions and may change from time to time
based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our
investment strategy, risk mitigation measures and other information contained herein may change.in
response to the same.

19
B. Requirement of Minimum Investors in the Scheme
The Scheme shall have a minimum of 20 investors and no single investor shall account for more than
25% of the corpus of the Scheme. However, if such limit is breached during the NFO of the Scheme,
the Fund will endeavour to ensure that within a period of three months or the end of the succeeding
calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies
with these two conditions. In case the Scheme does not have a minimum of 20 investors in the
stipulated period, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become
applicable automatically without any reference from SEBI and accordingly the Scheme shall be
wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above
shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as
specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing
period of one month would be allowed and thereafter the investor who is in breach of the rule shall be
given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said
investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to
automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15 th day of the
notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this
regard.

C. Special Considerations

i. Prospective investors should review/study SAI along with SID carefully and in its entirety and
shall not construe the contents hereof or regard the summaries contained herein as advice
relating to legal, taxation, or financial/investment matters and are advised to consult their own
professional advisor(s) as to the legal or any other requirements or restrictions relating to the
subscriptions, gifting, acquisition, holding, disposal (sale, transfer, switch or redemption or
conversion into money) of units and to the treatment of income (if any), capitalization, capital
gains, any distribution, and other tax consequences relevant to their subscription, acquisition,
holding, capitalization, disposal (sale, transfer, switch or redemption or conversion into money)
of units within their jurisdiction/nationality, residence, domicile etc. or under the laws of any
jurisdiction to which they or any managed Funds to be used to purchase/gift units are subject,
and also to determine possible legal, tax, financial or other consequences of subscribing/gifting
to, purchasing or holding units before making an application for units.
ii. Neither this SID and SAI, nor the units have been registered in any jurisdiction. The distribution
of this SID in certain jurisdictions may be restricted or subject to registration and accordingly,
any person who gets possession of this SID is required to inform themselves about, and to
observe, any such restrictions. It is the responsibility of any persons in possession of this SID
and any persons wishing to apply for units pursuant to this SID to inform themselves of and to
observe, all applicable laws and Regulations of such relevant jurisdiction. Any changes in
SEBI/RBI regulations and other applicable laws/regulations could have an effect on such
investments and valuation thereof.
iii. Kotak Mahindra Mutual Fund/AMC has not authorised any person to give any information or
make any representations, either oral or written, not stated in this SID in connection with issue
of units under the Scheme. Prospective investors are advised not to rely upon any information
or representations not incorporated in the SAI and SID as the same have not been authorised by
the Fund or the AMC. Any purchase or redemption made by any person on the basis of
statements or representations which are not contained in this SID or which are not consistent
with the information contained herein shall be solely at the risk of the investor. The investor is
requested to check the credentials of the individual, firm or other entity he/she is entrusting
his/her application form and payment to, for any transaction with the Fund. The Fund shall not
be responsible for any acts done by the intermediaries representing or purportedly representing
such investor.
iv. If the units are held by any person in breach of the Regulations, law or requirements of any
governmental, statutory authority including, without limitation, Exchange Control Regulations,

20
 the Fund may mandatorily redeem all the units of any Unit holder where the units are held by a
Unit holder in breach of the same. The Trustee may further mandatorily redeem units of any
Unit holder in the event it is found that the Unit holder has submitted information either in the
application or otherwise that is false, misleading or incomplete.
v. In terms of the Prevention of Money Laundering Act, 2002 ("PMLA") the rules issued there
under and the guidelines/circulars issued by SEBI regarding the Anti Money Laundering
(AML) Laws, all intermediaries, including mutual funds, are required to formulate and
implement a client identification program, and to verify and maintain the record of identity and
address(es) of investors.
vi. If after due diligence, the AMC believes that any transaction is suspicious in nature as regards
money laundering, the AMC shall report any such suspicious transactions to competent
authorities under PMLA and rules/guidelines issued thereunder by SEBI and/or RBI, furnish
any such information in connection therewith to such authorities and take any other actions as
may be required for the purposes of fulfilling its obligations under PMLA and rules/guidelines
issued thereunder by SEBI and/or RBI without obtaining the prior approval of the investor/Unit
holder/any other person.
 The AMC and/ or its Registrars & Transfer Agent (RTA) reserve the right to disclose/share Unit
holder's details of folio(s) and transaction details thereunder with the following third parties: a)
RTA, Banks and/or authorised external third parties who are involved in transaction processing,
dispatching etc., of the Unitholder's investment in the Scheme; b) Distributors or sub-brokers
through whom the applications are received for the Scheme; c) Any other organizations for
compliance with any legal or regulatory requirements or to verify the identity of the Unitholders
for complying with anti-money laundering requirements.

Purchase/ Redemption of units of scheme through Stock Exchange Infrastructure

 Units of the scheme shall be available for subscription / purchase through stock exchange
platform(s) made available by Registered Stock exchange during NFO. Under this facility,
trading member can facilitate eligible investors (i.e. Resident Individuals, HUF, resident minors
represented by guardian and Body corporate or such other class of eligible investors to purchase
/ subscribe to units of the scheme using their existing network and order collection mechanism
as provided by respective stock exchange. Investors availing of this facility shall be allotted
units in accordance with the SEBI guidelines issued from time to time and the records of the
Depository Participant shall be considered as final for such unitholders. The transactions carried
out on the above platform shall be subject to such guidelines as may be issued by the respective
stock exchanges and also SEBI (Mutual Funds) Regulations, 1996 and circulars / guidelines
issued thereunder from time to time.
 Further in line with Para 16.2 of SEBI Master circular No. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023 it has been decided to allow investors to directly access
infrastructure of the recognised stock exchanges to purchase mutual fund units directly from
Mutual Fund/ Asset Management Companies. SEBI circular has advised recognised stock
exchanges, clearing corporations and depositories to make necessary amendment to their
existing byelaws, rules and/or regulations, wherever required.

Systematic Investment Plan (SIP)

 Investor can register SIP transaction through their stock market broker.
 SIP transaction will be registered in the respective platform
The transactions carried out on the above platform shall be subject to SEBI (Mutual Funds)
Regulations, 1996 and circulars / guidelines issued thereunder, and also the guidelines/ procedural
requirements as laid by the Depositories (NSDL/CDSL) / Registered Stock Exchanges from time to
time.

21
 Note for demat holding
 Investors would have to provide the demat account details in the application form/transaction
feed along with supporting documents evidencing the accuracy of the demat account.
Applications received without supporting documents could be processed under the physical
mode.
 Investors of Kotak Mahindra Mutual Fund would also have an option of holding the units in
demat form for SIP/STP transactions registered directly through Kotak Mahindra Asset
Management Company Ltd. / Registrars & Transfer Agents. The units will be allotted based on
the applicable NAV as per Scheme Information Document (SID) of the scheme. The units will
be credited to investors demat Account post realisation of funds.
 The option of holding SIP units in Demat form is available for investments registered through
Stock Exchange Platform.
 IDCW options having IDCW frequency of less than a month will not be available for Purchase
and Redemption through Stock Exchange Platform.
 The minimum redemption size is 1 unit in case of redemption through Stock Exchange
Platform.
 In case of non-financial requests/ applications such as change of address, change of bank
details, etc. investors should approach the respective Depository Participant(s) since the units
are held in demat mode.
 Investors will be sent a demat statement by Depository Participant showing the credit/debit of
units to their account. Such demat statement given by the Depository Participant will be
deemed to be adequate compliance with the requirements for dispatch of statement of account
prescribed by SEBI.
 Investors will have to comply with Know Your Customer (KYC) norms as prescribed by SEBI
Investors should note that the terms & conditions and operating guidelines issued by stock
exchanges shall be applicable for purchase/redemption of units through the stock exchange
infrastructure.
 Investors should get in touch with Investor Service Centres (ISCs) of Kotak Mahindra Mutual
Fund or their respective brokers for further details.

Kotak Mahindra Asset Management Company Ltd. reserves the right to change/modify the features of
this facility at a later date.

The AMC offers portfolio management service. The AMC has renewed its registration obtained from
SEBI vide Registration No. – INP000000837 dated November 13, 2018 to act as a Portfolio Manager
under the SEBI (Portfolio Managers) Regulations, 1993. The said certificate of registration is valid
unless it is suspended or cancelled by SEBI. KMAMC has received approval from SEBI for acting as
an investment manager for Kotak India Renaissance-I Fund under Category III Alternative Investment
Fund. AMC has received approval for Kotak Credit Opportunities Fund under Category II Alternative
Investment Fund. The fund is not yet launched by AMC. The AMC has received No objection from
SEBI for providing non-binding offshore advisory services to offshore funds. The AMC has not yet
commenced providing non-binding offshore advisory services.

The AMC has systems in place to ensure that there is no conflict of interest between the aforesaid
activities.

22
D. Definitions

In this SID, the following words and expressions shall have the meaning specified below, unless
the context otherwise requires:

Applicable NAV Unless stated otherwise in the SID, ‘Applicable NAV’ is the Net Asset
Value at the close of a Business Day as of which the purchase or
redemption is sought by an investor and determined by the Fund.
Asset Management Kotak Mahindra Asset Management Company Limited, the Asset
Company or AMC Management Company incorporated under the Companies Act, 1956,
or Investment and authorised by SEBI to act as Investment Manager to the Schemes
Manager of Kotak Mahindra Mutual Fund.
Business Day A day other than:
(i) Saturday and Sunday,
(ii) A day on which Purchase and Redemption is suspended by the
AMC,
(iii) Banks are closed in India
(iv) a day on which both the National Stock Exchange and the
Bombay Stock Exchange are closed.

Additionally, the days when the banks in any location where the
AMC's Investor service center are located, are closed due to local
holiday, such days will be treated as 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 it is a business day for the scheme.
The AMC reserves the right to change the definition of Business Day.
The AMC reserves the right to declare any day as a Business Day or
otherwise at any or all ISCs.
Consolidated An account statement containing details relating to: (a) all the
Account transactions (which includes purchase, redemption, switch, Payout of
Statement(CAS) Income Distribution cum capital withdrawal option (IDCW), Payout of
Income Distribution cum capital withdrawal option (IDCW),
systematic investment plan, systematic withdrawal plan and systematic
transfer plan) carried out by the investor across all schemes of all
mutual funds during a specified period; (b) holding at the end of the
specified period; and (c) transaction charges, if any, deducted from the
investment amount to be paid to the distributor.
Custodian Deutsche Bank AG and Standard Chartered Bank, acting as Custodian
to the Scheme, or any other Custodian appointed by the Trustee.
Depository A depository as defined in the Depositories Act, 1996 (22 of 1996) and
includes National Securities Depository Ltd (NSDL) and Central
Depository Services Ltd (CDSL).
Designated/ Designated/ Controlling Branches (DBs) of the SCSBs are the branches
Controlling of the SCSBs which shall collect the ASBA Application Forms duly
Branches filled by the Investors towards the subscription to the Units of the
Scheme offered during the NFO. The list of these Designated Branches
shall be available at the websites of SEBI and the stock exchanges.
Income Distribution Under the Income Distribution cum capital withdrawal (IDCW)
cum capital option, the Trustee may at any time decide to distribute by way of
withdrawal (IDCW) IDCW, the surplus by way of realised profit and interest, net of losses,
Option expenses and taxes, if any, to Unitholders if, in the opinion of the
23
 Trustee, such surplus is available and adequate for distribution. The
Trustee's decision with regard to such availability and adequacy of
surplus, rate, timing and frequency of distribution shall be final. The
Trustee may or may not distribute surplus, even if available, by way of
Income Distribution cum capital withdrawal (IDCW).

The IDCW will be paid to only those Unitholders whose names appear
on the register of Unitholders of the Scheme / Option at the close of the
business hours on the record date, which will be announced in advance.

In case of dynamic lien the Income Distribution cum capital

withdrawal (IDCW) may be credited to the financier

The Income Distribution cum capital withdrawal (IDCW) Option will

be available under two sub-options – the Payout Option and the
Reinvestment Option.

Payout of Income Distribution cum capital withdrawal option (IDCW):

Unitholders will have the option to receive payout of their IDCW by
way of Pay order / DD any other means which can be enchased or by
way of direct credit / electronic payout into their account.

Reinvestment of Income Distribution cum capital withdrawal option

(IDCW): Under the reinvestment option, the amounts will be
reinvested in the Reinvestment IDCW Option at the Applicable NAV
announced immediately following the record date.
The requirement of giving notice shall not be applicable for IDCW
Option having frequency upto one month.

However, the Trustees reserve the right to introduce new options and /
or alter the IDCW payout intervals, frequency, including the day of
payout.
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.
Foreign Portfolio Means a person who satisfies the eligibility criteria prescribed under
Investor (FPI) regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014
and has been registered under Chapter II of these regulations, which
shall be deemed to be an intermediary in terms of the provisions of the
Securities and Exchange Board of India Act, 1992.
Provided that any foreign institutional investor or qualified foreign
investor who holds a valid certificate of registration shall be deemed to
be a foreign portfolio investor till the expiry of the block of three years
for which fees have been paid as per the Securities and Exchange
Board of India (Foreign Institutional Investors) Regulations, 1995.
Gilts/Government Securities created and issued by the Central Government and/or State
Securities Government.
Growth Option: Under the Growth option, there will be no distribution of income and
the return to investors will be only by way of capital gains, if any,
through redemption at applicable NAV of Units held by them.

24
IMA Investment Management Agreement dated 20th May 1996, entered into
between the 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 Designated branches of the AMC / other offices as may be designated
Centres or ISCs by the AMC from time to time.
Kotak Bank/ Kotak Mahindra Bank Limited.
Sponsor
KMMF/Fund/ Kotak Mahindra Mutual Fund, a trust set up under the provisions of
Mutual Fund The Indian Trusts Act, 1882.
KMTCL/Trustee Kotak Mahindra Trustee Company Limited, a company set up under
the Companies Act, 1956, and approved by SEBI to act as the Trustee
for the Schemes of Kotak Mahindra Mutual Fund.
MIBOR The Mumbai Interbank Offered Rate published once every day by the
National Stock Exchange and published twice every day by Reuters, as
specifically applied to each contract.
Mutual Fund Securities and Exchange Board of India (Mutual Funds) Regulations,
Regulations/ 1996, as amended up to date, and such other regulations as may be in
Regulations force from time to time.
NAV Net Asset Value of the Units of the Scheme (including the options
thereunder) as calculated in the manner provided in this SID or as may
be prescribed by Regulations from time to time. The NAV will be
computed up to three decimal places.
NRI Non-Resident Indian and Person of Indian Origin as defined in Foreign
Exchange Management Act, 1999.
Purchase Price Purchase Price, to an investor, of Units under the Scheme (including
Options thereunder) computed in the manner indicated elsewhere in
this SID.
Redemption Price Redemption Price to an investor of Units under the Scheme (including
Options thereunder) computed in the manner indicated elsewhere in
this SID.
Registrar Computer Age Management Services Limited (‘CAMS’), acting as
Registrar to 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 Reserve Bank of India, established under the Reserve Bank of India
India/RBI Act, 1934.
Reverse Repo Purchase of securities with a simultaneous agreement to sell them at a
later date.
Main Portfolio Scheme portfolio excluding the segregated portfolio. (Portfolio
referred herewith will include interest accrued as well)
Money Market Includes commercial papers, commercial bills, treasury bills,
Instruments Government securities having an unexpired maturity upto one year,
call or notice money, certificate of deposit, usance bills, and any other
like instruments as specified by the Reserve Bank of India from time to
time.
Scheme Kotak Technology Fund
Scheme Information This document issued by Kotak Mahindra Mutual Fund, offering for
Document (SID) subscription of Units of the Scheme.
Statement of It contains details of Kotak Mahindra Mutual Fund, its constitution,
Additional and certain tax, legal and general information. It is incorporated by
Information (SAI) reference (is legally a part of the Scheme Information Document)
SEBI The Securities and Exchange Board of India.

25
Segregated portfolio A portfolio, comprising of debt or money market instrument affected
by a credit event that has been segregated in a mutual fund scheme.

Note 1: As per para 4.4 of SEBI Master circular No.

SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, the
credit event is considered for creation of segregated portfolio, however
as per para 4.4.3.3 of SEBI Master Circular No. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 dated May 19, 2023, segregated portfolio of
unrated debt or money market instruments may be created only in case
of actual default of either the interest or principal amount. Actual
default by the issuer of such instruments shall be considered as
credit event for creation of segregated portfolio.

Note 2: Portfolio referred herewith will include interest accrued as well

Total portfolio Scheme portfolio including the securities affected by the credit event.
(Portfolio referred herewith will include interest accrued as well)
Triparty repo on Triparty repo on Government securities or treasury bills is a type of
Government repo contract where a third entity (apart from the borrower and lender),
securities or treasury called a Tri-Party Agent, acts as an intermediary between the two
bills parties to the repo to facilitate services like collateral selection,
payment and settlement, custody and management during the life of the
transaction.
Trust Deed The Trust Deed entered into on 20th May 1996 between the Sponsor
and the Trustee, 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 vested in the Trustee.

Unit The interest of the investors in the Scheme, which consists of each Unit
representing one undivided share in the assets of the Scheme.
Unitholder A person who holds Unit(s) of the Scheme.
Valuation Day Business Day of the Scheme.
Words and Same meaning as in Trust Deed.
Expressions used in
this SID and not
defined

26
E. Due Diligence by the Asset Management Company

It is confirmed that:

(i) the Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from
time to time;
(ii) all legal requirements connected with the launching of the scheme as also the guidelines,
instructions, etc., issued by the Government and any other competent authority in this
behalf, have been duly complied with;
(iii) the disclosures made in the Scheme Information Document are true, fair and adequate to
enable the investors to make a well informed decision regarding investment in the proposed
scheme;
(iv) the intermediaries named in the Scheme Information Document and Statement of Additional
Information are registered with SEBI and their registration is valid, as on date;
(v) there are no deviations from the SEBI (Mutual Funds) Regulations or no subjective
interpretations have been applied to the provisions of the regulations; and
(vi) the contents of the Scheme Information Document including figures, data, yields, etc. have
been checked and are factually correct.

For Kotak Mahindra Asset Management Company Limited

Asset Management Company for Kotak Mahindra Mutual Fund

Place: Mumbai Jolly Bhatt

Date: January 29, 2024 Compliance Officer

27
III. INFORMATION ABOUT THE SCHEME

Kotak Technology Fund

A. Type of the scheme

An open ended equity scheme investing in Technology & technology related sectors

B. What is the investment objective of the scheme?

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio
that is invested predominantly in equity and equity related securities of Technology & technology
related sectors.

However, there is no assurance that the objective of the scheme will be achieved.

C. How will the scheme allocate its assets?

The asset allocation under the Scheme, under normal circumstances, is as follows:
Investments Indicative Allocation Risk Profile
Equity and Equity Related Securities of technology 80%-100% Very High
& technology related sectors
Equity and Equity Related Securities Other than 0%-20% Very High
technology & technology related sectors*
Debt and Money Market Securities#* 0%-20% Low to Moderate
Units of REITs & InvITs 0%-10% Very High

#Debt instruments shall be deemed to include securitised debts (excluding foreign securitised debt)
and investment in securitised debts may be up to 20% of the net assets of the scheme in accordance
with clause 1 of Seventh Schedule of SEBI (Mutual Funds) Regulations, 1996.

#Money Market instruments include commercial papers, commercial bills, treasury bills, Government
securities having an unexpired maturity up to one year, call or notice money, certificate of deposit,
usance bills, tri-party repos, and any other like instruments as specified by the Reserve Bank of India
from time to time;

*In accordance with clause 4 of Seventh Schedule of SEBI (Mutual Funds) Regulations 1996 scheme
may invest in the units of Mutual Fund schemes of Kotak Mahindra Mutual Fund or any other Mutual
Fund.

Pursuant to para 7.5, 7.6 and 12.25 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, as may be amended from time to time, the scheme may also use
various derivative and hedging products from time to time in a manner permitted by SEBI to reduce the
risk of the portfolio as and when the fund manager is of the view that it is in the best interest of the unit
holders. The scheme may invest upto 50% of the equity and equity related instruments in equity
derivatives out of which non-hedge portion will not exceed 25%.
As per para 12.24 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May
19, 2023, the cumulative gross exposure through equity, debt, derivative positions (including fixed
income derivatives), repo/ reverse repo transactions in corporate debt securities, Real Estate
Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), other permitted securities/assets
and such other securities/assets as may be permitted by the Board from time to time should not exceed
100% of the net assets of the scheme.

28
Pursuant to para 12.25.3 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74
dated May 19, 2023, Cash or cash equivalents with residual maturity of less than 91 days may be
treated as not creating any exposure. Cash Equivalent shall consist of the following securities having
residual maturity of less than 91 days:
a) Government Securities;
b) T-Bills; and
c) Repo on Government securities.

Pursuant to para 12.18 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated

May 19, 2023, SEBI Circular no. SEBI/HO/IMD/IMD PoD-2/P/CIR/ dated June 08, 2023 and SEBI
circular No. SEBI/HO/IMD/IMD PoD-2/P/CIR/2023/87 dated June 13, 2023, the scheme may
participate in the corporate bond repo transactions. The gross exposure of the scheme to repo/reverse
repo transactions in corporate debt securities shall not be more than 10% of the net assets of the
concerned scheme.

Investment in debt instruments having structured obligations / credit enhancements as per para 12.3 of
SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023:

The investment of the Scheme in the following instruments shall not exceed 10% of the debt portfolio
of the Scheme and the group exposure in such instruments shall not exceed 5% of the debt portfolio of
the Scheme:-
 Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements) is below
investment grade; and –
 Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above
investment grade.

As per para 12.11 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May

19, 2023, as amended from time to time, the Trustee may permit the Fund to engage in securities
lending and borrowing. At present, since only lending is permitted, the fund may temporarily lend
securities held with the Custodian to reputed counter-parties or on the exchange, for a fee, subject to
prudent limits and controls for enhancing returns. The Scheme will lend securities subject to a
maximum of 20%, in aggregate, of the net assets of the Scheme and 5% of the net assets of the
Scheme in the case of a single intermediary.

The Scheme may invest upto 20% of the net assets in overseas securities including units issued by
overseas Mutual Funds/ETFs or Unit Trusts registered with overseas regulator as may be permissible
and described in para 12.19 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74
dated May 19, 2023, as may be amended from time to time, within the overall applicable limits.

The Scheme can make overseas investments subject to a maximum of US $ 1 billion per Mutual Fund,
within the overall industry limit of US $ 7 billion or such limits as may be prescribed by SEBI from
time to time. The Scheme therefore may or may not be able to utilise the limit of USD 1 billion due to
the USD 7 billion limit being exhausted by other Mutual Funds. Further, the scheme can make
investments in overseas Exchange Traded Fund (ETF(s) subject to a maximum of US $ 300 million per
Mutual Fund, within the overall industry limit of US $ 1 billion.

During the NFO, the intended amount for investment in overseas securities is US $ 5 Million and the
intended amount for investment in overseas ETFs is US $ 1 Million.

29
The Scheme shall not invest in:
 Credit Default Swaps;
 Debt instruments with special features as referred in Para 9.4, 4.4.4, 12.2 of SEBI Master circular
No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023; and
 Fixed Income Derivatives.

Apart from the investment restrictions prescribed under SEBI (MF) Regulations, the fund follows
certain internal norms vis-à-vis limiting exposure to a particular scrip, issuer or sector, etc. within the
mentioned restrictions, and these are subject to review from time to time.

Portfolio Rebalancing:

As per para 2.9 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May
19, 2023, in the event of any deviation from mandated asset allocation mentioned above, due to
passive breaches, rebalancing period will be Thirty (30) business days. In case the portfolio is not
rebalanced within Thirty (30) business days, justification in writing, including details of efforts taken
to rebalance the portfolio shall be placed before the Investment Committee. The Investment
Committee, if so desired, can extend the timelines up to sixty (60) business days from the date of
completion of mandated rebalancing period. In case the portfolio of the scheme is not rebalanced
within the aforementioned mandated plus extended timelines, the AMC shall not launch any new
scheme till the time the portfolio is rebalanced and also not levy exit load, if any on the investors
exiting the Scheme. However, at all times the portfolio will adhere to the overall investment objective
of the Scheme.

Short Term Defensive Consideration

As per Para 1.14.1.2 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated

May 19, 2023, the asset allocation pattern indicated above may change for a short term period on
defensive considerations, keeping in view market conditions, market opportunities, applicable
regulations and political and economic factors. These proportions may vary depending upon the
perception of the Fund Manager, the intention being at all times to seek to protect the interests of the
Unit holders. In case of any deviation, the portfolio shall be rebalanced within 30 calendar days.

D. Where will the scheme invest?

The Scheme shall invest in the following securities as per the limits specified in the asset allocation
table of Scheme, subject to SEBI (MF) Regulations.

a. Equity and equity related securities including convertible bonds and debentures and warrants
carrying the right to obtain equity shares

b. Securities created and issued by the Central and State Governments and/or repos/reverse
repos in such Government Securities as may be permitted by RBI (including but not limited to
coupon bearing bonds, zero coupon bonds and treasury bills).

c. Debt obligations of domestic Government agencies and statutory bodies, which may or may
not carry a Central/State Government guarantee (including but not limited to Indian
Government Bond, State Development Loans issued and serviced at the Public Debt Office,
Bonds issued by Central & State Government PSU’s which are guaranteed by Central or State
Governments)

d. Corporate debt (of both public and private sector undertakings) including Nonconvertible
debentures (including bonds) and non-convertible part of convertible securities.
30
 e. Short Term Deposits of banks (both public and private sector) and development financial
institutions to the extent permissible under SEBI Regulations;

f. Money market instruments permitted by SEBI/RBI, having maturities of up to one year but
not limited to:
 Certificate of Deposits (CDs).
 Commercial Paper (CPs)
 Tri-party Repo, Bills re-discounting, as may be permitted by SEBI from time to time.
 Repo/ Reverse Repo of corporate debt securities

g. Securitised Debt, not including foreign securitised debt.

h. Investment in debt instruments having structured obligations / credit enhancements.

i. Units of Mutual Funds Schemes;

j. Units of overseas Mutual Funds schemes / ETFs.

k. ADRs, GDRs or other foreign securities.

l. Securities Lending & Borrowing as permitted by SEBI from time to time

m. Investment in units of Real Estate Investment Trust (‘REIT’) & Infrastructure Investment
Trust (‘InvIT’).

n. Any other domestic fixed income securities as permitted by SEBI / RBI from time to time.

o. Derivative instruments like, index futures, stock futures, index options, stock option,
warrants, convertible securities, or any other derivative instruments that are permissible or
may be permissible in future under applicable regulations.

The securities/debt instruments mentioned above could be listed or unlisted, secured or unsecured,
rated and of varying maturities and other terms of issue. The securities may be acquired through
Initial Public Offerings (IPOs), secondary market operations, private placement, rights offer or
negotiated deals. The Schemes may also enter into repurchase and reverse repurchase obligations in
all securities held by it as per guidelines/regulations applicable to such transactions.

Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be
allowed, in lines with para 12.30 of SEBI Master Circular no. SEBI/HO/IMD/IMD-
PoD1/P/CIR/2023/74 dated May 19, 2023.

INVESTMENT IN FOREIGN SECURITIES

The Scheme may, in terms of its investment objectives with the approval of SEBI/RBI invest in
following Foreign Securities:

i. ADRs/ GDRs issued by Indian or foreign companies

ii. Equity of overseas companies listed on recognized stock exchanges overseas
iii. Initial and follow on public offerings for listing at recognized stock exchanges overseas
iv. Foreign debt securities in the countries with fully convertible currencies, short term as well as long
term debt instruments with rating not below investment grade by accredited/registered credit rating
agencies
31
v. Money market instruments rated not below investment grade
vi. Repos in the form of investment, where the counterparty is rated not below investment grade;
repos should not however, involve any borrowing of funds by mutual funds
vii. Government securities where the countries are rated not below investment grade
viii. Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio
balancing with underlying as securities
ix. Short term deposits with banks overseas where the issuer is rated not below investment grade
x. Units/securities issued by overseas mutual funds or unit trusts registered with overseas regulators
and investing in
(a) aforesaid securities,
(b) Real Estate Investment Trusts (REITs) listed in recognized stock exchanges overseas or
(c) unlisted overseas securities (not exceeding 10% of their net assets).

Mutual funds can make overseas investments [as stated in point (i) to (x) above] subject to a
maximum of US $1 billion per mutual fund, within the overall industry limit of US $ 7 billion or such
limits as may be prescribed by SEBI from time to time. Further, the scheme can make investments in
overseas Exchange Traded Fund (ETF(s) subject to a maximum of US $ 300 million per Mutual Fund,
within the overall industry limit of US $ 1 billion.

The intended amount for investment in overseas securities is US $5 Million and the intended amount
for investment in overseas ETFs is US $ 1 Million., subject to maximum limit as specified in para
12.19 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023.

The aforesaid investments would be in line with the asset allocation of the scheme.

The Mutual Fund may, where necessary appoint intermediaries as sub-managers, sub-custodians, etc.
for managing and administering such investments. The appointment of such intermediaries shall be in
accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses
as stated under Regulation 52 of SEBI (MF) Regulations.

INVESTMENT IN DERIVATIVES:
The Scheme may use derivative instruments such as index futures, stock futures, index options, stock
options, warrants, convertible securities or any other derivative instruments that are permissible or
may be permissible in future under applicable regulations, as would be commensurate with the
investment objective of the Scheme. The manner of use of derivatives instruments is illustrated
below:

Hedging & Portfolio balancing

As part of the fund management exercise under the Scheme, the Trustee may permit the use of any of
the instruments mentioned above or any other instrument that may become permissible in the future
under applicable regulations. Such investment in Index futures, Stock options, Index Options, Stock
Futures and other derivative instruments will be used with the objective of a) hedging the portfolio
and/or b) rebalancing of the portfolio of the Scheme or c) for any other purpose as may be permitted
by the Regulations from time to time.

The note below explains the concept of Index Futures, Options, with an example each, for the
understanding of the Unitholders.

Index Futures
Due to ease of execution and settlement, index futures are an efficient way of buying / selling an
Index compared to buying / selling a portfolio of physical shares representing an Index. Index futures
can be an efficient way of achieving a Scheme's investment objectives. Index futures may do away
with the need for trading in individual components of the Index, which may not be possible at times,

32
keeping in mind the circuit filter system and the liquidity in some of the scripts. Index futures can also
be helpful in reducing transaction costs and processing costs on account of ease of execution of one
trade compared to several trades of shares comprising the Index and will be easy to settle compared to
physical portfolio of shares representing an Index
The National Stock Exchange and the Bombay Stock Exchange introduced Index futures on Nifty
(NSE-50) and Sensex (BSE 30) for three serial months. For example, in the month of January 2024,
three futures were available i.e. January, February and March 2024, each expiring on the last working
Thursday of the respective month.

Let us assume the Nifty Index was 21,352.6 as on January 25, 2024 on the expiry day and other two
future indices were available as under:

Month Bid Price Offer Price

February 2024 21488 21489
March 2024 21617 21618

The Fund could buy an Index of February 2024 as on January 25, 2024 at an offer price of 21489. The
Fund would have to pay the initial margin as regulated by the exchanges and settle its Index position
with daily marked to market i.e. receive profits/pay losses on a daily basis.

The following is a hypothetical example of a typical index future trade and the associated costs
compared with physical stocks.

(Amount in Rupees)
Particulars Index Future Actual Purchase
of Stocks
Index as on January 25, 2024 21489 21352.6
February 2024 Futures Cost 21489
A. Execution Cost
Carry costs (21489-21352.6) 136.4 Nil
B. Brokerage Cost
Assumed at 0.02% for Index Future and 0.05% for spot 4.3 10.68
stocks
(0.02% of 21489)
(0.05% of 21352.6)
C. Securities Transaction Tax Nil 21.35
STT for Index Futures is Nil
STT for Spot Stocks is 0.10%
(0.10% of 21352.6)
D. Gains on Surplus Funds (-116.09) Nil
(Assuming 7% return on 81% of the money left after paying
(19% margin)
(7% x 21352.6 x 81% x 35 days ÷ 365)
Cash Market/ Sale Price at expiry 21600 21600
E. Brokerage on Sale
Assumed at 0.02% for Index Future and 0.05% for Spot 4.32 10.8
stocks
(0.02% of 21600)
(0.05% of 21500)
F. Securities Transaction Tax 2.7 21.6
STT for Index Futures is 0.0125%
STT for Spot Stocks is 0.10%
(0.0125% of 21600)
33
 (0.10% of 21600)
Total Cost (A+B+C-D+E+F) 31.62 64.43
Profit 215.77 182.97

As the above example demonstrates, the cost differential between purchasing Index Future and 50
stocks compromising Nifty (NSE-50) is a function of the carrying cost, the interest earned available to
Fund Managers and the brokerage cost applicable in both cases. However, as mentioned earlier, as the
Indian equity markets continues to have limitations in execution of trades due to the lack of adequate
liquidity and the concept of circuit breakers, index future can allow a fund to buy all the stocks
comprising the index at a nominal additional cost.

Please note that the above example is hypothetical in nature and the figures, brokerage rates etc. are
assumed. In case the execution and brokerage costs on purchase of Index Futures are high and the
returns on surplus funds are less, buying of index future may not be beneficial as compared to buying
stocks comprising the Index. The actual return may vary based on actuals and depends on final
guidelines / procedures and trading mechanism as envisaged by stock exchanges and other regulatory
authorities.

Use of futures
Futures can effectively be used as a substitute for underlying stocks e.g. if the Scheme has received
fresh subscriptions and if it is not immediately possible to invest the cash so received into intended
stocks, the Fund Manager can buy a Future contract and subsequently replace them by actual purchase
of stocks. The reverse can be done in case of redemption of Units.

The Scheme typically holds cash in order to meet sudden redemption requests. This cash holding
reduces the overall returns of the Scheme. By buying futures relative to this cash holding the Scheme
can effectively increase its exposure to the market while keeping the cash required to meet redemption
requirement.

Note on Risk:
 In case of investments in index futures, the risk would be the same as in the case of
investments in a portfolio of shares representing an index. The extent of loss is the same as in
the underlying stocks. In case futures are used for hedging a portfolio of stocks, which is
different from the index stocks, the extent of loss could be more or less depending on the
coefficient of variation of such portfolio with respect to the index; such coefficient is known
as Beta.

 Interest Rate Risk – interest rate is one of the variables while valuing derivatives such as
futures & options. For example, with everything remaining constant, when interest rates
increase, the price of Call option would increase. Thus, fluctuations in interest rates would
result in volatility in the valuation of derivatives.

 Credit Risk – With the phased implementation of physical settlement of stocks in equity
derivative segment, though there is an element of risk of stock / funds not being received, the
same is mitigated due to settlement guarantee similar to equity cash market segment.

 Liquidity risk pertains to how saleable a security is in the market. All securities/instruments
irrespective of whether they are equity, bonds or derivatives may be exposed to liquidity risk
(when the sellers outnumber buyers) which may impact returns while exiting opportunities.

Option Contracts (Stock and Index)

In the global financial markets, particularly securities markets, options have been, for quite many
years, a means of conveying rights from one party to another at a specified price on or before a
34
specific date, at a cost, which is called Premium. The underlying instrument can be an individual
stock or a stock index such as the BSE Sensex (such options being referred to as index options).
Options are used widely the world over to manage risk and generate income. options may be preferred
over futures as they provide asymmetric pay offs.

There are broadly two kinds of Options trade viz. Long & Short. A Long Call is buying a Call option
to purchase the stock at a later date at a fixed price called the strike price. A Long Put on the other
hand is buying Put option i.e. an option to sell the stock at a later date at the strike price. Similarly, A
Short Call is selling a Call option which is also called writing a Call option by which the option writer
has an obligation to sell the stock to the call buyer at the strike price. A Short Put is to sell or write a
Put option i.e. an obligation to buy the stock from the Put buyer at the strike price. The specified price
at which the shares are contracted to be purchased or sold is called the strike price. Options that can be
exercised on or before the expiration date are called American Options, while those that can be
exercised only on the expiration date are called European Options. Option contracts are designated by
the type of option, name of the underlying, expiry month and the strike price. Example for Options

Buying a Call Option: Let us assume that the Scheme buys a call option of ABC Ltd. with strike price
of Rs. 3500, at a premium of Rs. 100. If the market price of ABC Ltd on the expiration date is more
than Rs. 3500, the option will be exercised. The Scheme will earn profits once the share price crosses
Rs. 3600 (Strike Price + Premium i.e. 3500+100). Suppose the price of the stock is Rs. 3800, the
option will be exercised and the Scheme will buy 1 share of ABC Ltd. from the seller of the option at
Rs 3500 and sell it in the market at Rs. 3800, making a profit of Rs. 200. In another scenario, if on the
expiration date the stock price falls below Rs. 3500, say it touches Rs. 3000, the Scheme will choose
not to exercise the option. In this case the Scheme loses the premium (Rs. 100), which will be the
profit earned by the seller of the call option.

Thus for an option buyer, loss is limited to the premium that he has paid and gains are unlimited. The
risk of an option writer i.e. the seller of the option, is unlimited while his gains are limited to the
premiums earned. However, in the case of the Scheme, all option positions will have underlying
assets and therefore all losses due to price-movement beyond the strike price will actually be an
opportunity loss as illustrated in the example below.

Buying a Put Option: Let us assume that the Scheme owns shares of ABC Ltd., which are trading at
Rs. 3500. The fund manager expects the price to rise to Rs. 3800 but at the same time wants to protect
the downside. So, he can buy a put option at Rs. 3500 by paying a premium of, say, Rs. 100. If the
stock falls to say Rs 3200 by expiry, the option becomes in-the-money by Rs. 300 and the scheme
loses only the initial premium paid to buy the hedge. On the contrary, if the fund manager’s view
turns out to be right and the stock actually rallies to Rs. 3800, the scheme gains Rs. 300 from the stock
and the hedging cost paid to buy the protection is the loss. Thus, adjusted for the hedging cost, the
scheme gains Rs. 200 from the trade.

The above example is hypothetical in nature and all figures are assumed for the purpose of illustrating
the use of call options in individual stocks. Similarly, analogies can be drawn to illustrate the use of
put options in individual stocks, and call and put options in index.

Writing a Call Option: Let us assume that the Fund owns shares of ABC Ltd., which are trading at Rs.
3500. The Fund wishes to sell these shares at Rs.3800. It can write call option at Rs. 3800 and earn a
premium of, say, Rs. 50. If the option is not exercised, the Fund earns a premium and if the stock
price does reach Rs. 3800, the premium adds to the profits that the Fund would have booked by
selling at that price. In this case, if the stock price of ABC Ltd. is less then Rs. 3800, the Fund earns
Rs 50 and if it closes above Rs. 3800 and the option gets exercised by the buyer, the Fund gets the
strike price of Rs. 3800 plus a premium of Rs. 50, i.e. effectively Rs. 3850. Any loss because of stock

35
price movement beyond Rs. 3850 is actually an opportunity loss, as the Fund would otherwise have
sold the shares at Rs. 3800.

The above example is hypothetical in nature and all figures are assumed for the purpose of illustrating
the use of call options in individual stocks. Similarly, analogies can be drawn to illustrate the use of
put options in individual stocks, and call and put options in index.

Note on Risk: The risk (loss) for an option buyer is limited to the premium paid, while the risk (loss)
of an option writer is unlimited, the latter’s gain being limited to the premiums earned. However, in
the case of the Fund, all option positions will have underlying assets and therefore all losses due to
price-movement beyond the strike price will actually be an opportunity loss. The writer of a put
option bears a risk of loss if the value of the underlying asset declines below the strike price. The
writer of a call option bears a risk of loss if the value of the underlying asset increases above the strike
price.

The Scheme will use options only for the purpose of hedging and portfolio balancing or for any
purpose as permitted by Regulations from time to time. Internal controls / limits for managing risks
associated with options have been set up / laid down.

Benefits of Covered Call Strategy:

Covered call writing is a strategy where a writer (say the Fund) will hold a particular stock, and sell in
the market a call option on the stock. Here the buyer of the call option now has the right to buy this
stock from the writer (the Fund) at a particular price which is fixed by the contract (the strike price).
The writer receives a premium for selling a call, but if the call option is exercised, he has to sell the
underlying stock at the strike price. This is advantageous if the strike price is the level at which the
writer wants to exit his holding / book profits. The writer effectively gains a fixed premium in
exchange for the probable opportunity loss that comes from giving up any upside if the stock goes up
beyond the strike price.

Illustration/Example of Covered Call Strategy:

The Scheme owns 5000 shares of A with a current market price of Rs 180. The view of the fund
manager is that the price could decline by Rs 15 – Rs 20 over a one-month period. The fund manager
does, however, wish to hold the shares due to the positive long-term outlook. The fund manager can
cover the expected near-term decline by writing a call or buying a put.

A call option may be sold for a contract size of 5000 at a strike price of Rs 180 with an expiry date
that is one month going forward. The Scheme receives a premium of Rs 10 (for example) for writing
this call option in favour of the buyer. The buyer has the choice to buy the shares at Rs 180 on expiry
date (usually the last Thursday of a month). The following are examples based on price trends after
one month:

• if the stock price declines to Rs 170, the buyer of the call option will not exercise the right to buy
as the stock can be purchased at a lower price in the spot market. The fund manager has ensured
that the Rs 180 prevailing at the time of selling the option is protected through a combination of
market price of Rs 170 and earned premium of Rs 10;

• If the stock price dips below Rs 170, the buyer will not exercise the option. The loss for the fund
manager is limited to the extent to which price dips below Rs 170, as the decline from Rs 180 to
Rs 170 is covered by the earned premium;

36
• If the stock price rises to Rs 190, the buyer of the option will exercise the right to buy the shares
he can buy them at the strike price of Rs 180 and if he chooses to sell at the spot of Rs 190 to
make a profit of Rs 10 per share. This price trend is, however, contrary to the expectations of the
fund manager. There is no loss for the fund manager as he has already received Rs 10 as
premium. This will ensure that his effective price in meeting the comportment to the holder of
the call option is Rs 180 and

• If the stock price rises to more than Rs 190, the buyer will exercise the option. The loss to the
fund manager will be limited to the extent to which the price is higher than Rs 190, as the
premium of Rs 10 will cover partially the higher cost of the shares that have to be purchased to
meet the commitment under the option.

The above example is hypothetical in nature and all figures are assumed for the purpose of illustrating
the use of call options in individual stocks. Similarly, analogies can be drawn to illustrate the use of
put options in individual stocks, and call and put options in index.

Note on Risk: The risk (loss) for an option buyer is limited to the premium paid, while the risk (loss)
of an option writer is unlimited, the latter’s gain being limited to the premiums earned. However, in
the case of the Fund, all option positions will have underlying assets and therefore all losses due to
price-movement beyond the strike price will actually be an opportunity loss. The writer of a put
option bears a risk of loss if the value of the underlying asset declines below the strike price. The
writer of a call option bears a risk of loss if the value of the underlying asset increases above the strike
price.

E. What is the investment strategy?

The scheme aims to generate long-term capital appreciation from a portfolio that is invested
predominantly in equity and equity related securities of Technology & technology related companies.

The fund will follow a market cap agnostic and bottom-up approach to stock-picking and choose
companies which are expected to derive benefit from development, use and advancement of
technology.

Indicative list of businesses which are part of Information Technology sector is as follows:

 IT services, including IT management, software, consulting, outsourcing companies

 Internet technology enabled services including consumer tech, Fintech, e-retail/e-commerce
technology platforms, IoT (Internet of Things) and other digital/online service providers
 IT products including hardware computers, electronic technology and electronic components
like PCs, Laptops, Servers, Chips, Semi-conductors etc.
 AI, data and data solutions providers
 Electronic Manufacturing Services (EMS)
 IT Infrastructure services including Cloud computing, mobile computing infrastructure, data
centers
 Telecommunications, including networking, wireless, and wireline services, equipment and
support;
 Media and information services, including the distribution of information and content
providers

The Fund Manager may add other sectors as may be added in S&P BSE Teck Index (TRI) from time
to time.

37
 The scheme may use Derivatives traded on recognized stock exchanges for the purpose of hedging,
portfolio rebalancing and other purposes as may be permitted by SEBI.

Although the scheme will predominantly invest in stocks as per the technology sector, it retains the
flexibility to take some exposure beyond the sectors based on the asset allocation pattern of the
scheme.

The scheme may invest in Debt & Money Market Instruments primarily for Liquidity purposes as
well as for the purpose of meeting redemptions.

The scheme may look to invest overseas for the purpose of diversification in terms of markets and
currency. This can help the scheme in achieving higher returns, especially in markets that are
experiencing strong economic growth or have undervalued assets. However, given the theme of the
scheme, such exposure will be limited to a maximum of 20% of Net assets.

The Scheme may use SLBM for earning additional income for the scheme with a lesser degree of risk.

Scheme may invest in the units of Mutual Fund schemes of Kotak Mahindra Mutual Fund or any
other Mutual Funds in terms of the prevailing SEBI (MF) Regulations.

The scheme may take an exposure in units of REIT and InvITs at an opportune time to generate
income from real estate or infrastructure assets. Investing in units of REITs and InvITs has the
potential to generate capital appreciation and regular income streams.

Portfolio Turnover: The scheme being an open ended scheme, it is expected that there would be
frequent subscriptions and redemptions. Hence, it is difficult to estimate with any reasonable measure
of accuracy, the likely turnover in the portfolio. If trading is done frequently there may be an increase
in transaction cost such as brokerage paid etc. The fund manager will endeavour to optimize portfolio
turnover to maximize gains and minimize risks keeping in mind the cost associated with it. The
Scheme has no specific target relating to portfolio turnover.

Portfolio Turnover Ratio: Not Applicable (Since the scheme is a new fund to be launched, the said
ratio is Not Applicable)

Product Differentiation: This is an open ended sector scheme by Kotak Mahindra Mutual Fund
which will be investing in Technology & technology related sectors

Stated below are the key features of existing sector funds of Kotak Mahindra Mutual Fund.

Name of Asset Allocation Pattern Investment Investment Differentiat Quarterly

Existing Objective Strategy ion AAUM
Scheme and Folios
(Dec 31,
2023)
Kotak Investm Indicative Risk The The Scheme An open Rs. 743.80
Banking & ents Allocation Profile investment shall invest ended equity crores
Financial Equity 80%-100% Very objective of predominantly scheme
Services and High the scheme in equity and investing in Folios -
Fund Equity is to equity related the Banking 34,686
Related generate securities of and
Securitie long-term companies Financial
s of capital engaged in Services
compani appreciatio banking and sectors.

38
es n from a financial
engaged portfolio services
in that is sectors. The
Banking invested classification
and predominan of Financial
Financial tly in equity Services
Services and equity Companies
Sector related would be
Equity 0%-20% Very securities guided by the
and High of AMFI Sector
Equity companies classification
Related engaged in or other
Securitie banking financial
s of and services to be
compani financial identified by
es other services the fund
than sector. manager. To
those However, achieve
engaged there can be diversification,
in no the Scheme
banking assurance may also
& that the invest up to
financial investment 20% of the
services objective of assets in
Overseas 0-20% Very the scheme companies
Mutual High would be other than
Funds achieved. banking and
schemes financial
/ ETFs / services
Foreign companies. A
Securitie portion of the
s scheme will
Debt and 0%-20% Low to also be
Money Moderate invested in
Market IPOs,
Securitie emerging
s# sectors and
Units of 0%-10% Very other primary
REITs & High market
InvITs offerings that
meet our
investment
criteria.

The scheme
may also
invest in
listed/unlisted
and/or
rated/unrated
debt or money
market
securities,

39
provided the
investments
are within the
limits
indicated in
the asset
allocation
pattern.
Investment in
unrated debt
securities is
made with the
prior approval
of the Board
of the AMC,
provided the
investment is
in terms of the
parameters
approved by
the Board of
the Trustee.

Where the
proposed
investment is
not within the
parameters as
mentioned
above but
within the
limits
prescribed
under SEBI
mutual fund
regulations,
approval of
the Boards of
both the AMC
and the
Trustee is
taken before
making the
investment.

The scheme
may invest in
another
scheme of the
Kotak
Mahindra
Mutual Fund

40
 or any other
Mutual Fund
without
charging any
fees, provided
that aggregate
inter scheme
investment
made by all
schemes under
the
management
of Kotak
Mahindra
Asset
Management
Company
Limited or in
schemes under
the
management
of any other
asset
management
company shall
not exceed 5%
of the net asset
value of Kotak
Mahindra
Mutual Fund.

Kotak Investments Indica Risk The The scheme An open Rs. 46.74
Healthcare tive Profile investment may use ended equity crores
Fund Alloca objective of Derivatives scheme
tion the scheme traded on investing in Folios -
Equity and 80%- Very is to seek to recognized Pharma, 22,899
Equity 100% High generate stock Healthcare
Related long term exchanges for & allied
Securities of capital the purpose of sectors.
companies appreciatio hedging,
engaged in n through portfolio
Pharma, investing in rebalancing
healthcare & equity and and other
allied sectors equity purposes as
Other Equity 0%- Very related may be
and Equity 20% High securities permitted by
Related of SEBI.
Securities of companies
companies* benefitting Although the
Overseas 0%- Very directly or scheme will
Mutual Funds 20% High indirectly predominantly
schemes / Pharma, invest in
ETFs / Healthcare, stocks as per

41
Foreign and allied the Pharma &
Securities sectors. Healthcare
Debt and 0%- Low to However, sector, it
Money 20% Moderate there is no retains the
Market assurance flexibility to
Securities#* that the take some
Units of 0%- Very objective of exposure
REITs & 10% High the scheme beyond the
InvITs will be sector based
achieved . on the asset
allocation
pattern of the
scheme.

The scheme
may invest in
Debt &
Money Market
Instruments
primarily for
Liquidity
purposes as
well as for the
purpose of
meeting
redemptions.

The scheme
may look to
invest
overseas for
the purpose of
diversification
in terms of
markets and
currency. This
can help the
scheme in
achieving
higher returns,
especially in
markets that
are
experiencing
strong
economic
growth or
have
undervalued
assets.
However,
given the
theme of the

42
scheme, such
exposure will
be limited to a
maximum of
20% of Net
assets.

The Scheme
may use
SLBM for
earning
additional
income for the
scheme with a
lesser degree
of risk.
Scheme may
invest in the
units of
Mutual Fund
schemes of
Kotak
Mahindra
Mutual Fund
or any other
Mutual Funds
in terms of the
prevailing
SEBI (MF)
Regulations.

The scheme
may take an
exposure in
units of REIT
and InvITs at
an opportune
time to
generate
income from
real estate or
infrastructure
assets.
Investing in
units of REITs
and InvITs has
the potential to
generate
capital
appreciation
and regular
income
streams.
43
Participation of scheme of Kotak Mahindra Mutual Fund in repo of corporate debt securities:

In accordance with para 12.18 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-

1/P/CIR/2023/74 dated May 19, 2023, SEBI Circular no. SEBI/HO/IMD/IMD PoD-2/P/CIR/ dated
June 08, 2023 and SEBI circular No. SEBI/HO/IMD/IMD PoD-2/P/CIR/2023/87 dated June 13, 2023
and various circulars issued from time to time, schemes of Kotak Mahindra Mutual Fund shall
participate in repo transactions on corporate debt securities including Commercial Papers (CPs) and
Certificate of Deposits (CDs) in accordance with directions issued by RBI and SEBI from time to
time. Currently the applicable guidelines are as under:
• The gross exposure of any mutual fund scheme to repo transactions in corporate debt securities
including Commercial Papers (CPs) and Certificate of Deposits (CDs) shall not be more than 10
% of the net assets of the concerned scheme.
• The cumulative gross exposure through repo transactions in corporate debt securities including
Commercial Papers (CPs) and Certificate of Deposits (CDs) along with equity, debt and
derivatives, other permitted securities/assets and such other securities/assets as may be permitted
by the Board from time to time shall not exceed 100% of the net assets of the concerned scheme.
• Mutual funds shall participate in repo transactions on following Corporate Debt securities;
o listed AA and above rated corporate debt securities and
o Commercial Papers(CPs) and Certificate of Deposits(CDs).
• In terms of Regulation 44 (2) mutual funds shall borrow through repo transactions only if the
tenor of the transaction does not exceed a period of six months.
• Mutual funds shall ensure compliance with the Seventh Schedule of the Mutual Funds
Regulations about restrictions on investments, wherever applicable, with respect to repo
transactions in corporate debt securities including Commercial Papers (CPs) and Certificate of
Deposits(CDs). However, for transactions where settlement is guaranteed by a Clearing
Corporation, the exposure shall not be considered for the purpose of determination of investment
limits for single issuer, group issuer and sector level limits.

The parameters for investment in repos of corporate debt securities as approved by the Board
of AMC and Trustee Company are as under:

(i) Category of counterparty to be considered for making investment:

All entities (including clearing corporations) eligible for transacting in corporate bond repos as
defined by SEBI and RBI shall be considered for repo transactions.

(ii) Credit rating of counterparty to be considered for making investment

The schemes shall participate in corporate bond repo transactions with counterparties having a
minimum investment grade rating and is approved by the Investment Committee on a case-to-case
basis. In case there is no rating available, the Investment Committee will decide the rating of the
counterparty, and report the same to the Board from time to time. The requirement for credit rating of
the counterparty will not be applicable for transactions where settlement is guaranteed by a Clearing
Corporation,

(iii) Tenor of Repo and collateral

As a repo seller, the schemes will borrow cash for a period not exceeding 6 months or as per extant
regulations. As a repo buyer, the Schemes are allowed to undertake the transactions for maximum
maturity upto one year or such other terms as may be approved by the Investment Committee. There
shall be no restriction / limitation on the tenor of collateral.

44
(iv) Applicable haircuts

RBI in its circular dated July 24, 2018 has prescribed the haircut to be applied for repo transactions as
follows:

Haircut/margins will be decided either by the clearing house or may be bilaterally agreed upon, in
terms of the documentation governing repo transactions, subject to the following stipulations:

i. Listed corporate bonds and debentures shall carry a minimum haircut of 2% of market value.
ii. CPs and CDs shall carry a minimum haircut of 1.5% of market value.
iii. Securities issued by a local authority shall carry a minimum haircut of 2% of market value.

However, the fund manager may ask for a higher haircut (while lending) or give a higher haircut
(while borrowing) depending on the prevailing liquidity situation in the market.

Risk envisaged and mitigation measures for repo transactions:

Credit risks could arise if the counterparty does not return the security as contracted or interest
received by the counter party on due date. This risk is largely mitigated, as the choice of
counterparties is largely restricted and their credit rating is taken into account before entering into
such transactions. Additionally, appropriate haircuts are applied on the market value of the underlying
securities based on the tenor and illiquidity of the underlying security. Also operational risks are
lower as such trades are settled on a DVP basis. In the event of the scheme being unable to pay back
the money to the counterparty as contracted, the counter party may dispose of the assets (as they have
sufficient margin) and the net proceeds may be refunded to us. Thus the scheme may in remote cases
suffer losses. This risk is normally mitigated by better cash flow planning to take care of such
repayments.

The above risks will not arise for repo transactions where settlement is guaranteed by a Clearing
Corporation.

Investments in securitized debt instruments

How the risk profile of securitized debt fits into the risk appetite of the scheme:

The scheme investment pattern permits investments in debt and money market instruments with
extended maturities. Under this the investments could be in the following form of issuances, viz. CPs,
CDs, Securitised debt, etc. i.e for the same acceptable levels of risks there could be multiple
instruments available to a Fund Manager. Based on the credit assessment of the issuers the Fund
Manager may choose to invest in securitized debt.

Our evaluation process for investment in securitized debt is similar to the approach followed for other
types of instruments including money market and bonds. We lay emphasis on credit, liquidity and
duration risk while evaluating every prospective investment, keeping in mind the investment
objectives of the particular scheme.

Policy relating to originators based on nature of originator, track record, NPAs, losses in earlier
securitized debt etc:

The Fund Manager shall do a comprehensive credit assessment of the structure before investment.
This includes originator’s credit origination standards, track record on asset quality, more specifically
its track record in respect the asset class that is being securitized and also the performance of the pools
securitised by the originator in the past. No investments will be made in instruments rated below

45
certain grades as prescribed by the investment committee or in unrated instruments. Prior approval of
Trustee will be taken, in case of any investments in unrated instruments.

The securitised paper may pertain to a single asset class e.g., car loans or commercial vehicle loans or
a combination of different asset classes i.e. car loans, two wheeler loans and commercial vehicle
loans. Investment focus is towards diversification in the asset pool in terms of geography, underlying
collateral. Although there are no specific guidelines with respect minimum period for which the
originator had held the loans in its books), appropriateness of the seasoning (the period for which the
originator has held loans on its books) and also the loan to value and instilment to income profile of
the pool are important parameters for making investment decision.

In case of single loan securitization, the originator merely transfers the loan existing in his book by
way of a single loan sell down. The obligation to repay and service the debt remains with the
underlying obligor and hence, it is the obligor whose standalone business and financial risk profile is
evaluated. Therefore, the credit rating of a single loan structure mirrors the credit rating of the obligor.

For pool securitization, where the debt repayment is dependent on the underlying pool of borrowers, it
is important to evaluate the characteristics of the pool including the type of loan, loan to value ratio,
ticket size of loan, geographic distribution etc. and the track record of the originator in terms of
volume of securitization activity, historical losses seen in similar pools, stability in cash flow
servicing and utilization level of credit enhancement.

Risk Mitigation strategies for investments with each kind of originator:

Apart from the above, risk assessment process includes examination of the credit enhancements
offered under the present PTC structure, utilization of credit enhancement in the previous
securitization structures of the originator and the trends in credit enhancement utilization of
securitization transactions of similar asset classes of other originators. The size & reach of originators,
its infrastructure & follow-up mechanism, quality of MIS & the collection process are also considered
for each originator.

The nature of the instrument, underlying risks, underlying risk migration perceptions would decide the
tenure of the said investments.

There is clear cut segregation of duties and responsibilities with respect to Investment Function and
Sales function. Risk assessment and monitoring of investment in Securities Debt is done by a team
comprising of credit analyst, fund manager and Head of Fixed Income. The Investment committee
also looks into a first time investment in credit, apart from sanctioning overall limits for the same.
Investment Decisions are being taken independently based on the above mentioned parameters and
investment by the originator in the scheme is based on their own evaluation of the scheme vis a vis
their investment objective.

Originator risk can be evaluated and mitigated on the basis of –

(a) Market position and size of the originator and expertise/niche in financing a particular type of
asset.
(b) Systems and processes established by the originator to address operational risk relating to
disbursement, collection and recovery of loans.
(c) Extent of data disclosed by the originator for the current pool as well as past pools which
showcases the data mining capability of the originator.
(d) Credit enhancement provided based on the pool characteristics, historical performance of past
pools and the base case losses assumed by the credit agency.

46
The level of diversification with respect to the underlying assets, and risk mitigation measures
for less diversified investments:

Framework that will be applied while evaluating investment decision relating to a pool securitization
transaction:
Characteristics/ Mortgage CV & Cars Two Micro Perso Single loan
Type of Pool Loan CE Wheelers Finance nal sell down
Loans
Average maturity 12m- 12m- 12m-
(in months) 36m-72m 36m 36m 12m-24m 3m-18m 24m 12m-36m
Collateral margin
(including cash
, guarantees, excess
interest spread, 10%- 10%- Min Min
subordination) 5%-25% 25% 25% Min 15% 20% 20% NA
Average Loan-to- 70%- 65%- 65%- 50%-
value 90% 90% 90% 75% NA NA NA
Average Pool
Seasoning (in 3m- 3m-
months) 6m-12m 3m-6m 6m 3m-6m 1m-3m 6m NA
Maximum exposure
per ABS 5%- 5%-
transaction 5%-15% 5%-15% 15% 5%-10% 5%-15% 10% 5%-15%
Note - Kindly note that these are indicative ranges and final figures could vary depending upon the
overall characteristics of the transaction and market conditions

In respect of single sell down loans the process would be similar to the one adopted for investing in
the issuer directly. Similarly, the fund in the normal course of business would not be investing in
personal / micro finance pools, unless the levels of comfort arising of the transaction structures,
satisfy the investment committee.

The above table is prepared after considering the risk mitigating measures such as Size of the loan,
Average original maturity of the pool, Average seasoning of the pool, Loan to Value Ratio,
Geographical Distribution and Structure of the pool, default rate distribution & credit enhancement
facility. The information contained herein is based on current market conditions and may change from
time to time based on changes in such conditions, regulatory changes and other relevant factors.
Accordingly, our investment strategy, risk mitigation measures and other information contained
herein may change in response to the same. This framework would be used as a reference for
evaluation of investment into any securitized debt. However, each investment would also be evaluated
on a case to case basis on its own merits apart from these limits.

Other risk mitigation measures

(a) Loan to Value Ratio – is an important parameter which highlights the underwriting standards of
the issuer. Also, lower LTV ratios generally result in higher recoveries in case of default.

(b) Average seasoning of the pool - may vary depending on the asset type. Higher seasoning is
preferred as it gives better visibility on delinquency levels in the pool.

(c) Default rate distribution – this is studied using empirical data for the originator. This is also a
critical data used by the rating agency in determining the credit enhancement levels to be stipulated.

(d) Geographical Distribution – helps in identifying concentration risk in a particular geography and
therefore reduces the default risk.
47
(e) Credit enhancement facility – is provided in pool securitization transactions and is very important
as it is used to absorb credit losses stemming from default in the pool assets. The size of credit
enhancement is determined on the basis of the issuer’s credit risk profile, the type of asset being
securitized and past pool performances.

(f) Liquidity facility – in some cases, in addition to the credit enhancement facility there is also a
liquidity facility provided which is used to meet any shortfalls arising from delayed collections or
delinquencies in the pool.

Minimum retention percentage by originator of debts to be securitized:

Although there is no specific guidelines with respect minimum retention percentage for which the
originator had held the loans in its books), appropriateness of the seasoning (the period for which the
originator has held loans on its books) and also the loan to value and installment to income profile of
the pool are important parameters for making investment decision.

Minimum retention period of the debt by originator prior to securitization

For single loan securitization, there is currently no regulation for minimum retention period of debt by
the originator. Our investment decision is driven by the credit quality of the underlying obligor.

For pool securitization, there is currently no regulation for minimum retention period of debt by the
originator. Generally, the pool assets we acquire in the form of PTCs have a retention period of 3-6
months by the originator. We follow the extant guidelines pertaining to securitization as set out by the
regulator.

The mechanism to tackle conflict of interest when the mutual fund invests in securitized debt of
an originator and the originator in turn makes investments in that particular scheme of the
fund:

An investment by the scheme in any security is done after detailed analysis by the Fixed Income team
and in accordance with the investment objectives and the asset allocation pattern of a scheme. The
robust credit process ensures that there is no conflict of interests when a scheme invests in securitized
debt of an originator and the originator in turn makes investments in that particular scheme. Normally
the issuer who is securitizing instrument is in need of money and is unlikely to have long term surplus
to invest in mutual fund scheme. Furthermore, there is clear cut segregation of duties and
responsibilities with respect to Investment function and Sales function. Investment decisions are being
taken independently based on the above mentioned parameters and investment by the originator in the
scheme is based on their own evaluation of the scheme vis a vis their investment objectives

Our investment decisions are independent of other business functions and are solely based on the
assessment of credit risk, liquidity risk and duration risk pertaining to a particular security.

The resources and mechanism of individual risk assessment with the AMC for monitoring
investment in securitized debt

Risk assessment and monitoring of investment in Securities Debt is done by a team comprising of
credit analyst, fund manager and Head of Fixed Income. The Investment committee also looks into a
first time investment in credit, apart from sanctioning overall limits for the same. Investment
Decisions are being taken independently based on the above mentioned parameters and investment by
the originator in the scheme is based on their own evaluation of the scheme vis a vis their investment
objective.

48
Apart from monitoring the credit quality of the underlying obligator / originator, for pool
securitization transactions we closely monitor the monthly pool performance report which is sent out
by the trustee. The reports are tracked for changes in specific pool characteristics which can impact
the collection performance.

F. Fundamental Attributes

Following are the fundamental attributes of the schemes, in terms of Regulation 18 (15A) of SEBI
(MF) Regulations:
(i) Type of the scheme: As mentioned under the heading “Type of the Scheme” of Chapter III
(ii) Investment Objective: As mentioned under the heading “Investment Objective” of Chapter III
(iii) Investment Pattern: As mentioned under the heading “How will the scheme allocate its assets”
of Chapter III
(iv) Terms of Issue:
a. Liquidity provisions such as listing, repurchase, redemption. Investors may refer Chapter
IV for detailed information on listing, repurchase and redemption.
b. Aggregate fees and expenses charged to the scheme. Investors may refer Chapter V on fees
and expenses charged to the scheme.
c. Any safety net or guarantee provided. – Not Applicable

In accordance with Regulation 25(26) of the SEBI (MF) Regulations, the asset management company
shall ensure that no change in the fundamental attributes of the scheme, fees and expenses payable or
any other change which would modify the scheme and affect the interest of unit holders, shall be
carried out unless-

(i) a written communication about the proposed change is sent to each unit holder and an
advertisement is issued in one English daily newspaper having nationwide circulation as well
as in a newspaper published in the language of region where the Head Office of the mutual
fund is situated; and
(ii) the unit holders are given an option to exit at the prevailing Net Asset Value without any exit
load.

SEBI has reviewed and provided its comments on the proposal.

The trustees shall ensure that no change in the fundamental attributes of any scheme, the fees and
expenses payable or any other change which would modify the scheme and affect the interest of the
unit holders is carried out by the asset management company, unless it complies with sub-regulation
(26) of regulation 25 of SEBI (Mutual Funds) Regulations, 1996.

G. How will the scheme benchmark its performance?

The performance of the Scheme is measured against S&P BSE Teck Index (Total Return Index).

Rationale for adoption of benchmark:

The S&P BSE Teck index comprises constituents of the S&P BSE 500 that are classified as members
of the media & publishing, information technology & telecommunications sectors as defined by the
BSE industry classification system. The composition of the aforesaid benchmark is such that, it is
most suited for comparing the performance of the scheme. The Trustees reserves right to change
benchmark in future for measuring performance of the scheme and as per the guidelines and directives
issued by SEBI from time to time.

49
H. Who manages the scheme?

Ms. Shibani Sircar Kurian will be the fund manager for equity investment of the scheme. Mr. Abhishek
Bisen will be the Fund Manager for debt investment of the Scheme and Mr. Arjun Khanna will be the
Dedicated Fund Manager for investments in foreign securities.

Name Age Qualification Business Experience Schemes Managed

Ms. 46 PGDM Ms. Shibani Kurian has been  Kotak India EQ Contra
Shibani Years (Specializatio associated with the company Fund
Sircar n in Finance), since November 2007 and her  Kotak Focused Equity
Kurian BSc (Hons)- key responsibilities include Fund
Economics equity fund management and  Kotak Banking and
Head- equity research and ESG Financial Services Fund
coordinator for the firm. Prior to  Kotak Healthcare Fund
joining Kotak AMC, she was
working with Dawnay Day AV
India Advisors Pvt Ltd and UTI
AMC.
Mr. 45 BA Mr. Abhishek Bisen has been  Kotak Bond Fund
Abhishek Years Management, associated with the company  Kotak Gilt fund
Bisen MBA since October 2006 and his key  Kotak Debt Hybrid Fund
Finance responsibilities include fund  Kotak Gold Fund
EPAF- IIM-C management of debt schemes.  Kotak Gold ETF
Prior to joining Kotak AMC,  Kotak Equity Savings
Abhishek was working with Fund
Securities Trading Corporation
 Kotak Equity Hybrid
of India Ltd where he was Fund
looking at Sales & Trading of
 Kotak Balanced
Fixed Income Products apart
Advantage Fund
from doing Portfolio Advisory.
His earlier assignments also  Kotak NASDAQ 100
Fund of Fund
include 2 years of merchant
banking experience with a  Kotak Nifty 50 Index
leading merchant banking firm. Fund
 Kotak Nifty Alpha 50
ETF
 Kotak Nifty Midcap 50
ETF
 Kotak Multi Asset
Allocator Fund of Fund –
Dynamic
 Kotak Multicap Fund
 Kotak Nifty SDL APR
2027 Top 12 Equal
Weight Index Fund
 Kotak Nifty SDL APR
2032 Top 12 Equal
Weight Index Fund
 Kotak Manufacture in
India Fund
 Kotak Nifty India
Consumption ETF
50
  Kotak Nifty MNC ETF
 Kotak Nifty 100 Low
Volatility 30 ETF
 Kotak Banking and PSU
Debt Fund
 Kotak Bond Short Term
Fund
 Kotak Dynamic Bond
Fund
 Kotak Business Cycle
Fund
 Kotak Nifty SDL Plus
AAA PSU Bond Jul 2028
60:40 Index Fund
 Kotak All Weather Debt
FOF
 Kotak Nifty SDL JUL
2026 Index Fund
 Kotak Silver ETF
 Kotak Nifty SDL JUL
2033 Index Fund
 Kotak Banking and
Financial Services Fund
 Kotak Silver ETF Fund of
Fund
 Kotak Nifty 200
Momentum 30 Index Fund
 Kotak Quant Fund
 Kotak Nifty Financial
Services Ex-Bank Index
Fund
 Kotak S&P BSE Housing
Index Fund
 Kotak Multi Asset
Allocation Fund
 Kotak Nifty G-Sec July
2033 Index Fund
 Kotak Healthcare Fund
 Kotak Consumption Fund

Mr. Arjun 40 CFA, FRM, Mr. Arjun Khanna has over 16 The following Schemes are
Khanna years MMS years of experience out of which Managed by Mr. Arjun
(Finance), 15 years has been with Mutual Khanna:
B.E Funds in Equity Research. Prior  Kotak Global Emerging
(Electronics) to joining Kotak Mahindra Market Fund
Mutual Fund, he was with  Kotak NASDAQ 100 Fund
Principal PNB Mutual Funds. of Fund
He has also worked at Citibank  Kotak International REIT
N.A. in his earlier stint. He is a FOF
Bachelor of Engineering  Kotak Global Innovation
(Electronics) from Mumbai Fund of Fund
University and has done his  Kotak Pioneer Fund
51
 Masters of Management
(Finance)from Jamnalal Bajaj Mr. Arjun Khanna is the
Institute of Management dedicated fund manager for
Studies, Mumbai. He has investments in foreign
received the Chartered Financial securities in the following
Analyst designation from the schemes:
CFA Institute and is a Financial  Kotak Infrastructure &
Risk Manager - Certified by the Economic Reform Fund
Global Association of Risk  Kotak Bluechip Fund
Professionals  Kotak Equity Hybrid Fund
 Kotak Emerging Equity
Fund
 Kotak Equity Savings
Fund
 Kotak Small Cap Fund
 Kotak Flexicap Fund
 Kotak Equity
Opportunities Fund
 KotakBalanced Advantage
Fund
 Kotak Focused Equity
Fund
 KotakESG Opportunities
Fund
 Kotak Multicap Fund
 Kotak Multi Asset
Allocator Fund of Fund-
Dynamic Kotak Pioneer
Fund
 Kotak Business Cycle
Fund
 Kotak Equity Hybrid Fund
 Kotak Quant Fund
 Kotak Multi Asset
Allocation Fund
 Kotak Banking &
Financial Services Fund
 Kotak Healthcare Fund
 Kotak Consumption Fund

I. What are The Investment Restrictions?

As per the Trust Deed read with the SEBI (MF) Regulations, the following investment restrictions
apply in respect of the Scheme at the time of making investments.

1. The Scheme shall not invest more than 10% of its NAV in the equity shares or equity related
instruments of any company.

Provided that, the limit of 10% shall not be applicable for investments in case of index fund
or exchange traded fund or sector or industry specific scheme including thematic fund.

52
2. All investments by a mutual fund scheme in equity shares and equity related instruments shall
only be made provided such securities are listed or to be listed.

3. The Mutual Fund under all its Scheme(s) shall not own more than 10% of any company’s
paid up capital carrying voting rights.

Provided, investment in the asset management company or the trustee company of a mutual
fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.

4. As per Clause 1 of the Seventh Schedule of MF Regulation, the Scheme shall not invest more
than 10% of its NAV in debt instruments comprising money market instruments and non-
money market instruments issued by a single issuer which are rated not below investment
grade by a credit rating agency authorised to carry out such activity under the Act. Such
investment limit may be extended to 12% of the NAV of the scheme with the prior approval
of the Board of Trustees and the Board of directors of the asset management company.

Within the limits specified in clause 1 of the Seventh Schedule of MF Regulation, a mutual
fund scheme shall not invest more than:
a. 10% of its NAV in debt and money market securities rated AAA issued by a single
issuer; or
b. 8% of its NAV in debt and money market securities rated AA issued by a single issuer;
or
c. 6% of its NAV in debt and money market securities rated A and below issued by a single
issuer.

The above investment limits may be extended by up to 2% of the NAV of the scheme with
prior approval of the Board of Trustees and Board of Directors of the AMC, subject to
compliance with the overall 12% limit specified in clause 1 of the Seventh Schedule of MF
Regulation.

The long term rating of issuers shall be considered for the money market instruments.
However, if there is no long term rating available for the same issuer, then based on credit
rating mapping of Credit Rating Agency (CRAs) between short term and long term ratings,
the most conservative long term rating shall be taken for a given short term rating

Provided that such limit shall not be applicable for investments in Government Securities,
treasury bills and triparty repo on Government securities or treasury bills.

Provided further that investments within such limit can be made in mortgaged backed
securitised debt which are rated not below investment grade by a credit rating agency
registered with the Board.

Provided further that such limit shall not be applicable for investments in case of debt
exchange traded funds or such other funds as may be specified by the Board from time to
time.

5. The investment of the Scheme in the following instruments as per para 12.3 of SEBI Master
circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 shall not exceed
10% of the debt portfolio of the Scheme and the group exposure in such instruments shall not
exceed 5% of the debt portfolio of the Scheme: -

 Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements) is

below investment grade; and –

53
  Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above
investment grade

The above limits shall not be applicable on investments in securitized debt instruments.
Investment by the Scheme in debt instruments, having credit enhancements backed by equity
shares directly or indirectly, shall have a minimum cover of 4 times considering the market
value of such shares.

Further, the investment in debt instruments having credit enhancements should be sufficiently
covered to address the market volatility and reduce the inefficiencies of invoking of the
pledge or cover, whenever required, without impacting the interest of the investors. In case of
fall in the value of the cover below the specified limit, AMCs will initiate necessary steps to
ensure protection of the interest of the investors.

6. Debentures, irrespective of any residual maturity period (above or below one year), shall
attract the investment restrictions as applicable for debt instruments. It is further clarified that
the investment limits are applicable to all debt securities, which are issued by public
bodies/institutions such as electricity boards, municipal corporations, state transport
corporations etc. guaranteed by either state or central government. Government securities
issued by central/state government or on its behalf by the RBI are exempt from the above
investment limits.

7. The Scheme may invest in another scheme under the same AMC or any other mutual fund
without charging any fees, provided that aggregate inter-scheme investment made by all
schemes under the same AMC or in schemes under the management of any other asset
management shall not exceed 5% of the net asset value of the Mutual Fund. However, the
aforesaid provision will not apply to fund of funds scheme.

8. The Scheme shall not make any investments in:

(a) any unlisted security of an associate or group company of the Sponsors; or

(b) any security issued by way of private placement by an associate or group company of the
Sponsors; or
(c) the listed securities of group companies of the Sponsors which is in excess of 25% of the
net assets.

9. The Scheme shall not invest in any Fund of Funds Scheme.

10. Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall
be allowed only if:-
(a) such transfers are made at the prevailing market price for quoted Securities on spot basis
(spot basis shall have the same meaning as specified by Stock Exchange for spot
transactions.)
(b) the securities so transferred shall be in conformity with the investment objective of the
scheme to which such transfer has been made.
c) the same are in line with with para 12.30 of SEBI Master circular no SEBI/HO/IMD/IMD-
PoD1/P/CIR/2023/74 dated May 19, 2023.

11. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases
of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities:
 Provided that the Mutual Fund may engage in short selling of securities in accordance
with the framework relating to short selling and securities lending and borrowing
specified by SEBI.

54
  Provided further that the Mutual Fund may enter into derivatives transactions in a
recognized stock exchange, subject to the framework specified by SEBI.
 Provided further that sale of government security already contracted for purchase shall be
permitted in accordance with the guidelines issued by the Reserve Bank of India in this
regard.

12. No loans for any purpose may be advanced by the Mutual Fund and the Mutual Fund shall not
borrow except to meet temporary liquidity needs of the Schemes for the purpose of payment
of interest or Reinvestment of Income Distribution cum capital withdrawal option (IDCW) to
Unit Holders, provided that the Mutual Fund shall not borrow more than 20% of the net assets
of each of the Schemes and the duration of such borrowing shall not exceed a period of six
months.

13. The Mutual Fund shall enter into transactions relating to Government Securities only in
Electronic form.

14. The mutual fund shall get the securities purchased / transferred in the name of the fund on
account of the concerned scheme, where investments are intended to be of long term nature.

15. Pending deployment of funds of a scheme in terms of investment objectives of the scheme, a
mutual fund may invest them in short term deposits of schedule commercial banks, subject to
the guidelines issued by SEBI vide para 12.16 and 4.5 of SEBI Master circular no
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, as may be amended from
time to time. The AMC shall not charge any investment management and advisory fees for
parking of funds in such short term deposits of scheduled commercial banks for the scheme.

16. In accordance with the guidelines as stated under para 12.1 of SEBI Master circular no
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, investments in following
instruments as specified in the said circular, as may be amended from time to time, shall be
applicable:
i. The scheme shall not invest in unlisted debt instruments including commercial papers
(CPs), other than (a) government securities, (b) other money market instrument and (c)
derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc.
which are used by mutual funds for hedging.

However, the scheme may invest in unlisted Non-Convertible Debentures (NCDs) not
exceeding 10% of the debt portfolio of the scheme subject to the condition that such
unlisted NCDs have a simple structure (i.e. with fixed and uniform coupon, fixed
maturity period, without any options, fully paid up upfront, without any credit
enhancements or structured obligations) and are rated and secured with coupon payment
frequency on monthly basis.

ii. All fresh investments by mutual fund schemes in CPs would be made only in CPs which
are listed or to be listed.
iii. Further, investment in unrated debt and money market instruments, other than
government securities, treasury bills, derivative products such as Interest Rate Swaps
(IRS), Interest Rate Futures (IRF), etc. by mutual fund schemes shall be subject to the
conditions as specified in the said circular:

a. Investments should only be made in such instruments, including bills re-discounting,

usance bills, etc., that are generally not rated and for which separate investment norms or
limits are not provided in SEBI (Mutual Fund) Regulations, 1996 and various circulars
issued thereunder.
55
 b. Exposure of mutual fund schemes in such instruments shall not exceed 5% of the net
assets of the schemes.

c. All such investments shall be made with the prior approval of the Board of AMC and the
Board of trustees.
iv. Investments in debt instruments, listed debt instruments shall include listed and to be
listed debt instruments.

17. Investments in Derivatives shall be in accordance with the guidelines as stated as stated under
para 7.5, 7.6 and 12.25 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, aas may be amended from time to time.
18. Investment restrictions w.r.t. REITs and InvITS:
a) The Mutual Fund under all its schemes shall not own more than 10% of units issued by a
single issuer of REIT and InvIT.
b) The Scheme shall not invest more than 10% of its NAV in the units of REITs and InvITs.
c) The Scheme shall not invest more than 5% of its NAV in the units of REITs and InvITs
issued by a single issuer.

The AMC may alter these above stated restrictions from time to time to the extent the SEBI (MF)
Regulations change, so as to permit the Scheme to make its investments in the full spectrum of
permitted investments for mutual funds to achieve its respective investment objective. The Trustee
may from time to time alter these restrictions in conformity with the SEBI (MF) Regulations.

All investment restrictions shall be applicable at the time of making investment.

Apart from the above investment restrictions, the Fund follows certain internal norms vis-à-vis
limiting exposure to scrips, sectors etc, within the above mentioned restrictions, and these are subject
to review from time to time.

Modifications, if any, in the Investment Restrictions on account of amendments to the Regulations

shall supercede /override the provisions of the Trust Deed.

Investments by the AMC in the Fund

Pursuant to SEBI (Mutual Funds) (Second Amendment) Regulation 2021, AMC shall invest in the
scheme based on the risk associated with the scheme as specified in para 6.9 of SEBI Master circular
no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023read with AMFI Best Practice
Guidelines Circular 135/BP/100/2022-23 dated 26th April 2022 and any other circulars issued there
under, from time to time.

During the NFO period, AMC’s investment shall be made during the allotment of units and
shall be calculated as a percentage of the final allotment value excluding AMC’s investment
pursuant to this circular

In addition to investments as mandated above, the AMC may invest in the Scheme subject to the
SEBI (MF) Regulations. Under the Regulations, the AMC is not permitted to charge any investment
management and advisory services fee on its own investment in the Scheme.

56
Limits for investment in derivatives instruments

In accordance with para 7.5 and 12.25 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, the following conditions shall apply to the Scheme’s
participation in the derivatives market. The investment restrictions applicable to the Scheme’s
participation in the derivatives market will be as prescribed or varied by SEBI or by the Trustees
(subject to SEBI requirements) from time to time.

I. Position limit for the Mutual Fund in equity index options contracts

a. The Mutual Fund position limit in all equity index options contracts on a particular
underlying index shall be Rs. 500 crore or 15% of the total open interest of the market in
equity index option contracts, whichever is higher.
b. This limit would be applicable on open positions in all options contracts on a particular
underlying index.

ii. Position limit for the Mutual Fund in equity index futures/stock futures contracts:

The Mutual Fund position limit in all equity index futures/stock futures contracts on a particular
underlying index shall be Rs. 500 crore; or
15% of the total open interest in the market in equity index futures/stock futures contracts,
whichever is higher.

This limit would be applicable on open positions in all futures contracts on a particular underlying
index.

iii. Additional position limit for hedging.

In addition to the position limits at point (i) and (ii) above, Mutual Fund may take exposure in
equity index derivatives subject to the following limits:

Short positions in index derivatives (short futures, short calls and long puts) shall not exceed (in
notional value) the Mutual Fund’s holding of stocks.

Long positions in index derivatives (long futures, long calls and short puts) shall not exceed (in
notional value) the Mutual Fund’s holding of cash, government securities, T-Bills and similar
instruments.

iv. Position limit for the Mutual Fund for stock based derivative contracts

The combined futures and options position limit shall be 20% of applicable MWPL

v. Position limit for the Scheme

The position limits for the Scheme and disclosure requirements are as follows–

For stock option and stock futures contracts, the gross open position across all derivative contracts
on a particular underlying stock of a scheme of the Mutual Fund shall not exceed the higher of:
1% of the free float market capitalisation (in terms of number of shares).
Or
5% of the open interest in the derivative contracts on a particular underlying stock (in terms of
number of contracts).

57
 This position limit shall be applicable on the combined position in all derivative contracts on an
underlying stock at a Stock Exchange.

For index based contracts, the Mutual Fund shall disclose the total open interest held by its
scheme or all schemes put together in a particular underlying index, if such open interest equals to
or exceeds 15% of the open interest of all derivative contracts on that underlying index.

Exposure Limits:

As per para 12.25 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May

19, 2023 on “Norms for investment and disclosure by Mutual Funds in derivatives”, the limits for
exposure towards derivatives are as under:

1. The cumulative gross exposure through equity, debt, derivative positions (including fixed
income derivatives), repo transactions in corporate debt securities, Real Estate Investment
Trusts (REITs), Infrastructure Investment Trusts (InvITs), other permitted securities/assets
and such other securities/assets as may be permitted by the Board from time to time should
not exceed 100% of the net assets of the scheme.
2. Mutual Funds shall not write options or purchase instruments with embedded written options.
3. The total exposure related to option premium paid must not exceed 20% of the net assets of
the scheme.
4. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not
creating any exposure.
5. Exposure due to hedging positions may not be included in the above mentioned limits subject
to the following:-
a. Hedging positions are the derivative positions that reduce possible losses on an existing
position in securities and till the existing position remains.
b. Hedging positions cannot be taken for existing derivative positions. Exposure due to such
positions shall have to be added and treated under limits mentioned in Point 1.
c. Any derivative instrument used to hedge has the same underlying security as the existing
position being hedged.
d. The quantity of underlying associated with the derivative position taken for hedging
purposes does not exceed the quantity of the existing position against which hedge has
been taken.
e. Mutual Funds may enter into plain vanilla interest rate swaps for hedging purposes.
The value of the notional principal in such cases must not exceed the value of respective
existing assets being hedged by the scheme.
The counter party in such transactions has to be an entity recognized as a market maker by
RBI. Further, the value of the notional principal in such cases must not exceed the value of
respective existing assets being hedged by the scheme. Exposure to a single counterparty in
such transactions should not exceed 10% of the net assets of the scheme. However, if mutual
funds are transacting in IRS through an electronic trading platform offered by the
Clearing Corporation of India Ltd. (CCIL) and CCIL is the central counterparty
for such transactions guaranteeing settlement, the single counterparty limit of 10% shall not
be applicable.
6. Exposure due to derivative positions taken for hedging purposes in excess of the underlying
position against which the hedging position has been taken, shall be treated under the limits
mentioned in point 1.
7. Exposure in derivative positions shall be computed as follows:

58
 Position Exposure
Long Future Futures Price * Lot Size *
Short Future Number of Contracts
Option bought Futures Price * Lot Size *

In accordance with para 12.25 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74

dated May 19, 2023on “Norms for investment and disclosure by mutual funds in derivatives”, are as
under:
Mutual Fund schemes are permitted to undertake transactions in equity derivatives in accordance with
the exposure limits specified in para 12.25 of SEBI Master circular no SEBI/HO/IMD/IMD-
PoD1/P/CIR/2023/74 dated May 19, 2023. Paragraph 4 of the said circular, inter-alia, states that
Mutual Funds shall not write options or purchase instruments with embedded written options.

Based on the suggestions of market participants and recommendations of Mutual Fund Advisory
Committee (MFAC), it has been decided to permit mutual funds to write call options under a covered
call strategy as prescribed below:

Writing of Covered Call Options by Mutual Fund Schemes:

a. In partial modification to aforementioned circular, Mutual Fund schemes (except Index Funds
and ETFs) may write call options only under a covered call strategy for constituent stocks of
NIFTY 50 and BSE SENSEX subject to the following:

b. The total notional value (taking into account strike price as well as premium value) of call
options written by a scheme shall not exceed 15% of the total market value of equity shares
held in that scheme.

c. The total number of shares underlying the call options written shall not exceed 30% of the
unencumbered shares of a particular company held in the scheme. The unencumbered shares
in a scheme shall mean shares that are not part of Securities Lending and Borrowing
Mechanism (SLBM), margin or any other kind of encumbrances.

d. At all points of time the Mutual Fund scheme shall comply with the provisions at paragraph
(a) and (b) above. In case of any passive breach of the requirement at paragraph (a), the
respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing
period, no additional call options can be written in the said scheme.

e. In case a Mutual Fund scheme needs to sell securities on which a call option is written under a
covered call strategy, it must ensure compliance with paragraphs (a) and (b) above while
selling the securities.

f. In no case, a scheme shall write a call option without holding the underlying equity shares. A
call option can be written only on shares which are not hedged using other derivative
contracts.

g. The premium received shall be within the requirements prescribed in terms of Para 12.25.2 of
SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023
i.e. the total gross exposure related to option premium paid and received must not exceed 20%
of the net assets of the scheme.

h. The exposure on account of the call option written under the covered call strategy shall not be
considered as exposure in terms of para 12.24.1 of SEBI Master circular no
SEBI/HO/IMD/IMDPoD-1/P/CIR/2023/74 dated May 19, 2023.

59
 i. The call option written shall be marked to market daily and the respective gains or losses
factored into the daily NAV of the scheme until the position is closed or expired.

As and when SEBI notifies amended limits in position limits for exchange traded derivative contracts
in future, the aforesaid position limits, to the extent relevant, shall be read as if they were substituted
with the SEBI amended limits.

Creation of segregated portfolio

In accordance with para 4.4 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74

dated May 19, 2023, provisions have been included for creation of segregated portfolio in the scheme.

Explanations:

1. The term ‘segregated portfolio’ shall mean a portfolio, comprising of debt or money market
instrument affected by a credit event, that has been segregated in a mutual fund scheme.
2. The term ‘main portfolio’ shall mean the scheme portfolio excluding the segregated portfolio.
3. The term ‘total portfolio’ shall mean the scheme portfolio including the securities affected by
the credit event.
Note 1: As per para 4.4 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated
May 19, 2023, credit event is considered for creation of segregated portfolio, however for the purpose
of Para 4.4.3.3 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May
19, 2023, ‘actual default’ by the issuer of such instruments shall be considered for creation of
segregated portfolio.

Note 2: Portfolio referred herewith will include interest accrued as well.

Terms and conditions in respect of Creation of segregated portfolio in the scheme:

AMC may create segregated portfolio in the scheme and it shall be subject to guidelines specified by
SEBI from time to time including the following:

1. Segregated portfolio may be created, in case of a credit event at issuer level i.e. downgrade in
credit rating by a SEBI registered Credit Rating Agency (CRA), as under:

a. Downgrade of a debt or money market instrument to ‘below investment grade’, or

b. Subsequent downgrades of the said instruments from ‘below investment grade’, or
c. Similar such downgrades of a loan rating.

2. In case of difference in rating by multiple CRAs, AMC shall consider the most conservative
rating. Creation of segregated portfolio shall be based on issuer level credit events as per above
point no. 1 and shall be implemented at the ISIN level.

3. Creation of segregated portfolio shall be optional and at the discretion of Kotak Mahindra Asset
Management Company Ltd (‘AMC’). It should be created only if the Scheme Information
Document (SID) of the scheme has provisions for segregated portfolio with adequate disclosures.

Further, in accordance with para 4.4 of SEBI Master circular no SEBI/HO/IMD/IMD-

PoD1/P/CIR/2023/74 dated May 19, 2023, Creation of segregated portfolio in mutual fund schemes

60
has been permitted in respect of unrated debt or money market instruments by mutual fund schemes
of an issuer that does not have any outstanding rated debt or money market instruments, subject to the
following terms:

a. Segregated portfolio of such unrated debt or money market instruments may be created only
in case of actual default of either the interest or principal amount. Credit event is considered
for creation of segregated portfolio, however as per the para 4.4. of SEBI Master circular no
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023, ‘actual default’ by the issuer
of such instruments shall be considered for creation of segregated portfolio.

b. AMCs shall inform AMFI immediately about the actual default by the issuer. Upon being
informed about the default, AMFI shall immediately inform the same to all AMCs. Pursuant
to dissemination of information by AMFI about actual default by the issuer, AMCs may
segregate the portfolio of debt or money market instruments of the said issuer in terms of Para
4.4 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19,
2023.

c. All other terms and conditions as stated in Paragraph 4.4 of SEBI Master Circular No.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 shall remain the same.

For detailed process for creation of segregated portfolio, refer Statement of Additional
Information (SAI) of the Fund

J. Additional Scheme Related Disclosures

a. Aggregate investment in the Scheme of certain categories of persons:

Aggregate Investment by the concerned scheme’s fund manager in the scheme: Not Applicable
Aggregate Investment by the Kotak AMC’S Board of Directors in the scheme: Not Applicable
Aggregate Investment by Key Managerial Person of Kotak AMC in the scheme: Not Applicable

b. Scheme’s portfolio holdings: Not Applicable

c. Sector wise fund allocation: Not Applicable
d. Portfolio turnover ratio: Not Applicable
e. Website link for Monthly Portfolio Holding:

Please visit www.kotakmf.com to obtain Scheme’s latest monthly portfolio holding statement.

Since the scheme is a new fund to be launched, the above disclosures are not applicable.

K. How has the scheme performed?

This is a new scheme and does not have any performance track record

61
IV. UNITS AND OFFER

This section provides details you need to know for investing in the scheme.

A. New Fund Offer (NFO)

New Fund Offer: NFO opens on:- Monday, February 12, 2024
NFO closes on:- Monday, February 26, 2024
This is the period during
which a new Scheme sells The AMC/ Trustee reserves the right to change the New Fund Offer
its units to the investors period, subject to the condition that the New Fund Offer period shall
be kept open for a minimum period of 3 working days and not beyond
15 days or such other time period as permissible under SEBI (MF)
Regulations. AMC/ Trustee also reserve the right to close the
subscription list earlier by giving at least one day’s prior notice. Any
such modification shall be announced by way of a notice/ addendum
uploaded on website of Kotak Mahindra Mutual Fund i.e.
www.kotakmf.com.
New Fund Offer Price: Rs. 10 per Unit.

This is the price per unit

that the investors have to
pay to invest during the
NFO.
Minimum Amount for Rs. 100/- and any amount thereafter
Application in the NFO of
scheme At present, applications for investing in scheme through cash are not
accepted by Kotak AMC. Information in this regard will be provided
to Investors as and when the facility is made available.
Minimum Target amount The Fund seeks to collect a minimum subscription amount of Rs.
10,00,00,000/- (Rupees Ten crores only) under the scheme.
This is the minimum
amount required to operate
the scheme and if this is not
collected during the NFO
period, then all the investors
would be refunded the
amount invested without
any return. However, if
AMC fails to refund the
amount within 5 working
days, interest as specified
by SEBI (currently 15%
p.a.) will be paid to the
investors from the expiry of
5 working days from the
date of closure of the
subscription period.

Maximum Amount to be There is no upper limit on the total amount that may be collected.
raised (if any)
This is the maximum Subject to the receipt of the specified Minimum Subscription Amount
amount which can be for the Scheme, full allotment will be made to all valid applications

62
collected during the NFO received during the New Fund Offer.
period, as decided by the
AMC.
Plans available There will be two plans under the Scheme namely, Direct Plan and
Regular Plan.

Direct Plan: This Plan is only for investors who purchase /subscribe
Units in a Scheme directly with the Fund and is not available for
investors who route their investments through a Distributor.

Regular Plan: This Plan is for investors who wish to route their
investment through any distributor.

The portfolio of both plans will be unsegregated.

Default Plan Investors subscribing under Direct Plan of a Scheme will have to
indicate “Direct Plan” against the Scheme name in the application
form “Kotak Technology Fund- Direct Plan”.

Investors should also indicate “Direct” in the ARN column of the

application form.

If the application is received incomplete with respect to not selecting

Regular/Direct Plan, the application will be processed as under:

Scenario Broker Code Plan mentioned by Default Plan

mentioned by the investor to be captured
the investor
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not Mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the
application form, the application shall be processed under Regular
Plan. The AMC shall contact and obtain the correct ARN code within
30 calendar days of the receipt of the application form from the
investor/ distributor. In case, the correct code is not received within 30
calendar days, the AMC shall reprocess the transaction under Direct
Plan from the date of application without any exit load.

Income Distribution Cum At discretion of Trustees.

Withdrawal (IDCW)
Frequency and Record
date

63
Choice of Default Option  If applicant does not indicate the choice between growth and
Income Distribution Cum Withdrawal (IDCW) in the application
form, then the scheme will accept it as an application for growth
option under respective plan.

 If applicant does not indicate the choice of IDCW sub-option

between payout of IDCW and reinvestment of IDCW then the
scheme will accept it as an application for IDCW reinvestment.
Allotment Subject to the receipt of the specified Minimum Subscription Amount
for the Scheme, full allotment will be made to all valid applications
received during the New Fund Offer.

The AMC/ Trustee reserves the right to reject any application inter alia
in the absence of fulfillment of any regulatory requirements,
fulfillment of any requirements as per the SID, incomplete/incorrect
documentation and furnishing necessary information to the satisfaction
of the Mutual Fund/AMC.

Allotment will be completed within 5 business days after the closure of

the New Fund Offer. Allotment of units and dispatch of allotment
advice to FPIs will be subject to RBI approval if required. Investors
who have applied in non-depository mode will be entitled to receive
the account statement of units within 5 Business Days of the closure of
the NFO Period.

For applicants applying through the ASBA mode, on intimation of

allotment by CAMS to the banker the investors account shall be
debited to the extent of the amount due thereon. On allotment, units
will be credited to the Investor’s demat account as specified in the
ASBA application form.

The Asset Management Company shall, on production of instrument

of transfer together with relevant documents, register the transfer
within 30 days from the date of such production. The Units of the
Scheme held in the dematerialised form will be fully and freely
transferable) in accordance with the provisions of SEBI (Depositories
and Participants) Regulations, 1996 as may be amended from time to
time and as stated in Para 14.4.4 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023.

Also, when a person becomes a holder of the units by operation of law

or upon enforcement of pledge, then the AMC shall, subject to
production/submission of such satisfactory evidence, which in its
opinion is sufficient, effect the transfer, if the intended transferee is
otherwise eligible to hold the units.
Refund If application is rejected, full amount will be refunded within 5
working days from of closure of NFO. If refunded later than 5 working
days, interest @ 15% p.a. for delay period will be paid and charged to
the AMC.
Income Distribution Cum  Growth Option:
Withdrawal Under the Growth option, there will be no distribution of income and
(IDCW)Policy the return to investors will be only by way of capital gains, if any,
through redemption at applicable NAV of Units held by them.
64
  Income Distribution Cum Withdrawal (IDCW) Option:
Under the Income Distribution Cum Withdrawal (IDCW)option, the
Trustee may at any time decide to distribute by way of IDCW, the
surplus by way of realised profit and interest, net of losses, expenses
and taxes, if any, to Unitholders if, in the opinion of the Trustee, such
surplus is available and adequate for distribution. The Trustee's
decision with regard to such availability and adequacy of surplus, rate,
timing and frequency of distribution shall be final. The Trustee may or
may not distribute surplus, even if available, by way of IDCW.

The IDCW will be paid to only those Unitholders whose names appear
on the register of Unitholders of the Scheme / Option at the close of
the business hours on the record date, which will be announced in
advance. The Asset Management Company (AMC) is required to
dispatch IDCW payments within seven working days from the record
date. In case the AMC fails to dispatch the IDCW payments within the
stipulated time of seven working days, it shall be liable to pay interest
to the unit holders at 15% p.a. or such other rate as may be prescribed
by SEBI from time to time.

The IDCW Option will be available under two sub-options – the

Payout Option and the Reinvestment Option.

Payout Option: Unitholders will have the option to receive payout of

their IDCW by way of IDCW payments or any other means which can
be enchased or by way of direct credit into their account.

Reinvestment Option: Under the reinvestment option, IDCW amounts

will be reinvested in the IDCW Reinvestment Option at the Applicable
NAV announced immediately following the record date. No entry
loads will be charged on units allotted as a result of reinvestment
IDCW.
However, the Trustees reserve the right to introduce new options and /
or alter the payout IDCW intervals, frequency, including the day of
payout.

When units are sold, and sale price (NAV) is higher than face value of
the unit, a portion of sale price that represents realized gains is credited
to an Equalization Reserve Account and which can be used to pay
IDCW. IDCW can be distributed out of investor’s capital
(Equalization Reserve), which is part of sale price that represents
realized gains
Who can invest The following are eligible to apply for purchase of the Units:
 Resident Indian Adult Individuals, either singly or jointly (not
This is an indicative list exceeding three).
and you are requested to  Parents/Lawful guardians on behalf of Minors.
consult your financial  Companies, corporate bodies, registered in India.
advisor to ascertain  Registered Societies and Co-operative Societies authorised to
whether the scheme is invest in such Units.
suitable to your risk  Religious and Charitable Trusts under the provisions of 11(5)
profile. of the Income Tax Act, 1961 read with Rule 17C of the
Income Tax Rules, 1962.
 Trustees of private trusts authorised to invest in mutual fund
65
 schemes under their trust deeds.
 Partner(s) of Partnership Firms.
 Association of Persons or Body of Individuals, whether
incorporated or not.
 Hindu Undivided Families (HUFs).
 Banks (including Co-operative Banks and Regional Rural
Banks) and Financial Institutions and Investment Institutions.
 Non-Resident Indians/Persons of Indian origin resident abroad
(NRIs) on full repatriation or non-repatriation basis.
 Foreign Portfolio Investors (FPI) registered with SEBI.
 Other Mutual Funds registered with SEBI.
 International Multilateral Agencies approved by the
Government of India.
 Army/Navy/Air Force, Para-Military Units and other eligible
institutions.
 Scientific and Industrial Research Organizations.
 Provident/Pension/Gratuity and such other Funds as and when
permitted to invest.
 Universities and Educational Institutions.
 Other schemes of Kotak Mahindra Mutual Fund may, subject
to the conditions and limits prescribed in the SEBI Regulations
and/or by the Trustee, AMC or Sponsor, subscribe to the Units
under the Scheme.

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

Acceptance of Subscriptions from U.S. Persons and Residents of

Canada : -

The Scheme shall not accept subscriptions from U.S. Persons and
Residents of Canada, except where transaction request received from
Non – resident Indian (NRIs) / Persons of Indian Origin (PIO) who at
the time of investment are present in India and submit physical
transaction request along with such declarations / documents as may
be prescribed by Kotak Mahindra Asset Management Company Ltd
and Kotak Mahindra Trustee Company Ltd.

The AMC shall accept such investments subject to the applicable laws
and such other terms and conditions as may be notified by the AMC/
Trustee Company. The investor shall be responsible for complying
with all the applicable laws for such investments.

The AMC reserves the right to put the transaction request on

hold/reject the transaction request, or reverse the units allotted, as the
case may be, as and when identified by the AMC, which are not in
compliance with the terms and conditions notified in this regard.

The Trustee/AMC reserves the right to change/modify the provisions

mentioned above at a later date.

66
 Note:
Investors should provide their own email address, mobile number and
registered address to enable the AMC/ MF for speed and ease of
communication in a convenient and cost-effective manner, and to help
prevent fraudulent transactions.
Where can you submit the Applications can be made either by way of a "Regular Application”
filled up applications. along with a cheque/DD or fund transfer instruction. The Fund may
introduce other newer methods of application which will be notified as
and when introduced. Investors should complete the Application Form
and deliver it along with a cheque/draft (i.e. in case of "Regular
Application") or fund transfer instructions, at any of the official points
of acceptance of transactions as given on the back cover of this
document.

For investments through switch transactions, transaction slip with

application forms can be submitted at the AMC branches, CAMS
Investor Service Centres and branches, given in the last page.

All trading Member of Bombay Stock Exchange (BSE) and National

Stock Exchange (NSE), who are registered with AMFI as Mutual Fund
Advisors offering the facility of purchase and redemption of units of
Kotak Mahindra Mutual Funds thorough Exchanges (Platforms are the
official Acceptance points for fresh applications as the NFO of the
scheme is offered through the Stock Exchange platforms.

Further in line with para 16.2 of SEBI Master Circular no.

SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023 it has
been decided to allow investors to directly access infrastructure of the
recognised stock exchanges to purchase mutual fund units directly
from Mutual Fund/ Asset Management Companies. SEBI circular has
advised recognised stock exchanges, clearing corporations and
depositories to make necessary amendment to their existing byelaws,
rules and/or regulations, wherever required.

Further, Investors may also apply through ASBA facility, during the
NFO period of the Scheme.
Applications Supported As per SEBI vide para 14.8 of SEBI Master Circular no.
by Blocked Amount SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023 an
(ASBA) investor can subscribe to the New Fund Offer (NFO) through ASBA
facility. The ASBA facility is offered by selected Self Certified
Syndicate Banks (SCSBs) which are registered with SEBI for offering
the facility, and whose names appear in the list of SCSBs as displayed
by SEBI on its website at www.sebi.gov.in.

ASBA is an application containing an authorization given by the

Investor to block the application money in his specified bank account
towards the subscription of Units offered during the NFO of the
Schemes. On intimation of allotment by CAMS to the banker the
investors account shall be debited to the extent of the amount due
thereon. On allotment, units will be credited to the Investor’s demat
account as specified in the ASBA application form.

67
 Grounds for rejection of ASBA applications
ASBA application forms can be rejected by the AMC/Registrar/
SCSBs, on the following technical grounds: -
Applications by persons not competent to contract under the Indian
Contract Act, 1872, including but not limited to minors, insane persons
etc.
Mode of ASBA i.e. either Physical ASBA or Electronic ASBA, not
selected or ticked.

ASBA Application Form without the stamp of the SCSB.

Application by any person outside India if not in compliance with
applicable foreign and Indian laws.

Bank account details not given/incorrect details given.

Duly certified Power of Attorney, if applicable, not submitted along
with the ASBA application form.

No corresponding records available with the Depositories matching the

parameters namely (a) Names of the ASBA applicants (including the
order of names of joint holders) (b) DP ID (c) Beneficiary account
number or any other relevant details pertaining to the Depository
Account. Insufficient funds in the investor’s account.

Application accepted by SCSB and not uploaded on/with the

Exchange/ Registrar.
Mechanism for Redressal All grievances relating to the ASBA facility may be addressed to the
of Investor Grievances respective SCSBs, giving full details such as name, address of the
under ASBA Facility applicant, number of Units applied for, counterfoil or the application
reference given by the SCSBs, DBs or CBs, amount paid on
application and the Designated Branch or the collection centre of the
SCSB where the Application Form was submitted by the ASBA
Investor.
How to Apply Application form and Key Information Memorandum may be obtained
from the offices of AMC or Investor Service Centres (ISCs)/Official
Points of Acceptance(OPAs)of the Registrar or distributors or
downloaded from www.kotakmf.com. Investors are also advised to
refer to Statement of Additional Information before submitting the
application form.

The list of the Investor Service Centres (ISCs)/Official Points of

Acceptance (OPAs) of the Mutual Fund will be available on the
website www.kotakmf.com.

All cheques and drafts should be crossed "Account Payee Only" and
drawn in favour of the scheme viz: Kotak Technology Fund

The AMC/ Trustee reserves the right to reject any application inter alia
in the absence of fulfillment of any regulatory requirements,
fulfillment of any requirements as per the SID, incomplete/incorrect
documentation and not furnishing necessary information to the
satisfaction of the Mutual Fund/AMC.
Please refer to the SAI for detailed procedure and Application form for
the instructions.

68
Listing Since the Scheme is open-ended, it is not necessary to list the Units of
the Schemes on any exchange. Liquidity is ensured to investors by the
purchase and sale of Units from/to the Fund at prices related to the
relevant Applicable NAV for the purpose of purchasing or redeeming
Units from the Fund.

The Trustee, however, has the right to list the Units under any of the
Schemes on any stock exchange/s for better distribution and additional
convenience to existing/prospective Unitholders. Even if the Units are
listed, the Fund shall continue to offer purchase and redemption
facility as specified in this scheme information document. Any listing
will come only as an additional facility to investors who wish to use
the services of a stock exchange for the purpose of transacting business
in the Units of the Schemes.
Special Products / Switch-In and Systematic Investment Plan are available during the
facilities available during NFO.
the NFO
Note: Investors of Kotak Liquid Fund, Kotak Overnight Fund, Kotak
Money Market Fund and Kotak Savings Fund (Source Schemes),
holding units under growth option of any of these specified schemes,
have an option to switch-in their units in the Scheme during the NFO
period, subject to the terms and conditions mentioned in the scheme
information document of the respective schemes. In the event of the
withdrawal/cancellation/calling off of the NFO, the switch request
submitted by the investor shall not be processed and the investment
shall be retained in the source scheme.
The policy regarding Not Applicable
reissue of repurchased
units, including the
maximum extent, the
manner of reissue, the
entity (the scheme or the
AMC) involved in the
same.

Restrictions, if any, on the The Asset Management Company shall, on production of instrument
right to freely retain or of transfer together with relevant documents, register the transfer
dispose of units being within 30 days from the date of such production. The Units of the
offered. Scheme held in the dematerialised form will be fully and freely
transferable in accordance with the provisions of SEBI (Depositories
and Participants) Regulations, 1996 as may be amended from time to
time and as stated in Para 14.4.4 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023. Also,
when a person becomes a holder of the units by operation of law or
upon enforcement of pledge, then the AMC shall, subject to
production/submission of such satisfactory evidence, which in its
opinion is sufficient, effect the transfer, if the intended transferee is
otherwise eligible to hold the units.

Foreign Account Tax FATCA is an acronym for Foreign Account Tax Compliance Act
Compliance (“FATCA”), a United States Federal law to increase compliance by US
taxpayers and is intended to bolster efforts to prevent tax evasion by
the US taxpayers with offshore investments. The Government of India

69
 and the United States of America (US) have reached an agreement in
substance on the terms of an Inter- Governmental Agreement (IGA)
and India is now treated as having an IGA in effect from April 11,
2014. The AMC/Fund are likely to be classified as a ‘Foreign
Financial Institution’ (Investment Entity as per Annexure 1(i)) under
the FATCA provisions. In accordance with FATCA provisions, the
AMC/Mutual Fund will be required to undertake due diligence process
and identify US reportable accounts and collect such
information/documentary evidences of the US and/or non-US status of
its investors/Unit holders and disclose such information (through its
agents or service providers) as far as may be legally permitted about
the holdings, investment returns and/or to US Internal Revenue
Service (IRS) or the Indian Tax Authorities, as the case may be for the
purpose of onward transmission to the IRS pursuant to the new
reporting regime under FATCA.

B. Ongoing Offer Details

Ongoing Offer Period The Scheme will reopen for subscription/redemptions within 5
business days from the date of allotment of units.
This is the date from which
the scheme reopened for
subscriptions/redemptions
after the closure of the NFO
period.
Ongoing price for At the applicable NAV.
subscription (purchase)/
switch-in The Methodology of calculating the Sale price for mutual fund units
(Purchase price for investors) is given below:
This is the price you need to
pay for purchase/switch-in. Sale price is the price at which investor can invest in units of mutual
fund schemes. The entry load has been abolished with effect from
August 01, 2009 vide para 10.4 of SEBI Master circular no.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023.
Hence, Sale price is equal to the applicable NAV.
Ongoing price for The redemption will be at Applicable NAV based prices, subject to
redemption (sale) /switch applicable exit load; if any.
outs (to other
schemes/plans of the As required under the Regulations, Fund shall ensure that the
Mutual Fund) by repurchase price of an open ended scheme is not lower than 95% of
investors. the Net Asset Value.

This is the price you will The Methodology of calculating the Repurchase price (Redemption
receive for price) of units is given below:
redemptions/switch outs.
Repurchase price is the price at which investor can redeem units of
Example: If the applicable mutual fund schemes. While calculating repurchase price the exit load,
NAV is Rs. 10, exit load is as applicable, is deducted from the applicable NAV.
2% then redemption price
will be: For example, If the applicable NAV is Rs. 10, exit load is 1% then
Rs. 10* (1-0.02) = Rs. 9.80 repurchase price will be: Rs. 10* (1-0.01) = Rs. 9.90.

70
Cut off timing for Applicable NAV for Purchases/Switch-ins
subscriptions/
redemptions/ switches 1. In respect of valid applications received upto 3.00 p.m. on a
business day and entire amount is available in the mutual fund’s
This is the time before account for utilization before the cut off time of the same day –
which your application closing NAV of the day of receipt of application;
(complete in all respects) 2. In respect of valid applications received after 3.00 p.m. on a
should reach the official business day and the entire amount is available in the mutual
points of acceptance. fund’s account for utilization before cut off time of the next
business day – the closing NAV of the next business day;
3. Irrespective of the time of receipt of the application where the
entire amount is available in Mutual fund’s account for
utilization before cut off time on any subsequent business day –
the closing NAV of such subsequent business day.

The above cut-off timings and applicability of NAV shall be

applicable in respect of valid applications received at the Official
Point(s) of Acceptance on a Business Day:

1. It is clarified that switches will be considered as redemption in

the switch-out scheme and purchase / subscription in the switch-
in scheme
2. Cheques received on a business day may be deposited with the
primary bankers of the respective location on the next business
day. NAV shall be as per the applicable NAV mentioned above.
To enable early sighting of funds by the schemes, investors are
requested to avail of electronic facilities like RTGS / NEFT in
respect of subscriptions and submit the proof of transfer of funds
along with their applications. AMC shall not be responsible for
any delay on account of banking clearance or circumstances
which are beyond the control of AMC.

3. The revised provisions for applicability of NAV based on

realization of funds will be applicable to all types of investment
including various systematic investments routes (viz, SIP, STP,
Transfer of IDCW Plan etc.) as may be offered by the Scheme
from time to time.

Applicable NAV for Redemption/ Switch outs

a) where the application received upto 3.00 pm – closing NAV of
the day of receipt of application; and
b) an application received after 3.00 pm – closing NAV of the next
business day.

Further, where the AMC or the Registrar has provided a facility to the
investors to redeem /switch-out of the Scheme through the medium of
Internet by logging onto specific web-sites or any other facilities
offered by the AMC and where investors have signed up for using
these facilities, the Applicable NAVs will be as provided above.

Technical issues when transactions are processed through online

facilities/ electronic modes.
The time of transaction done through various online facilities /

71
 electronic modes offered by the AMC, for the purpose of determining
the applicability of NAV, would be the time when the request for
purchase / SIP/ sale / switch of units is received in the servers of
AMC/RTA. In case of transactions through online facilities / electronic
modes, there may be a time lag of few seconds or upto 1-7 banking
days between the amount of subscription being debited to investor's
bank account and the subsequent credit into the respective Scheme's
bank account. This lag may impact the applicability of NAV for
transactions where NAV is to be applied, based on actual realization of
funds by the Scheme. Under no circumstances will Kotak Asset
Management Company Limited or its bankers or its service providers
be liable for any lag / delay in realization of funds and consequent
pricing of units. The AMC has the right to amend cut off timings
subject to SEBI (MF) Regulations for the smooth and efficient
functioning of the Scheme. Representation of SIP transaction which
have failed due to technical reasons will also follow same rule.
Where can the Applications can be made either by way of a “Regular Application or
applications for Transaction slip” along with a cheque/DD or fund transfer instruction.
purchase/redemption The Fund may introduce other newer methods of application which
switches be submitted? will be notified as and when introduced. Investors should complete the
Application Form and deliver it along with a cheque/draft (i.e. in case
of “Regular Application”) or fund transfer instructions at any of the
official points of acceptance of transactions listed below,

First time investments can be made only by way of duly filled in

application form.

(1) At the Official points of acceptance of transactions as given on the

back cover of this document.
(2) For investments through switch transactions, transaction slip with
application forms can be submitted at the AMC branches and CAMS
Investor Service Centres & branches given in the last page.

Further in line with para 16.2.11 and 16.2.12 of SEBI Master Circular
No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 it
has been decided to allow investors to directly access infrastructure of
the recognised stock exchanges to purchase mutual fund units directly
from Mutual Fund/ Asset Management Companies. SEBI circular has
advised recognised stock exchanges, clearing corporations and
depositories to make necessary amendment to their existing byelaws,
rules and/or regulations, wherever required.

Redemption/Switch requests: Where Units under a Scheme are held

under both Direct Plan and Regular Plan, investors should clearly
mention the plan from which redemption/switch requests are to be
processed. If the investor does not mention the plan then the
application may be rejected.

Direct Plan Regular Plan: This Plan is for investors who wish to route their
investment through any distributor.

Direct Plan: This Plan is only for investors who purchase /subscribe
Units in a Scheme directly with the Fund and is not available for

72
investors who route their investments through a Distributor.

The portfolio of both plans will be unsegregated.

All characteristics such as Investment Objective, Asset Allocation

Pattern, Investment Strategy, risk factors, minimum investment
amount, additional investment amount, availability of options
including sub options, SIP/STP/SWP/Transfer of IDCW Plan/FSIP
facilities offered and terms and conditions including load structure will
be the same for Direct Plan and Regular Plan. Except that
(a) Switch of investments from Regular Plan, where the
transaction has been received with broker code to Direct Plan
shall be subject to applicable exit load, if any.
(b) No exit load shall be levied:
 in case of switch of investment from Regular Plan, where
transaction has been received without broker code to
Direct Plan.
 in case of switch of investments from Direct Plan to
Regular Plan.

Direct Plan shall have a lower expense ratio excluding distribution

expenses, commission, etc and no commission for distribution of
Units will be paid / charged under Direct Plan.

Investments through systematic routes:

In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan
(STP)/, etc registered prior to the January 1, 2013 without any
distributor code under the Regular Plan, installments falling on or after
February 1, 2013 will automatically be processed under the Direct
Plan. However, investors who intend to continue with their future
installments in Regular Plan, may opt to do so by submitting a written
request to AMC before February 1, 2013.

Investors who had registered for SIP/STP facility prior to January 1,

2013 with distributor code and wish to invest their future installments
into the Direct Plan, shall make a written request to the Fund in this
behalf. The Fund will take at least 15 days to process such requests.
Intervening installments will continue in the Regular) Plan.

The terms and conditions of the existing registered enrolment shall

continue to apply.

Redemption/Switch requests: Where Units under a Scheme are held

under both Direct Plan and Regular Plan, investors should clearly
mention the plan from which redemption/switch requests are to be
processed. If the investor does not mention the plan then the
application may be rejected.

73
Minimum application Minimum application amount for purchases
amount
Initial Purchase Additional SIP Purchase
(Non- SIP) Purchase (Non-
SIP)
Rs. 100/- and any Rs. 100/- and any Rs. 100/- and any
amount thereafter amount thereafter amount thereafter

Minimum amount for redemption:

The minimum redemption amount for all plans will be Rs. 1000/- or
100 units or account balance, whichever is lower.
Waiver of Minimum Pursuant to 6.10 of SEBI Master Circular No. SEBI/HO/IMD/IMD-
Subscription Amount PoD-1/P/CIR/2023/74 dated May 19, 2023 on Alignment of interest of
Designated Employees of Asset Management Companies (AMCs)
with the Unitholders of the Mutual Fund Schemes has, inter alia
mandated that a minimum of 20% of gross annual CTC net of income
tax and any statutory contributions of the Designated Employees of
the AMCs shall be invested in units of the scheme(s) of the Fund in
which they have a role/oversight.

Accordingly, the criteria of minimum investment amounts would not

apply for such Investments made by Designated Employees of the
Kotak Mahindra Asset Management Company Limited in compliance
with the aforesaid circular(s).
Minimum balance to be There is no minimum balance requirement
maintained
Who can invest The following are eligible to apply for purchase of the Units:
 Resident Indian Adult Individuals, either singly or jointly (not
This is an indicative list exceeding three).
and you are requested to  Parents/Lawful guardians on behalf of Minors.
consult your financial  Companies, corporate bodies, registered in India.
advisor to ascertain  Registered Societies and Co-operative Societies authorised to
whether the scheme is invest in such Units.
suitable to your risk  Public sector undertakings, public/Statutory corporations subject
profile. to general or specific permissions granted to them by the
Central/State governments from time to time.
 Religious and Charitable Trusts under the provisions of 11(5) of
the Income Tax Act, 1961 read with Rule 17C of the Income
Tax Rules, 1962.
 Trustees of private trusts authorised to invest in mutual fund
schemes under their trust deeds.
 Partner(s) of Partnership Firms.
 Association of Persons or Body of Individuals, whether
incorporated or not.
 Hindu Undivided Families (HUFs).
 Banks (including Co-operative Banks and Regional Rural
Banks) and Financial Institutions and Investment Institutions.
 Non-Resident Indians/Persons of Indian origin resident abroad
(NRIs) on full repatriation or non-repatriation basis.
 Other Mutual Funds registered with SEBI.
 Foreign Portfolio Investors (FPIs) or sub-accounts of FPI’s
registered with SEBI.
74
  International Multilateral Agencies approved by the
Government of India.
 Army/Navy/Air Force, Para-Military Units and other eligible
institutions.
 Scientific and Industrial Research Organizations.
 Provident/Pension/Gratuity and such other Funds as and when
permitted to invest.
 Public Financial Institution as defined under the Companies Act
2013.
 Foreign Portfolio Investor
 Universities and Educational Institutions.
 Other schemes of Kotak Mahindra Mutual Fund may, subject to
the conditions and limits prescribed in the SEBI Regulations
and/or by the Trustee, AMC or Sponsor, subscribe to the Units
under the Scheme.

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

Acceptance of Subscriptions from U.S. Persons and Residents of

Canada w.e.f. November 17, 2016: -

The Scheme shall not accept subscriptions from U.S. Persons and
Residents of Canada, except where transaction request received from
Non – resident Indian (NRIs) / Persons of Indian Origin (PIO) who at
the time of investment are present in India and submit physical
transaction request along with such declarations / documents as may
be prescribed by Kotak Mahindra Asset Management Company Ltd
and Kotak Mahindra Trustee Company Ltd.

The AMC shall accept such investments subject to the applicable laws
and such other terms and conditions as may be notified by the AMC/
Trustee Company. The investor shall be responsible for complying
with all the applicable laws for such investments.

The AMC reserves the right to put the transaction request on

hold/reject the transaction request, or reverse the units allotted, as the
case may be, as and when identified by the AMC, which are not in
compliance with the terms and conditions notified in this regard.

The Trustee/AMC reserves the right to change/modify the provisions

mentioned above at a later date.

Note:
Investors should provide their own email address, mobile number and
registered address to enable the AMC/ MF for speed and ease of
communication in a convenient and cost-effective manner, and to help
prevent fraudulent transactions.
How to Apply Application form and Key Information Memorandum may be obtained
from the offices of AMC or Investor Service Centres (ISCs)/Official
Points of Acceptance(OPAs) of the Registrar or distributors or
downloaded from Investors are also advised to refer to Statement of
Additional Information before submitting the application form.
75
 The list of the Investor Service Centres (ISCs)/Official Points of
Acceptance (OPAs) of the Mutual Fund will be available on the
website www.kotakmf.com.

All cheques and drafts should be crossed "Account Payee Only" and
drawn in favour the scheme name in which investment is intended to
be made.

The AMC/ Trustee reserves the right to reject any application inter
alia in the absence of fulfillment of any regulatory requirements,
fulfillment of any requirements as per the SID, incomplete/incorrect
documentation and not furnishing necessary information to the
satisfaction of the Mutual Fund/AMC.

Please refer to the SAI for detailed procedure and Application form
for the instructions.
Process for investments As per Para 17.6 of SEBI Master Circular No. SEBI/HO/IMD/IMD-
made in the name of PoD-1/P/CIR/2023/74 dated May 19, 2023 read with SEBI Circular
Minor through a dated May 12, 2023, the following Process for Investments in the
Guardian name of a Minor through a Guardian will be applicable:
a. Payment for investment by any mode shall be accepted from the
bank account of the minor, parent or legal guardian of the minor,
or from a joint account of the minor with parent or legal
guardian. For existing folios, the AMCs shall insist upon a
Change of Pay-out Bank mandate before redemption is
processed.
b. Redemption proceeds shall be credited only in verified bank
account of the minor, i.e the account the minor may hold with
the parent/legal guardian after completing KYC formalities.
c. Upon the minor attaining the status of major, the minor in whose
name the investment was made, shall be required to provide all
the KYC details, updated bank account details including
cancelled original cheque leaf of the new account. No further
transactions shall be allowed till the status of the minor is
changed to major.
d. AMCs shall build a system control at the account set up stage of
Systematic Investment Plan (SIP), Systematic Transfer Plan
(STP) and Systematic Withdrawal Plan (SWP) on the basis of
which, the standing instruction is suspended when the minor
attains majority, till the status is changed to major.
Please refer SAI for detailed process on investments made in the name
of a Minor through a Guardian and Transmission of Units.
Non acceptance of Third Third Party Cheques will not be accepted by the Scheme.
Party Cheques
Definition of Third Party Cheques
1. Where payment is made through instruments issued from an
account other than that of the beneficiary investor, the same is
referred to as Third-Party payment.
2. In case of a payment from a joint bank account, the first holder of
the mutual fund folio has to be one of the joint holders of the
bank account from which payment is made. If this criterion is not
fulfilled, then this is also construed to be a third party payment.

76
 However, afore-mentioned clause of investment with Third-Party
Payment shall not be applicable for the below mentioned exceptional
cases.
1. Payment for investment by any mode shall be accepted from the
bank account of the minor, parent or legal guardian of the minor,
or from a joint account of the minor with parent or legal
guardian.
2. Payment by Employer on behalf of employee under Systematic
Investment Plans or lump sum / one-time subscription, through
Payroll deductions. AMC shall exercise extra due diligence in
terms of ensuring the authenticity of such arrangements from a
fraud prevention and KYC perspectives.
3. Custodian on behalf of an FPI or a client.

For pre funded instruments such as DD/Pay order it is the onus of the
investor to provided adequate supporting documents to prove that such
instruments are issued by debiting the first holders account.

Kotak Mahindra Asset Management Co. Ltd. / Trustee retains the sole
and absolute discretion to reject/ not process application and refund
subscription money if the subscription does not comply with the
specified provisions of Payment Instruments.
Listing Since the Scheme is open-ended, it is not necessary to list the Units of
the Scheme on any exchange. Liquidity is ensured to investors by the
purchase and sale of Units from/to the Fund at prices related to the
relevant Applicable NAV for the purpose of purchasing or redeeming
Units from the Fund.

The Trustee, however, has the right to list the Units under the Scheme
on any stock exchange/s for better distribution and additional
convenience to existing/prospective Unitholders. Even if the Units are
listed, the Fund shall continue to offer purchase and redemption
facility as specified in this scheme information document. Any listing
will come only as an additional facility to investors who wish to use
the services of a stock exchange for the purpose of transacting
business in the Units of the Scheme.
Transaction Charges Pursuant to Para 10.5 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023,
transaction charge per subscription of Rs. 10,000/- and above be
allowed to be paid to the distributors of the Kotak Mahindra Mutual
Fund products. The transaction charge shall be subject to the
following:

(a) For existing investors (across mutual funds), the distributor shall
be paid Rs. 100/- as transaction charge per subscription of Rs. 10,000/-
& above.

(b) For first time investors, (across Mutual Funds), the distributor may
be paid Rs. 150/- as transaction charge for subscription of Rs. 10,000/-
& above.

(c) The transaction charge shall be deducted by Kotak AMC from the
subscription amount & paid to the distributor (will be subject to

77
statutory levies, as applicable) & the balance amount shall be invested.

(d) In case of Systematic Investment Plan(s), the transaction charge

shall be applicable only if the total commitment through SIPs amounts
to Rs. 10,000/- & above. In such cases the transaction charge shall be
recovered in first 4 successful installments.

Identification of investors as "first time" or "existing" will be based on

Permanent Account Number (PAN) at the First/ Sole Applicant/
Guardian level. Hence, Unit holders are urged to ensure that their
PAN / KYC is updated with the Fund. Unit holders may approach any
of the Official Points of Acceptances of the Fund i.e. Investor Service
Centres (ISCs) of the Fund/ offices of our Registrar and Transfer
Agent, M/s. Computer Age Management Services Pvt. Ltd in this
regard.

The statement of accounts shall clearly state that the net investment as
gross subscription less transaction charge and give the number of units
allotted against the net investment.

Transaction charges shall not be deducted/applicable for:

1) Transaction other than purchases/ subscriptions such as
Switch/Systematic Transfer Plan (STP)/ Transfer of Income
Distribution cum capital withdrawal plan (IDCW), etc.;
2) Purchases/ Subscriptions made directly with the Fund without any
ARN code.
3) Transactions carried out through the stock exchange platforms.
4) Distributors who have chosen to ‘Opt Out’ of charging the
transaction charge based on type of the product.

Commission as specified in the aforesaid circular to distributors shall

be paid by the investor directly to the distributor by a separate cheque
based on his assessment of various factors including the service
rendered by the distributor.

TRANSACTIONS THROUGH CHANNEL DISTRIBUTORS

Investors may enter into an agreement with certain distributors/
Registered Investment Advisers (RIAs) (with whom AMC also has a
tie up) referred to as "Channel Distributors" who provide the facility
to investors to transact in units of mutual funds through various modes
such as their website / other electronic means or through Power of
Attorney in favour of the Channel Distributor, as the case may be.
Under such arrangement, the Channel Distributors will aggregate the
details of transactions (viz. subscriptions/redemptions/switches) of
their various investors and forward the same electronically to the
AMC / RTA for processing on daily basis as per the cut-off timings
applicable to the relevant schemes. The Channel Distributor is
required to send copy of investors' KYC Proof and agreement entered
into between the investor & distributor/RIA to the RTA (one time for
central record keeping) as also the transaction documents / proof of
transaction authorization as the case may be, to the AMC / RTA as per
agreed timelines. In case KYC Proof and other necessary documents
are not furnished within the stipulated timeline, the transaction

78
 request, shall be liable to be rejected. Normally, the subscription
proceeds, when invested through this mode, are by way of direct
credits to the specified bank account of the Fund. The Redemption
proceeds (subject to deduction of tax at source, if any) and payouts of
IDCW, if any, are paid by the AMC to the investor directly through
direct credit in the specified bank account of the investor or through
issuance of payment instrument, as applicable. It may be noted that
investors investing through this mode may also approach the AMC /
Official Point(s) of Acceptance directly with their transaction requests
(financial / non-financial) or avail of the online transaction facilities
offered by the AMC. The Mutual Fund, the AMC, the Trustee, along
with their directors, employees and representatives shall not be liable
for any errors, damages or losses arising out of or in connection with
the transactions undertaken by investors / Channel Distributors
through above mode.

Pursuant to para 15.5 of SEBI Master Circular no.

SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023,
Mutual funds/ AMC will adhere to the due diligence of distributors.
Special Products available The Following facilities are available under the Scheme:
1. Systematic Investment Plan
2. SIP Top Up Facility
3. Flex - Systematic Investment Plan Facility (‘FSIP’) Facility.
4. Systematic Withdrawal Plan
5. Systematic Transfer Plan
6. Transfer of Income Distribution cum capital withdrawal plan
(IDCW)
7. Switching
8. Trigger Facility
9. Daily frequency under Systematic Transfer Plan Facility
10. Variable Transfer Plan (‘VTP’)
11. SIP Pause Facility
12. Smart Facility i.e. Smart Systematic Investment Plan
(SSIP”)/Smart Systematic Withdrawal Plan(“SSWP”)/Smart
Systematic Transfer Plan(“SSTP”)
Systematic Investment Plan (SIP):
This facility enables investors to save and invest periodically over a
longer period of time. It is a convenient way to "invest as you earn"
and affords the investor an opportunity to enter the market regularly,
thus averaging the acquisition cost of Units. Any Unitholder can avail
of this facility subject to certain terms and conditions contained in the
Application Form. The Fundamental Attributes and other terms and
conditions regarding purchase/redemption, price and related matters
are the same as contained in this SID.

The first SIP can be for any date of the month on which a NAV is
declared in the scheme. In respect of the second and all subsequent
SIPs, investors can select any one date among 1st to 31st as the SIP
Date (in case the chosen fall on non-Business day the transaction will
be effected on the next Business day of the scheme), and can also
choose the SIP frequency as monthly or quarterly subject however, to
the condition that there shall be a minimum gap of 28 days between
the first and the second SIP. The aforesaid minimum gap shall be

79
applicable only for SIPs registered via direct / auto debit. The
minimum SIP installment amount is Rs. 100/. In case the SIP date is
not selected for the aforesaid facility, 7th of every month/quarter will
be treated as the default date.

The SIP payments can be made either by issue of Post Dated Cheques
or by availing the Auto Debit Facility through ECS (available in select
locations only) or by availing the Direct Debit Facility / Standing
Instructions Facility (Unitholders may check with their bankers for
availability of this facility).) However, the first investment in SIP
through the Auto Debit Facility or Direct Debit Facility if submitted
with a cheque, needs to be made compulsorily by issuance of a cheque
from the account from which the Auto Debit / Direct Debit is
requested. Investors may register for SIP through One Time Mandate
(OTM) for payment towards any future purchase transactions received
through any mode i.e. physical or electronic.

AMC may choose any mode such as NACH/ ECS/ Direct Debit/
Standing Instruction (SI)/ OTM as per arrangements with banks or
payment aggregators.

However, the first investment in SIP through the electronic mode

(other than OTM) if submitted with a cheque, needs to be made
compulsorily by issuance of a cheque from the account from which
the SIP instalment debit is requested. Investors can also submit SIP
applications along with cancelled cheque leaf of the account from
where the investor intends to commence the SIP.

If the first SIP investment is through a demand draft or pay order or

the initial investment cheque is drawn from a bank account, other than
the bank account mentioned in the SIP mandate, it is advisable to the
investor that the bank details and signatures are attested by the banker
of the bank from where the SIP is initiated. Alternatively, the investors
can provide a copy of the cancelled cheque leaf of the bank account
from where the investor intends to do the SIP.

The load structure applicable for each installment will be as per the
load structure applicable at the time of registration of SIP. Changes in
load structure effected by the AMC after that date may not be
applicable unless stated specifically.

SIP Top Up Facility:

Description: It is a facility whereby an investor has an option to

increase the amount of the SIP Installment by a fixed amount at pre-
defined intervals. This will enhance the flexibility of the investor to
invest higher amounts during the tenure of the SIP.

Frequency: Half Yearly Basis and Yearly Basis.

Functionality of frequency:
The installment amount can be increased on a Half-Yearly and/or
Yearly basis i.e. on completion of 6 months/1 year from the

80
commencement of the first SIP.

SIP SIP Top Up Default Min Amount

Frequency Frequency
Monthly Half Yearly / Yearly Rs. 100 & in multiples
Yearly of Rs. 100 thereof
Quarterly Half Yearly / Yearly Rs. 100 & in multiples
Yearly of Rs. 100 thereof

SIP Top Up Facility with Fixed Top Up option or Variable Top

Up option:
Description: SIP Top-Up facility with Fixed Top Up option or
Variable Top Up option will be available to the investors, wherein the
amount of SIP can be increased at fixed intervals.
Frequency: Half Yearly Basis and Yearly Basis.

Functionality of frequency:
Investors can opt for SIP Top up facility with Fixed Top-Up option or
Variable Top-Up option, wherein the amount of SIP can be increased
at fixed intervals. The Fixed Top-Up amount shall be in multiples of
Rs.100/- and thereafter.
• Variable Top-Up option will be available at 10%, 15% and 20%
and such other denominations (over and above 10%, 15% and
20%) as opted by the investor in multiples of 5%.
• The frequency is fixed at Yearly and Half Yearly basis.
• In case of Quarterly SIP, only the Yearly frequency is available
under SIP Top-Up. SIP Top-Up facility shall also be available for
the existing investors who have already registered for SIP facility
without Top-Up option.
• In case the investor opts for both options, the Variable Top-Up
option shall be triggered.
• In case the investor does not select the frequency for Top-up or
selects both frequencies, the Top-up facility shall be registered at
Yearly basis.

The Trustee/AMC reserves the right to change/modify the provisions

mentioned facility at a later date.

Top-Up Cap amount or Top-Up Cap month-year

I. Top-Up Cap amount: In this facility the investor has an option to

freeze the SIP Top-Up amount once it reaches a fixed predefined
amount. The fixed pre-defined amount should be same as the
maximum amount mentioned by the investor in the bank mandate/
existing registered One-Time Mandate (OTM). In case of difference
between the Cap amount & the maximum amount mentioned in Bank
mandate, then amount which is lower of the two amounts shall be
considered as the default amount of SIP Cap amount.
II. Top-Up Cap month-year: The facility for SIP Top-Up amount will
cease and last SIP instalment including Top-Up amount will remain
constant from Cap date till the end of SIP tenure.

81
Basic Terms and conditions are as follows:
• The date from which Investors have opted the SIP Top-Up
amount will cease and last SIP instalment including Top-Up
amount will remain constant from Cap date till the end of SIP
tenure.
• Investor shall have flexibility to choose either Top-Up Cap
amount or Top-Up Cap month- year. In case of multiple selection,
Top-Up Cap amount will be considered as default selection.
• Top-Up Cap is applicable for Fixed Top Up option as well as
Variable Top Up option.
• All the investors of the fund availing the facility under SIP
Variable Top - Up feature are hereby requested to select either
Top - Up Cap amount or Top - Up Cap month - year.
• In case of no selection, the SIP Variable Top-Up amount will be
capped at a default amount of Rs. 10 Lakhs. Under the said
facility, SIP amount will remain constant from Top - Up Cap
date/ amount till the end of SIP Tenure.

Illustration explaining the Top-Up Cap month-year:

SIP Period: 01-Jan-2022 to 01-Dec-2024 (3 Years)
Monthly SIP Installment Amount: Rs. 2,000
SIP Date: 1st of every month (36 installments)
Top-up Amount: Rs. 1,000
Top-up Frequency: Half Yearly
Top-up cap month - year: 01-Jul-2023
SIP Installments shall be as follows:

Install From Date To Date Monthly SIP Increased

ment SIP Top- Monthly
Nos. Installme Up SIP
nt Amo Installme
Amount unt nt
(Rs.) (Rs.) Amount
(Rs.)
1 to 6 1-Jan-22 1-Jun-22 2,000 N.A. 2,000

7 to 12 1-Jul-22 1-Dec-22 2,000 1,000 3,000

13 to 18 1-Jan-23 1-Jun-23 3,000 1,000 4,000

19 to 24 1-Jul-23 1-Dec-23 4,000 1,000 4,000

25 to 30 1-Jan-24 1-Jun-24 4,000 N.A. 4,000

31 to 36 1-Jul-24 1-Dec-24 4,000 N.A. 4,000

The Trustee/AMC reserves the right to change/modify the provisions

mentioned facility at a later date.

82
Flex - Systematic Investment Plan Facility (‘FSIP’) Facility
1. FSIP - is a facility wherein an investor can opt to invest
variable amount in the scheme based on P/E (price-to-earnings
ratio) level of Nifty. This facility allows investors to take
advantage of market movements by investing higher amounts
when the markets are low, and by investing a variable amount
(within the limits defined by the investor) when the markets
are higher.
2. If an investor wants to opt for the said facility then Individual
Enrolment Form is required filled for each FSIP transaction.
3. Details for FSIP:
4. Available under the Monthly and Quarterly Options
5. The minimum amount and tenure of FSIP would be as
applicable to normal SIP facility in the scheme.
6. Dates available for transfer are as applicable for regular SIP of
Schemes.
7. Investors at the time of registration will have an option to
specify the amount to be invested at PE level of <=15. This
amount will have to be higher than the installment amount
invested at PE level of >15. In case the investor does not
specify the amount for PE level of <=15, then the default
amount (3 times the specified amount for PE band >15) shall
be applicable.
8. There is no maximum duration for FSIP enrollment.
9. Calculation of FSIP:
The FSIP will be based on the trailing Price to Equity ratio (P/E) of
Nifty 50 Index. The amount to be transferred on each FSIP date will
be determined on the basis of the P/E band.

10. If the P/E ratio is greater than 15, then the specified amount
gets invested
11. If the P/E ratio is lesser than or equal to 15, then -
12. The amount in the application form specified by the investor
for PE level<=15.
13. Or if no such amount is specified then the default amount
which is 3 times the FSIP amount gets invested
14. The installment value of FSIP would be determined based on
PE of Nifty 50 on T-10th day. If T-10th day is a non-business
day, then valuation will be done on the previous business day
i.e. T-11th day.

The process has been explained below through an illustration for

FSIP using the default option.

Assumptions:
Installment amount – Rs. 2,500
PE Band Allocation Installment Amount
(Rs.)
>15 1x 2,500
<=15 3x 7,500

Date Assu Assu FSIP Uni Accumul Valu

med med Installm ts ated atio
83
 Nifty Equit ent Units n
P/E y Amount (Rs.)
Ratio Schem (Rs.)
e
NAV
1-May- 250 2,50
21.4 10.0 2,500.0 250.0
15 .0 0
1-Jun- 228 2,73
22.0 10.9 2,500.0 478.4
15 .4 6
1-Jul- 226 5,27
21.9 11.0 2,500.0 705.0
15 .6 7
1-Aug- 233 7,56
21.4 10.7 2,500.0 938.0
15 .0 5
1-Sep- 232 10,1
21.0 10.8 2,500.0 1,170.0
15 .0 07
1-Oct- 260 11,2
18.6 9.6 2,500.0 1,430.6
15 .6 26
1-Nov- 257 13,8
18.9 9.7 2,500.0 1,688.5
15 .9 69
1-Dec- 245 17,2
18.1 10.2 2,500.0 1,933.7
15 .2 12
1-Jan- 247 19,5
17.9 10.1 2,500.0 2,181.5
16 .8 09
1-Feb- 250 21,8
17.4 10.0 2,500.0 2,431.6
16 .1 05
1-Mar- 247 24,6
16.5 10.1 2,500.0 2,678.7
16 .0 08
1-Apr- 249 26,8
16.2 10.0 2,500.0 2,928.1
16 .4 53
1-May- 802 27,3
14.7 9.4 7,500.0 3,730.0
16 .0 84
1-Jun- 823 33,9
14.8 9.1 7,500.0 4,553.8
16 .8 57
1-Jul- 262 43,4
15.8 9.5 2,500.0 4,816.0
16 .1 32
1-Aug- 825 43,7
14.9 9.1 7,500.0 5,641.1
16 .1 75
1-Sep- 855 49,4
13.9 8.8 7,500.0 6,496.9
16 .8 39
1-Oct- 264 61,3
15.7 9.4 2,500.0 6,761.6
16 .7 51
1-Nov- 262 64,4
16.0 9.5 2,500.0 7,023.9
16 .3 36
1-Dec- 261 67,0
15.5 9.6 2,500.0 7,285.7
16 .8 85

15. In case of FSIP, if four consecutive installments fail, then

FSIP will be ceased.

16. The first FSIP installment will be processed as per the

standard installment amount specified by the unit holder at the
time of enrolment and not based on PE value of Nifty 50.

84
 17. Once the FSIP has been stopped, the unit holder needs to
provide a new request to start FSIP.

18. In respect of FSIP enrollments made in any of the existing

open ended Scheme(s), the Load Structure prevalent at the
time of enrollment shall be applicable to the investors during
the tenure of the FSIP.

19. FSIP Facility will not be available if the Folio / Certificate is

under Lien or marked “FROZEN” on the advice of I.T.
authorities /regulatory authorities / Court or any other reason.

20. All requests for registering or deactivating the FSIP shall be

subject to an advance notice of 28 (Twenty Eight) business
days. Investors can deactivate the facility by sending a written
request to the Investor Service Centers.

Systematic Withdrawal Plan:

This facility enables the Unitholders to withdraw (subject to deduction
of tax at source, if any) sums from their investments in Scheme at
periodic intervals through a one-time request. The withdrawals can be
made at any date under Monthly/ Quarterly frequency. In case any of
these days fall on non-business day the transaction will be effected on
the next business day of the scheme. SWP registration needs to be
submitted to the Registrar/ AMC 7 days prior to the date of
commencement of SWP. In case the SWP commencement date is less
than 7 days from the date of submission of registration form and the
date opted for, then the same would be registered for the next cycle.
The AMC reserves the right to process the SWP registration request
received for a period lesser than 7 days in the interest of unit holders.

Example: for Monthly SWP if the SWP date opted is 7th of every
month from 7th January and submitted on 3rd January then the
registration of this SWP will be from 7th February onwards.

This facility is available in two options to the Unitholders:

Fixed Option: Under this option, the Unitholder can seek redemption
of a fixed amount of not less than Rs. 1000 from his Unit account. In
this option the withdrawals will commence from the Start Date (being
one of the dates indicated above) mentioned by the Unitholder in the
Application Form for the facility. The Units will be redeemed at the
Applicable NAV of the respective dates on which such withdrawals
are sought. If the net asset value of the units outstanding on the
withdrawal date is insufficient to process the withdrawal request, then
the entire outstanding units will be processed. And if the available
balance falls below Rs 1000 after processing of the last SWP
installment then the entire amount will be processed along the last
SWP installment.

Appreciation Option: Under this option, the Unitholder can seek

redemption of an amount equal to a periodic appreciation on the
investment.

85
The Unitholder redeems only such number of Units, which when
multiplied by the Applicable NAV is, in amount terms equal to the
appreciation in his investment over the last month / quarter.

The investor would need to indicate in his systematic withdrawal

request, the commencement / start date from which the appreciation in
investment value should be computed. The withdrawal will commence
after one month/quarter (as requested by the investor) from the
commencement / start date mentioned by the Unitholder in the
Application Form and can, at the investor's discretion be on 1st, 7th ,
14th, 21st or 25th of the month / quarter.

The Units will be redeemed at the Applicable NAV of the respective

dates on which such withdrawals are sought. In case the investor
purchases additional Units, the withdrawal amount would include the
appreciation generated on such Units as well. In the absence of any
appreciation, the redemption under this option will not be made.

For both fixed and appreciation option, the provision of minimum

redemption amount / units will not be applicable for redemption made
under this facility.

Systematic Transfer Plan (STP)

This facility enables the Unitholders to switch an amount from their
existing investments in a Scheme/Plan/Option to another
Scheme/Plan/Option of the Fund, which is available for investment at
that time, at periodic intervals through a one-time request. The switch
can be made daily, weekly, monthly or quarterly. Under this facility
the switch by the Unitholders should be within the same account/ folio
number. Investors can select date as any date from 1st to 31st of a
given month/ quarter. In case the chosen date is not available /non-
business day, the STP will be processed on the immediate next
Business Day. The amount so switched shall be reinvested in the
other scheme / plan and accordingly, to be effective, the systematic
transfer must comply with the redemption rules of transferor scheme
and the issue rules of transferee scheme (e.g. exit / entry load etc)

STP registration needs to be submitted to the Registrar/ AMC 7 days

prior to the date of commencement of STP. In case the STP
commencement date is less than 7 days from the date of submission of
registration form and the date opted for, then the same would be
registered for the next cycle. The AMC reserves the right to process
the STP registration request received for a period lesser than 7 days in
the interest of unit holders.

Example: for Monthly STP if the STP date opted is 7th of every month
from 7th January and submitted on 3rd January then the registration of
this STP will be from 7th February onwards.

This facility offers two options to the Unitholders:

Fixed Option: Under this option, the Unitholder can switch fixed

86
amount of not less than Rs. 1000/- from his Unit account. In this
option the switch will commence from the Start Date mentioned by
the Unitholder in the application form for the facility. The Units in the
Scheme/Plan/Option from which the switch - out is sought will be
redeemed at the Applicable NAV of the Scheme/Plan/Option on the
respective dates on which such switches are sought and the new Units
in the Scheme/Plan/Option to which the switch - in is sought will be
created at the Applicable NAV of such Scheme/Plan/Option on the
respective dates. If the net asset value of the units outstanding on the
transfer date is insufficient to process the withdrawal request, then the
entire outstanding units will be processed. And if the available balance
falls below Rs 1000 after processing of the last STP installment, then
the entire amount will be processed along the last STP installment.

Appreciation Option: Under this option, the Unitholder can seek

switch of an amount equal to the periodic appreciation on the
investment. Under this option the Unit holder switches only
proportionate number of Units, which when multiplied by the
applicable NAV is, in amount terms equal to the appreciation in the
investment over the last month/quarter.

For both Fixed and appreciation option the provision of minimum

redemption and minimum investment amount / units will not be
applicable for transfer / switch transactions made under this facility for
both switch out and switch in schemes.

The investor has to mention a "Start Date". The first switch will
happen after one month/quarter from the start date. In case the investor
purchases additional Units, the amount to be switched would be equal
to the appreciation generated on such Units. In the absence of any
appreciation as mentioned above, the switch under this option will not
be made. The Units in the Scheme/Plan/Option from which the switch
- out is sought will be redeemed at the Applicable NAV of the
Scheme/Plan/Option on the respective dates on which such switches
are sought and the new Units in the Scheme/Plan/Option to which the
switch - in is sought will be allotted at the Applicable NAV of such
Scheme/Plan/Option on the respective dates.

Daily frequency under Systematic Transfer Plan Facility:

Daily frequency (“Daily STP”) has been introduced in addition to
existing frequencies available under “Fixed Option” of Systematic
Transfer Plan facility.

Terms and conditions of Daily STP are as follows:

Applicability:
 Daily STP is only available under Fixed amount Option (Fixed
STP) and will not be applicable under Capital appreciation STP
(Variable STP).
 An investor can select this facility whereby the investor chooses
to transfer on a periodic basis a pre-determined amount from any
“Source Scheme” into any “Target Scheme”.
 In case the Investor fails to mention the frequency for the STP
87
 option in the form, then the default option will be considered as
monthly frequency.
 The STP will be processed subject to the terms of the Target
scheme.
 This frequency will be available under all the “eligible schemes”
of Kotak Mahindra Mutual Fund.

All Open Ended Schemes of Kotak

Mahindra Mutual Fund except
Source Exchange Traded Funds. In case of
Scheme Kotak ELSS Tax Saver Fund, Daily
Eligible
STP will be available for free units
Schemes
only.
All Open Ended Schemes of Kotak
Target
Mahindra Mutual Fund except
Scheme
Exchange Traded Funds.

Transfer of Funds:
 Minimum Instalment amount to be transferred through this
facility should be at least Rs. 6,000 per year or that which
matches the minimum investment amount of the said schemes
whichever is higher for the said year.
 Minimum amount to transfer under Daily STP: Minimum 12
transfers of Rs. 500/- each and in multiples of Rs. 100/- thereafter.
 Default amount: If investor fails to mention the STP Amount then
the default value should be taken as Rs. 500 (minimum transfer
amount).

Schemes available for Daily STP:

 It shall be the responsibility of the investor to ensure that
sufficient balance is available in the Source Scheme account on
the date of transfer, failing which the transfer will not be
processed to the extent of available balance in the source
scheme’s account.
 If the plan/option of the Source scheme is not mentioned and
there is only one plan/option available in the folio, the STP will
be processed from that plan/option.
 If investor carries investments under multiple schemes / plans /
options and does not mention the Source Scheme along with plans
and options, then such request will be rejected.
 In case plan and option in Target Scheme for STP are not selected
by the investor, then the default option/ plan for the Target
scheme shall be considered as per SID.

Other Terms and Conditions:

 Investor need to clearly mention the “Transfer Period from” and
“Transfer Period To” in the STP request Form. In case, the
investor fails to specify the “Transfer Period from” the STP will
start from the 7th day from the date of receipt of valid registration
form.
 In case, the investor fails to specify the “Transfer Period To”
under Daily STP, STP shall continue to be triggered perpetually
until further valid instructions from the investor or until the
88
 outstanding balance in “Source scheme” does not cover the Daily
STP transfer amount.
 If the available balance falls below the minimum amount of the
specified triggered value, the available balance in the Source
scheme will get triggered and future STP will be ceased.
 STP registration from the existing investment (in the Source
Scheme) will start from the 7th day from the date of receipt of
valid registration form. If the STP form is received along with
fresh investment, then the STP will start from the 7th day from
the date of realisation of the investment amount with the valid
registration form.
 The allotment in the Target scheme will be processed based on
the utilisation/ realisation of funds from Source scheme (for more
details refer NAV applicability clause for respective Target
scheme).
 In case the STP commencement date is less than 7 days from the
date of submission of registration form, the same will commence
from the 7th day from the date of receipt of valid registration
form. The AMC reserves the right to process the STP registration
request received for a period lesser than 7 days in the interest of
unit holders.
 An investor can discontinue his STP facility by giving 7 days
prior notice in writing to the Registrars (CAMS) office or at any
other point of service.

Transfer of Income Distribution cum capital withdrawal plan

(IDCW):
Transfer of Income Distribution cum capital withdrawal plan (IDCW)
is a facility whereby the unit holders under the IDCW Options (other
than Daily Reinvestment Sub-option) of the open ended Schemes of
KMMF can opt to transfer their IDCW to any other Investment option
(other than Daily Reinvestment Sub-option) under any other open
ended schemes of KMMF. Transfer of IDCW facility will be available
to unit holder(s) holding units in non-demat form under the IDCW
Option of the Transferor Schemes.

Under the Transfer of IDCW Plan facility investors cannot transfer

their IDCW into certain category of transferee schemes viz, close
ended Schemes, Exchange Traded Funds (ETFs), and Kotak ELSS
Tax Saver Fund.

Under Transfer of IDCW, IDCW as & when declared (as reduced by

the amount of applicable statutory levy) in the transferor scheme
(subject to minimum of Rs.500/-) will be automatically invested
without any exit load into the transferee scheme, as opted by the Unit
holder. Such transfer will be treated as fresh subscription in the
transferee scheme and invested at the Applicable NAV of the
Transferee Scheme. If the IDCW amount in the Transferor Scheme is
less than Rs.500/- the IDCW will be automatically reinvested in the
Transferor Scheme itself and hence will not be transferred. The
provision for ‘Minimum Application Amount’ specified in the
respective transferee scheme’s SID will not be applicable under
Transfer of IDCW.
89
Enrolment under the Transfer of IDCW facility will automatically
override any previous instructions for ‘Payout of Income Distribution
cum capital withdrawal option (IDCW)’ or ‘Payout of Income
Distribution cum capital withdrawal option (IDCW)’ option in the
transferor scheme. No Exit Load will be levied on units allotted in the
Transferee Scheme under the Transfer of Income Distribution cum
capital withdrawal plan (IDCW).

Unit holders who wish to enroll for the Transfer IDCW facility are
required to fill Transfer IDCW Enrollment Form available with the
ISC’s, distributors/ agents and also available on the website
www.kotakmf.com

The request for enrolment or cancellation for Transfer IDCW must be

submitted at least 7 days prior to the Record Date for the IDCW. In
case of the condition not being met, the enrolment would be
considered valid from the immediately succeeding Record Date of the
IDCW, provided the difference between the date of receipt of a valid
application for enrolment under Transfer IDCW and the next Record
Date for the IDCW is not less than 7 days.

The AMC / Trustee reserve the right to change/ modify the terms and
conditions of the Transfer IDCW on a prospective basis.

Switching
Unitholders of the Scheme have the option to switch-in or switch-out
all or part of their investment in the Scheme/ Plan/ Option to any other
Option of the Scheme or to any other Scheme / Plan/ Option of the
Fund.

A switch has the effect of redemption from a Scheme/Plan/ Option

and a purchase in the other Scheme/Plan/Option to which the
switching has been done and all the terms and conditions pertaining to
redemption and purchase of the Units of the respective Scheme shall
apply to a switch, unless otherwise specified.

Switch is affected by redeeming Units from the Scheme/ Plan/Option

and investing the net proceeds in the other Scheme/Plan/Option.

Trigger Facility

Unitholders of the Scheme have the option under this facility to

automatically redeem/ switch the units to any other scheme on the
occurrence of any one of the trigger option as specified by Unit holder

Trigger Options:
 Value Trigger (Amount based)
 Appreciation/Depreciation Trigger (% based)

Value Trigger: Under this option the investors will be given a choice
to indicate the exit trigger as and when investment value
increases/decreases by a particular sum.

90
Appreciation/Depreciation Trigger: Under this option the investors
will be given a choice to indicate the exit trigger as and when
investment value appreciates/depreciates by a particular percentage
(%) (Whole Numbers only e.g. 10%, 11%) of investment value.

Actions on occurrence of Trigger:

Additionally, the investor can choose any of the applicable actions on

occurrence of trigger:

 Redemption/Switch to the extent of capital appreciation or

 Redemption/Switch of Full amount or
 Redemption/Switch of Partial amount (%)

Trigger Facility will be available in the following specified

schemes:

The investors of the transferor scheme, on occurrence of trigger can

opt for switch in their investments in any of below mentioned
transferee schemes:

1. Kotak Liquid Fund

2. Kotak Money Market Fund

3. Kotak Savings Fund

4. Kotak Low Duration Fund

5. Kotak Banking & PSU Debt Fund

Notes:
 Trigger Facility will be a one-time facility which can be selected
by the investors. On occurrence of trigger and post completion of
corresponding action, the trigger facility will be automatically
deactivated.
 Trigger Facility will be available only for growth option. Incase
investor has opted for trigger facility and subsequently switches
from growth option to IDCW option, the trigger facility will be
automatically deactivated
 Minimum Investment in the facility – Rs. 20,000, and in multiples
of Rs 0.01 thereof.
 The minimum application amount criteria for switch into
transferee schemes will not be applicable.
 NAVs of the schemes are declared at the close of the business day
and hence value of the unit holder’s unit holdings based on the
end of day NAV will be considered as a base for activating the
triggers. Accordingly, all the redemptions/switches etc. will be
done on the day on which the trigger occurs. Applicable NAV of

91
 switch in schemes will be applied.
 All requests for registering or deactivating the trigger facility shall
be subject to an advance notice of 10 (Ten) business days.
Investors can deactivate the trigger facility by sending a written
request to the Investor Service Centres. Trigger facility shall be
applicable subject to exit load, if any, in the transferor schemes.
Exit load as applicable to redemption of units will also be
applicable to trigger facility.
 Investor cannot modify a Trigger registration once submitted.
Investor must cancel the existing Trigger option and enroll for a
fresh Trigger option.
 Trigger Facility is not available if the Folio / Certificate is under
Lien or marked “FROZEN” on the advice of I.T Authorities
/regulatory authorities/ Court or any other reason.
 All trigger option will be processed at transaction level. Since,
redemption is processed on First-in-First-out basis, investors
having multiple transactions in single folio and opting for trigger
facility will have to select the redemption action at transaction
level.
 Existing investors of the transferor scheme can opt for trigger
facility by completing the necessary formalities.
 Systematic Withdrawal Plan (SWP)/Systematic Transfer Plan
(STP) facilities will not be available for the investors, if they opt
for trigger facility.

Variable Transfer Plan:

It is a facility wherein an investor under a source scheme can opt to
transfer variable amounts linked to the value of his investments on the
date of transfer at pre-determined intervals from source scheme to the
growth option of target scheme.

It would be suitable for investors who are looking to invest higher

when the NAVs are lower and a fixed amount when the NAVs are
higher and take the benefit of rupee cost averaging.

Terms and conditions of VTP are as follows:

 An individual VTP Enrolment Form should be filled for each
Scheme / Plan / Option.
 VTP will be available in the following specified schemes:

Source All Open Ended Schemes of Kotak Mahindra

Schemes Mutual Fund except Exchange Traded Funds
and Kotak ELSS Tax Saver Fund. In case of
Kotak ELSS Tax Saver Fund, VTP will be
available for free units only.
Target All open ended equity schemes, open ended
Schemes hybrid schemes and open ended fund of fund

92
 schemes excluding exchange traded funds
and Kotak ELSS Tax Saver Fund.

 Calculation of VTP:
 The amount to be transferred under Variable Transfer Plan
from source scheme to target scheme shall be calculated using
the below formula -

Variable Transfer Plan amount shall be higher of the following:

 Fixed amount specified at the time of enrolment
 [fixed amount to be transferred per installment x number of
installments already executed, including the current
installment] - market value of the investments through
Variable Transfer Plan in the Target Scheme on the date of
transfer

Illustration:
The process has been explained below through an illustration for
calculation of VTP as on the date of 3rd Installment, with the help of
the abovementioned formula:
Fixed amount specified at the time of Rs.6000
enrolment (A)
or
As determined by the formula (B) (6000*3) – 11495 =Rs.6505
Whichever is higher. Hence, Rs.6505 is taken as investment
amount.

Ins Fixe NAV Amt. Varia Uni Tot Mark Targe

t. d as ble ts al et t
No Am deter Trans uni Value Value
. ount mine fer ts before
d by Amou transf
form nt er
ula
1 6,00 10.0 - 6,000 600 600 6,000 6,000
0 00
2 6,00 9.50 6,300 6,300 663 1,2 5,700 12,00
0 0 63. 0
16
3 6,00 9.10 6,505 6,505 715 1,9 11,495 18,00
0 0 78. 0
02
4 6,00 8.70 6,791 6,791 781 2,7 17,209 24,00
0 0 58. 0
62
5 6,00 8.10 7,655 7,655 945 3,7 22,345 30,00
0 0 03. 0
70
6 6,00 8.00 6,370 6,370 796 4,5 29,630 36,00
0 0 00. 0
00
7 6,00 8.00 6,000 6,000 750 5,2 36,000 42,00
93
 0 0 50. 0
00
8 6,00 8.30 4,425 6,000 723 5,9 43,575 48,00
0 0 72. 0
89
9 6,00 9.00 244 6,000 667 6,6 53,756 54,00
0 0 39. 0
56
10 6,00 10.0 - 6,000 600 7,2 66,396 60,00
0 00 6,396 39. 0
56
11 6,00 11.0 - 6,000 545 7,7 79,635 66,00
0 00 13,63 85. 0
5 01
12 6,00 12.0 - 2,378* 198 7,9 93,420 72,00
0 00 21,42 83. 0
0 18
Tot 72,0 72000
al 00
*residual amount in the Source scheme.
Note: The above example does not contain any TDS / STT deduction.
VTP determined will be net of applicable taxes.
 The minimum amount and tenure of VTP would be as
applicable to normal STP (Specified Transaction Period)
facility in respective schemes. Frequency of the VTP is
mentioned as below:

Particulars VTP Minimum no. of installments

Transaction and Minimum amount per
Dates instalment
Daily Every 6 installments of Rs. 1000/-
Business Day each and in multiples of
Re.0.01/- thereafter
Weekly Any day of the 6 installments of Rs. 1000/-
Week (except each and in multiples of
Saturday & Re.0.01/- thereafter
Sunday)
Monthly Any Date 6 installments of Rs. 1000/-
each and in multiples of
Re.0.01/- thereafter
Quarterly Any Date 6 installments of Rs.1000/-
each and in multiples of
Re.0.01/- thereafter

 In case of valid VTP enrolment forms received, indicating

choice of option other than the growth option in the Target
Scheme, it will be deemed as the growth option in the Target
Scheme and processed accordingly.

 In case the VTP commencement date is less than 10 calendar

days from the date of submission of registration form, the
same will commence from the 11th day from the date of
receipt of valid registration form. The AMC reserves the right
94
 to process the VTP registration request received for a period
lesser than 10 calendar days in the interest of unit holders.

 There is no maximum duration for VTP enrollment.

 The first VTP installment will be processed for the fixed

installment amount specified by the investor at the time of
enrolment. From the second installment onwards, the transfer
amount shall be computed as per formula stated above.

 If there is any other financial transaction (Purchase,

redemption or switch or Systematic Investment Plan)
processed in the target scheme during the tenure of VTP, the
VTP will be processed as normal STP for the rest of the
installments for a fixed amount, also there will not be any
change in number of installments.

 In case of VTP, if four consecutive installments fail, then VTP

will be ceased. In case the amount to be invested is not
available, the transaction will be rejected. After 4 consecutive
rejects, this facility will be cancelled.

 The VTP will be processed subject to the terms, applicable

loads (if any), of the Target scheme and Source Scheme.

 An investor can select this facility whereby the investor

chooses to transfer on a periodic basis a variable amount from
any “Source Scheme” into any “Target Scheme”.

 Once the VTP has been stopped, the unit holder needs to
provide a new request to start VTP again.

 All other terms & conditions of Systematic Transfer Plan are

also applicable to VTP.

SIP Pause Facility

SIP Pause facility gives option to pause the SIP for a period ranging
from 1 month up to 6 months in a respective scheme.
Basic Terms and conditions are as follows:
o The applicant will have the right to pause SIP which is directly
registered with KMMF.
o An investor who wishes to request for SIP Pause facility shall
duly fill the SIP Pause Form and submit the same at the office of
the Customer Service Centres of KMMF or CAMS Service
Centre.
o A valid form for SIP Pause facility will be processed within 15
days from the date of receipt of the same.
o SIP Pause facility would allow existing investor to ‘Pause’ their
SIP for a specified period of time i.e. Minimum 1 month and
Maximum 6 months.
o There would be no restriction on the number of times a SIP can be
paused.
o SIP Pause facility shall be available where ‘SIP Facility’ is
95
 available in the Schemes of KMMF.
o SIP Pause Facility is applicable only for AMC initiated debit
instructions i.e. ECS/NACH/Direct Debit, etc.
o SIP Pause Facility is not possible for investors having Standing
Instructions with banks.
o The SIP shall continue from the subsequent instalment after the
completion of pause period automatically.
o If the SIP pause period is coinciding with the SIP Top Up facility,
the SIP instalment amount post completion of pause period would
be inclusive of SIP Top Up amount. For e.g. SIP instalment
amount prior to pause period is ₹5,000/- and SIP Top Up amount
is ₹1,000/- . If the pause period is completed after date of SIP Top
Up, then the SIP instalment amount post completion of pause
period shall be ₹6,000/-.
o Incomplete SIP Pause Form in any respect would be liable to be
rejected.
o The investor hereby agrees to indemnify and not hold responsible,
the AMC and its employees, the R&T agent and the service
providers in case his/her bank is not able to effect any of the
payment instructions for whatsoever reason.

Smart Facility i.e. Smart Systematic Investment Plan

(SSIP”)/Smart Systematic Withdrawal Plan(“SSWP”)/Smart
Systematic Transfer Plan(“SSTP”) :

It is a facility wherein the investor(s) of Eligible scheme(s) can opt to

invest, transfer or withdraw a pre-determined sum at defined intervals.
The investor would be required to provide a Base SSIP/SSWP/SSTP
amount. Basis this Base amount, the amount for SSIP/SSWP/SSTP,
which will be linked to the percentage of Net Equity allocation (equity
and equity related securities net of hedged positions using derivatives)
of Kotak Balanced Advantage Fund (“KBAF”), will be calculated.

It could be suitable for investors who are looking to

invest/transfer/withdraw periodically, based on the different market
conditions, i.e. either higher, base or lower amount(s).

Sr. Particulars Eligible Scheme(s)

No
(B) (C)
(A)
I. Smart Systematic Investment Kotak Technology Fund
plan

II. Smart Systematic Withdrawal Kotak Technology Fund

Plan
III. Smart SSTP from All Open Ended Debt
Systematic (Transferor Schemes of KMMF, All
Transfer Plan Scheme) Open Ended Debt Index
(SSTP) Schemes of KMMF, Kotak
Equity Arbitrage Fund,
Kotak Debt Hybrid Fund
and Kotak Equity Savings
96
 Fund.

SSTP to Kotak Technology Fund

(Transferee
Scheme)

Key Features of Smart Facility:

 SSIP/SSWP/SSTP are market linked products.

 For those who wish to avail the said facility in case of existing
investors, SSIP/SSWP/SSTP Investment form(s) needs to be
submitted for each SSIP/SSWP/SSTP registration. In case of
SSIP, investors have to compulsorily mention folio number
details. New investors to fill and submit Investment
Application Forms along with SSIP/SSWP/SSTP Investment
forms.

 Individual Enrolment Form should be filled for each

SSIP/SSTP transaction. Separate forms to be used for each
SSWP option under each folio / scheme /plan. For multiple
SSWP option under same folio/ scheme/ plan separate forms
for each enrolment to be used.

 The details for SSIP, SSTP and SSWP are as mentioned

below:
Sr. Facility Frequency Days/Dates Minimum
No available number of
Investments/
Transfers/W
ithdrawals
1. Monthly
S Any date As per the SSIP
or
S from 1st to applicable
Quarterly
I 31st of a Scheme
P given Information
month/quar document limits
ter. of the Eligible
scheme (s)
2. Monthly
S  Any 6 SSTP
or
S Busines
Quarterly
T s Day
P (Monda
y-
Friday)
Any
Busines
s date
from 1st
to 31st
3. Monthly/
S 1 , 7th , 6
st
SSWP
Quarterly
S 14th , 21st
W & 25th
P

97
  The Base amount for SSIP/SSWP/SSTP:
 The investor has to mandatorily and clearly specify the Base
SSIP/SSWP/SSTP amount;
 The minimum Base SSIP/SSWP/SSTP amount would be the
minimum Systematic Investment Plan (SIP) /Systematic
Withdrawal Plan (SWP)/ Systematic Transfer Plan
(STP)[STP limits of transferor scheme] amount, as applicable
as per the Scheme Information documents of Eligible
Schemes
 Calculation of SSIP/SSTP amount:
 The amount to be invested in case of SSIP / to be transferred
from the Transferor scheme to Transferee scheme in case of
SSTP shall be basis the below mentioned details:
For SSIP/SSTP
(A) (B) (C)
Net Equity
Investor defined
Allocation of Default option
Amount
KBAF
2 times Base Investor defined
> 60% SSIP/SSTP Maximum SSIP/SSTP
Amount Amount
40%- 60%
Base SSIP/SSTP Base SSIP/SSTP
(Inclusive of 40
Amount Amount
and 60)
0.5 times Base Investor defined
< 40% SSIP/SSTP Minimum SSIP/SSTP
Amount Amount
For SSIP:
 If net equity allocation percentage of KBAF for the trigger
date is greater than 60%, then SSIP amount would be twice
the Base SSIP amount or Investor defined Maximum SSIP
amount, if specified by the investor.
 If the net equity allocation percentage for KBAF for the
trigger date is between 40% and 60% (including 40% and
60%), then Base SSIP amount would be triggered.
 If the net equity allocation percentage for KBAF for the
trigger date is less than 40%, then SSIP amount would be half
the Base SSIP amount or Investor defined Minimum SSIP
Amount, if specified by the investor.
For SSTP:
 If the net equity allocation percentage for KBAF for the
trigger date is greater than 60%, then SSTP amount would be
twice the Base SSTP amount or Investor defined Maximum
SSTP Amount, if specified by the investor.
 If the net equity allocation percentage of KBAF for the trigger
date is between 40% and 60% (including 40% and 60%), then
Base SSTP amount would be triggered.
 If the net equity allocation percentage of KBAF for the trigger
date is less than 40%, then SSTP amount would be half the
Base SSTP amount or Investor defined Minimum SSTP
Amount, if specified by the investor.
 In case of SSIP/SSTP, the investor has an option to mention
98
 the Maximum amount /Minimum amount In case no
amount(s) are mentioned by the investor, the amount to be
invested/transferred shall be as per the Default option, as per
details mentioned under column (B) above.
 In case of SSIP, the amount shall be derived based on the Net
Equity allocation percentage of KBAF on the Trigger date
and not on the SSIP date. Hence, the SSIP Amount will be of
T-10th day (i.e Trigger Date) assuming the instalment is
triggered 10 days before the SSIP date.
 In case of SSTP, the amount shall be derived based on the Net
Equity allocation percentage of KBAF on the Trigger date
and not as on the SSTP date. Hence, the SSTP amount will be
of T-1 day (i.e. Trigger Date) assuming the instalment is
triggered 1 day before the SSTP date. .
 In case of first SSIP it can be for any day of the month,
however subject to the condition that, there shall be a
minimum gap of 28 days between the first, second and
subsequent SSIP Instalments. Investor can choose any date
from 1st to 31st of a given month/quarter for the purpose of
SSIP. Kotak Mahindra Asset Management Company Limited
(AMC) reserves the right to register the SSIP in less than 28
days where One Time Mandate (OTM) is already available.
 For SSIP, if the Maximum amount exceeds the OTM
maximum amount, then the OTM maximum amount would be
triggered. In case if the Minimum amount is less than the
Minimum SSIP amount for the scheme, then the Minimum
SSIP amount will be considered.
 For SSTP in case if the Minimum amount is below the
Minimum SSTP amount of the Eligible (Transferor) scheme,
then the amount considered would be the minimum SSTP
amount of the Eligible (Transferor) scheme .
 In case of SSIP if the end date is not mentioned/ incase of
ambiguity the end date considered should be Dec, 2099. In
case of SSTP if the end date is not mentioned/ in case of
ambiguity the SSTP shall continue till availability of funds in
the source (Transferor) scheme. .
 In case of SSIP if the preference is not completely mentioned
by the investor or in case of any discrepancy the frequency
would be assumed as Monthly, 7th as the default date and
name of the scheme shall be as mentioned in the
accompanying investment application forms.
 In case of SSIP the Transaction charges, shall be applicable
only if the total commitment through SSIP amounts to 10,000
/- & above. In case of SSTP the transaction charge shall be
applicable only if the total commitment through SSTP
amounts to Rs.10, 000/- & above. In such cases the
transaction charge shall be recovered in first 3/4 successful
instalments.
 In case of SSIP an Account Statement confirming the unit
holder’s SSIP would be sent within 10 business days from the
date of first SSIP. Confirmation for subsequent SSIP’s would
be sent as Consolidated Account Statements (CAS) on
monthly basis.
99
  In respect of SSIP/SSTP enrolments made in any of the
eligible schemes, the load structure prevalent at the time of
enrolment shall be applicable to the investors during the
tenure of the SSIP/SSTP.
 In case of SSTP, registration request needs to be submitted to
the Computer Age Management Services Limited, Registrar
and transfer agent (“RTA”) of Kotak Mahindra Mutual Fund
(Mutual Fund) /AMC 7 days prior to the date of
commencement of SSTP. In case the SSTP commencement
date is less than 7 days from the date of submission of
registration form and the date opted for, then the same would
be registered for the next cycle. The AMC reserves the right
to process the SSTP registration request received for a period
lesser than 7 days in the interest of unit holders.
 Calculation for SSWP amount:
 The amount to be withdrawn in case of SSWP shall be basis
the details as mentioned below:
For SSWP
(D) (E) (F)
Net Equity
Investor defined
Allocation of Default option
Amount
KBAF
Investor defined
0.5 times Base
> 60% Minimum SSWP
SSWP Amount
Amount
40-60%
Base SSWP
(inclusive of 40 Base SSWP Amount
Amount
and 60)
2 times Base Investor defined
< 40%
SSWP Amount Maximum SSWP Amount

For SSWP:
 If the net equity allocation percentage of KBAF for the trigger
date is greater than 60%, then SSWP amount would be half
the Base SSWP amount or Investor defined Minimum SSWP
Amount, if specified by the investor.
 If the net equity allocation percentage of KBAF for the trigger
date is between 40% and 60% (including 40% and 60%), then
Base SSWP amount would be triggered.
 If the net equity allocation percentage of KBAF for the trigger
date is less than 40%, then SSWP amount would be twice the
Base SSWP amount or Investor defined Maximum SSWP
Amount, if specified by the investor.
a) In case of SSWP, the investor has an option to mention the
Minimum amount/Maximum amount. In case no amount(s) are
mentioned by the investor, the amount to be withdrawn shall be as
per Default option, as per details mentioned under column (E)
above.
b) The SSWP Amount shall be derived based on the Net Equity
allocation percentage of KBAF on the Trigger date and not as on
the SSWP date. Hence, the SSWP Amount will be of T-1 day (i.e.
Trigger Date) assuming the instalment is triggered 1 day before the
SSWP date.
100
c) If SSWP end date is not mentioned/ incase of ambiguity the same
shall be processed till there is available balance in the applicable
Eligible scheme.
d) In case of SSWP registration needs to be submitted to the RTA/
AMC 7 days prior to the date of commencement of SSWP. In case
the SSWP commencement date is less than 7 days from the date of
submission of registration form and the date opted for, then the
same would be registered for the next cycle. The AMC reserves the
right to process the SSWP registration request received for a period
lesser than 7 days in the interest of unit holders.
e) For SSWP, in case if the Minimum amount is below the Minimum
SSWP amount of the scheme , then the amount considered would
be the minimum SSWP amount of the scheme.
f) SSWP is not to be conceived as an assurance on part of Kotak
Mahindra Mutual Fund that the investor will manage to receive a
particular sum of money/ appreciation/ and/ or fixed % of sum.

1. The Base SSIP/SSTP/SSWP amount, Maximum

SSIP/SSTP/SSWP amount and Minimum SSIP/SSTP/SSWP
amount specified by the investor must be in multiples of Re. 1
(whole numbers only, no decimals eg: Rs. 20001, Rs.30015).

2. The SSIP/SSWP and SSTP shall be applicable for applications

routed through Mutual Fund’s website www.kotakmf.com and
physical applications submitted at specified investor service
centers of the RTA.

3. In case of first SSIP/SSWP/SSTP installment, it shall be

processed for the Base SSIP/SSTP/SSWP amount as specified by
the investor at the time of enrollment, and will not be based on the
Net equity allocation percentage of KBAF.

4. SSIP/SSWP shall be available only for Growth Option of Eligible

schemes. In case the unit holder has opted for SSWP facility and
subsequently switches from growth to Income Distribution cum
Capital Withdrawal option, the SSWP facility will be
automatically deactivated. In case of SSTP, it shall be applicable
for both IDCW and growth option for transferor scheme however
in case of transferee scheme it shall be applicable only for growth
option.

5. SSIP/SSWP/SSTP will not be available if the folio/PAN is under

Lien or marked as frozen on the advice of I.T
authorities/Regulatory authorities/ Court or any other reason.

6. All requests for modification or deactivation of SSIP shall be

subject to an advance notice of 28 (Twenty eight) calendar days,
whereas all requests for registration or deactivation of
SSTP/SSWP shall be subject to an advance notice of 7 (seven)
calendar days. The same can be done by sending a written request
to the RTA’s investor service centers.

7. In case of SSIP/SSTP/SSWP where unit holder has specified

101
 Minimum/ Maximum amount as well as ticked the option for
Default SSIP/SSTP/SSWP, then trigger will be as per the Default
SSIP/ SSTP/SSWP Amount.

8. Once the SSIP/SSWP has been stopped or discontinued for any

reason, the unit holder needs to provide a new request to re-start
SSIP/SSWP. In case of SSTP, if the same is stopped for any
reason a new request needs to be provided to re-start SSTP. A unit
holder cannot pause his existing SSIP.

9. In case of SSIP/ SSTP/ SSWP incorrect, incomplete, ambiguous

forms will be liable to be rejected.

10. All other terms & conditions of SIP/SWP/STP of the Eligible

schemes would also be applicable to SSIP/SSWP/SSTP, unless
and otherwise as specifically mentioned above.

11. Please refer the Key Information Memorandum and Scheme

Information Document of the respective Scheme(s) and Statement
of Additional Information for Applicable NAV, Risk Factors,
Load Structure and other information on the Scheme(s).
Kotak Mahindra Asset Management Company Limited, reserves the
right to add or delete any of the Eligible schemes in the list above.
Please read the terms and conditions/ General instructions in the
applicable forms before investing.
Accounts Statements Pursuant to Para 14.4 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023, the
investor whose transaction has been accepted by Kotak Mahindra
Asset Management Company Ltd. / Kotak Mahindra Mutual Fund
shall receive the following:

1. The AMC shall send an allotment confirmation specifying the

units allotted by way of email and/or SMS within 5 Business Days
of receipt of valid application/transaction to the Unit holders
registered e-mail address and/ or mobile number (whether units
are held in demat mode or in account statement form).

2. The holding(s) of the beneficiary account holder for units held in

demat mode will be shown in the statement issued by respective
Depository Participants (DPs) periodically.

3. A consolidated account statement (CAS) for each calendar month

on or before 15th of the succeeding month shall be sent by email
(wherever investor has provided email id) or physical account
statement where investor has not provided email id., across the
schemes of the mutual funds, to all the investors in whose folio(s)
transaction(s) has/have taken place during the month. The same
shall be sent by the AMC or by the Agencies appointed by the
AMC for non demat unit holders.

4. For the purpose of sending CAS, common investors across mutual

funds shall be identified by their Permanent Account Number
(PAN).

102
5. The CAS will not be received by the investors for the folio(s) not
updated with PAN details. The Unit holders are therefore
requested to ensure that the folio(s) are updated with their PAN
and email id. Such investors will get monthly account statement
from Kotak Mahindra Mutual Fund in respect of transactions
carried out in the schemes of Kotak Mahindra Mutual Fund during
the month.

6. Pursuant to SEBI Circular no. CIR /MRD /DP /31/2014 dated

November 12, 2014 requiring Depositories to generate and
dispatch a single consolidated account statement for investors
having mutual fund investments and holding demat accounts, the
following modifications are made to the existing guidelines on
issuance of CAS.

 Such Investors shall receive a single Consolidated Account

Statement (CAS) from the Depository.
 Consolidation shall be done on the basis of Permanent
Account Number (PAN). In case of multiple holding, it shall
be PAN of the first holder and pattern of holding.
 In case an investor has multiple accounts across two
depositories, the depository with whom the Demat account has
been opened earlier will be the default depository which will
consolidate the details across depositories and MF investments
and dispatch the CAS to the investor.
 The CAS will be generated on monthly basis.
 If there is any transaction in any of the Demat accounts of the
investor or in any of his mutual fund folios, depositories shall
send the CAS within fifteen days from the month end. In case,
there is no transaction in any of the mutual fund folios and
demat accounts, then CAS with holding details shall be sent to
the investor on half yearly basis.
 The dispatch of CAS by the depositories shall constitute
compliance by Kotak AMC/ Kotak Mahindra Mutual Fund
with the requirements under Regulation 36(4) of SEBI
(Mutual Funds) Regulations, 1996
 Further, a consolidated account statement shall be sent by
Depositories every half yearly (September/March), on or
before 21st day of succeeding month, providing the following
information:
- holding at the end of the six month
- The amount of actual commission paid by AMCs/Mutual
Funds (MFs) to distributors (in absolute terms) during the
half-year period against the concerned investor’s total
investments in each MF scheme. The term ‘commission’ here
refers to all direct monetary payments and other payments
made in the form of gifts / rewards, trips, event sponsorships
etc. by AMCs/MFs to distributors. Further, a mention may be
made in such CAS indicating that the commission disclosed is
gross commission and does not exclude costs incurred by
distributors such as Goods and Services tax (wherever
applicable, as per existing rates), operating expenses, etc.

103
 The scheme’s average Total Expense Ratio (in percentage
terms) along with the break up between Investment and
Advisory fees, Commission paid to the distributor and Other
expenses for the period for each scheme’s applicable plan
(regular or direct or both) where the concerned investor has
actually invested in
7. Such half-yearly CAS shall be issued to all MF investors,
excluding those investors who do not have any holdings in MF
schemes and where no commission against their investment has
been paid to distributors, during the concerned half-year period.

8. In case of a specific request is received from the investors, Kotak

Mahindra Asset Management Company Ltd./ Kotak Mahindra
Mutual Fund will provide the physical account statement to the
investors.
9. For Unitholders who have provided an e-mail address in KYC
records, the CAS will be sent by e-mail.

10. Any discrepancy in the Account Statement should be brought to

the notice of the Fund/AMC immediately. Contents of the
Account Statement will be deemed to be correct if no error is
reported within 30 days from the date of Account Statement.

Half Yearly Account Statement:

• Asset management company will send consolidated account
statement every half yearly (September/ March), on or
before twenty first day of succeeding month, detailing
holding at the end of the six month, across all schemes of all
mutual funds, to all such investors in whose folios no
transaction has taken place during that period. The Account
Statement shall reflect the latest closing balance and value
of the Units prior to the date of generation of the account
statement.
• The Account Statement shall reflect
- holding at the end of the six month
- The amount of actual commission paid by AMCs/Mutual
Funds (MFs) to distributors (in absolute terms) during the
half-year period against the concerned investor’s total
investments in each MF scheme. The term ‘commission’
here refers to all direct monetary payments and other
payments made in the form of gifts / rewards, trips, event
sponsorships etc. by AMCs/MFs to distributors. Further, a
mention may be made in such CAS indicating that the
commission disclosed is gross commission and does not
exclude costs incurred by distributors such as Goods and
Services tax (wherever applicable, as per existing rates),
operating expenses, etc.
• The scheme’s average Total Expense Ratio (in percentage
terms) along with the break up between Investment and
Advisory fees, Commission paid to the distributor and Other
expenses for the period for each scheme’s applicable plan
(regular or direct or both) where the concerned investor has
actually invested inSuch half-yearly CAS shall be issued to

104
 all MF investors, excluding those investors who do not have
any holdings in MF schemes and where no commission
against their investment has been paid to distributors, during
the concerned half-year period.
• The account statements in such cases may be generated and
issued along with the Portfolio Statement or Annual Report
of the Scheme.
• Alternately, soft copy of the account statements shall be
mailed to the investors’ e-mail address, instead of physical
statement, if so mandated.
“Transaction” shall include purchase, redemption, switch, Payout of
Income Distribution cum capital withdrawal option (IDCW),
Reinvestment of Income Distribution cum capital withdrawal option
(IDCW),systematic investment plan, systematic withdrawal plan,
systematic transfer plan and bonus transactions.
Income Distribution cum The IDCW payments shall be dispatched to the unitholders within
capital withdrawal option Seven working days of the date of record date.
(IDCW)
IDCW may also be paid to the Unitholder in any other manner viz.,
through ECS, Direct Credit, IMPS or NEFT in to Bank account,
RTGS facility, any other mode allowed by Reserve Bank of India or
through Banker's cheque, etc as the AMC may decide, from time to
time for the smooth and efficient functioning of the Scheme.
Plans Direct Plan and Regular Plan

Direct Plan: This Plan is only for investors who purchase /subscribe
Units in a Scheme directly with the Fund and is not available for
investors who route their investments through a Distributor.

Regular Plan: This Plan is for investors who wish to route their
investment through any distributor.

The portfolio of both plans will be unsegregated.

Choice of default option  If applicant does not indicate the choice of option between growth
and IDCW option in the application form then the fund will accept
it as an application for growth option under respective plan.

 If applicant does not indicate the choice of IDCW sub-option

between Payout of Income Distribution cum capital withdrawal
option (IDCW) and Reinvestment of Income Distribution cum
capital withdrawal option (IDCW) then the fund will accept it as an
application for Reinvestment of Income Distribution cum capital
withdrawal option (IDCW).

Redemption The redemption or repurchase proceeds shall be dispatched to the

unitholders within three working days from the date of receipt of
redemption requests or repurchase requests.

In accordance with para 14.1 and 14.2 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023, and
AMFI circular no. AMFI/ 35P/ MEM-COR/ 74 / 2022-23 dated
January 16, 2023, in exceptional situations mentioned below, the
scheme shall be allowed additional timelines for transfer of
105
redemption or repurchase proceeds to the unitholders.

Sr. No. Exceptional Situations Additional

Timelines allowed
(i) Payment of redemption proceeds Additional 2
through physical instruments working days
(cheque / DD) where electronic fund
transfer is not possible (such as old /
non-Core Banking account / IFSC
non-available records / IMPS failed
records for reasons like name
mismatch*, technical error / Investor
Bank not participating in Electronic
Fund transfers or failure of
electronic credit for any reason
which are at the bank’s end.

* Name mismatch typically occurs

where the bank account is held
jointly, but the 1st holder in MF
Folio may not be first holder in the
bank account or the investor’s name
in MF folio and his/her bank
account may not be exactly identical
e.g., MF folio is held by A+B, but
the bank account is in the name of B
+A; OR the name as per bank a/c &
MF folio are recorded a bit
differently e.g.,
(i) Given Name + Middle Name +
Surname
(ii) Given Name + Surname
(iii) Surname + Given Name etc.
Note: When payment is made
through cheque / DD, the investor’s
bank account details registered with
the RTA shall be printed on the
cheque/DD,
so that the amount is paid only
through the investor’s bank account
to mitigate the risk of fraudulent
encashment.

106
(ii) Redemption in case of funds where Additional 1
payout schedule of underlying working day after
instruments/ funds is different e.g., receiving
Domestic Fund of Funds, Overseas proceeds from
funds, Overseas FOF scheme, underlying instruments/ sc
wherein the redemption proceeds
can be paid after 1 day of payout {For physical
schedule payouts, i.e.,
issuance and
dispatch of
cheque/ DD,
additional days
as per (i) above
would also be
allowed, after
receiving
proceeds from
underlying
instruments/
schemes}.

For example, in
case of Domestic
FoFs, where
funds are received
on T+3 days,
timeline
applicable would
be –
a) T+4 days for
Electronic
payment; and
b) T+6 days
physical payout.
(iii) On such days, where it is a bank Additional 1
holiday in some or all the states, but working day
a business day for the stock following the
exchanges. bank holiday(s) in
the State where
the investor
has bank account.
(iv) Exceptional circumstances such as a In all such
sudden declaration of a business day exceptional
as a holiday or as a non- business situations, the
day due to any unexpected reason timelines
/ Force Majeure events. prescribed in 14.1
and 14.2 of SEBI
Master Circular
no.
SEBI/HO/IMD/I
MD-
PoD1/P/CIR/2023
/74 dated May 19,
107
 2023, 2022 shall
be counted from
the date the
situation becomes
normal.
(v) In all such cases where a request for In all such cases,
Change of Bank account has been the AMCs / RTAs
received just prior to (upto 10 days can make the
prior) OR simultaneously with redemption
redemption request. payment after the
cooling off period
of 10 days from
the date of receipt
of COBM.

The redemption
transaction shall
be processed as
per the applicable
NAV on the basis
time stamp.

The credit may

either be given in
the existing bank
account or the new
bank account post
due
diligence within 1
working day after
cooling off
period.
(vi) Need for additional due diligence in Additional 3
instances such as Transmission working days
reported in one fund, but not in the
current fund, proceedings by
Income Tax authorities,
Folio under lock/bank lien etc.

Redemption proceeds will be paid by cheques, marked "Account

Payee only" and drawn in the name of the sole holder/first-named
holder (as determine by the records of the Registrar). The Bank Name
and No., as specified in the Registrar's records, will be mentioned in
the cheque, which will be payable at the city of the bank branch of the
Unitholder. If the Unitholder resides in any other city, he will be paid
by a Demand Draft payable at the city of his bank branch.

Redemption cheques will generally be sent to the Unitholder's address,

(or, if there is more than one joint holder, the address of the first-
named holder) as per the Registrar's records, by courier.

108
 Redemption proceeds may also be paid to the Unitholder in any other
manner viz., through ECS, Direct Credit, IMPS, NEFT in to Bank
account, RTGS facility, any other mode allowed by Reserve Bank of
India or through Banker's cheque, etc, as the AMC may decide, from
time to time for the smooth and efficient functioning of the Schemes.

Delay in payment of The Asset Management Company shall be liable to pay interest to the
redemption / repurchase / unitholders at such rate as may be specified by SEBI for the period of
Income Distribution cum such delay (presently @ 15% per annum).
capital withdrawal
(IDCW) proceeds
Unclaimed Redemption/ In accordance with para 14.3 of SEBI Master Circular no.
Income Distribution cum SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023, the
capital withdrawal unclaimed Redemption amount and IDCW amount that are currently
(IDCW) Amount allowed to be deployed by the Mutual Fund only in call money market
or money market Instruments, shall also be allowed to be invested in a
separate plan of only Overnight scheme / Liquid scheme / Money
Market Mutual Fund scheme floated by Mutual Funds specifically for
deployment of the unclaimed amounts.

Provided that such schemes where the unclaimed redemption and

IDCW amounts are deployed shall be only those Liquid scheme /
Money Market Mutual Fund schemes which are placed in A-1 cell
(Relatively Low Interest Rate Risk and Relatively Low Credit Risk) of
Potential Risk Class matrix as per para 17.5 of SEBI Master Circular
no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023.

AMCs shall not be permitted to charge any exit load in this plan and
TER (Total Expense Ratio) of such plan shall be capped as per the
TER of direct plan of such scheme or at 50bps whichever is lower.
Investors who claim these amounts during a period of three years from
the due date shall be paid initial unclaimed amount along with the
income earned on its deployment. Investors who claim these amounts
after 3 years, shall be paid initial unclaimed amount along with the
income earned on its deployment till the end of the third year. After
the third year, the income earned on such unclaimed amounts shall be
used for the purpose of investor education. AMC shall play a proactive
role in tracing the rightful owner of the unclaimed amounts
considering the steps suggested by regulator vide the referred circular.
Bank A/c Details As per the directives issued by SEBI it is mandatory for an investor to
declare his/her bank account number. To safeguard the interest of
Unitholders from loss or theft of their refund orders/redemption
cheques, investors are requested to provide their bank details in the
Application Form.

In case an existing Unitholder is submitting a request for Change in

his Bank Details, he needs to submit an old and new bank account. In
absence of the same, the request for Change in Bank Mandate is liable
to be rejected

Investors have an option of registering their bank accounts, by

submitting the necessary forms & documents. At the time of
redemption, investors can select the bank account to receive the
amount.
109
The policy regarding Not Applicable
reissue of repurchased
units, including the
maximum extent, the
manner of reissue, the
entity (the scheme or the
AMC) involved in the
same.
The Asset Management Company shall, on production of instrument
Restrictions, if any, on the
of transfer together with relevant documents, register the transfer
right to freely retain or
dispose of units being within 30 days from the date of such production. The Units of the
offered. Scheme held in the dematerialised form will be fully and freely
transferable in accordance with the provisions of SEBI (Depositories
and Participants) Regulations, 1996 as may be amended from time to
time and as stated in Para 14.4.4 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023. Also,
when a person becomes a holder of the units by operation of law or
upon enforcement of pledge, then the AMC shall, subject to
production/submission of such satisfactory evidence, which in its
opinion is sufficient, effect the transfer, if the intended transferee is
otherwise eligible to hold the units.
MF utility services for Kotak Mahindra Asset Management Company Ltd (“the AMC”) has
Investors entered into an Agreement with MF Utilities India Private Limited
(“MFUI”), a “Category II – Registrar to an Issue” under SEBI
(Registrars to an Issue and Share Transfer Agents) Regulations, 1993,
for usage of MF Utility (“MFU”) - a shared services initiative of
various Asset Management Companies, which acts as a transaction
aggregation portal for transacting in multiple Schemes of various
Mutual Funds with a single form and a single payment instrument.

Accordingly, all financial and non-financial transactions pertaining to

Schemes of Kotak Mahindra Mutual Fund can be done through MFU
either electronically on www.mfuonline.com as and when such a
facility is made available by MFUI or physically through the
authorized Points of Service (“POS”) of MFUI with effect from the
respective dates as published on MFUI website against the POS
locations. The list of POS of MFUI is published on the website of
MFUI at www.mfuindia.com as may be updated from time to time.
The Online Transaction Portal of MFU i.e. www.mfuonline.com and
the POS locations of MFUI will be in addition to the existing Official
Points of Acceptance (“OPA”) of the AMC.

The uniform cut-off time as prescribed by SEBI and as mentioned in

the SID / KIM of respective the scheme shall be applicable for
applications received on the portal of MFUI i.e. www.mfuonline.com.
However, investors should note that transactions on the MFUI portal
shall be subject to the eligibility of the investors, any terms &
conditions as stipulated by MFUI / Mutual Fund / the AMC from time
to time and any law for the time being in force.

Investors are requested to note that, MFUI will allot a Common

Account Number (“CAN”), a single reference number for all
investments in the Mutual Fund industry, for transacting in multiple

110
 Schemes of various Mutual Funds through MFU and to map existing
folios, if any. Investors can create a CAN by submitting the CAN
Registration Form (CRF) and necessary documents at the MFUI POS.
The AMC and / or its Registrar and Transfer Agent (RTA) shall
provide necessary details to MFUI as may be needed for providing the
required services to investors / distributors through MFU. Investors
are requested to visit the websites of MFUI or the AMC to download
the relevant forms.
MF Central Pursuant to para 16.6 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023on
RTA inter-operable Platform for enhancing investors’ experience in
Mutual Fund transactions / service requests, the Qualified R&T Agent,
Kfin Technologies Private Limited and Computer Age Management
Services Limited (CAMS) have jointly developed MFCentral – A
digital platform for Mutual Fund investors.

MFCentral is created with an intent to be a one stop portal / mobile

app for all Mutual fund investments and service-related needs that
significantly reduces the need for submission of physical documents
by enabling various digital / phygital services to Mutual fund investors
across fund houses subject to applicable T&Cs of the Platform.

MFCentral may be accessed using https://mfcentral.com/ and a Mobile

App in future.

Any registered user of MFCentral, requiring submission of physical

document as per the requirements of MFCentral, may do so at any of
the designated Investor Service centres or collection centres of CAMS
or Kfintech.
Waiver of Minimum Pursuant to para 6.10 of SEBI Master Circular no.
Subscription Amount SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023 on
Alignment of interest of Designated Employees of Asset Management
Companies (AMCs) with the Unitholders of the Mutual Fund
Schemes has, inter alia mandated that a minimum of 20% of gross
annual CTC net of income tax and any statutory contributions of the
Designated Employees of the AMCs shall be invested in units of the
scheme(s) of the Fund in which they have a role/oversight.

Accordingly, the criteria of minimum investment amounts would not

apply for such Investments made by Designated Employees of the
Kotak Mahindra Asset Management Company Limited.in compliance
with the aforesaid circular (s).
Central KYC (CKYC) The Government of India has authorized the Central Registry of
Securitization and Asset Reconstruction and Security interest of India
(CERSAI, an independent body), to perform the function of Central
KYC Records Registry including receiving, storing, safeguarding and
retrieving KYC records in digital form.

Accordingly, in line with SEBI circular nos. CIR/MIRSD/66/2016

dated July 21, 2016 and CIR/MIRSD/120/2016 dated November 10,
2016 on Operationalization of Central KYC (CKYC), read with AMFI
Best Practice Guidelines circular no. 68/2016-17 dated December 22,
2016, new individual investors investing into the Fund are requested

111
 to note the following changes, with effect from February 1, 2017.

1. New individual investors who have never done KYC under KRA
(KYC Registration Agency) regime and whose KYC is not registered
or verified in the KRA system, will be required to fill the new CKYC
form while investing with the Fund.

2. If any new individual investor uses the old KRA KYC form which
does not have all the information needed for registration with CKYC,
such investor will be required to either fill the new CKYC form or
provide the missing/additional information using the Supplementary
CKYC form.

Investors who have already completed CKYC and have a KYC

Identification Number (KIN) from the CKYC Registry can invest in
schemes of the Fund quoting their 14 digit KIN in the application
form. Further, in case the investor’s PAN is not updated in CKYC
system, a self-certified copy of PAN Card will need to be provided.

This is subject to client completing the KYC requirements as per SEBI

in addition to CKYC.
Foreign Account Tax FATCA is an acronym for Foreign Account Tax Compliance Act
Compliance (“FATCA”), a United States Federal law to increase compliance by
US taxpayers and is intended to bolster efforts to prevent tax evasion
by the US taxpayers with offshore investments. The Government of
India and the United States of America (US) have reached an
agreement in substance on the terms of an Inter- Governmental
Agreement (IGA) and India is now treated as having an IGA in effect
from April 11, 2014. The AMC/Fund is classified as a ‘Foreign
Financial Institution’ (Investment Entity as per Annexure 1(i)) under
the FATCA provisions. In accordance with FATCA provisions, the
AMC/Mutual Fund will be required to undertake due diligence
process and identify US reportable accounts and collect such
information/documentary evidences of the US and/or non-US status of
its investors/Unit holders and disclose such information (through its
agents or service providers) as far as may be legally permitted about
the holdings, investment returns and/or to US Internal Revenue
Service (IRS) or the Indian Tax Authorities, as the case may be for the
purpose of onward transmission to the IRS pursuant to the new
reporting regime under FATCA.

112
 C. Periodic Disclosures

Net Asset Value The NAVs of the Scheme will be calculated and updated on every Business
day on AMFI’s website (www.amfiindia.com) and Kotak Mahindra Mutual
This is the value per Fund (www.kotakmf.com) by 11.00 p.m. The First NAV of the scheme shall
unit of the scheme be declared within 5 working days from the date of allotment.
on a particular day.
You can ascertain In case the scheme has exposure in overseas securities/Mutual Fund units, the
the value of your NAV will be published post receipt of the Price/ NAV of the overseas
investments by investments. Based on the current scheme exposure, the NAV will be
multiplying the published on the website of AMFI (www.amfiindia.com) and Kotak Mahindra
NAV with your unit Mutual Fund (www.kotakmf.com) by 10.00 a.m. of the following business
balance. day.

Delay in uploading of NAV beyond the aforesaid respective timing on every

business day shall be explained in writing to AMFI. In case the NAVs are not
available before the commencement of business hours on the following
business day due to any reason, a press release for revised NAV shall be
issued.

Unitholders may avail the facility to receive the latest available NAVs through
SMS by submitting a specific request in this regard to the AMC/Mutual Fund.
Also, information regarding NAVs can be obtained by the Unit holders /
Investors by visiting the nearest ISC.

In terms of SEBI regulations, a complete statement of the Scheme portfolio

will be sent to all unitholders, within ten days from the close of each month /
half-year whose email addresses are registered with the Mutual Fund.

The portfolio of the scheme (alongwith ISIN) shall also be disclosed on the
website of Mutual Fund (www.kotakmf.com) and on the website of AMFI
(www.amfiindia.com) on a monthly and half-yearly basis within 10 days from
the close of each month/ half-year respectively in a user-friendly and
downloadable spreadsheet format.
Monthly and Half The Mutual Funds/ AMCs, shall disclose portfolio (along with ISIN) as on
yearly Disclosures: monthly, half-yearly basis for all the schemes on the website of the Kotak
Portfolio / Mahindra Mutual Fund (www.kotakmf.com) and on the website of AMFI
Financial Results (www.amfiindia.com) within 10 days from the close of each month/ half-year
respectively in a user-friendly and downloadable spreadsheet format.
This is a list of
securities where the In accordance with Para 5.1 and 5.3 of SEBI Master Circular no.
corpus of the SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023effective from
scheme is currently October 01, 2021,unitholders whose e-mail addresses are registered, Mutual
invested. The Funds/AMC shall send the details of the scheme portfolio including the
market value of scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark
these investments is while communicating the fortnightly, monthly and half-yearly statement of
also stated in scheme portfolio via email within 5 days of every fortnight for debt schemes,
portfolio 10 days from the close of each month for other schemes and 10 days from the
disclosures. close of half-year for all schemes. AMCs shall provide a link to investors to
their registered email to enable the investor to directly view/download only the
portfolio of schemes subscribed by the said investor. The Mutual Fund / AMC
shall provide a physical copy of statement of its scheme portfolio, without
charging any cost, on specific request received from a unit holder. An

113
 advertisement shall be published every half-year disclosing the hosting of the
half-yearly statement of the schemes on website of Kotak Mahindra Mutual
Fund and on the website of AMFI and the modes such as SMS, telephone,
email or written request (letter) through which a unitholder can submit a
request for a physical or electronic copy of the statement of scheme portfolio.
Such advertisement shall be published in the all India edition of at least two
daily newspapers, one each in English and Hindi.
Half Yearly The soft copy of unaudited financial results shall within one month from the
Results close of each half year i.e. 31st of March and the 30th of September, be hosted
on the website www.kotakmf.com and will be sent to AMFI for posting on its
website www.amfiindia.com.

Also an advertisement of hosting of the unaudited results shall be published in

one English daily newspaper circulating in the whole of India and in a
newspaper published in the language of the region where the Head Office of
the Mutual Fund is situated.
Annual Report Pursuant to Regulation 56 of SEBI (Mutual Funds) Regulations, 1996 read
with Para 5.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD-
PoD1/P/CIR/2023/74 dated May 19, 2023 and SEBI Mutual Fund (Second
Amendment) Regulation 2018, the scheme wise annual report or abridged
summary thereof will be hosted on the website in machine readable format of
the Kotak Mahindra Mutual Fund (www.kotakmf.com) and on the website of
AMFI, immediately after approval in Annual General Meetings within a
period of four months, from the date of closing of the financial year (31st
March). The AMCs shall display the link prominently on the website of the
Kotak Mahindra Mutual Fund (www.kotakmf.com) and make the physical
copies available to the unitholders, at their registered offices at all times. Unit
holders whose e-mail addresses are not registered will have to specifically ‘opt
in’ to receive physical copy of scheme wise annual report or abridged
summary thereof. The unit holders may request for a physical copy of scheme
annual reports at a price and the text of the relevant scheme by writing to the
Kotak Mahindra Asset Management Company Ltd. / Investor Service Centre /
Registrar & Transfer Agents. The Mutual Fund / AMC shall provide a
physical copy of abridged report of the annual report, without charging any
cost, on specific request received from a unit holder. An advertisement shall
be published every year disclosing the hosting of the scheme wise annual
report on website of Kotak Mahindra Mutual Fund and on the website of
AMFI and the modes such as SMS, telephone, email or written request (letter)
through which a unitholder can submit a request for a physical or electronic
copy of the scheme wise annual report or abridged summary thereof. Such
advertisement shall be published in the all India edition of at least two daily
newspapers, one each in English and Hindi.
Risk-o-meter In accordance with Para 17.4 of SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023:

The Risk-o-meter shall have following six levels of risk:

i. Low Risk
ii. Low to Moderate Risk
iii. Moderate Risk
iv. Moderately High Risk
v. High Risk and
vi. Very High Risk

114
 The evaluation of risk levels of a scheme shall be done in accordance with the
aforesaid circular.

Any change in risk-o-meter shall be communicated by way of Notice cum

Addendum and by way of an e-mail or SMS to unitholders. The risk-o-meter
shall be evaluated on a monthly basis and the risk-o-meter alongwith portfolio
disclosure shall be disclosed on the AMC website as well as AMFI website
within 10 days from the close of each month.

The Product Labelling assigned during the NFO is based on internal

assessment of the scheme characteristics or model portfolio and the same may
vary post NFO when the actual investments are made.
Scheme Summary In accordance with SEBI letter dated December 28, 2021 and AMFI emails
Document (SSD) dated March 16, 2022 and March 25, 2022, Scheme summary document for all
schemes of Kotak Mahindra Mutual Fund in the requisite format (pdf,
spreadsheet and machine readable format) shall be uploaded on a monthly
basis i.e. 15th of every month or within 5 working days from the date of any
change or modification in the scheme information on the website of Kotak
Mahindra Mutual Fund i.e. www.kotakmf.com, AMFI i.e.
www.amfiindia.com and Registered Stock Exchanges i.e. National Stock
Exchange of India Limited and BSE Limited.

Associate Please refer to Statement of Additional Information (SAI).

Transactions
Taxation: TDS and Taxability applicable in case of Dividend distributed to Unit
The information is holders
provided for general
information TDS Rates Taxability
purposes only.
Threshold Section Base Rate Base rate
However, in view
limit
of the individual
nature of tax RESIDENT
implications, each
Resident Rs.5,000 194K 10% Slab rates plus
investor is advised
Unit applicable
to consult his or her
Holder surcharge and
own tax adviser
cess (Refer
with respect to the
Note 1)
specific tax
implications arising NON-RESIDENT UNIT HOLDERS (subject to DTAA benefits)
out of his or her
participation in the (1)FII/FPI NILs 196D r.w.s 20% plus 20%
scheme. 115AD(1)(a)(i) applicable plus applicable
surcharge surcharge and
and cess cess (Refer
(Refer note Note 1)
1)

(2) Foreign company/corporates

115
 Purchase NIL 196A 20% 40%
in Indian plus plus applicable
Rupees applicable surcharge and
surcharge cess (Refer
and cess Note 1)
(Refer note
1)
Purchase NIL 196A r.w.s 20% 20%
in 115A plus plus applicable
Foreign applicable surcharge and
Currency surcharge cess (Refer
and cess Note 1)
(Refer note
1)
(3) Others
Purchase NIL 196A 20% At slab rates
in Indian plus applicable
Rupees applicable plus applicable
surcharge surcharge and
and cess cess (Refer
(Refer note Note 1)
1)
Purchase NIL 196A r.w.s 20% 20%
in 115A plus plus applicable
Foreign applicable surcharge and
Currency surcharge cess (Refer
and cess Note 1)
(Refer note
1)

Taxability applicable in case of Capital Gains to Unit holders

Unit Holders

Taxation Resident Non-resident (Including

FPI)
Short Term 15% plus applicable 15% plus applicable
Capital Gain surcharge & HE cess surcharge & HE cess (Refer
(Refer note 1) note 1)
Long Term 10% without indexation 10% (without indexation &
Capital Gain benefit and without without foreign currency
(Refer note 2 foreign currency fluctuation benefit) plus
below) conversion benefit plus applicable surcharge & HE
applicable surcharge & cess (Refer note 1)
HE cess (Refer note 1)

Note (1) : The above rates would be increase by surcharge of:

In case of foreign companies;
2% where the total income exceeds Rs. 10,000,000 but less than / equal to Rs.
100,000,000
5% where the total income exceeds Rs. 100,000,000
In case of resident domestic corporate unit holders;
7% where the total income exceeds Rs. 10,000,000 but less than / equal to Rs.
116
100,000,000 or
12% where the total income exceeds Rs. 100,000,000
10% where domestic company is eligible & exercises the option granted u/s
115BAA or 115BAB of the Act.
In case of non-corporate resident unit holders being partnership firms
covered under Indian Partnership Act, 1932/ Limited liability partnership
covered under Limited Liability Partnership Act, 2008:
- 12% where the total income exceeds Rs.10,000,000

In case of resident and non-resident non-corporate unit holders being

individual, HUF, AOP, BOI ,artificial juridical person and FII/FPI in
form of individual, HUF, AOP, BOI, artificial juridical person (old
regime of taxation);

Income Surcharge Rates

Total Other Income Other Income (i.e Capital gains covered
Income (i.e Income Income other than under section 111A,
other than Capital gains covered section 112A, section
Capital gains under section 111A, 112,&115AD(1)(b)&
covered under section 112A, section company dividend.
section 111A, 112, 115AD(1)(b)&
section 112A, company dividend).
section 112,
115AD(1)(b)&
company
dividend)

Upto Nil Nil

50
Lakh
More 10% 10%
than 50
Lakh
up to 1
Cr
More 15% 15%
than 1
Cr but
up to
2Cr
More Up to 2 cr 15% 15%
than 2
Cr
More than 2 cr 25% 15%
but up to 5 cr
More than 5Cr 37% 15%

In case of resident and non-resident non-corporate unit holders being

individual, HUF, AOP, BOI, artificial juridical person and FII/FPI in
form of individual, HUF, AOP, BOI, artificial juridical person (opting
tax regime u/s 115BAC of the Act);
117
 Income Surcharge Rates
Total Other Income Other Income (i.e Capital gains
Income (i.e Income Income other than covered under
other than Capital gains covered section 111A,
Capital gains under section 111A, section 112A,
covered under section 112A, section section
section 111A, 112, 115AD(1)(b)& 112,&115AD(1)(b)&
section 112A, company dividend). company dividend.
section 112,
115AD(1)(b)&
company
dividend)

Upto Nil Nil

50
Lakh
More 10% 10%
than 50
Lakh
up to 1
Cr
More 15% 15%
than 1
Cr but
up to
2Cr
More Up to 2 cr 15% 15%
than 2
Cr
More than 2 cr 25% 15%

Further, an additional cess of 4% (Health& education Cess on income-tax)

would be charged on the amount of tax inclusive of surcharge as applicable,
for all unit holders.
Further, the rates stated above for Non-residents are further subject to DTAA
benefits, if applicable.

Note 2) :Long term capital gain:- Any transfer of equity oriented fund
units(refer Note 3) on or after 1 April 2018, shall not be exempt under section
10(38).

Long term capital gains in excess of Rs. 1 lakh shall be taxable @ 10% plus
surcharge (as per note 1) plus health & education cess @ 4%.
The capital gain will be computed without giving effect to the 1st and 2nd
proviso to section 48 in the manner laid down under the section i.e. without
indexation benefit and without foreign currency conversion benefit
Cost for units acquired prior to 1 Feb 2018 and sold on or after 1 April 2018
will be computed as under:
Higher of:
Cost of acquisition or

118
 Lower of:
FMV of asset on 31 Jan 2018
Full value of consideration accruing as a result of transfer

Note 3) equity oriented fund" means a fund set up under a scheme of a mutual
fund specified under clause (23D) of section 10 and,—
(i) in a case where the fund invests in the units of another fund which is
traded on a recognised stock exchange,—
(A) a minimum of ninety per cent of the total proceeds of such fund is
invested in the units of such other fund; and
(B) such other fund also invests a minimum of ninety per cent of its total
proceeds in the equity shares of domestic companies listed on a recognised
stock exchange; and
(ii) in any other case, a minimum of sixty-five per cent of the total proceeds of
such fund is invested in the equity shares of domestic companies listed on a
recognised stock exchange:
Provided that the percentage of equity shareholding or unit held in respect of
the fund, as the case may be, shall be computed with reference to the annual
average of the monthly averages of the opening and closing figures;

Note 4) Under section 10(23D) of the Income tax Act, 1961, income earned
by a Mutual Fund registered with SEBI is exempt from income tax.

Note 5) Since, the scheme in this SID, qualify as an equity oriented fund,
Securities Transaction tax is payable by the unit holders on redemption /
repurchase of units by the Fund at 0.001% of sale/redemption value. The STT
is payable by the seller and is not deductible while computing Capital gains
income.

For further details on taxation please refer to the clause on taxation in the SAI.
Tax Status of For all new purchases, the AMC reserves the right to update the tax status of
Investor investors on a best effort basis by referring to the information furnished on the
application form by the applicant(s) and as per the documents provided for
Permanent Account Number/ Bank Account details/KYC documents or such
other documents submitted along with the application form. The AMC will
rely on the information provided in feed files by entities like Channel Partners
/ MFU / Stock exchange platforms. The AMC shall not be responsible for any
claims made by the investor/ third party on account of updation of tax status
basis the stated process.
Stamp Duty Levying of Stamp Duty on Mutual Fund Transactions -
Pursuant to Notification No. S.O. 4419(E) dated December 10, 2019 and
Notification No. G.S.R 226 (E) dated March 30, 2020 issued by Department
of Revenue, Ministry of Finance, Government of India, read with Part I of
Chapter IV of Notification dated February 21, 2019 issued by Legislative
Department, Ministry of Law and Justice, Government of India on the
Finance Act, 2019 and clarification letter no:
SEBI/IMD/DF2/OW/P/2020/11099/1 issued by Securities and Exchange
Board of India dated June 29, 2020,a stamp duty @ 0.005% would be levied
on all applicable mutual fund transactions.

Accordingly, pursuant to levy of stamp duty, the number of units allotted on

purchase transactions (including reinvestment IDCW and Switch in) to the
unitholders would be reduced to that extent.

119
Investor services Details of Investor Relations Officer of the AMC:
Ms. Sushma Mata
Kotak Mahindra Asset Management Company Limited
6th Floor, Kotak Towers, Building No.21,
Infinity Park, Off: Western Express Highway
Goregaon - Mulund Link Road, Malad (East), Mumbai 400097
Phone Number: 18003091490 / 044-40229101
Fax: 6708 2213
e-mail: [email protected]

D. Computation of NAV

The AMC shall compute NAV of the Units of the Scheme by dividing the net assets of the Scheme by
the number of Units outstanding on the valuation date.

The AMC shall value its investments according to the valuation norms (Valuation Policy includes
computation of NAV in case of investment in foreign securities), as specified in the Eighth Schedule
of the Regulations, or such guidelines / recommendations as may be specified by SEBI from time to
time. The broad valuation norms are detailed in the Statement of Additional Information.

NAV of Units under the Scheme will be calculated as shown below:

Market or Fair Value of Current assets including Current Liabilities and

NAV = Scheme’s investments + Accrued Income - provisions including
accrued expenses
No. of Units outstanding under the Scheme/Option.

NAV for the Schemes and the repurchase prices of the Units will be calculated and announced at the
close of each Business Day. The NAV shall be computed upto three decimals. The NAV of Direct
Plan will be different than the NAV of Regular Plan.

Computation of NAV will be done after taking into account IDCWs paid, if any, and the distribution
tax thereon, if applicable. Therefore, once IDCWs are distributed under the IDCW Option, the NAV
of the Units under the IDCW Option would always remain lower than the NAV of the Units issued
under the Growth Option. The income earned and the profits realized in respect of the Units issued
under the Growth Option remain invested and are reflected in the NAV of the Units.

Illustration for Computation of NAV:

Current
Market or Fair Liabilities and
Current assets
Value of provisions
including
Scheme’s including
Accrued Income
investments accrued
NAV= + - expenses
No. of Units outstanding under the Scheme/Option.

10.109= 10,01,00,000.00 + 10,00,000.00 - 10,000.00 10,10,90,000.00

1,00,00,000.00 1,00,00,000.00

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V. FEES AND EXPENSES

This section outlines the expenses that will be charged to the scheme.

A. New Fund Offer (NFO) Expenses

These expenses are incurred for the purpose of various activities related to the NFO like marketing and
advertising, Brokerage, registrar expenses, printing and stationary, bank charges etc.

The New Fund Offer expenses of the scheme will be borne by the AMC.

B. Annual Scheme Recurring Expenses

Total Expense Ratio is the total of ongoing fees and operating expenses charged to the scheme,
expressed as a percentage of the scheme’s daily net assets.

These fees and expenses include Investment Management and Advisory Fee charged by the AMC,
Registrar and Transfer Agents’ fee, brokerage/commission, marketing and selling costs etc.

As per Regulation 52(6)(c) of SEBI (MF) Regulations, the total expense ratio of the scheme excluding
issue or redemption expenses, whether initially borne by the mutual fund or by the asset management
company, but including the investment management and advisory fee shall be subject to the following
limits:-

Assets under management Slab (In Rs. crore) Total expense ratio limits
on the first Rs.500 crores of the daily net assets 2.25%
on the next Rs.250 crores of the daily net assets 2.00%
on the next Rs.1,250 crores of the daily net assets 1.75%
on the next Rs.3,000 crores of the daily net assets 1.60%
on the next Rs.5,000 crores of the daily net assets 1.50%
on the next Rs.40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for
every increase of Rs. 5,000 crores of daily
net assets or part thereof.
on balance of the assets 1.05%

Total Expense Ratio for the scheme

The AMC has estimated following recurring expenses, as summarized in the below table for the
scheme. Total expense ratio of the Scheme (including investment and advisory fees) will be subject to
the maximum limits (as a percentage of Daily Net Assets of the Scheme) as per Regulation 52(6) &
(6A), as amended from time to time, with no sub-limit on investment and advisory fees.

% of daily Net Assets for

Expenses Structure Regular Plan of
Kotak Technology Fund
Investment Management and Advisory Fees
Trustee fee
Upto 2.25%
Audit fees
Custodian fees
RTA Fees
Marketing & Selling expense incl. agent commission
Cost related to investor communications
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 Cost of fund transfer from location to location
Cost of providing account statements and IDCW redemption cheques
and warrants
Costs of statutory Advertisements
Cost towards investor education & awareness (at least 2 bps)
Brokerage & transaction cost over and above 12 bps and 5 bps for cash
and derivative market trades resp.
Goods and Services tax on expenses other than investment and advisory
fees
Goods and Services tax on brokerage and transaction cost
Other Expenses
Maximum total expense ratio (TER) permissible under Regulation
Upto 2.25%
52 (6)(c) (i) and (6) (a)
Additional expenses under regulation 52 (6A) (c) # Upto 0.05%
Additional expenses for gross new inflows from specified cities Upto 0.30%
# The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is not
levied/ not applicable.

With reference to SEBI’s letter no. SEBI/HO/ IMD/ IMD-SEC-3/ P/ OW/ 2023/ 5823/ 1 dated
February 24, 2023, and AMFI Circular No. CIR/ ARN-23/ 2022-23 March 07, 2023, the B-30
incentive structure for new inflows has been kept in abeyance with effect from March 01, 2023 till the
incentive structure is appropriately re-instated by SEBI with necessary safeguards.

Expense Structure for Direct Plan – The annual recurring expenses will be within the limits
specified under the SEBI (Mutual Funds) Regulations, 1996.

Commission/ Distribution expenses will not be charged in case of Direct Plan. The TER of Direct
Plan will be lower than Regular Plan.

In terms of the Para 10.1 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74

dated May 19, 2023, all fees and expenses charged in a direct plan (in percentage terms) under various
heads including the investment and advisory fee shall not exceed the fees and expenses charged under
such heads in a regular plan.

However, Direct Plan shall have a lower expense ratio than the Regular Plan. The expenses would
exclude distribution expenses, commission, etc and no commission for distribution of Units will be
paid / charged under Direct Plan.

Additional expenses which may be charged to the Scheme

The following additional expenses may be charged to the Schemes under Regulation 52 (6A), namely-

 Brokerage and transaction cost incurred for the purpose of execution shall be charged to the
scheme as provided under Regulation 52 (6A) (a) upto 12 bps and 5 bps for cash market
transactions and derivatives transactions respectively. Any payment towards brokerage &
transaction costs, over and above the said 12 bps and 5 bps for cash market transactions and
derivatives transactions respectively may be charged to the Scheme within the maximum limit
of Total Expense Ratio (TER) as prescribed under Regulation 52 of the SEBI (Mutual Finds)
Regulations, 1996.

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 Expenses not exceeding of 0.30 % of daily net assets, if the new inflows from beyond top 30
cities are at least:
(i) 30 % of gross new inflows in the scheme; or
(ii) 15 % of the average assets under management (year to date) of the scheme; whichever is
higher.
Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause (ii),
such expenses on daily net assets of the scheme shall be charged on proportionate basis.
Provided further that expenses charged under this clause shall be utilized for distribution expenses
incurred for bringing inflows from such cities.
Provided further that amount incurred as expense on account of inflows from such cities shall be
credited back to the scheme in case the said inflows are redeemed within a period of one year
from the date of investment.
Provided further that the additional TER can be charged based on inflows only from ‘retail investors’
(Para 10.1.3 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19,
2023), has defined that inflows of amount upto Rs 2,00,000/- per transaction, by individual investors
shall be considered as inflows from “retail investor”) from beyond top 30 cities.
Provided that the additional commission for beyond top 30 cities shall be paid as trail only.
In case inflows from beyond top 30 cities is less than the higher of (i) or (ii) above, additional TER on
daily net assets of the scheme shall be charged as follows:

Daily net assets X 30 basis points X New inflows from individual investors from beyond top 30 cities
-------------------------------------------------------------------------------------------
365* X Higher of (i) or (ii) above

* 366, wherever applicable.

Additional expenses upto 0.05% of daily net assets of the schemes, incurred towards different heads
mentioned under Regulation 52 (2) and 52 (4).

Clause 4 of Seventh Schedule to SEBI (Mutual Funds) Regulations, 1996 which restricts investments
in mutual fund units upto 5% of net assets and prohibits charging of fees, shall not be applicable to
investments in mutual funds in foreign countries made in accordance with guidelines as per Para
12.19 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated May 19, 2023.
However, the management fees and other expenses charged by the mutual fund(s) in foreign countries
along with the management fee and recurring expenses charged to the domestic mutual fund scheme
shall not exceed the total limits on expenses as prescribed under Regulation 52(6). Where the scheme
is investing only a part of the net assets in the overseas mutual fund(s), the same principle shall be
applicable for that part of investment.

TER for the Segregated Portfolio

1. AMC shall not charge investment and advisory fees on the segregated portfolio. However,
TER (excluding the investment and advisory fees) can be charged, on a pro-rata basis only
upon recovery of the investments in segregated portfolio.
2. The TER so levied shall not exceed the simple average of such expenses (excluding the
investment and advisory fees) charged on daily basis on the main portfolio (in % terms)
during the period for which the segregated portfolio was in existence.
3. The legal charges related to recovery of the investments of the segregated portfolio may be
charged to the segregated portfolio in proportion to the amount of recovery. However, the

123
 same shall be within the maximum TER limit as applicable to the main portfolio. The legal
charges in excess of the TER limits, if any, shall be borne by the AMC.
4. The costs related to segregated portfolio shall in no case be charged to the main portfolio.
Goods and Services tax:

Goods and Services tax on investment and advisory fees may be charged to the scheme in addition to
the maximum limit of TER as prescribed in Regulation 52(6)(c). Goods and Services tax on other than
investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of TER
as per Regulation 52.

The aforesaid estimates are made in good faith by the Investment Manager and are subject to change
inter se among the various heads of expenses and between the Plans. It may also be noted that the
total expenses of the Plans will also be subject to change within the overall limits of expenses under
Regulation 52. Actual expenses under any head and / or the total expenses may be more or less than
the estimates. The Investment Manager retains the right to charge the actual expenses to the Fund,
however the expenses charged will not exceed the statutory limit prescribed by the Regulations. There
will be no sub limit on management fee, and it shall be within the overall TER specified above.

For the actual current expenses being charged, the investor may refer to the website of the mutual
fund.

The fund shall update the current expense ratios on the website (www.kotakmf.com) at least three
working days prior to the effective date of the change. The web link for TER is
https://www.kotakmf.com/Information/investor-service

Illustration of impact of expense ratio on scheme’s returns (in Rupees):

Particulars Regular Plan Direct Plan

Amount Invested at the beginning of the year 10,000 10,000
Annual Returns before Expenses 800 800
Expenses other than Distribution Expenses 75 75
Distribution Expenses / Commission 25 -
Returns after Expenses at the end of the Year 700 725

Illustration is given to understand the impact of expense ratio on a scheme return and this should not
be construed as an indicative return of the scheme. The expenses of the Direct Plan under the Scheme
will be lower to the extent of distribution expenses/ commission.

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C. Load structure
Load is an amount which is paid by the investor to subscribe to the units or to redeem the units from
the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of
other marketing and selling expenses. Load amounts are variable and are subject to change from time
to time. For the current applicable structure, please refer to the website of www.kotakmf.com or may
call at 18003091490 or your distributor.

Entry Load *- Nil

Exit Load **-

 For redemption / switch out within 30 days from the date of allotment: 1%
 If units are redeemed or switched out on or after 30 days from the date of allotment: NIL

Units issued on reinvestment of IDCW shall not be subject to entry and exit load.

* In terms of Para 10.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD1/P/CIR/2023/74 dated

May 19, 2023, no entry load will be charged on purchase / additional purchase / switch-in. The
commission as specified in aforesaid circular, if any, on investment made by the investor shall be paid
by the investor directly to the Distributor, based on his assessment of various factors including the
service rendered by the Distributor.

** Any exit load charged (net off Goods and Services tax, if any) shall be credited back to the
Scheme.

Any imposition or enhancement of Load in future shall be applicable on prospective investments only.
A public notice shall be given in respect of such changes in one English daily newspaper having
nationwide circulation as well as in a newspaper published in the language of region where the Head
Office of the Mutual Fund is situated. In case of changes in load structure the addendum carrying the
latest applicable load structure shall be attached to all KIM and SID already in stock till it is updated.

Investors may obtain information on loads on any Business Day by calling the office of the AMC or
any of the Investor Service Centers. Information on applicability of loads will also be provided in the
Account Statement.

As required under the Regulations, the fund shall ensure that the repurchase price of an open ended
scheme is not lower than 95% of the Net Asset Value.

The investor is requested to check the prevailing load structure of the scheme before investing.

For any change in load structure AMC will issue an addendum and display it on the website/Investor
Service Centres.

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VI. RIGHTS OF UNITHOLDERS

Please refer to SAI for details.

126
VII. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF
INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN
TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY
AUTHORITY

SEBI Requirements Response

Details of all monetary penalties 1. RBI had imposed a penalty of Rs.20 lakhs on Kotak
imposed and/ or action taken Mahindra Bank Ltd – for KYC deficiencies found in
during the last three years or opening ONE savings account opened in the year 2010.
pending with any financial This was a case of failure of the personnel in meeting the
regulatory body or governmental customer before opening the account. As per the Bank’s
authority, against Sponsor(s) and/ processes it is mandatory to meet the customer before on-
or the AMC and/ or the Board of boarding the customer. However, in respect of the cited
Trustees /Trustee Company; for case, branch personnel had visited the house of the
irregularities or for violations in customer but did not meet the customer. However, they had
the financial services sector, or for certified that they met the customer. Action has already
defaults with respect to share been taken on the errant employee and the process has been
holders or debenture holders and reiterated for stricter compliance. The Penalty was paid on
depositors, or for economic February 13, 2019.
offences, or for violation of 2. The Reserve Bank of India (RBI) has, by an order dated
securities law. June 06, 2019, imposed a monetary penalty of Rs 2 crores
(Rs 20 million) on Kotak Mahindra Bank Limited (the
bank) for failure to furnish information about details of the
shareholding held by its promoters and to submit details of
the proposed course of action/plans/strategy of the bank for
complying with the permitted timeline for dilution of
promoter shareholding. The Penalty was paid on June 19,
2019.
3. RBI imposed a penalty of Rs. 40,000 during 2019-20 for
not exchanging soiled mutilated notes by two branches
observed during in-cognito visit and Rs 30,000
contravention of RBI directions on Facility for Exchange of
Notes and coins during inspection of Kanpur Branch. The
penalty was paid on June 27, 2019.
4. RBI vide its letter dated July 4, 2022 has levied a penalty of
INR 10.50 million for failure to comply with the following
provisions/Act: The penalty was paid on July 11, 2022
• INR 3 million for non-compliance with directions on
'customer Protection – Limiting Liability of customers in
Unauthorised Electronic Banking Transactions.
• INR 3 million for contravention of the provisions of sub-
section (2) of Section 26A of the Act read with paragraph 3
of The Depositor Education and Awareness Fund Scheme'
2014
• INR 4.50 million for non-compliance with directions on
Banks, exposure to Capital Markets - Rationalization of
Norms' and Loans and Advances -Statutory and Other
Restrictions
5. RBI vide its letter dated August 10, 2022 has levied a penal
interest of INR 1,70,984 for failure to maintain CRR on an
average basis during the fortnight July 02, 2022 to July 15,
2022. The penalty was paid on August 11, 2022.
6. During an Incognito visit on the Bank’s Ulubari Branch,
127
 Guwahati, RBI vide its mail dated August 24, 2022
imposed penalty of INR 10,000 for following deficiencies
found in the branch:

• Facility of Exchange of soiled notes not provided.

• Facility of Exchange of mutilated notes not provided.

7. Reserve Bank of India vide its mail dated March 17, 2023
had levied a penalty of INR 10,000 on Kotak Mahindra
Bank, Somajiguda Branch for refusal by branch to
exchange soiled notes tendered by any member of public
during incognito visit of Senior RBI Official.

Action taken: Necessary instructions have been issued to all

concerned, reiterating to ensure stricter compliance

8. Reserve Bank of India vide its letter dated October 17,

2023 had imposed a penalty of INR Rs 3.95 crore on the
Bank for following contraventions:

 Failure to carry out annual review/due diligence of the

service provider
 Failure to ensure that customers are not contacted after
7 pm and before 7 am
 Levying interest from the disbursement due date instead
of the actual date of disbursement, contrary to the terms
& conditions of sanction
 Levying foreclosure charge despite there being no
clause in the loan agreement for levy of prepayment
penalty on loans recalled/foreclosure initiated by the
bank.

9. Reserve Bank of India (RBI) vide its mail dated October

25, 2023 had levied a penalty of INR 10,000 on Kotak
Mahindra Bank, Baddi Branch for deficiencies
observed during incognito visit of Senior RBI Official
to the branch on September 04, 2023.

Details of all enforcement actions Kotak Mahindra Asset Management Company Limited (AMC)
taken by SEBI in the last three has been served a Show Cause Notice (SCN) by SEBI, vide its
years and/ or pending with SEBI letter No. SEBI/HO/IMD/DF2/OW/P/2019/11854/1 dated May
for the violation of SEBI Act, 10, 2019, and Supplementary Show Cause Notice vide SEBI’s
1992 and Rules and Regulations letter No. SEBI/HO/IMD/DF2/OW/P/2019/014772/1 dated June
framed there under including 12, 2019, issued under Section 11(1), 11B and 11B (2) of
debarment and/ or suspension Securities and Exchange Board of India Act, 1992 read with
and/ or cancellation and/ or provisions of SEBI (Mutual Fund) Regulations, 1996, in the
imposition of monetary matter of Kotak Mahindra Asset Management Co. Ltd. The
penalty/adjudication/enquiry alleged charge is, that on maturity date of Kotak FMP Series
proceedings, if any, to which the 127 and 183, close ended debt schemes, investors were not paid
Sponsor(s) and/ or the AMC and/ full proceeds on the declared NAV due to pending recovery of
or the Board of Trustees /Trustee dues from Essel Group of Companies. The AMC vide its letter
Company and/ or any of the dated August 29, 2019, had filed its reply to the aforesaid show

128
directors and/ or key personnel cause notice and supplementary show cause notice.
(especially the fund managers) of
Kotak Mahindra Asset Management Company Limited (AMC)
the AMC and Trustee Company
has been served a Show Cause Notice (SCN) by SEBI, vide its
were/ are a party
letter No. SEBI/HO/IMD/DF2/OW/P/2020/13217/1 dated
August 13, 2020 in the matter of Kotak FMP Series 187, 189,
193 and 194, issued under Section 11(1), 11B and 11B(2) of
Securities and Exchange Board of India Act, 1992 read rule 4
(1) of the SEBI ( Procedure for holding Inquiry and imposing
Penalties) Rules, 1995 for inquiry and imposing penalty under
sections 15D (b) and 15 HB of the act read with provisions of
the SEBI (Mutual Fund) Regulations, 1996.
SEBI vide its order no. WTM/SM/IMD/IMD-I
DOF2/13158/2021-22 dated August 27, 2021 had issued certain
directions and imposed penalty to Kotak Mahindra Asset
Management Company Limited (KMAMC). KMAMC had also
been restrained from launching any new FMP scheme for a
period of six months from the date of SEBI order.
The Board of Kotak Asset Management Company Ltd had filed
an appeal before the Securities Appellate Tribunal against the
SEBI order dated August 27, 2021.
Kotak Mahindra Trustee Company Limited (Trustee Company)
and few employees of KMAMC had been served a Show Cause
Notice by SEBI dated May 31, 2019 in the matter of FMP series
127 and 183, Show Cause Notice dated October 12, 2020 in the
matter of Kotak FMP Series 187, 189, 193 and 194 and
Supplementary SCN dated May 06, 2022 Section 11(1), 11B
and 11B(2) of Securities and Exchange Board of India Act,
1992 read rule 4 (1) of the SEBI ( Procedure for holding Inquiry
and imposing Penalties) Rules, 1995 for inquiry and imposing
penalty under sections 15D (b) and 15 HB of the act read with
provisions of the SEBI (Mutual Fund) Regulations, 1996.
In reference to aforesaid Show Cause Notice (SCNs) dated May
31, 2019, October 12, 2020 and May 06, 2022, SEBI vide its
order no. Order/SM/AE/2022-23/17536-17542 dated June 30,
2022 has imposed penalty to Kotak Mahindra Trustee Company
Limited and few employees of KMAMC.
Kotak Mahindra Trustee Company Limited and few employees
of KMAMC have filed an appeal before the Securities Appellate
Tribunal against the SEBI order dated June 30, 2022 on August
16, 2022.
The SAT hearing was held on August 24, 2022 and has granted
Stay on direction issued under SEBI order dated June 30, 2022.
The SAT hearing for SEBI order dated August 27, 2021 and
June 30, 2022 has been adjourned to March 04, 2024. We have
filed reply to the rejoinder filed by SEBI with SAT.
Any pending material civil or NIL
criminal litigation incidental to
the business of the Mutual Fund
to which the Sponsor(s) and/ or
129
the AMC and/ or the Board of
Trustees /Trustee Company and/
or any of the directors and/ or key
personnel are a party
Any deficiency in the systems and NIL
operations of the Sponsor(s) and/
or the AMC and/ or the Board of
Trustees/Trustee Company which
SEBI has specifically advised to
be disclosed in the SID, or which
has been notified by any other
regulatory agency

Notwithstanding anything contained in this Scheme Information Document, the provisions of the
SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.

Note: The Scheme under this Scheme Information document was approved by the Trustee at their
meeting held on October 20, 2023. The Trustees have ensured that Kotak Technology Fund approved
by them is a new product offered by Kotak Mahindra Mutual Fund and is not a minor modification of
any existing scheme/fund/product.

130
 OFFICIAL COLLECTION CENTRES (FOR FRESH PURCHASES & SWITCH-INS)
KMAMC AUTHORISED COLLECTION CENTRES
Agra: Shop No. G-4, Ground Floor, U-Pee Tower, Block No.53/4, Sanjay Place, Agra - 282002. Ahmedabad: Ground Floor, Karmayog Heights, Near St. Xavier's College Corner, Navrangpura,
Ahmedabad- 380009 (Gujarat). Alwar: 2nd Floor, Ram Arcade, 30A, Scheme No.2, Lajpat Nagar, Bhagat Singh Circle, Alwar: 301001 (Rajasthan). Amritsar: Mezzanine FL (Upper Gr FL),
SCO 96, Block-B, Ranjit Avenue, District Shopping Complex, Amritsar – 143001 (Punjab). Aurangabad: 3rd Floor, Block No. D 28/29, Motiwala Trade Centre, Opp HDFC Bank, Nirla Bazar,
Aurangabad – 431001. Ambala: Bldg No.5396, First Floor, Punjabi Mohalla, Nicholson Road, Above Haryana Beauty Parlour, Ambala Cantt, Ambala - 133001. Bangalore: 5th FL, 506,
North Block, Manipal Centre, Dickenson Road, Bangalore - 560042. Bangalore: GPNS Towers No. 60 (Old No. 568), 2nd Floor, 11th Main Road, 4th Block, Jayanagar, Bangalore - 560011.
Bhavnagar: Office No. S/1, 2nd Floor, Gangotri Plaza, Opp. Daxinamurti School, Waghawadi Road, Bhavnagar - 364002 (Gujarat). Bhopal: 1st Floor, Alankar Complex, Plot No. 11, Zone – II,
M.P. Nagar, Bhopal - 462011 (Madhya Pradesh). Bilaspur: 2nd Floor, Shreeji Plaza, Near Tagore Chowk, Tarbahar Road, Bilaspur - 495001 (Chhattisgarh). Bhubaneshwar: 2nd Floor,
Building No.24, SCR Janpath, Bapujinagar, Bhubaneshwar - 751009. Bhilai: Shop No.22, Commercial Complex, Nehru Nagar [E], Bhilai - 490006. Chandigarh: 1st Floor, SCO 2475-76,
Sector 22-C, Chandigarh - 160022. Chennai: Unit G-01 & G-02, Ground Floor, Building No:52-53, Prince Towers, College Road, Nungambakkam, Chennai – 600 006. Tamil Nadu.
Coimbatore: Shop No.1, 2nd Floor, A.M.I. Midtowm, 25A/2, D.B. Road, R.S. Puram, Coimbatore - 641002 Tamil Nadu). Dehradun: Office No. 247/2, 1st Floor, Swaraj Plaza, Above Cafe
Coffee day, Rajpur Road, Dehradun – 248001. Goa: 3rd Floor, Mathias Plaza, 18th June Road, Panaji, Goa - 403001. Gurgaon: Unit no. 214 , 2nd floor, Vipul Agora Building, Sector no.28, M
G Road, Gurgaon - 122001. Guwahati: Uma Abhaya Complex, 2nd Floor, Opp. Ulubari High School, Bora Service, G.S Road, Guwahati - 781007. Hyderabad: 201, 2nd Floor Legend Esta,
Rajbhavan Road, Somajiguda, Hyderabad - 500 082 (Telangana). Indore: 2nd Floor, Starlit Tower, Plot No.29/1, Yashwant Niwas Road, Indore - 452001. Jaipur: Office no. 105-106, D-
38A,1ST FL, The Landmark Bldg, Subhash Marg,Ahinsa Circle, C-Scheme, Jaipur - 302001. Jalandhar: Office No. 18 , 3rd Floor, City Square Building, Eh-197, Civil Lines, GT Road, Jalandhar -
144001, Punjab. Jamshedpur: 2nd Floor, Bharat Business Centre, Rear Wing, Ram Mandir Area, Bistupur, Jamshedpur – 831001. Kanpur: Office No. 108/109, 1st Floor, KAN Chambers,
14/113, Civil Lines, Kanpur - 208001. Kochi: Door No.65/877, 1st Fl, Chammany Complex, Kaloor Kadavanthara Road, Kochi - 682017. Kolhapur: Office No.6, 1st Floor,Vasant Prabha
Chambers,Sykes Extension, Near Parikh Pool, Railway Gate, Kolhapur - 416001. Kolkata - Dalhousie: Room No-302B, 2, Church Lane, Kolkata - 700001. Kolkata: 3rd Fl, The Millenium.,
235/2A, AJC Bose Road, Kolkata - 700020. Lucknow: 2nd Floor,Aryan Business Park, 90, M.G.Road [Exchange Cottage], Off:Park Road, Hajratganj, Lucknow - 226001. Ludhiana: Lower
Ground Floor, SCO 13, Shanghai Tower, Feroze Gandhi Market, Ludhiana - 141001 (Punjab). Mangalore: D.No. 5-4-169/21, 3rd Floor, Lalbagh Towers, Ballalbhag Circle, Near Kalyan
Jewellers, M.G.Road, Mangalore – 575003. Mumbai [Borivali-W]: Shop No. 16, 17 & 18, 1st Floor, Harismruti CHSL, Next to Kotak Bank, Near Chamunda Circle, SVP Road, Borivali West,
Mumbai - 400092 (Maharashtra). Mumbai: Shop No.6, Ground Floor, Rajabahadur Mansion (Bansilal Building), 9-15 Homi Modi Street, Fort, Mumbai – 400023. Mumbai [Goregaon]: 6th
Floor, Zone IV ,Kotak Infinity, Bldg No.21, Infinity Park, Off Western Express Highway, General A K Vaidya Marg, Malad[E], Mumbai - 400097. Nagpur: 302,3rd FL Shalwak Manor, East High
Court Road, Opp. Dr.Jay Deshmukh’s Hospital, Ramdaspeth, Nagpur - 440011. Nasik: Office No.1, Mezzanine Floor, Sharada Niketan, GCK Avenue, Tilakwadi, Opp. Hotel City Pride,
Sharanpur Road, Nashik - 422002 (Maharashtra). New Delhi: Unit Number 1101, 1103 & 1104, 11TH Floor, Kailash Building. 26, Kasturba Gandhi Marg, New Delhi - 110001. Noida: Unit
no. 206, 2nd floor, Ocean Plaza, Plot No. P-5, Sector 18, Maharaja Agrasen Marg, Noida - 201301 (Uttar Pradesh). Panipat: Lower Ground Floor, Jawa Complex, Near Vijaya Bank,
Opp:Bhatak Chowk, G.T.Road, Panipat - 132103. Patiala: SCO-130, 1ST Floor, New Leela Bhawan, Near Punjab National Bank, Patiala - 147001. Patna: 3rd Floor, Office No. 306, Grand
Plaza, Frazer Road, Patna - 800001 (Bihar). Pune: Shop No. 8, Ground Floor, Rama Equator, Near City International School, Morewadi, Pimpri, Pune - 411018 (Maharashtra). Pune: Office No
10 / 11, 3rd Floor, Aditya Centeegra, F C Road, Near Dyneshwar Paduka Chowk, Next to Kotak Mahindra Bank, Shivajinagar, Pune – 411005. Raipur: Shop No. F1, 1st Floor, Raheja Tower,
Fafadih Chowk, Jail Road, Raipur - 492001 (Chhattisgarh). Rajkot: Office No. 204, 2nd Floor, Orbit Enclave, Near Ramkrishna Ashram, Dr. Yagnik Road, Rajkot - 360001 (Gujarat). Ranchi:
3rd Floor, Satya Ganga Arcade, Lalji Hirji Road, Near Sarjana Chowk, Main Road, Ranchi-834001, Jharkhand. Rohtak: Lower Gr Floor, Office No.3, "Bank Square” Building, Opp: Myna Tourist
Complex, 120-121 Civil Lines, Rohtak - 124001. Satara: Shop No. 2, Ground Floor, Ok Pride, Opp Taluka Police Station, Radhika Road, Satara - 415002 (Maharashtra). Shimla: 1st,
Floor,Bhagra Niwas,Near Lift Road,The Mall, Shimla - 171001. Surat: Office no.b-129, 1st Floor, International Trade, Centre [ITC] Building, Majura Gate Crossing, Ring Road, Surat - 395002.
Thane [Mumbai]: Shop No.2 Gr.Fl, Ram Rao Sahani Sadan, Kaka Sohni Path, Naupada, Thane (West) : 400602. Vadodara: Unit No.202, 2nd Floor, Gold Croft, Jetalpur Road, Alkapuri,
Vadodara -390007 (Gujarat). Varanasi: Shop No. 54, 1st Floor , “Kuber Complex”, D-58/2, Rathyatra Crossings, Varanasi - 221010 (Uttar Pradesh).

OFFICIAL COLLECTION CENTRES (FOR FRESH PURCHASES & SWITCH-INS)

I. COMPUTER AGE MANAGEMENT SERVICES LIMITED (CAMS) - INVESTOR SERVICE CENTRES

Ahmedabad: 111-113, 1st Floor, Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad - 380006. Bangalore: Trade Centre, 1st Floor, 45, Dikensen Road, ( Next to
Manipal Centre ), Bangalore - 560042. Bhubaneswar: Plot No. 501/ 1741/ 1846, Premises No. 203, 2nd Floor, Kharvel Nagar, Unit-3, Bhubaneswar - 751001. Odisha. Chandigarh: Deepak
Tower, SCO 154-155, 1st Floor, Sector 17-C, Chandigarh - 160017. Chandrapur: Opp Mustafa décor, Behind, Bangalore,Bakery Kasturba, Road, Chandrapur - 442402 (Maharashtra).
Chennai: No 178/10, M G R Salai, Nungambakkam, Chennai - 600034. Coimbatore: No 1334; Thadagam Road, Thirumoorthy Layout, R.S. Puram, Behind Venkteswara Bakery, Coimbatore
– 641002. Dibrugarh: Amba Complex, Ground Floor, H S Road, Dibrugarh - 786001. Assam. Durgapur: Plot No.3601, Nazrul Sarani, City Centre, Durgapur - 713216. Faizabad: 9/1/51,
Rishi Tola, Fatehganj, Faizabad, Ayodhya – 224 001, Uttar Pradesh. Goa: Office No. 103, 1st Floor, Unitech City Centre, M.G. Road, Panaji Goa, Goa - 403 001. Guntur: D No 31-13-1158, 1st
Floor, 13/1 Arundelpet, Ward No.6, Guntur - 522002 (AP). Hyderabad: 208, 2nd Floor, Jade Arcade, Paradise Circle, Secunderabad - 500003. Indore: 101, Shalimar Corporate Centre, 8-B,
South tukogunj, Opp.Greenpark, Indore - 452001. Jaipur: R-7, Yudhisthir Marg ,C-Scheme, Behind Ashok Nagar Police Station, 63/ 2, The Mall, Jaipur - 302001. Kalyan: Office No 413,
414, 415, 4th Floor, Seasons Business Centre, Opp. KDMC (Kalyan Dombivli Municipal Corporation), Shivaji Chowk, Kalyan (West) – 421301 (Maharashtra). Kanpur: 1st Floor, 106 to 108,
City Centre, Phase II, 63/2, The Mall, Kanpur – 208001. Kochi: Modayil, Door No. 39/2638 DJ, 2nd Floor, 2A, M.G. Road, Kochi - 682016. Korba: Shop No 6, Shriram Commercial Complex,
Infront of Hotel Blue Diamond Ground Floor, T.P. Nagar, Korba - 495677, Chhattisgarh. Kolkata: Kankaria Centre, 2/1,Russell Street (2nd Floor), Kolkata - 700071. Korba: Shop No 6,
Shriram Commercial Complex, Infront of Hotel Blue Diamond Ground Floor, T.P. Nagar, Korba - 495677 (West Bengal). Lucknow: Office No.107, 1st Floor, Vaishali Arcade Building, Plot No.
11, 6 Park Road, Lucknow - 226001. UP. Ludhiana: U/ GF, Prince Market, Green Field, Near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, Ludhiana - 141002. Madurai: Shop No 3, 2nd
Floor, Suriya Towers, 272/ 273 – Goodshed Street, Madurai -625001, Tamil Nadu. Mandi Gobindgarh: Opp. Bank of Bikaner & Jaipur, Harchand Mill Road, Motia Khan, Mandi Gobindgarh -
147301 (Punjab). Mangalore: 14-6-674/15(1), Shop No. UG11-2, Maximus Complex, Light House Hill Road, Mangalore- 575 001 (Karnataka). Mumbai: Rajabahdur Compound, Ground
Floor, Opp Allahabad Bank, Behind ICICI Bank, 30, Mumbai Samachar Marg, Fort, Mumbai - 400023. Murshidabad: No.107/1, A C Road, Ground Floor, Berhampore, Murshidabad -
742103. West Bengal. Nadia: R. N. Tagore Road, In front of Kotawali P.S. Krishnanagar, Nadia - 741101. West Bengal. Nagpur: 145 Lendra, New Ramdaspeth, Nagpur - 440010. New Delhi:
401 to 404, 4th Floor, Kanchan Junga Building, Barakhamba Road, New Delhi 110001. Patna: G-3, Ground Floor, Om Vihar Complex, SP Verma Road, Patna - 800001. Pune: Vartak Pride ,
1st floor, Survay No 46, City Survay No 1477, Hingne Budruk, D. P Road, Behind Dinanath Mangeshkar Hospital, Karvenagar, Pune - 411 052. Seerampur: 47/5/1, Raja Rammohan Roy Sarani
PO, Mallickpara, Dist. Hoogly, Seerampur-712203. West Bengal. Surat: Shop No-G-5, International Commerce Center, Nr.Kadiwala School, Majura Gate, Ring Road, Surat - 395002.
Vadodara: 103 Aries Complex, BPC Road, Off R.C. Dutt Road, Alkapuri, Vadodara - 390007. Vijayawada: 40-1-68, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M.G Road,
Labbipet, Vijayawada - 520010. Visakhapatnam: Door No: 47-3-2/2, Flat No: GF2, Vigneswara Plaza, 5th Lane, Dwarakanagar, Visakhapatnam - 530016. Andhra Pradesh. Wardha: Opp.
Raman Cycle Industries, Krishna Nagar, Wardha - 442001 (Maharashtra).

II. COMPUTER AGE MANAGEMENT SERVICES LIMITED (CAMS) - TRANSACTION POINT

Agartala : Nibedita, 1st floor, JB Road, Palace Compound, Near Babuana Tea and Snacks, Agartala – 799001 (Tripura West). Agra : No.8, 2nd Floor, Maruti Tower, Sanjay Place, Agra -
282002. Ahmednagar : Office No. 3, 1st Floor, Shree Parvati, Plot No. 1/175, Opp. Mauli Sabhagruh, Zopadi Canteen, Savedi, Ahmednagar - 414 003. Ajmer : AMC No. 423/30, New
Church Brahampuri, Opp T B Hospital, Jaipur Road, Ajmer - 305001. Akola : Opp. RLT Science College, Civil Lines, Akola - 444001. Aligarh : City Enclave, Opp. Kumar Nursing Home,
Ramghat Road, Aligarh - 202001. Allahabad : 30/2, A&B, Civil Lines Station, Besides Vishal Mega Mart, Strachey Road, Allahabad - 211001. Alleppey : Doctor's Tower Building, Door No.
14/2562, 1st floor, North of Iorn Bridge, Near Hotel Arcadia Regency, Allppey - 688 001. Alwar : 256A, Scheme No 1, Arya Nagar, Alwar - 301001. Amaravati : 81, Gulsham Tower, 2nd
Floor, Near Panchsheel Talkies, Amaravati - 444601. Ambala : Opposite PEER, Bal Bhavan Road, Ambala - 134003. Amritsar : SCO - 18J, 'C' BLOCK RANJIT AVENUE, Amritsar - 140001.
Anand : 101, A P Tower, Behind Sardhar Gunj, Next to Nathwani Chambers, Anand - 388001. Anantapur : 15-570-33, I Floor Pallavi Towers, Subash Road, Opp:Canara Bank Anantapur -
515 001 Andhra Pradesh. Ankleshwar : G-34, Ravi Complex, Valia Char Rasta, G I D C, Bharuch, Ankleshwar - 393002. Asansol : Block - G, 1st Floor, P C Chatterjee Market Complex,
Rambandhu Talab, P O Ushagram, Asansol - 713303. Aurangabad: 2nd Floor, Block No. D-21-D-22 Motiwala Trade Center, Nirala Bazar New Samarth Nagar, Opp. HDFC Bank, Aurangabad
– 431001. Balasore: B C Sen Road, Balasore - 756001. Bankura: 1st Floor, Central Bank Building, Machantala, Bankura - 722101. West Bengal. Bareilly: F-62-63, Second Floor, Butler Plaza,
Civil Lines, Bareilly - 243001, UP. Basti: Office No. 3, 1st Floor, Jamia Shopping Complex, (Opposite Pandey School), Station Road, (Uttar Pradesh), Basti - 272002. Belgaum : Classic Complex,
Block no 104, 1st Floor, Saraf Colony, Khanapur Road, Tilakwadi, Belgaum - 590 006. Bellary: 18/47/A, Govind Nilaya, Ward 20, Sangankal Moka Road, Gandhinagar, Bellary I - 583102.
Bengaluru: First Floor, 17/1, -(272) 12th Cross Road, Wilson Garden, Bengaluru 5600027. Berhampur: Kalika Temple Street, Ground Floor, Beside SBI Bazar Branch, Berhampur - 760 002
(Odisha). Bhagalpur : Krishna, 1st Floor, Near Mahadev Cinema, Dr R P Road, Bhagalpur - 812002. Bharuch (Parent: Ankleshwar TP) : A-111, First Floor, R K Casta, Behind Patel Super
Market, Station Road, Bharuch - 392001. Bhatinda : 2907 GH, GT Road, Near Zila Parishad, Bhatinda - 151001. Bhavnagar: 501-503, Bhayani Skyline, Behind Joggers Park, Atabhai Road,
Bhavnagar – 364 001. Gujarat. Bhilai : First Floor, Plot No. 3, Block No. 1, Priyadarshini Parisar West, Behind IDBI Bank, Nehru Nagar, Bhilai - 490020. Bhilwara : Indraprastha Tower, 2nd
Floor, Shyam Ki Sabji Mandi Near Mukulji Garden, Bhilwara - 311001. Bhopal : Plot no 10, 2nd Floor, Alankar Complex, Near ICICI Bank, MP Nagar, Zone II, Bhopal - 462 011. Bhuj : Office
No. 4-5, First Floor, RTO Relocation Commercial Complex – B, Opp. Fire Station, Near RTO Circle, Bhuj-Kutch – 370001. Bhusawal (Parent: Jalgaon TP) : 3, Adelade Apartment, Christain
Mohala, Behind Gulshan-E-Iran Hotel, Amardeep Talkies Road, Bhusawal - 425201. Bikaner : F 4/5, Bothra Complex, Modern Market, Bikaner - 334001. Bilaspur : Shop No. B - 104, First
Floor, Narayan Plaza, Link Road, Bilaspur - 495001. Bokaro : Mazzanine Floor, F-4, City Centre, Sector-4, Bokaro Steel City Bokaro - 827004. Burdwan : 399, G T Road, Basement of Talk of
the Town, Burdwan - 713101. C.R.Avenue (Parent: Kolkata ISC) : 33,C R Avenue, 2nd Floor, Room No.13, Kolkata - 700012. Calicut : 29/97G, 2nd Floor, Gulf Air Building, Mavoor Road,
Arayidathupalam, Calicut - 673016. Chandrapur: Opp Mustafa Decor, Near Bangalore Bakery, Kasturba Road, Chandrapur - 442 402 Maharashtra. Chennai: 3rd Floor, B R Complex, No.
66, Door No. 11A, Ramakrishna Iyer Street, Opp. National Cinema Theatre, West Tambaram, Chennai 600045. Chennai: 158, Rayala Towers, Ground Floor, Chennai - 600002. Chinchwad:
Harshal Heights, Shop no 29, Basement, Opp. Gawade Petrol Pump, Link Road, Chinchwad - 411033. Chhindwara : 2nd Floor, Parasia Road, Near Surya Lodge, Sood Complex, Above
Nagpur CT Scan, Chhindwara – 480001 (Madhya Pradesh). Chittorgarh: 3 Ashok Nagar, Near Heera Vatika, Chittorgarh - 312001. Coochbehar: N. N. Road, Power House, Choupathi,
Coochbehar -736101. Cuttack : Near Indian Overseas Bank, Cantonment Road, Mata Math, Cuttack - 753001. Darbhanga : Shahi Complex, 1st Floor, Near R B Memorial Hospital, V I P
Road, Benta, Laheriasarai, Darbhanga 846001. Davenegere : 13, 1st Floor, Akkamahadevi Samaj Complex, Church Road, P J Extension, Devengere - 577002. Dehradun : 204/121, Nari
Shilp Mandir Marg, Old Connaught Place, Dehradun - 248001. Deoghar : S S M Jalan Road, Ground Floor, Opp Hotel Ashoke, Caster Town, Deoghar - 814112. Dewas: 11 Ram Nagar, 1st
Floor, A. B. Road, Near Indian - Allahabad Bank, Dewas – 455001, MP. Dhanbad : Urmila Towers, Room No. 111, 1st Floor, Bank More, Dhanbad - 826001. Dharmapuri : 16A/63A,
 II. COMPUTER AGE MANAGEMENT SERVICES LIMITED (CAMS) - TRANSACTION POINT (Cont.)
Pidamaneri Road, Near Indoor Stadium, Dharmapuri - 636701. Dhule : H No. 1793 / A, J B Road, Near Tower Garden, Dhule - 424001. Erode : 197, Seshaiyer Complex, Agraharam Street,
Erode - 638001. Faizabad : Amar Deep Building, 3/20/14, 2nd Floor, Niyawan, Faizabad-224001 Faridabad : B-49, 1st Floor, Nehru Ground, Behind Anupam Sweet House, NIT, Faridabad -
121001. Firozabad: 53, 1st Floor, Shastri Market, Sadar Bazar, Firozabad - 283 203. Gandhidham : Shyam Sadan, 1st Floor, Plot No. 120, Sector 1/A, Gandhidham - 370201, Gujarat.
Gandhinagar: 507, 5th Floor, Shree Ugati Corporate Park, Opposite Pratik Mall, Near HDFC Bank, Kudasan, Gandhinagar – 382421. Gaya: North Bisar Tank, Upper Ground Floor, Near
I.M.A. Hall, Gaya 823001, Bihar. Ghaziabad : FF - 26, Konark Building, 1st Floor, RDC - Rajnagar, Ghaziabad - 201002. Goa: No DU 8, Upper Ground Floor, Behind Techoclean Clinic, Suvidha
Complex Near ICICI Bank, Vasco, Goa – 403802. Gondal : A/177 Kailash Complex Opp. Khedut Decor GONDAL - 360311. Gorakhpur : Shop No. 5 & 6, 3rd Floor, Cross Road The Mall, A D
Tiraha, Bank Road, Gorakhpur – 273001. Gulbarga : Pal Complex, 1st Floor, Opp City Bus Stop, Super Market, Gulbarga - 585101. Guntur: Door No 5-38-44, 5/1 BRODIPET, Near Ravi
Sankar Hotel, Guntur - 522002. Gurgaon : SCO - 17, 3rd Floor, Sector-14, Gurgoan - 122001. Guwahati: Piyali Phukan Road K. C. Path House No - 1 Rehabari Guwahati – 781008.
Gwalior : G-6, Global Apartment Phase - II, Opposite Income Tax Office, Kailash Vihar City Centre, Gwalior - 474011. Haldia : J. L. No. 126, Mouza-Basudevpur, Haldia Municipality Ward
No. 10, Durgachak, Purba Medinipur, Haldia - 721602. West Bengal. Haldwani : Durga City Centre, Nainital Road, Haldwani - 263139. Haridwar: F - 3, Hotel Shaurya, New Model Colony,
Haridwar - 249408. Hazaribagh : Muncipal Market, Annada Chowk, Hazaribagh - 825301. Himmatnagar : D-78, 1st Floor, New Durga Bazar, Near Railway Crossing, Himmatnagar -
383001. Hisar : 12, Opp HDFC Bank, Red Square Market, Hisar - 125001. Hoshiarpur : Near Archies Gallery, Shimla Pahari Chowk, Hoshiarpur - 146001. Hosur : Survey No.25/204,Attibele
Road, HCF Post, Mathigiri, Above Time Kids School, Opposite to Kuttys Frozen Foods, Hosur - 635 110 (Tamil Nadu). Hubli : 206 & 207, 1st Floor, A-Block, Kundagol Complex, Opp Court,
Club road, Hubli - 580029. Jabalpur: 8, Ground Floor, Datt Towers, Behind Commercial Automobiles, Napier Town, Jabalpur - 482001. Jalandhar : 144, Vijay Nagar, Near Capital Small
Finance Bank, Football Chowk, Jalandhar City – 144001, Punjab. Jalgoan : Rustomji Infotech Services, 70, Navipeth, Opp old Bus Stand, Jalgoan - 425001. Jalna: (Parent ISC – Aurangabad) :
Shop No. 11, 1st Floor, Ashoka Plaza, Opp Magistic Talkies, Subhash Road, Jalna - 431203. Jalpaiguri: Babu Para, Beside Meenaar Apartment, Ward No VIII, Kotwali Police Station, PO & Dist.
Jalpaiguri – 735101. Jamnagar : 207, Manek Centre, P N Marg, Jamnagar - 361001. Jamshedpur: Tee Kay Corporate Towers, 3rd Floor, SB Shop Area, Main Road, Bistupur, Jamshedpur –
831 001. Jaunpur: Gopal Katra, 1st Floor, Fort Road, Jaunpur - 222001. Jhansi : Babu Lal Karkhana Compound, Opp SBI Credit Branch, Gwalior Road, Jhansi - 284001. Jammu: JRDS
Heights, Lane Opp. S&S Computers,Near RBI Building, Sector 14, Nanak Nagar Jammu - 180004. Junagadh : Circle Chowk, Near Choksi Bazar Kaman, Gujarat Junagadh - 362001. Kadapa:
Door No.: 21/ 598, Palempapaiah Street, Near Ganjikunta Pandurangaiah Dental Clinic, 7 Road Circcle, Kadapa - 516001. Kakinada : No.33-1, 44 Sri Sathya Complex, Main Road, Kakinada -
533 001. Kalyani : A - 1/50, Block - A, Dist Nadia Kalyani - 741235. Kangra: College Road Kangra, Dist. Kangra – 176001 (Himachal Pradesh). Kannur : Room No.14/435, Casa Marina
Shopping Centre, Talap, Kannur - 670004. Karimnagar : H No. 7-1-257, Upstairs S B H, Mangammthota, Karimnagar - 505001. Karnal 29 Avtar Colony, Behind Vishal Mega Mart, Karnal –
132001. Karur : 126 GVP Towers, Kovai Road, Basement of Axis Bank, Karur - 639002. Katni: NH 7, Near LIC, Jabalpur Road, Bargawan, Katni - 483501. Kestopur : S. D. Tower, Sreeparna
Apartment, AA-101, Prafulla Kannan (West) Shop No - 1M, Block – C (Ground Floor), Kestopur, - 700101. Khammam: 1st Floor, Shop No 11 - 2 - 31/3, Philips Complex, Balajinagar, Wyra
Road, Near Baburao Petrol Bunk, Khammam – 507001. Kharagpur: "Silver Palace" OT Road, Inda- Kharagpur G.P- Barakola P.S- Kharagpur Local -721305. Kolhapur : AMD Sofex Office
No.7, 3rd Floor, Ayodhya Towers, Station Road, Kolhapur - 416001. Kolkata: 2A, Ganesh Chandra Avenue Room No.3A, Commerce House"(4th Floor), Kolkata – 700013. Kollam : Uthram
Chambers (Ground Floor), Thamarakulam, Kollam - 691 006. Kota : B-33, Kalyan Bhawan, Triangle Part, Vallabh Nagar, Kota - 324007. Kukatpally: No. 15-31-2M-1/4 1st Floor, 14-A, MIG
KPHB Colony, Kukatpally - 500072. Kumbakonam : No.28/8, 1st Floor, Balakrishna Colony, Pachaiappa Street, Near VPV Lodge, Kumbakonam - 612001. Tamil Nadu. Kurnool: Shop Nos.
26 and 27, Door No. 39/265A and 39/265B, Second Floor, Skanda Shopping Mall, Old Chad Talkies, Vaddageri, 39th Ward, Kurnool – 518001. Malda : Daxhinapan Abasan, Opp Lane of
Hotel Kalinga, S M Pally, Malda - 732101. Mandi: 328/12 Ram Nagar, 1st Floor, Above Ram Traders, Mandi -175001 (Punjab). Manipal: Shop No A2, Basement Floor, Academy Tower, Opp.
Corporation Bank, Manipal – 576104. Mapusa (Parent ISC : Goa) : Office No.CF-8, 1st Floor, Business Point, Above Bicholim Urban Co-op Bank, Angod, Mapusa - 403507. Margao: F4-
Classic Heritage, Near Axis Bank, Opp. BPS Club Pajifond, Margao - 403601. Mathura : 159/160, Vikas Bazar, Mathura - 281001. Meerut : 108, 1st Floor, Shivam Plaza, Opp Eves Cinema,
Hapur Road, Meerut - 250002. Mehsana : 1st Floor, Subhadra Complex, Urban Bank Road, Mehsana - 384002. Mirzapur: Ground Floor, Canara Bank Building, Dhundhi Katra, Mirzapur.
Uttar Pradesh - 231001. Moga : Gandhi Road, Opp Union Bank of India, Moga - 142001. Moradabad: H 21-22, 1st Floor, Ram Ganga Vihar Shopping Complex, Opposite Sale Tax Office,
Moradabad - 244001. Mumbai (Andheri): 351, Icon, 501, 5th Floor, Western Express Highway, Andheri (East), Mumbai - 400069. Mumbai (Borivali West): 501, TIARA, CTS- 617, 617/1-
4, Off. Chandavarkar Lane, Maharashtra Nagar, Borivali West, Mumbai – 400092. Maharashtra. Mumbai (Ghatkoper E): Platinum Mall, Office No.307, 3rd floor, Jawahar Road, Ghatkopar
East, Mumbai 400 077, Maharashtra. Muzaffarnagar: F26/27-Kamadhenu Market, Opp. LIC Building Ansari Road, Muzaffarnagar - 251 001. Muzzafarpur : Brahman Toli, Durga Asthan
Gola Road, Muzaffarpur - 842001. Mysore : No.1, 1st Floor, CH.26 7th Main, 5th Cross, (Above Trishakthi Medicals), Saraswati Puram, Mysore - 570009. Namakkal: 156A / 1, First Floor,
Lakshmi Vilas Building, Opp. To District Registrar Office, Trichy Road, Namakkal – 637001 (Tamil Nadu). Nanded: Shop No. 8,9 Cellar, 'Raj Mohammed Complex', Main Road, Sri Nagar,
Nanded - 431605. Nadiad: F 142, First Floor, Gantakaran Complex, Gunj Bazar, Nadiad - 387001. Nalgonda : Adj. to Maisaiah Statue , Clock Tower Center, Bus Stand Road , Nalgonda -
508001. Nashik: 1st Floor, "Shraddha Niketan", Tilak Wadi, Opp. Hotel City Pride, Sharanpur Road, Nashik - 422 002. Navsari : Dinesh Vasani & Associates, 103 - Harekrishna Complex,
above IDBI Bank, Near Vasant Talkies, Chimnabai Road, Navasari - 396445. Nellore : Shop No. 2, 1st Floor, NSR Complex, James Garden, near Flower Market, Nellore – 524001 (Andhra
Pradesh). New Delhi: 401 to 404, 4th Floor, Kanchan Junga Building, Barakhamba Road, New Delhi 110001. New Delhi: 306, 3rd Floor, DDA - 2 Building District Centre, Janakpuri, New
Delhi 110058. New Delhi: Aggarwal Cyber Plaza-II, Commercial Unit No-371, 3rd Floor,Plot No C-7, Netaji Subhash Palace, Pitampura, New Delhi - 110034. Noida : Commercial Shop No.GF
10 & GF 38, Ground Floor, Ansal Fortune Arcade, Plot No. K-82, Sector -18, Noida – 201301. Uttar Pradesh. Palakkad : 10 / 688, Sreedevi Residency, Mettupalayam Street, Palakkad -
678001. Palanpur : Gopal Trade Center, Shop No. 13-14, 3rd Floor, Nr. BK Mercantile Bank, Opp. Old Gunj, Palanpur – 385001, Gujarat. Panipat : 83, Devi Lal Shopping Complex, Opp ABN
Amro Bank, G T Road, Panipat 132103. Pathankot: 13 - A, 1st Floor, Gurjeet Market Dhangu Road, Pathankot - 145 001. Patiala : 35, New Lal Bagh, Opposite Polo Ground, Patiala -
147001. Patiala: SCO-130, 1st Floor, New Leela Bhawan, Near Punjab National Bank, Patiala - 147001. Punjab. Pondicherry : S-8, 100, Jawaharlal Nehru Street, (New Complex, Opp. Indian
Coffee House), Pondicherry - 605001. Rai Bareli : 17, Anand Nagar Complex, Rai Bareli - 229001. Rae Bareilly: 17, Anand Nagar Complex Opposite Moti Lal Nehru Stadium, SAI Hostel Jail
Road, Rae Bareilly – 229001 (Uttar Pradesh). Raipur : HIG, C-23, Sector – 1, Devendra Nagar, Raipur - 492004. Rajahmundry : Cabin 101, D No. 7-27-4, 1st Floor, Krishna Complex, Baruvari
Street, T Nagar, Rajahmundry - 533101. Rajkot : Office 207 - 210, Everest Building, Harihar Chowk, Opp Shastri Maidan Limda Chowk Rajkot - 360001. Ranchi : 4, HB Road, No: 206, 2nd
Floor Shri Lok Complex, Ranchi - 834 001. Rajapalayam: No 59 A/1, Railway Feeder Road, (Near Railway Station), Rajapalayam – 626117 (Tamil Nadu). Ratlam : Dafria & Co.,18, Ram Bagh,
Near Scholar's Schoo, Ratlam – 457001. Ratnagiri : Orchid Tower, Gr’Floor, Gala No 06, S.V.No.301/Paiki 1/2, Nachane Munciple Aat, Arogya Mandir, Nachane Link Road, At, Post, Tal.
Ratnagiri, Dist. Ratnagiri - 415612 (Maharashtra). Rohtak: SCO 06, Ground Floor, MR Complex, Near Sonipat Stand Delhi Road, Rohtak-124 001 (Haryana). Roorkee : 22 Civil Lines, Ground
Floor, Hotel Krish Residence Roorkee - 247667. Rourkela : J B S Market Complex, 2nd Floor, Udit Nagar, Rourkela - 769012. Sagar : Opp. Somani Automoblies, Bhagwanganj, Sagar -
470002. Saharanpur : 1st Floor, Krishna Complex, Opp. Hathi Gate, Court Road, Saharanpur - 247001. Salem : No. 2, 1st Floor, Vivekananda Street, New Fairlands, Salem - 636016.
Sambalpur : C/o Raj Tibrewal & Associates, Opp.Town High School, Sansarak, Sambalpur - 768001. Sangli: Jiveshwar Krupa Bldg, Shop. NO.2, Ground Floor, Tilak Chowk, Harbhat Road,
Sangli – 416416. Satara : 117 / A / 3 / 22, Shukrawar Peth, Sargam Apartment, Satara - 415002. Shahjahanpur : Bijlipura, Near Old Distt Hospital , Shahjahanpur - 242001. Shillong: 3rd
Floor, RPG COMPLEX, Keating Road, Shillong, Meghalaya - 793 001. Shimla : 1st Floor, Opp Panchayat Bhawan Main Gate, Bus Stand, Shimla - 171001. Shimoga : Nethravathi, Near Gutti
Nursing Home, Kuvempu Road, Shimoga - 577201. Siliguri: 78 , Haren Mukherjee Road 1st floor Beside SBI Hakimpara Siliguri - 734001. Sirsa: Gali No1, Old Court Road, Near Railway
Station Crossing, Sirsa - 125055. Sitapur: Arya Nagar Near Arya Kanya School, Sitapur - 261001, (Uttar Pradesh). Solan : 1st Floor, Above Sharma General Store, Near Sanki Rest house, The
Mall, Solan - 173212. Solapur : Flat No 109, 1st Floor, A Wing, Kalyani Tower, 126 Siddheshwar Peth, Near Pangal High School, Solapur - 413001. Sonepat: 1st Floor, Pawan Plaza, Atlas
Road, Subhash Chowk, Sonepat – 131001, Haryana. Sriganganagar : 18 L Block, Sri Ganganagar - 335001. Srikakulam : Door No 4-4-96, First Floor, Vijaya Ganapathi Temple Back Side,
Nanubala Street, Srikakulam - 532001. Sultanpur: 967, Civil Lines, Near Pant Stadium, Sultanpur - 228001. Surat : Plot No.629,2nd Floor, Office No.2-C/2-D, Mansukhlal Tower, Beside
Seventh Day Hospital, Opp.Dhiraj Sons, Athwalines, Surat - 395001. Surendranagar: Shop No. 12, M.D.Residency, Swastik Cross Road, Surendranagar - 363001. Tezpur Sonitpur: Kanak
Tower 1st Floor, Opposite IDBI Bank/ICICI Bank, C.K.Das Road, Tezpur Sonitpur, Assam – 784001. Thane: Dev Corpora, 1st floor, Office no. 102, Cadbury Junction, Eastern Expressway, Thane
(West) – 400 601.Thiruppur: 1(1), Binny Compound, 2nd Street, Kumaran Road, Thiruppur - 641601. Thiruvalla : 1st Floor, Room No - 61(63) International Shopping Mall, Opp. St. Thomas
Evangelical Church, Above Thomson Bakery, Manjady, Thiruvalla - 689105 (Kerala). Tinsukia: Sanairan Lohia Road,1st Floor, Tinsukia - 786125. Tirunelveli : No. F4, Magnem Suraksaa
Apartments, Tiruvananthapuram Road, Tamil Nadu, Tirunelveli - 627 002. Tirupathi : Shop No : 6, Door No: 19-10-8, (Opp to Passport Office), AIR Bypass Road, Tirupathi – 517501. Trichur :
Room No. 26 & 27, Dee Pee Plaza, Kokkalai, Trichur - 680001. Trichy : No 8, 1st Floor, 8th Cross West Extn, Thillainagar, Trichy - 620018. Trivandrum: TC NO: 22/902, 1st floor, Blossom
Building, Opposite NSS Karayogam, Sasthamangalam Village P.O, Thiruvananthapuram, Trivandrum – 695010 (Kerala). Tuticorn: 1 - A / 25, 1st Floor, Eagle Book Centre Complex,
Chidambaram Nagar Main, Palayamkottai Road, Tuticorn - 628008. Udaipur: 32, Ahinsapuri, Fatehpura circle, Udaipur- 313001. Ujjain: Office at 109, 1st Floor, Siddhi Vinayak Trade
Center, Shahid Park, Ujjain:- 456010. Madhya Pradesh. Unjha (Parent: Mehsana) : 10/11, Maruti Complex, Opp. B R Marbles, Highway Road, Mehsana, Unjha - 384170. Valsad: Gita Niwas,
3rd Floor, Opp. Head Post Office, Halar Cross Lane, Valsad - 396001. Vapi : 208, 2nd Floor HEENA ARCADE, Opp. Tirupati Tower, Near G.I.D.C. Char Rasta, Vapi – 396195. Varanasi: Office
no 1, Second floor, Bhawani Market, Building No. D-58/2-A1, Rathyatra, Beside Kuber Complex, Varanasi - 221010. Vashi: BSEL Tech Park, B-505, Plot no 39/5 & 39/5A, Sector 30A, Opp.
Vashi Railway Station, Vashi, Navi Mumbai – 400705. Vellore: Door No 86, BA Complex, 1st Floor, Shop No 3, Anna Salai (Officer Line), Tollgate, Vellore - 632 001 (Tamil Nadu). Warangal:
A.B.K Mall, Near Old Bus Depot road, F-7, Ist Floor, Ramnagar, Hanamkonda, Warangal - 506001. Yamuna Nagar: 124-B/R Model Town, Yamunanagar - 135001. Yavatmal: Pushpam,
Tilakwadi, Opp Dr Shrotri Hospital, Yavatmal - 445001.

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