SCHEME INFORMATION DOCUMENT

(SID)

KOTAK NIFTY AAA BOND JUN 2025 HTM INDEX FUND

An open-ended Target Maturity Index Fund investing in constituents of NIFTY AAA BOND JUN 2025 HTM Index
subject to tracking errors. A moderate interest rate risk and relatively low credit risk.

Scheme Risk-o-meter Benchmark Risk-o-meter

This product is suitable for investors who are Mode
rate
Moder
atel
High y Mode
rate
Moder
atel
High y
seeking*: to e
w rat
Hi
gh
to e
w rat
Hi
gh
Lo de Lo de
o o
M M

• Income over Target Maturity Period

Very

Very
Low

Low
High

High
• An open-ended Target Maturity Index Fund
tracking Nifty AAA Bond Jun 2025 HTM Index Investors understand that their principal will be at Investors understand that their principal will be at
low to moderate risk low to moderate risk
subject to tracking errors (Ni y AAA Bond Jun 2025 HTM Index)

* Investors should consult their financial advisors 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)

Potential Risk Class (“PRC”) Matrix of the Scheme

Credit Risk → Relatively Low Moderate Relatively High
Interest Rate Risk ↓ (Class A) (Class B) (Class C)
Relatively Low
Moderate A - II
Relatively High
Units at `10 each during the New Fund Offer
Continuous Offer for Units at NAV based prices.
NFO Opens on: Friday, March 15, 2024 NFO Closes on: Tuesday, March 26, 2024
Scheme Re-opens for continuous sale and repurchase within 5 business days from the date of allotment units: Monday, April 08, 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 [Link]

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 [Link].
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 March 05, 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 ....................................................12
C. Special Considerations .................................................................................................13
D. Definitions....................................................................................................................16
E. Due Diligence by the Asset Management Company ...................................................20
III. INFORMATION ABOUT THE SCHEME .................................................................21
A. Type of the scheme ......................................................................................................21
B. What is the investment objective of the scheme? ........................................................21
C. How will the scheme allocate its assets? .....................................................................21
D. Where will the scheme invest? ....................................................................................24
E. What is the investment strategy? .................................................................................25
F. Fundamental attributes .................................................................................................28
G. How will the scheme benchmark its performance? .....................................................28
H. Who manages the scheme? ..........................................................................................33
I. What are the investment restrictions? ..........................................................................34
J. Additional Scheme Related Disclosures ......................................................................39
K. How has the schemes performed?................................................................................39
IV. UNITS AND OFFER ...................................................................................................40
A. New Fund Offer (NFO) ...............................................................................................40
B. Ongoing Offer Details..................................................................................................48
C. Periodic Disclosures.....................................................................................................78
D. Computation of NAV ...................................................................................................85
V. FEES AND EXPENSES ..............................................................................................87
A. New Fund Offer (NFO) Expenses ...............................................................................87
B. Total Expense Ratio (TER) ..........................................................................................87
C. Load structure ..............................................................................................................90
VI. RIGHTS OF UNITHOLDERS ....................................................................................91
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 .................................................................................92

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I. HIGHLIGHTS/ SUMMARY OF THE SCHEME

Name of the Scheme Kotak Nifty AAA Bond Jun 2025 HTM Index Fund.
Category of the Scheme Other Scheme-Index Fund
Type of Scheme An open-ended Target Maturity Index Fund investing in constituents of Nifty
AAA Bond Jun 2025 HTM index subject to tracking errors. A moderate
interest rate risk and relatively low credit risk.
Scheme Code KOTM/O/O/DIN/24/02/0123
Investment Objective The investment objective of the scheme is to generate returns that are
commensurate (before fees and expenses) with the performance of Nifty AAA
Bond Jun 2025 HTM Index, which seeks to track the performance of AAA
rated bond issued by Public Sector Undertakings (PSUs), Housing Finance
Companies (HFCs), Non-Banking Financial Companies (NBFCs) and Banks
maturing near target date of the index, subject to tracking errors.

However, there can be no assurance that the investment objective of the

Scheme will be achieved.
Maturity/Payout date of The Scheme will mature on June 30, 2025. If maturity date or payout date is
the Scheme a non-business day, the subsequent business day shall be considered as the
maturity for the scheme.
Liquidity The scheme is an open-ended target maturity scheme. Purchases and
redemptions at prices related to Applicable NAV, on each Business Day,
commencing not later than 5 Business days from the date of allotment.

As per SEBI (MF) 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 Nifty AAA Bond Jun 2025 HTM Index

Plans Available Direct Plan and Regular Plan

Direct Plan: This Plan is only for investors who purchase /subscribe Units in
a Scheme directly with the Mutual 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.

3
Default Plan Investors subscribing under Direct Plan of the Scheme will have to indicate
“Direct Plan” against the Scheme name in the application form- “Kotak Nifty
AAA Bond Jun 2025 HTM Index Fund”.

Investors should also indicate “Direct” in the AMFI Registered Number

(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 to

mentioned by the the investor be captured
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.
Options under each Plan  Growth
 Payout of Income Distribution cum capital withdrawal (IDCW)
 Reinvestment of Income Distribution cum capital withdrawal (IDCW)

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
is less than Rs.100/-, then such IDCW will be compulsorily reinvested.

The AMC reserves the right to introduce further Options as and when deemed
fit.
Choice of Default Option  If applicant does not indicate the choice of option between growth and
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 of IDCW option and reinvestment of IDCW then the scheme will
accept it as an application for IDCW reinvestment.
NAV Information The NAVs of the Scheme will be calculated and updated on every Business
day on AMFI’s website [Link] by 11.00 p.m. The First NAV of
the scheme shall be declared within 5 working days from the date of allotment.

4
 The NAVs shall also be updated on the website of the Kotak Mahindra Mutual
Fund viz [Link] by 11.00 p.m. Unitholders may avail the facility
to receive the latest available NAVs through SMS by submitting a specific
request in this regard to the Mutual Fund.
Delay in uploading of NAV beyond 11.00 p.m. on every business day shall be
informed 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.

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

will be sent to all unitholders, within 5 days of each fortnight and 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 ([Link]) and on the website of AMFI
([Link]) on a monthly, fortnightly and half-yearly basis within
5 days of every fortnight & within 10 days from the close of each month/ half-
year respectively in a user-friendly and downloadable spreadsheet format.

SIP/SIP Top Available

Up/STP/SWP/Transfer
of IDCW Plan
/Switching/VTP/Trigger
Facility/SIP Pause
Facility/Daily frequency
under STP
SIP Frequency & Dates Investors can select SIP date as any date from 1st to 31st. The frequencies
will be daily, weekly, monthly, quarterly , half yearly and annually .
SWP/STP Frequency SWP frequencies will be daily, weekly, monthly, quarterly, Half yearly and
Annually.

STP frequencies will be Daily, Weekly, Monthly and Quarterly

SWP Dates Any Date
STP Dates Weekly (Any Day), Monthly & Quarterly (Any Date)
SWP/STP Daily / Weekly : Fixed Sum
Other frequencies : Fixed Sum or Entire Appreciation
New Fund Offer Price: Rs. 10 per Unit.

Minimum Investment Initial Purchase (Non- SIP)

size as given below: Rs. 100/- and any amount thereafter.
Additional Purchase (Non- SIP)
Rs. 100/- and any amount thereafter.
SIP Purchase
Rs. 100/- and any amount thereafter.
Minimum Redemption The minimum redemption amount for all plans will be Rs. 100 or account
Size: In Rupees/Units balance, whichever is lower.
Minimum balance to be There is no requirement of maintenance of minimum balance.
maintained.
Cheques/ Drafts to favour Regular Plan: Cheques should be drawn in favor of Kotak Nifty AAA Bond
Jun 2025 HTM Index Fund.
Direct Plan: Cheques should be drawn in favor of Kotak Nifty AAA Bond
Jun 2025 HTM Index Fund – Direct Plan.
Loads Entry Load: Nil

5
 In terms of para 10.4.1 (a) of SEBI Master Circular No. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 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: Nil

Units issued on reinvestment of IDCW shall not be subject to entry and exit
load.

The AMC reserves the right to change / modify the Load structure of the
Scheme, subject to maximum limits as prescribed under the Regulations.
Accepting of cash At present, applications for investing in scheme through cash are not accepted
transactions by Kotak AMC. The Asset Management Company is in process of
implementing adequate systems and controls to accept Cash Investment in the
Scheme. Information in this regard will be provided to Investors as and when
the facility is made available.

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.
 Mutual fund investments are subject to market risks, read all scheme related documents carefully.
 Kotak Nifty AAA Bond Jun 2025 HTM Index Fund is only the 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 the scheme
beyond the contribution of Rs.2,50,000 made by it towards setting up the Mutual Fund.
 The present scheme is not a guaranteed or assured return scheme.
 Investments are subject to market risks and there is no assurance or guarantee that the investment
objectives of the Scheme will be achieved;
 Changes in government policy, changes in tax benefits applicable to mutual funds may impact the
returns to Investors in the scheme.

Scheme Specific Risk Factors:

 The Scheme will be a passively managed scheme. The Scheme shall endeavor to invest in the
securities included in its Underlying Index regardless of their investment merit, subject to
deviations permitted as per extant SEBI circulars as amended from time to time. The Scheme will
invest in index constitute of Debt Securities issued by Public Sector Undertakings (PSUs), Housing
Finance Companies (HFCs), Non-Banking Financial Companies (NBFCs) and Banks. Hence the
scheme will be affected by the risks associated with the particular industry/sector. The scheme
performance may be affected by a general decline in the Indian markets relating to its underlying
Index.

 Portfolio Concentration Risk: To the extent that the scheme may concentrate its investments in the
securities of certain issuers sectors, the scheme will therefore be subject to the risks associated with
such concentration. The underlying securities forming part of Nifty AAA Bond Jun 2025 HTM
Index constitute of Debt Securities issued by Public Sector Undertakings (PSUs), Housing Finance
Companies (HFCs), Non-Banking Financial Companies (NBFCs) and Banks. The underlying
companies forming part of Nifty AAA Bond Jun 2025 HTM Index has AAA rated bonds are well
researched. They enjoy liquidity. The risk to investing in these securities would emanate from debt
market risk in general. Also risk may arise in case the sector to which the company belongs may
not perform in line with the broader market.

 Investments in the scheme may mature before target maturity and there may not suitable
reinvestment opportunities available during/ near the maturity of the scheme.

7
 Inflows will be invested in securities that mature before the target maturity at then prevalent
rates/yields and hence overall performance could be different than at the time of portfolio
construction.

 Tracking errors / difference are inherent in any index fund and such errors may cause the scheme
to generate returns which are not in line with the performance of the Nifty AAA Bond Jun 2025
HTM index or one or more securities covered by / included in the underlying index.

 To the extent that some assets/ funds may be deployed in debt/money market instruments other
than the index constituent, the scheme will be subject to risks relating to such deployment /
operations and may also contribute to tracking errors.

Risks associated with Debt / Money Markets

a) 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, Foreign Currency market , 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 credit risk for lower rated borrower’s lenders prefer higher rated instruments further
justifying the lower yields.

b) 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. However, debt securities in the scheme are
intended to be held till maturity. For such securities held till maturity, there will not be any interest
rate risk at the end of the tenure.

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

8
 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.

c) Risk of Rating Migration:

The following table illustrates the impact of change of rating (credit worthiness) on the price of a
hypothetical AA rated 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, 11.00% p.a., its market value would drop to Rs. 97.53 (i.e. 2.47%) If the security is up-graded
to AAA category which commands a market yield of, say, 9.00% p.a. its market value would
increase to Rs102.51 (i.e. by 2.51%). 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 10.00 100.00
If upgraded to AAA 9.00 102.51
If downgraded to A 11.00 97.53

d) 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.

e) 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.

f) 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.

g) Liquidity Risk:

This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity
(YTM). The primary measure of liquidity risk is the spread between the bid price and the offer
price quoted by a dealer. 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. 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 in the Statement of Additional Information (SAI).

9
Risk associated with investment in Government securities and Triparty 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 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 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 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.

Risks associated with Tracking Error / Tracking Difference:

Tracking error means the extent to which the NAV of the scheme moves in a manner inconsistent with
the movements of the benchmark index on any given day or over any given period of time due to any
cause or reason whatsoever including but not limited to expenditure incurred by the scheme, IDCW
payouts if any, whole cash not invested at all times as it may keep a portion of funds in cash to meet
redemption etc.

10
However, the scheme will endeavor to limit the tracking difference over one-year period within 1.25%
limits.

Tracking error / difference could be the result of a variety of factors including but not limited to:
 Delay in the purchase or sale of securities / Issuances within the benchmark due to
o Illiquidity in the securities
o Delay in realisation of sale proceeds

 The scheme may buy or sell the securities comprising the index at different points of time during
the trading session at the then prevailing prices which may not correspond to its valuation prices.
 The potential for trades to fail, which may result in the Scheme not having acquired the securities
at a price necessary to track the benchmark price.
 Index providers may either exclude or include new securities in their periodic review of the
securities that constitute the underlying index. In such situations the scheme will endeavour to
rebalance the portfolio in line with the index. But may not able to mirror the index immediately
due the available investment/reinvestment opportunity.
 The holding of a cash position and accrued income prior to distribution of income and payment of
accrued expenses.
 Disinvestments to meet redemptions, recurring expenses, payouts of IDCW etc.
 Execution of large buy / sell orders
 Delay in credit of securities
 Transaction cost and recurring expenses
 Delay in realisation of Unit holders’ funds
 Maintenance of margins

Risk associated with investing in Mutual fund units

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.

All the above factors may not only affect the prices of securities but also the time taken by the 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. The liquidity of the assets may be affected
by other factors such as general market conditions, political events, bank holidays and civil strife. 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 Control/ Mitigation measures:

Few of the key risk identified are:

Type of Risks Measures/ Strategies to control risks

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
11
 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.
Market/Volatility The Scheme, being a Target Maturity Date Index structure, is expected to follow
Risk a Buy and Hold investment strategy in a passive manner. Based on that, we
expect to mitigate intermittent price volatility in the underlying assets. Investors
who remain invested until the maturity of the Scheme are expected to mitigate
market / volatility risk to large extent.
Credit risk The Scheme seeks to track index consisting AAA Bonds which are considered
as relatively safe.
Liquidity risk The Scheme seeks to track index consisting of AAA Bonds which has higher
level of secondary market liquidity.
Interest rate risk The Scheme, being a Target Maturity Date Index structure, is expected to follow
a Buy and Hold investment strategy in a passive manner. All investments will
be in line with the maturity date of the Scheme and the underlying Index. This
should help mitigate the interest rate risk.
Tracking errors / Over a short period, the Scheme may carry the risk of variance between portfolio
difference composition and Benchmark. The objective of the Scheme is to closely track the
performance of the Underlying Index over the same period, subject to tracking
error/difference. The Scheme would endeavor to maintain a low tracking
error/difference by actively aligning the portfolio in line with the Index.
Securities Lending The SLB shall be operated through Clearing Corporation/Clearing House of
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 scheme
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.
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.
Units of liquid and Mutual Fund portfolios are generally well diversified and typically endeavor to
overnight mutual provide liquidly normally within T+2
fund schemes

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 mentioned 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 [Link]
response to the same.

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 do 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
12
 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 15th day of the notice period. The Mutual 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
Mutual 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 Mutual Fund. The Mutual
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,
the Mutual 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 AMC 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 or in violation of MF
regulation.

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

13
 identification programme, 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.

vii. 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) Registered Investment
Advisor’s/Portfolio Management Service Providers through whom the applications or consent is
received for the scheme d) 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.

viii. Purchase/ Redemption of units of Scheme of Kotak Mahindra Mutual Fund 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 SEBI Circular no. SEBI/HO/MRD1/DSAP/CIR/P/2020/29 dated February

26, 2020 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) / Stock Exchanges from time to time.

14
 Note for demat holding

 Investors would have to provide the demat account details in the application form 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.
 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.

ix. 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 (Repealed and superceded by
SEBI (Portfolio Managers) Regulations, 2020. The said certificate of registration is valid unless
it is suspended or cancelled by SEBI. KMAMC received approval from SEBI for acting as an
investment manager for Kotak India Renaissance-I Fund under Category III. 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.

15
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 Mutual Fund.
Application An application containing an authorization given by the Investor to block the
Supported by application money in his specified bank account towards the subscription of Units
Blocked offered during the NFO of the Scheme. On intimation of allotment by CAMS to
Amount (ASBA) the banker the investors account shall be debited to the extent of the amount due
thereon.
Asset Management Kotak Mahindra Asset Management Company Limited, the Asset Management
Company or AMC Company incorporated under the Companies Act, 1956, and authorised by SEBI
or Investment to act as Investment Manager to the Schemes of Kotak Mahindra Mutual Fund.
Manager
Business A day other than:
Day/Working Day (i) Saturday and Sunday
(ii) A day on which the banks in Mumbai and RBI are closed for
business/clearing
(iii) A day on which the money markets are closed/not accessible.
(iv) a day on which Purchase and Redemption is suspended by the AMC

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/Working
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 transactions
Account (which includes purchase, redemption, switch, payout of IDCW option,
Statement(CAS) reinvestment of IDCW option, 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, 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 of the
Controlling SCSBs which shall collect the ASBA Application Forms duly filled by the
Branches 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.

16
Income Under the IDCW option, the Trustee may at any time decide to distribute by way
Distribution cum of IDCW, the surplus by way of realised profit and interest, net of losses, expenses
capital withdrawal and taxes, if any, to Unitholders if, in the opinion of the Trustee, such surplus is
(IDCW) Option 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 Mutual Fund is
required to dispatch IDCW payments within seven working days from the record
date.

In case of dynamic lien the IDCW may be credited to the financier.

The 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, IDCW amounts will be reinvested in the
Reinvestment of 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 regulation 4
Investor (FPI) 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.
Group A group means a group as defined under regulation 2 (mm) of SEBI (Mutual
Funds) Regulations, 1996 (Regulations) and shall include an entity, its
subsidiaries, fellow subsidiaries, its holding company and its associates.
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.
17
Investor Service Designated branches of the AMC / other offices as may be designated by the AMC
Centres or ISCs from time to time.
Kotak Bank/ Kotak Mahindra Bank Limited.
Sponsor
Kotak Nifty AAA An open-ended Target Maturity Index Fund investing in constituents of Nifty
Bond Jun 2025 AAA Bond Jun 2025 HTM Index subject to tracking errors. A Moderate interest
HTM Index Fund rate risk and relatively low credit risk.
KMMF/Fund/ Kotak Mahindra Mutual Fund, a trust set up under the provisions of The Indian
Mutual Fund 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.
Main Portfolio Scheme portfolio excluding the segregated portfolio. (Portfolio referred herewith
will include interest accrued as well)
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, 1996, as
Regulations/ amended up to date, and such other regulations as may be in force from time to
Regulations 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 four 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 Act, 1934.
India/RBI
Reverse Repo Purchase of securities with a simultaneous agreement to sell them at a later date.
Money Market Includes commercial papers, commercial bills, treasury bills, Government
Instruments 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 Nifty AAA Bond Jun 2025 HTM Index Fund
Scheme This document issued by Kotak Mahindra Mutual Fund, offering for subscription
Information of Units of the Scheme.
Document (SID)
Statement of It contains details of Kotak Mahindra Mutual Fund, its constitution, and certain
Additional tax, legal and general information. It is incorporated by reference (is legally a part
Information (SAI) of the Scheme Information Document)
SEBI The Securities and Exchange Board of India.
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 SEBI circular dated December 28, 2018, credit event is considered
for creation of segregated portfolio, however as per para 4.4 of SEBI Master
Circular 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

18
 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)
Tracking Error Means the extent to which the NAV of the fund moves in a manner inconsistent
with the movements of the benchmark index on any given day or over any given
period of time due to any cause or reason whatsoever including but not limited to
expenditure incurred by the scheme, if any, whole cash not invested at all times as
it may keep a portion of funds in cash to meet redemption etc.
Tracking Difference Tracking difference is the difference of return between the scheme and benchmark
annualized over a specified period. The tracking difference for debt ETF/Index
Fund for one year period shall not exceeds 1.25%.

In case the tracking difference over one year period for the scheme is higher than
1.25%, the same shall be brought to the notice of trustees with corrective actions
taken by the AMC, if any.
Triparty repo on Triparty repo on Government securities or treasury bills is a type of repo contract
Government where a third entity (apart from the borrower and lender), called a Tri-Party Agent,
securities or acts as an intermediary between the two parties to the repo to facilitate services
treasury bills 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

19
E. Due Diligence by the Asset Management Company

It is confirmed that:
 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.
 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.
 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.
 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.
 there are no deviations from the SEBI (Mutual Funds) Regulations or no subjective interpretations
have been applied to the provisions of the regulations; and
 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: March 05, 2024 Compliance Officer

20
III. INFORMATION ABOUT THE SCHEME

Kotak Nifty AAA Bond Jun 2025 HTM Index Fund

A. Type of the scheme

An open-ended Target Maturity Index Fund investing in constituents of Nifty AAA Bond Jun 2025
HTM Index subject to tracking errors. A moderate interest rate risk and relatively low credit risk.

B. What is the investment objective of the scheme?

The investment objective of the scheme is to generate returns that are commensurate (before fees
and expenses) with the performance of Nifty AAA Bond Jun 2025 HTM Index, which seeks to
track the performance of AAA rated bond issued by Public Sector Undertakings (PSUs), Housing
Finance Companies (HFCs), Non-Banking Financial Companies (NBFCs) and Banks maturing
near target date of the index, subject to tracking errors.

However, there can be no assurance that the investment objective of the Scheme will be realized.

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

Replication of Securities covered by Nifty AAA 95-100% Low to
Bond Jun 2025 HTM Index^ Moderate
Cash & Debt/Money Market Instruments* 0-5% Low

^Pursuant to para 3.5.3 of SEBI Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May

19, 2023, the scheme shall be considered to be replicating the underlying index, provided:

i. Investment in securities of issuers accounting for at least 60% of weight in the index, represents at
least 80% of net asset value (NAV) of the Scheme.

ii. At no point of time the securities of issuers not forming part of the index exceed 20% of NAV of
the Scheme.

iii. At least 8 issuers from the underlying index form part of the portfolio of the Scheme.

iv. The investment in various securities are aggregated at issuer level for the purpose of exposure
limits.

v. The exposure limit to a single issuer by the scheme shall be as under:

For AAA rated securities, exposure to a single issuer by the scheme shall not have more than 15%
weight in the portfolio.

vi. Total exposure of the scheme in a particular group (excluding investments in securities issued by
PSUs, PFIs and PSBs) shall not exceed 25% of NAV of the scheme. For the purpose of this provision,
‘group’ shall have the same meaning as defined in para [Link] of the SEBI Master Circular No.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023.

21
 vii. Total exposure of the Index Fund in a particular sector (excluding G-sec, T-bills, SDLs and AAA
rated securities issued by PSUs, PFIs and PSBs) shall not exceed 25% of the NAV of the scheme.
However, this provision is not applicable for schemes based on sectoral debt indices.

viii. The Macaulay Duration (hereinafter referred as “duration”) of the portfolio of the Scheme
replicates the duration of the underlying index within a maximum permissible deviation of +/- 10%.

In case of Target Maturity (or Target Date) Index Funds, the following norms for permissible
deviation in duration shall apply:
a) For portfolio with residual maturity of greater than 5 years: Either +/- 6 months or +/- 10% of
duration, whichever is higher.
b) For a portfolio with residual maturity of up to 5 years: Either +/- 3 months or +/- 10% of duration,
whichever is higher.
c) However, at no point of time, the residual maturity of any security forming part of the portfolio
shall be beyond the target maturity date of the Index Fund.

x. The rating wise weightage of debt securities in the portfolio of Scheme replicates the underlying
index. However, greater allocation of up to 10% of the portfolio may be made to higher rated debt
securities.

*Investment in Debt/Money market instruments (for liquidity purpose) will be of less than 1-year
residual maturity.

During normal circumstances, the Scheme’s exposure to ‘Cash and debt/money market instruments’
will be in line with the asset allocation table. However, on the maturity of instruments in the Scheme
portfolio, the reinvestment will be in line with the index methodology. Hence towards maturity, there
may be higher allocation to ‘Cash and debt/money market instruments’ under the scheme’.

Money Market instruments includes 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, and any other like instruments as specified by the Reserve Bank of India from time to time
and subject to regulatory approval.

In accordance with clause 4 of Seventh Schedule of SEBI (Mutual Funds) Regulations 1996, the scheme
may invest in liquid and overnight schemes under the same asset management company 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.

Subject to SEBI (MF) Regulations and in accordance with Securities Lending Scheme, 1997, SEBI
Circular no. SEBI /IMD / CIR No14 / 187175/ 2009 dated December 15, 2009, para 12.11 of Master
Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, the Trustee may permit
the scheme to engage in securities lending and borrowing. At present, since only lending is permitted,
the scheme 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
be allowed to 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.

As per SEBI Circular no. SEBI/HO/IMD/DF2/CIR/P/2021/024 dated March 04, 2021 (para 12.24.1 of
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023), the cumulative gross exposure through
debt and money market securities, units of mutual fund schemes should not exceed 100% of the net
assets of the scheme.

22
Pursuant to para 12.25.3 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May
19, 2023 and SEBI Letter to AMFI dated November 03, 2021, 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.

The Scheme does not intend to do/invest in the following:

 ADR/GDR/Overseas securities.
 Derivatives and Commodity derivatives.
 Short Selling
 Credit Default Swap transactions.
 Units of Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs).
 Debt instruments with special features as referred to in SEBI circular dated March 10, 2021.
 Securitised debt
 Debt instruments having Structured obligations and credit enhancements.
 Repo/ reverse repo transactions in corporate debt securities.
 Fund of Fund schemes

For residual portion of 5% in the asset allocation, 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: Pursuant to para [Link] of SEBI Master circular no. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 May 19, 2023 and circulars issued thereunder, the following norms shall apply:

a. In case of change in constituents of the index due to periodic review, the portfolio of the scheme
be rebalanced within 7 calendar days.

b. In case the rating of any security is downgraded to below the rating mandated in the index
methodology (including downgrade to below investment grade), the portfolio be rebalanced within
30 calendar days.

c. In case the rating of any security is downgraded to below investment grade, the said security may
be segregated in accordance with para 4.4.4 & 4.4.5 of SEBI Master Circular No.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023 on creation of segregated portfolio in
mutual fund schemes.

Short Term Defensive Consideration:

Subject to para [Link] of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May

19, 2023 and circulars issued thereunder, 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. Such changes in the investment pattern will be rebalanced within 7 calendar days from
the date of deviation and further action may be taken as specified under SEBI Circulars/ AMFI
guidelines issued from time to time.

23
Overview of Debt Market and Money Markets.

The Indian Debt Market has grown in size substantially over the years. The Reserve Bank of India has
been taking steps to make the Indian Debt Market efficient and vibrant. Broadly, the debt market is
divided in two parts viz. the Money Market and the Debt market. Money market instruments have a
tenor of less than one year while debt market instruments have a tenor of more than one year. Money
market instruments are typically commercial paper, certificates of deposit, treasury bills, trade bills,
repos, interbank call deposit receipts etc. Debt market comprises typically of securities issued by
Governments (Central and State), Banks, Financial Institutions, and Companies in the private and
public sector, Corporations, Statutory Bodies etc.

The debt securities are mainly traded over the telephone directly or through brokers. The National
Stock Exchange of India has a separate trading platform called the Wholesale Debt Market segment
where trades put through member brokers are reported.

RBI has introduced the Negotiated Dealing System (NDS) platform for screen-based trading in
Government Securities including treasury bills. Most of the market participants are now operating
through NDS.

Promoted by major banks and financial institutions, The Clearing Corporation of India Ltd. (CCIL)
was incorporated on April 30, 2001. The CCIL guarantees the settlement of all trades executed through
NDS. The clearing and settlement risks viz., Counter party Credit Risk and Operational Risk are
mitigated by CCIL thereby facilitating a smooth settlement process.

The following table gives approximate yields prevailing as on February 28, 2024 on some of the money
and debt market instruments. These yields are indicative and do not indicate yields that may be obtained
in future as interest rates keep changing.

Instrument Yield Range (% per annum)

Inter-bank Call Money 6.35-6.40
91 Day Treasury Bill 6.90-6.95
364 Day Treasury Bill 7.10-7.12
P1+ Commercial Paper 90 Days 7.70-7.75
3-Year Government of India Security 7.04-7.06
5-Year Government of India Security 7.05-7.09
10-Year Government of India Security 7.05-7.09

Generally, for instruments issued by a non-Government entity, the yield is higher than the yield on a
Government Security with corresponding maturity. The difference, known as credit spread, depends on
the credit rating of the entity. Investors must note that the yields shown above are the yields prevailing
on February 28, 2024 and they are likely to change consequent to changes in economic conditions and
RBI policy.

D. Where will the scheme invest?

The amount collected under the scheme will be invested in securities constituting the Index and debt
and money market instruments.

Subject to the Regulations, the amount collected under this scheme can be invested in any (but not
exclusively) of the following securities/ debt instruments:

a. Corporate debt (of both public and private sector undertakings) including Non-convertible
debentures (including bonds) and non-convertible part of convertible securities;

24
b. Securities created and issued by the Central and State Governments and repo/or 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. Short Term Deposits of banks (both public and private sector) and development financial
institutions to the extent permissible under SEBI Regulations;
e. A small portion of the net assets will be invested in money market instruments permitted by SEBI
/ RBI including (CPs, CDs, Tbills, Mibor linked instruments with daily Put/Call options &
overnight Interest Rate Reset Linked Instruments) as may be provided by the RBI, to meet the
liquidity requirements of the Scheme;
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)
• Triparty repo on Government securities or treasury bills, Bills re-discounting
g. Securities Lending as permitted by SEBI from time to time
h. Units of mutual fund schemes.

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-PoD-1/P/CIR/2023/74 May
19, 2023.

E. What is the investment strategy?

Kotak Nifty AAA Bond Jun 2025 HTM Index Fund is a passively managed target maturity index fund
which will employ an investment approach designed to track the performance of Nifty AAA Bond Jun
2025 HTM Index subject to tracking error. The scheme will largely follow buy and hold investment
strategy in AAA Corporate/PSU Bonds which will be held till maturity unless sold for meeting
redemptions/rebalancing requirements. The scheme shall endeavour to replicate the index. In case the
Scheme is not able to replicate the index the Fund Manager may invest subject to deviations as
permitted by SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023, as
amended from time to time.

During normal circumstances, the scheme’s exposure to debt and money market instruments will be in
line with the asset allocation table. However, in case of maturity of instruments in the Scheme portfolio,
the reinvestment will be in line with the index methodology.

Portfolio Turnover

Portfolio Turnover is a term used to measure the volume of trading that occurs in a Scheme's portfolio
during a given time period. The scheme being a passively managed open-ended target maturity index
scheme, it is expected that there would be a number of subscriptions and redemptions on a daily basis.
Hence, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the
portfolio. Generally, turnover will depend upon the extent of purchase and redemption of units and the
need to rebalance the portfolio on account of change in the composition, if any, and corporate actions
of securities included in the Index. The Scheme has no specific target relating to portfolio turnover.

Portfolio Turnover Ratio: Since the scheme is a new scheme to be launched, the said ratio is Not
Applicable during NFO.

Product Differentiation: Kotak Nifty AAA Bond Jun 2025 HTM Index Fund will be an open ended
maturity debt Index Fund offered by Kotak Mahindra Mutual Fund investing in constituents of Nifty

25
AAA Bond Jun 2025 HTM Index subject to tracking errors. The Trustees have ensured that Kotak Nifty
AAA Bond Jun 2025 HTM Index 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.

Stated below are the key features of other open ended debt maturity index schemes of Kotak
Mahindra Mutual Fund.

Name Objective Asset Allocation Pattern Differentiation Quarterly

of the AAUM &
Existing Folio (as
Scheme on Dec
31, 2023)
Kotak The Investments Indicative Risk An open-ended Rs.
Nifty investment Allocation Profile Target Maturity 544.06 cr
SDL objective of Replication of 95% - Low – Index Fund & folio -
Plus the scheme is securities 100% Medium investing in 852
AAA to track the covered by constituents of
PSU Nifty SDL Nifty SDL Nifty SDL Plus
Bond Plus AAA Plus AAA PSU
Jul 2028
PSU Bond Jul AAA PSU Bond
60:40 2028 60:40 Bond Jul Jul 2028 60:40
Index Index by 2028 60:40 Index.
Fund investing in Index^
SDLs and Cash & 0% - 5% Low
PSU Bonds, Debt/Money
maturing on or Market
before Jul Instruments**
2028, subject
to tracking
difference.
Kotak The Investments Indicative Risk An open-ended Rs.
Nifty investment Allocation Profile Target Maturity 8,017.67
SDL objective of Replication 95% - Low – Index Fund cr & folio
Apr the scheme is of securities 100% Medium investing in - 5824
2027 to track the covered by constituents of
Top 12 Nifty SDL Nifty SDL Nifty SDL Apr
Equal Apr 2027 Apr 2027 Top 12
Weight Top 12 Equal 2027 Top 12 Equal Weight
Index Weight Index Equal Weight Index.
Fund by investing in Index
SDLs, Cash and 0% - 5% Low
maturing on or debt/money
before market
Apr 2027, instruments**
subject to
tracking errors

Kotak The Investments Indicative Risk An open-ended Rs.

Nifty investment Allocation Profile Target Maturity 2,475.52
SDL objective of Replication 95% - Low – Index Fund cr & folio
Apr the scheme is of securities 100% Medium investing in - 2,429
2032 to track the covered by constituents of
Top 12 Nifty SDL Nifty SDL Nifty SDL Apr
Equal Apr 2032 Apr 2032 Top 12
Weight
26
Name Objective Asset Allocation Pattern Differentiation Quarterly
of the AAUM &
Existing Folio (as
Scheme on Dec
31, 2023)
Index Top 12 Equal 2032 Top 12 Equal Weight
Fund Weight Index Equal Weight Index
by investing in Index
SDLs, Cash and 0% - 5% Low
maturing on or debt/money
before market
Apr 2032, instruments**
subject to
tracking errors
Kotak The Investments Indicative Risk An open-ended Rs.
Nifty investment Allocation Profile Target Maturity 115.33 cr
SDL Jul objective of Replication 95% - Low – Index Fund & folio -
2026 the scheme is of securities 100% Medium investing in 418
Index to track the covered by constituents of
Fund Nifty SDL Jul Nifty SDL Jul Nifty SDL Jul
2026 Index 2026 Index^ 2026 Index.
by investing in Cash and 0% - 5% Low
SDLs, debt/money
maturing on or market
before July instruments**
2026, subject
to tracking
difference.
Kotak The Investments Indicative Risk An open-ended Rs.
Nifty investment Allocation Profile Target Maturity 151.98 cr
SDL Jul objective of Replication 95% - Low – Index Fund & folio -
2033 the scheme is of securities 100% Medium investing in 770
Index to track the covered by constituents of
Fund Nifty SDL Jul Nifty SDL Jul Nifty SDL Jul
2033 Index 2033 Index^ 2033 Index.
by investing in Cash and 0% - 5% Low
SDLs, debt/money
maturing on or market
before July instruments**
2033, subject
to tracking
difference.
Kotak To generate Investments Indicative Risk An open-ended Rs. 35.62
Nifty G- returns that Allocation Profile Target Maturity cr & folio
Sec July are Replication 95- Medium Index Fund - 2650
20233 commensurate of Securities 100% to Low investing in
Index (before fees covered by constituents of
Fund and expenses) Nifty G-Sec Nifty G-Sec
with the July 2033 July 2033
performance Index ^ Index. A
of the Nifty G- Cash & 0-5% Low relatively high
Sec July 2033 Debt/Money interest rate risk
Index, subject Market and relatively
to tracking Instruments* low credit risk.
errors.
27
F. Fundamental attributes
Following are the fundamental attributes of the scheme, in terms of Regulation 18 (15A) of SEBI (MF)
Regulations:

1. Type of the scheme: As mentioned under the heading “Type of the Scheme” of Chapter III
2. Investment Objective: As mentioned under the heading “Investment Objective” of Chapter III
3. Investment Pattern: As mentioned under the heading “How will the scheme allocate its assets” of
Chapter III
4. Terms of Issue:
o Liquidity provisions such as listing, repurchase, redemption. Investors may refer Chapter IV
for detailed information on listing, repurchase and redemption.
o Aggregate fees and expenses charged to the scheme. Investors may refer Chapter V on fees
and expenses charged to the scheme.
o 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 Kotak Nifty AAA Bond Jun 2025 HTM Index Fund is benchmarked against the
Nifty AAA Bond Jun 2025 HTM Index. The investment objective of the scheme is to generate returns
that are commensurate with the performance of Nifty AAA Bond Jun 2025 HTM Index subject to
tracking error. Kotak Nifty AAA Bond Jun 2025 HTM Index Fund which will replicate Nifty AAA
Bond Jun 2025 HTM Index. The composition of the benchmark is such that, it is most suited for
comparing performance of the Scheme.

a) About Nifty AAA Bond Jun 2025 HTM Index

Index objective: Seeks to track the performance of AAA rated bond issued by Public Sector
Undertakings (PSUs), Housing Finance Companies (HFCs), Non-Banking Financial Companies
(NBFCs) and Banks maturing during the six-month period ending June 30, 2025.

The index is computed using the total return methodology including price return and coupon return.

28
Methodology

The methodology is in compliance with the Norms for Debt Exchange Traded Funds (ETFs)/Index
Funds prescribed by SEBI vide para 3.5 of Master circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 May 19, 2023

Eligibility criteria:

 Issuing entity should be domiciled in India and should satisfy either of the following:
1. PSUs with minimum outstanding amount of Rs.1000 Cr in the eligible bonds of the issuer maturing
during six months period ending June 30, 2025 and should satisfy either of the following:
a) Central Public Sector Enterprises (CPSEs) as listed on DPE & DIPAM website
b) Maharatna, Navratna and Miniratna as listed on DPE website, if not included in CPSEs list as
mentioned in point a
c) Public Financial Institutions (PFIs) owned and managed by GOI and not included in points a
and b above
d) Statutory body set-up by Act of Parliament and having outstanding bonds of more than Rs. 100
crores
2. HFC (Housing Finance Companies) issuers as per NHB (presently available in the list mentioned
on the [Link] website) with minimum outstanding amount of Rs.600 Crores
3. NBFC (Non-Banking Financial Companies) issuers as available in the RBI list of NBFCs with
minimum outstanding amount of Rs.1200 Crores
4. Banks with minimum outstanding amount of Rs.4000 Crores
 Bond eligibility

Bond should be
1. Plain vanilla with fixed coupon and fixed maturity
2. Denominated in INR
3. Be listed and traded on NSE and/or BSE and should be rated

Bond should not be

1. Tax Free
2. Floating Rate Bond
3. Partially Paid up
4. Perpetual
5. Having Single Option (Call/Put)
6. Having step up/step down coupon which is linked to any contingent event
7. Convertible bonds
8. Having staggered redemption
9. Having structure obligation and/or credit enhancement

Selection Criteria
 Issuer Shortlisting

o Eligible issuers having credit rating of “AAA” (Triple A) and having eligible bonds maturing
during the six month period ending June 30, 2025 at the time of index creation/review are
shortlisted. In case an entity is rated by multiple rating agencies, the lowest rating assigned to
the Non-Convertible Debenture/Long Term Debt of the entity is considered for the index
selection purpose
o Further, issuers from the above step which have outstanding amount as per amount provided
in ‘Issuer Eligibility’ above as on February 29, 2024 in eligible bonds and maturing during six
month period ending June 30, 2025 are shortlisted for the index

29
 Bond Selection
o As on February 29, 2024 for every shortlisted issuer, eligible bond with longest maturity is
selected to be part of the index. Only one bond per issuer to be part of the index.

Weight Assignment
 Each bond of the selected issuer that is part of the AAA rated Bonds portion is given equal weight
as of the base date of the index.
 Single issuer/group/sector limit in compliance with the Norms for Debt Exchange Traded Funds
(ETFs)/Index Funds announced by SEBI vide circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 on May 19, 2023. Subsequently, the security level weights may drift due to price
movement and will not get reset
 Any coupon amount received is assumed to be reinvested in the portfolio on the same date, in the
proportion of the existing weights

Index Rebalancing/Reconstitution
 On a semi-annual basis, index will be screened for compliance with the Norms for Debt Exchange
Traded Funds (ETFs)/Index Funds” announced by SEBI vide circular no. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 on May 19, 2023. In case of non-compliance, suitable corrective measures
will be taken to ensure compliance with the norms
 In case there is a breach of 15% in weight of any AAA issuer, excess weight will be redistributed
in rest of the issuers proportionally
 Based on the governments ‘in principle approval’ to disinvest its stake in some of the government
owned entities, such entities are not included to be part of the index at launch/inception of the index.
On account of disinvestment in an existing constituent, such issuer shall be excluded from the index
effective next rebalancing/reconstitution only if the disinvestment process has been completed
 In case a new eligible issuer gets downgraded before the portfolio disclosure date (T-3), such issuer
shall not be included in the index
 Apart from scheduled review, in case an existing issuer gets downgraded below AAA, bonds of
such issuer to be excluded from the index within 5 working days from such downgrade, in
compliance with the Norms for Debt Exchange Traded Funds (ETFs)/Index Funds” announced by
SEBI vide circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 on May 19, 2023
 Due to the above stated reasons, if the index is rebalanced and issuer/s move out of the index,
o If the total number of AAA rated issuers in the index is 8 and above, then the total weight of
the AAA rated securities being excluded will be redistributed among the remaining AAA
rated securities proportionally. This will be subject to issuer/group/sector limit in compliance
with the Norms for Debt Exchange Traded Funds (ETFs)/Index Funds” announced by SEBI
vide circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 on May 19, 2023
o If the total number of AAA rated issuers in the index fall below 8, then new AAA rated issuers
will be included in the index based on the issuer selection and bond selection criteria
mentioned in the AAA rated Bonds component index methodology section above, to take the
AAA rated issuer count to 8 and the total running weightage of AAA rated Bonds component
will be divided equally amongst all the AAA rated issuers in the index. This will be subject
to issuer/group/sector limit in compliance with the Norms for Debt Exchange Traded Funds
(ETFs)/Index Funds” announced by SEBI vide circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 on May 19, 2023
 Except for above stated reasons, there will be no inclusion and exclusion in the index during the
semi-annual review
 If there is no inclusion or exclusion on the review date, the weights will not get reset and existing
weights will continue subject to issuer/group/sector limit in compliance with the Norms for Debt
Exchange Traded Funds (ETFs)/Index Funds” announced by SEBI vide circular no.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 on May 19, 2023

30
  As the index includes securities that shall mature during the six month period ending on the final
maturity date of the index, any proceeds from the security redemption prior to the final maturity
date of the index shall be re-invested using the following waterfall approach:
o The proceeds from security redemption will be reinvested in the longest maturity
outstanding security issued by the same issuer (SDL in case of state/UT and Bond/money
market instrument in case of corporate bond) and maturing on or just before the index
maturity date with the same weightage. This will be subject to single issuer limit in
compliance with the Norms for Debt Exchange Traded Funds (ETFs)/Index Funds”
announced by SEBI vide circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 on May
19, 2023
o In case a replacement in the form of outstanding security of the same issuer cannot be found
for reinvestment then the proceeds from such redemption shall be reinvested in the
remaining entire portfolio on the same date in the proportion of the existing weights. This
will be subject to single issuer limit in compliance with the Norms for Debt Exchange
Traded Funds (ETFs)/Index Funds” announced by SEBI vide circular no.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 on May 19, 2023
o In case due to any reason, it is not possible to meet any norms as prescribed by SEBI vide
circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 on May 19, 2023, then the
proceeds from such redemption shall be reinvested in a T-Bill maturing on or just before
the index maturity date
o If the last outstanding security (including T-Bill) in the index matures before the final index
maturity date, all redemption proceeds shall be re-invested in The Clearing Corporation of
India Ltd.’s (CCIL) TREPS overnight rate tracked by Nifty 1D Rate Index for any
subsequent days till the maturity of the index

 Index Termination

The index shall mature on June 30, 2025. If the index matures on a holiday, the index value will be
computed till the prior working day.

b) Index Constituents and weightages (The portfolio might change at the time of launch):

Tentative Portfolio prepared using the data cut-off date of February 29, 2024 :

YTM as
Issuer level
Sr. Maturit Weigh on
ISIN Issuer Sector O/s amt (in Coupon
no. y date t 29/02/2
Crs.)
024
1 INE040 HDFC BANK LIMITED Bank 28,780 7.80% 02-Jun- 2.27% 8.15%
A08922 25
2 INE115 LIC HOUSING FINANCE HFC 16,954 6.25% 20-Jun- 2.27% 8.04%
A07PU1 LIMITED 25
3 INE071 ICICI HOME FINANCE HFC 820 6.12% 23-Jun- 2.27% 8.15%
G07470 COMPANY LIMITED 25
4 INE756I HDB FINANCIAL NBFC 5,995 6.00% 19-Jun- 2.27% 8.30%
07EB9 SERVICES LIMITED 25
5 INE774 MAHINDRA AND NBFC 4,895 8.95% 27-Jun- 2.27% 8.30%
D07MM MAHINDRA FINANCIAL 25
3 SERVICES LIMITED
6 INE296 BAJAJ FINANCE NBFC 3,202 7.89% 10-Jun- 2.27% 8.20%
A07SK4 LIMITED 25
7 INE916 KOTAK MAHINDRA NBFC 2,735 8.25% 20-Jun- 2.27% 8.20%
DA7SG PRIME LIMITED 25
3

31
 YTM as
Issuer level
Sr. Maturit Weigh on
ISIN Issuer Sector O/s amt (in Coupon
no. y date t 29/02/2
Crs.)
024
8 INE535 SMFG INDIA CREDIT NBFC 2,300 9.50% 10-Jun- 2.27% 8.55%
H08595 COMPANY LIMITED 25
9 INE857 TATA CAPITAL NBFC 1,761 7.62% 20-Jun- 2.27% 8.30%
Q07356 LIMITED 25
10 INE691I L AND T FINANCE NBFC 1,517 8.84% 05-Jun- 2.27% 8.25%
07AX0 HOLDINGS LIMITED 25
11 INE246 NIIF INFRASTRUCTURE NBFC 1,394 7.50% 02-Jun- 2.27% 8.23%
R07434 FINANCE LIMITED 25
12 INE134 POWER FINANCE PSU 20,679 6.35% 30-Jun- 6.25% 7.80%
E08LF2 CORPORATION 25
LIMITED
13 INE261 NATIONAL BANK FOR PSU 20,497 5.47% 11-Apr- 6.25% 7.88%
F08CI3 AGRICULTURE AND 25
RURAL DEVELOPMENT
14 INE020 REC LIMITED PSU 13,581 8.75% 08-Jun- 6.25% 7.84%
B08427 25
15 INE556 SMALL INDUSTRIES PSU 9,125 7.15% 02-Jun- 6.25% 7.84%
F08JY8 DEVELOPMENT BANK 25
OF INDIA
16 INE752 POWER GRID PSU 5,141 8.40% 27-May- 6.25% 7.62%
E07MR CORPORATION OF 25
6 INDIA LIMITED
17 INE242 INDIAN OIL PSU 4,620 5.40% 11-Apr- 6.25% 7.67%
A08478 CORPORATION 25
LIMITED
18 INE514 EXPORT-IMPORT BANK PSU 3,865 5.62% 20-Jun- 6.25% 7.68%
E08FU6 OF INDIA 25
19 INE031 HOUSING AND URBAN PSU 3,300 5.62% 25-May- 6.25% 7.91%
A08848 DEVELOPMENT 25
CORPORATION
LIMITED
20 INE557 NATIONAL HOUSING PSU 1,950 6.88% 21-Jan- 6.25% 7.77%
F08FH9 BANK 25
21 INE053 INDIAN RAILWAY PSU 1,647 6.99% 19-Mar- 6.25% 7.65%
F07CB1 FINANCE 25
CORPORATION
LIMITED
22 INE094 HINDUSTAN PSU 1,200 5.36% 11-Apr- 6.25% 7.65%
A08077 PETROLEUM 25
CORPORATION
LIMITED
23 INE848 NHPC LIMITED PSU 1,129 7.52% 06-Jun- 6.25% 7.65%
E07AA 25
3
Total 1,57,087 100.00 7.87%
%

32
 H. Who manages the scheme?

Mr. Abhishek Bisen will be the Fund Manager for the Scheme.

NAME AGE QUALIFICATION BUSINESS SCHEMES MANAGED

EXPERIENCE
Mr. Abhishek 45 B A Management, Mr. Abhishek Bisen has  Kotak Bond Fund
Bisen Years MBA Finance been associated with the  Kotak Gilt fund
EPAF- IIM-C company since October  Kotak Debt Hybrid Fund
2006 and his key  Kotak Gold Fund
responsibilities include  Kotak Gold ETF
fund management of debt  Kotak Equity Savings
schemes. Prior to joining Fund
Kotak AMC, Abhishek
 Kotak Equity Hybrid Fund
was working with
 Kotak Balanced
Securities Trading
Advantage Fund
Corporation of India Ltd
where he was looking at  Kotak NASDAQ 100
Sales & Trading of Fixed Fund of Fund
Income Products apart  Kotak Nifty 50 Index Fund
from doing Portfolio  Kotak Nifty Alpha 50 ETF
Advisory. His earlier  Kotak Nifty Midcap 50
assignments also include ETF
2 years of merchant  Kotak Multi Asset
banking experience with a Allocator Fund of Fund –
leading merchant banking Dynamic
firm.  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
 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

33
  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 Consumption Fund
 Kotak Healthcare Fund
 Kotak Nifty G-sec July
2033 Index 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. 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 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 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

34
 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 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.

Note: The above limits are subject to indicative allocation of Debt and Money Market
instruments as stated under the asset allocation of the Scheme.

2. 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.

3. 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.

4. 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.

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

6. 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) IST purchases would be allowed subject to the guidelines as specified para 12.30 in SEBI
Master Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023.

7. 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 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.

8. 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 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.

35
9. The Mutual Fund shall enter into transactions relating to Government Securities only in
dematerialised form.

10. 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.

11. 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
para 12.16 of Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023,
as may be amended from time to time. The AMC shall not charge investment management and
advisory fees for parking of funds in such short term deposits of scheduled commercial banks.

12. At no point of time, the scheme shall invest in securities where residual maturity is beyond the
target maturity date of the Index Fund in accordance to para [Link].(c) of Master SEBI Circular
No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023.

13. In accordance with the para 12.1 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 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) derivative products such as Interest Rate
Swaps (IRS), Interest Rate Futures (IRF), etc. which are used by mutual funds for
hedging.

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.

b. Exposure of mutual fund schemes in such instruments shall not exceed 5% of the
net assets of the schemes.

All such investments shall be made with the prior approval of the Board of AMC
and the trustees.

14. Pursuant to para of 3.5.3 of Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74

May 19, 2023, the scheme shall be considered to be replicating the underlying index, provided:

i) Investment in securities of issuers accounting for at least 60% of weight in the index,
represents at least 80% of net asset value (NAV) of the Scheme.

ii. At no point of time the securities of issuers not forming part of the index exceed 20% of
NAV of the Scheme.

iii. At least 8 issuers from the underlying index form part of the portfolio of the Scheme.

iv. The investment in various securities are aggregated at issuer level for the purpose of
exposure limits.
36
 v. The exposure limit to a single issuer by the scheme shall be as under:

For AAA rated securities, exposure to a single issuer by the scheme shall not have more than
15% weight in the portfolio.

vi. Total exposure of the Scheme in a particular group (excluding investments in securities
issued by PSUs, PFIs and PSBs) shall not exceed 25% of NAV of the scheme. For the purpose
of this provision, ‘group’ shall have the same meaning as defined in paragraph [Link] of the
Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023.

vii. Total exposure of the Index Fund in a particular sector (excluding G-sec, T-bills, SDLs and
AAA rated securities issued by PSUs, PFIs and PSBs) shall not exceed 25% of the NAV of the
scheme. However, this provision is not applicable as the scheme is based on sectoral debt
indices.

viii. The Macaulay Duration (hereinafter referred as “duration”) of the portfolio of the Scheme
replicates the duration of the underlying index within a maximum permissible deviation of +/-
10%.

In case of Target Maturity (or Target Date) Index Funds, the following norms for permissible
deviation in duration shall apply:
a) For portfolio with residual maturity of greater than 5 years: Either +/- 6 months or +/- 10%
of duration, whichever is higher.
b) For a portfolio with residual maturity of up to 5 years: Either +/- 3 months or +/- 10% of
duration, whichever is higher.
c) However, at no point of time, the residual maturity of any security forming part of the
portfolio shall be beyond the target maturity date of the Index Fund.

ix. The rating wise weightage of debt securities in the portfolio of Scheme replicates the
underlying index. However, greater allocation of up to 10% of the portfolio may be made to
higher rated debt securities.

The Scheme shall endeavour to follow the guidelines prescribed under para 3.5.3 of Master Circular
No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023 and circular issued thereunder from time
to time.

These investment restrictions shall be applicable at the time of investment. Changes, if any, do not have
to be effected merely because, owing to appreciations or depreciations in value, or by reason of the
receipt of any rights, bonuses or benefits in the nature of capital or of any Schemes of arrangement or
for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason
outside the control of the Fund, any such limits would thereby be breached. If these limits are exceeded
for reasons beyond its control, AMC shall as soon as possible take appropriate corrective action, taking
into account the interests of the Unit holders.

In addition, certain investment parameters may be adopted internally by AMC, and amended from time
to time, to ensure appropriate diversification / security for the scheme, subject to SEBI (MF) regulations
and circular issued thereunder from time to time.

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.

37
All investment restrictions shall be applicable at the time of making investment.

Modifications, if any, in the Investment Restrictions on account of amendments to the Regulations shall
supersede/ override the provisions of the Trust Deed.

Investments by the AMC in the Fund

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.

Pursuant to Regulation 25(16A) of the SEBI (MF) Regulations, 1996 and para [Link] of SEBI Master
circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, AMC shall not be
required to invest minimum amount as a percentage of AUM in the Scheme.

Creation of segregated portfolio

In accordance with para of 4.4 of Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May

19, 2023, 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 [Link] 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 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.

38
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 para 4.4 of Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74

May 19, 2023, Creation of segregated portfolio in mutual fund schemes 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. As per SEBI Master circular
dated May 19, 2023 , credit event is considered for creation of segregated portfolio, ‘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 SEBI Master
circular 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 [Link] 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 schemes performed?

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

39
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:- Friday, March 15, 2024
NFO closes on: - Tuesday, March 26, 2024
This is the period during
which a new Scheme The AMC/ Trustee reserves the right to change the New Fund Offer
sells its units to the period, subject to the condition that the New Fund Offer period shall be
investors 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.
[Link]
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 Minimum investment amount of 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. The Asset Management Company is in process
of implementing adequate systems and controls to accept Cash
Investment in the Scheme. Information in this regard will be provided to
Investors as and when the facility is made available.

Minimum Target The Mutual Fund seeks to collect a minimum subscription amount of Rs.
amount 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 business
days, interest as specified
by SEBI (currently 15%
p.a.) will be paid to the
investors from the expiry
of 5 business days from
the date of closure of the
subscription period.
40
Maximum Amount to There is no upper limit on the total amount that may be collected. After
be raised (if any) the minimum subscription amount has been collected, allotment will be
made to all valid applications.
This is the maximum
amount which can be
collected during the NFO
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 Mutual 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 Nifty AAA Bond Jun 2025 HTM Index 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 Default Plan

mentioned by the by the investor to be captured
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.
IDCW Frequency and At the discretion of the Trustees
Record date
41
Choice of Default  If applicant does not indicate the choice of option between growth
Option and 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 of IDCW option and reinvestment of IDCW
option then the scheme will accept it as an application for
reinvestment of IDCW option.
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.

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
timelines as defined in SEBI Regulation . The Units of the Scheme in
SOA(Statement of Account ) and held in the dematerialised form will
be fully and freely transferable (subject to lock-in period, if any and
subject to lien, if any marked on the units) 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 May
19, 2023. Further, for the procedure of release of lien, the investors shall
contact their respective DP.

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.

42
Income Distribution Growth Option:
cum capital withdrawal
(IDCW) Policy 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.

IDCW Option

Under the 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, the record date shall be two working
days from the issue of public notice, wherever applicable, for the
purpose of payment of dividend. The payment of dividend to the
unitholders shall be made 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 from the record date, 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. In case of dynamic lien
the IDCW may be credited to the financier.

The IDCW Option will be available under two sub-options” the Payout
Option and the Reinvestment Option.

Payout of IDCW 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 of IDCW Option: Under the reinvestment option, IDCW

amounts will be reinvested in the Reinvestment of 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.

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.

43
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) of the
profile. 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 (FPI) 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.

44
 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.
Where can you submit Applications can be made either by way of a "Regular Application”
the filled up along with a cheque/DD or fund transfer instruction. The Mutual Fund
applications. 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 Stock Exchanges 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

SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 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.

Investors may also apply through ASBA facility, during the NFO period
of the Scheme.
Applications Supported As per para 14.8 of SEBI Master Circular SEBI/HO/IMD/IMD-PoD-
by Blocked Amount 1/P/CIR/2023/74 May 19, 2023 an investor can subscribe to the New
(ASBA) 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 [Link].

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.

45
 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 All grievances relating to the ASBA facility may be addressed to the
Redressal of Investor respective SCSBs, giving full details such as name, address of the
Grievances under applicant, number of Units applied for, counterfoil or the application
ASBA Facility 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 [Link]. 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
[Link].
All cheques and drafts should be crossed "Account Payee Only" and
drawn in favour of the scheme viz: Kotak Nifty AAA Bond Jun 2025
HTM Index 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 and Application form for the instructions.
46
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 Mutual Fund at prices related to
the relevant Applicable NAV for the purpose of purchasing or
redeeming Units from the Mutual 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 scheme 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 / Switching and Systematic Investment Plan are available during the
facilities available NFO.
during the NFO
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 Asset Management Company shall, on production of instrument of
the right to freely retain transfer together with relevant documents, register the transfer within
or dispose of units being time lines as defined in SEBI Regulation. The Units of the Scheme in
offered. SOA and held in the dematerialised form will be fully and freely
transferable (subject to lock-in period, if any and subject to lien, if any
marked on the units) 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 May 19, 2023. Further,
for the procedure of release of lien, the investors shall contact their
respective DP.

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 and
47
 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/redemption
s 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 (Purchase price
for investors) and Repurchase price (Redemption price) of units is given below:
This is the price you need
to pay for Sale price is the price at which investor can invest in units of mutual fund
purchase/switch-in. schemes. The entry load has been abolished with effect from August 01, 2009.
Hence, Sale price is equal to the applicable NAV.
Ongoing price for The redemption will be at Applicable NAV based prices, subject to applicable
redemption (sale) exit load; if any.
/switch outs (to other
schemes/plans of the As required under the Regulations, Asset Management company shall ensure
Mutual Fund) by that the repurchase price of an open ended scheme is not lower than 95% of the
investors. Net Asset Value.

This is the price you will The Methodology of calculating the Repurchase price (Redemption price) of
receive for units is given below:
redemptions/switch outs.
Repurchase price is the price at which investor can redeem units of mutual fund
schemes. While calculating repurchase price the exit load, as applicable, is
deducted from the applicable NAV.

For example, If the applicable NAV is Rs. 10, exit load is 1% then repurchase
price will be: Rs. 10* (1-0.01) = Rs. 9.90.
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 account for utilization

48
This is the time before before the cut off time of the same day – closing NAV of the day of receipt
which your application of application;
(complete in all respects) 2. In respect of valid applications received after 3.00 p.m. on a business
should reach the official day and the entire amount is available in the mutual fund’s account for
points of acceptance. 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, DTP 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 / 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
49
 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. The Fund
purchase/redemption may introduce other newer methods of application which will be notified as and
switches be submitted? 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.

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.
Minimum amount for
purchase/redemption/s Initial Purchase (Non- SIP) Rs.100/- and any amount thereafter
witches (Direct Plan &
Regular plan) Additional Purchase (Non- SIP) Rs.100/- and any amount thereafter.
SIP Purchase Rs.100/- and any amount thereafter.

Minimum amount for redemption:

 In Rupees/Units - The minimum redemption amount for all plans will
be Rs. 100/- or account balance, whichever is lower.

Minimum balance to be There is no requirement of minimum balance.

maintained and
consequences of non-
maintenance
Process for investments Please refer SAI for details on process for investments made in the name of a
made in the name of Minor through a Guardian and Transmission of Units.
Minor through a
Guardian
Who can invest The following are eligible to apply for purchase of the Units:
 Resident Indian Adult Individuals, either singly or jointly (not exceeding
This is an indicative list three).
and you are requested  Parents/Lawful guardians on behalf of Minors.
to consult your  Companies, corporate bodies, registered in India.
financial advisor to  Registered Societies and Co-operative Societies authorised to invest in
ascertain whether the such Units.
scheme is suitable to  Religious and Charitable Trusts under the provisions of 11(5) of the Income
your risk profile. Tax Act, 1961 read with Rule 17C of the Income Tax Rules, 1962.

50
  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. (not applicable for Kotak World
Gold Scheme)
 Foreign Portfolio Investors (FPIs) or sub-accounts of FPI’s 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.
 Public Financial Institution as defined under the Companies Act 2013.
 Universities and Educational Institutions.
 Foreign Portfolio Investor
 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.
Listing Since the Scheme is open-ended index fund, 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 Mutual Fund at prices related to the relevant

51
 Applicable NAV for the purpose of purchasing or redeeming Units from the
Mutual 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 Mutual 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.
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
[Link]. 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 [Link].

All cheques and drafts should be crossed "Account Payee Only" and drawn in
favour of the scheme viz: Kotak Nifty AAA Bond Jun 2025 HTM Index 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.
Process for investments As per para 17.6 of master circular SEBI/HO/IMD/IMD-PoD-1/P/CIR /2023/74
made in the name of May 19, 2023, the following Process for Investments in the name of a Minor
Minor through a through a Guardian will be applicable:
Guardian
a. Payment for investment by any mode shall be accepted from the bank
account of the minor or from a joint account of the minor with the
guardian/legal guardian only. For existing folios, the AMCs shall insist
upon a Change of Pay-out Bank mandate before redemption is processed.
b. 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.
c. 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.
d. Irrespective of the source of payment for subscription, all redemption
proceeds shall be credited only in the verified bank account of the minor
i.e the account the minor may hold with the parent/legal guardian after
completing all KYC formalities.

Please refer SAI for detailed process on investments made in the name of a
Minor through a Guardian and Transmission of Units.

52
Non acceptance of Third Party Cheques will not be accepted by the Scheme.
Third Party Cheques
Definition of Third Party Cheques
 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.
 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.

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 means of Cheque, Demand Draft or any other
mode shall be accepted from the bank account of the minor or from a joint
account of the minor with the guardian/legal guardian only.
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.

Any application for subscription of units may be rejected if found incomplete or

due to unavailability or due to unavailability of underlying securities, etc and
will refund the subscription proceeds.
Special Products The Following facilities are available under the Scheme.
available  Systematic Investment Plan
 SIP Top Up Facility
 Systematic Transfer Plan (STP)
 Systematic Withdrawal Plan (SWP)
 Transfer of Income Distribution cum capital withdrawal (IDCW) Plan
 Switching
 Trigger facility
 Daily frequency under Systematic Transfer Plan Facility
 SIP Pause facility
 Variable Transfer Plan (‘VTP’)
 Smart Facility i.e. 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.

53
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 of the chosen frequency as the SIP Date (in case
the chosen date falls 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
daily, weekly, monthly, quarterly, half-yearly and annually 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 applicable only for SIPs
registered via direct / auto debit. The minimum SIP installment amount is Rs.
1000/. 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 request should be for a minimum of 6 months / quarters. 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 needs
to be made compulsorily by issuance of a cheque from the account from which
the Auto Debit / Direct 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, the investor has to ensure that the bank details
and signatures are attested by the banker of the bank from where the SIP is
initiated. Alternatively, the investors should 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 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
54
A. Fixed Top-Up option or Variable Top Up option - 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.

Basic Terms and conditions are as follows:

 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.
 The Variable Top-Up option shall be applicable for all schemes of Kotak
Mahindra Mutual Fund (except for Kotak ELSS Tax Saver Fund)
 Investors can opt for SIP Top up facility with Fixed Top-Up option for
Kotak ELSS Tax Saver Fund for minimum application amount Rs. 500/-
and in multiples of Rs. 500/- 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.
B. 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.
C.
D. SIP 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.
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.

55
 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 Top- Increased

ment SIP Up Monthly
Nos. Installm Amount SIP
ent (Rs.) Installment
Amount Amount
(Rs.) (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 1-Jan-23 1-Jun-23 3,000 1,000 4,000

18

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

24

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

30

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

36

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

facility at a later date.

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 30th of a
56
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 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.
57
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 any date through a
one-time request. The withdrawals can be made at any date under
Daily/Weekly/Monthly/ Quarterly/ Half Yearly and Annual frequency. In case
any of these days fall on non-business day, the transaction will be processed 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. 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. 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 will not be applicable for redemption made under this facility.

Transfer of Income Distribution cum capital withdrawal (IDCW) Plan:

Transfer of IDCW Plan 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 Plan facility will be available to unit holder(s)
58
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 Plan, IDCW as & when declared (as reduced by the
amount of applicable statutory levy) in the transferor scheme (subject to
minimum of Rs.100/-) 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.100/- 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 Plan

Enrolment under the Transfer of IDCW Plan facility will automatically override
any previous instructions for ‘Payout of IDCW’ or ‘Reinvestment of IDCW’
option in the transferor scheme. No Exit Load will be levied on units allotted in
the Transferee Scheme under the Transfer of IDCW Plan

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

The request for enrolment or cancellation for Transfer of IDCW Plan 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
of IDCW Plan 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 of IDCW Plan on a prospective basis.

Switching

Unitholders of the Scheme have the option of switching in or 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.

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.
59
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 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.

Kotal Nifty AAA Bond Fund Jun 2025 HTM

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

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 (free from any Lock-in or encumbrances) 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

60
 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 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.
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.
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 (%)

61
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:
 Kotak Liquid Fund
 Kotak Money Market Fund
 Kotak Savings Fund
 Kotak Low Duration Fund
 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 switch in schemes will be applied.
 All requests for registering or deactivating the trigger facility shall be
subject to an advance notice of 28 (Twenty Eight) 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 schemes 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.

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.

62
Basic Terms and conditions are as follows:

 The applicant will have the right to pause SIP which is directly
registered with KMMF.
 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
 A valid form for SIP Pause facility will be processed within 15 days
from the date of receipt of the same.
 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
 There would be no restriction on the number of times a SIP can be
paused.
 SIP Pause facility shall be available where ‘SIP Facility’ is available in
the Schemes of KMMF.
 SIP Pause Facility is applicable only for AMC initiated debit
instructions i.e. ECS/NACH/Direct Debit, etc
 SIP Pause Facility is not possible for investors having Standing
Instructions with banks.
 The SIP shall continue from the subsequent instalment after the
completion of pause period automatically.
 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 Rs. 5,000/- and SIP Top Up amount is Rs.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 Rs.6,000/-
 Incomplete SIP Pause Form in any respect would be liable to be
rejected.
 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.

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.

63
  VTP will be available in the following specified schemes:
Source Kotak Nifty AAA Bond Jun 2025 HTM Index Fund ,
Schemes VTP will be available for free units only.
Target All open ended equity schemes, open ended hybrid
Schemes schemes and open ended fund of fund 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 enrolment Rs.6000
(A)
Or
As determined by the formula (B) (6000*3) – 11495
=Rs.6505
Whichever is higher. Hence, Rs. 6505 is taken as investment amount.

Inst Fixed NAV Amt. Variab Uni Total Marke Targ

. Amoun as le ts units t et
No. t deter Transf Value Valu
mine er before e
d by Amou transfe
form nt r
ula
1 6,000 10.000 - 6,000 600 600 6,000 6,000
2 6,000 9.500 6,30 6,300 663 1,263 5,700 12,00
0 .16 0
3 6,000 9.100 6,50 6,505 715 1,978 11,495 18,00
5 .02 0
4 6,000 8.700 6,79 6,791 781 2,758 17,209 24,00
1 .62 0
5 6,000 8.100 7,65 7,655 945 3,703 22,345 30,00
5 .70 0
6 6,000 8.000 6,37 6,370 796 4,500 29,630 36,00
0 .00 0
7 6,000 8.000 6,00 6,000 750 5,250 36,000 42,00
0 .00 0
8 6,000 8.300 4,42 6,000 723 5,972 43,575 48,00
5 .89 0

64
 9 6,000 9.000 244 6,000 667 6,639 53,756 54,00
.56 0
10 6,000 10.000 - 6,000 600 7,239 66,396 60,00
6,39 .56 0
6
11 6,000 11.000 - 6,000 545 7,785 79,635 66,00
13,6 .01 0
35
12 6,000 12.000 - 2,378* 198 7,983 93,420 72,00
21,4 .18 0
20
Tot 72,000 72000
al
*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 and

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

65
 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.

Smart Facility i.e. Smart Systematic Transfer Plan (“SSTP”) –

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

pre-determined sum at defined intervals. The investor would be required to
provide a Base SSTP amount. Basis this Base amount, the amount for 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 transfer 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 SSTP from Kotak Nifty AAA Bond Jun 2025
Systematic (Transferor HTM Index Fund
Transfer Plan Scheme)
(SSTP) SSTP to All Open ended Equity schemes of
(Transferee Kotak Mahindra Mutual Fund
Scheme) ("KMMF"), All open ended Equity
Index schemes of KKMF and Kotak
Equity Hybrid Fund and Kotak
Multi Asset Allocation Fund

Key Features of Smart Facility:

1. SSTP is a market linked product.

2. For those who wish to avail the said facility in case of existing
investors, SSTP Investment form(s) needs to be submitted for each
SSTP registration. New investors to fill and submit Investment
Application Forms along with SSTP Investment forms.
3. Individual Enrolment Form should be filled for each SSTP transaction.
4. The details for SSTP are as mentioned below:
Sr. Facility Frequency Days/Dates Minimum number
No available of
Investments/Trans
fers/Withdrawals

66
 1. SSTP Monthly or  Any 6
Quarterly Business Day
(Monday-Friday)
 Any
Business date
from 1 to 31st
st

5. The Base amount for SSTP:

a) The investor has to mandatorily and clearly specify the Base
SSTP amount;
b) The minimum Base SSTP amount would be the minimum
Systematic Transfer Plan (STP)[STP limits of transferor
scheme] amount, as applicable as per the Scheme Information
documents of Eligible Scheme(s)
6. Calculation of SSTP amount:
a) The amount to be transferred from the Transferor scheme to Transferee
scheme in case of SSTP shall be basis the below mentioned details:
For SSTP
(A) (B) (C)
Net Equity
Allocation of Default option Investor defined Amount
KBAF
2 times Base SSTP Investor defined Maximum
> 60%
Amount SSTP Amount
40%- 60%
(Inclusive of 40 Base SSTP Amount Base SSTP Amount
and 60)
0.5 times Base SSTP Investor defined Minimum
< 40%
Amount SSTP Amount

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.

b) In case of SSTP, the investor has an option to mention 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.
c) 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.
d) For SSTP in case if the Minimum amount is below the Minimum SSTP
amount of the scheme, then the amount considered would be the minimum
SSTP amount of the scheme .
67
e) 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.
f) 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.
g) In respect of 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 SSTP.
h) 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.

7. The Base SSTP amount, Maximum SSTP amount and Minimum SSTP
amount specified by the investor must be in multiples of Re. 1 (whole
numbers only, no decimals eg: Rs. 20001, Rs.30015).
8. The SSTP shall be applicable for applications routed through Mutual Fund’s
website [Link] and physical applications submitted at specified
investor service centers of the RTA.
9. In case of first SSTP installment, it shall be processed for the Base SSTP
amount as specified by the investor at the time of enrollment, and will not be
based on the Net equity allocation percentage of KBAF.
10. 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.
11. 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.
12. All requests for registration or deactivation of SSTP shall be subject to an
advance notice of 7 (seven) Business days. The same can be done by sending
a written request to the RTA’s investor service centers.
13. In case of SSTP where unit holder has specified Minimum/ Maximum
amount as well as ticked the option for Default SSTP, then trigger will be as
per the Default SSTP Amount.
14. In case of SSTP, if the same is stopped for any reason a new request needs
to be provided to re-start SSTP.
15. In case of SSTP incorrect, incomplete, ambiguous forms will be liable to be
rejected.
16. All other terms & conditions of STP of the Eligible schemes would also be
applicable to SSTP, unless and otherwise as specifically mentioned above.
17. 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.

68
Accounts Statements On acceptance of application for financial transaction, a confirmation specifying
the number of Units allotted/redeemed will be sent by way of e-mail and/or SMS
to the applicant’s registered e-mail address and/or mobile number within five
business days from the date of closure of New Fund Offer (NFO) period.

In case of continuous subscription after the NFO, Kotak Mutual Fund will send
account statement with all details registered in the folio by way of an e-mail and/
or SMS to the investor’s registered address/email address/registered mobile
number not later than five business days from the date of subscription or by way
of physical statement not later than five business days from the date of receipt
of request from the unitholder.

Pursuant to Regulation 36 of SEBI (Mutual Funds) Regulations, 1996 and

amendments thereto, read with Para 14.3.3. of Master Circular
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 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. 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.

2. For the purpose of sending CAS, common investors across mutual funds shall
be identified by their Permanent Account Number (PAN).

3. 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.

4. 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
69
 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.
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

5. 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.

6. 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.

7. In case of units held in demat, on allotment ,confirmation specifying the units

allotted shall be sent by way of email and/or SMS within 5 Business Days of
the closure of the NFO Period to the Unit holder's registered e-mail address
and/or mobile number The statement of holding of the beneficiary account
holder for units held in demat will be sent by the respective DPs periodically.

8. Unitholders who have provided an e-mail address, the CAS will be sent by e-
mail.

9. 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

70
 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 in 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.
• 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.
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 to 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 redemption or repurchase proceeds to the unitholders.

Sr. No. Exceptional Situations Additional Timelines

Allowed
(i) Payment of redemption proceeds Additional 2 working
through physical instruments (cheque / days
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
71
 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.
(ii) On such days, where it is a bank Additional 1 working
holiday in some or all the states, but a day following the
business day for the stock exchanges. bank holiday(s) in the
State where the
investor
has bank account.
(iii) Exceptional circumstances such as In all such
sudden declaration of a business day as exceptional
a holiday or as a non- business day due situations, the
to any unexpected reason/ Force timelines prescribed
Majeure events. in Para 14.1 and 14.2
of SEBI Master
Circular no.
SEBI/HO/IMD/IMD-
PoD1/P/CIR/2023/74
dated May 19, 2023
shall be counted from
the date the situation
becomes normal.
(iv) In all such cases where a request for In all such cases, the
Change of Bank account has been AMCs / RTAs can
received just prior to (upto 10 days make the redemption
prior) OR simultaneously with payment after the
redemption request. cooling off period of
10 days from the date
of receipt of COBM.

The redemption
72
 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.
(v) Need for additional due diligence in Additional 3 working
instances such as Transmission 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/Depositories). 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/Depositories records, by courier. The payments to unitholders as
per the Depository Records will be sufficient discharge of its obligations by the
AMC. Any further claims shall not be entertained by the AMC.

Redemption proceeds may also be paid to the Unitholder in any other manner
viz., through ECS, Direct Credit or NEFT in to Bank account, RTGS facility
offered RBI or through Banker's cheque, etc as the AMC may decide, from time
to time for the smooth and efficient functioning of the Scheme.

Redemption by Credit balances in the account of a NRIs/FPIs unit holder may be redeemed by
NRIs/FPIs such unit holder subject to any procedures laid down by the RBI.

Payment to NRI/FPI unit holder will be subject to the relevant laws/guidelines

of RBI as are applicable from time to time (subject to deduction of tax at source
as applicable).

The scheme will not be liable for any delays or for any loss on account of
exchange fluctuations while converting the rupee amount in US Dollar or any
other currency.
Note: The mutual fund will rely on the NRI status and his account details as
recorded in the depository system. Any changes to the same can be made only
through the depository system.

73
Delay in payment of The Asset Management Company shall be liable to pay interest to the
redemption / unitholders at such rate as may be specified by SEBI for the period of such delay
repurchase (presently @ 15% per annum).
Unclaimed In accordance with para 14.3 of SEBI Master Circular No SEBI/HO /IMD/IMD-
Redemption/IDCW PoD-1/P/CIR/2023/74 dated May 19, 2023, the unclaimed Redemption amount
Amount and IDCW amount that are currently 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 a 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.
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 Asset Management Company shall, on production of instrument of transfer
the right to freely retain together with relevant documents, register the transfer within timelines as
or dispose of units being defined in the SEBI Regulation. The Units of the Scheme in SOA and held in
offered. the dematerialised form will be fully and freely transferable (subject to lock-in
period, if any and subject to lien, if any marked on the units) in accordance with
the provisions of SEBI (Depositories and Participants) Regulations, 1996 as may
74
 be amended from time to time and as stated in para 14.4.4 (a) of SEBI Master
Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023.
Further, for the procedure of release of lien, the investors shall contact their
respective DP.

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.
Transaction Charges Pursuant to para 10.5 of Master Circular No. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 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 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 3/4
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 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 IDCW Plan ,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.

In accordance with the para 10.4.1 (b) of SEBI Master circular no.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023, the commission as
specified in the aforesaid circular to distributors shall be paid by the investor
75
 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
Scheme. 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 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), 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.
MF utility services for Kotak Mahindra Asset Management Company Ltd (“the AMC”) has entered
Investors 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 [Link] 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
[Link] as may be updated from time to time. The Online
Transaction Portal of MFU i.e. [Link] 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 schemes shall be applicable for applications received on the
portal of MFUI i.e. [Link]. 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.
76
 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 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 Master Circular No .SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 May 19, 2023 on 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 [Link] 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.
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 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.
77
 Foreign Account Tax FATCA is an acronym for Foreign Account Tax Compliance Act (“FATCA”),
Compliance 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.

C. Periodic Disclosures

Net Asset Value The NAVs of the Scheme will be calculated and updated on every Business day
on the website of the Kotak Mahindra Mutual Fund ([Link]) and
This is the value per unit AMFI’s website ([Link]) by 11.00 p.m. The First NAV of the
of the scheme on a scheme shall be declared within 5 working days from the date of allotment.
particular day. You can
ascertain the value of The NAVs shall also be updated on the website of the Kotak Mahindra Mutual
your investments by Fund viz. [Link] by 11.00 p.m. Unitholders may avail the facility to
multiplying the NAV receive the latest available NAVs through SMS by submitting a specific request
with your unit balance. in this regard to the AMC/Mutual Fund.

Delay in uploading of NAV beyond 11.00 p.m. on every business day shall be
informed 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.

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

be sent to all unitholders, within 5 days of each fortnight and 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 ([Link]) and on the website of AMFI
([Link]) on a monthly, fortnightly and half-yearly basis within 5
days of every fortnight & within 10 days from the close of each month/ half-
year respectively in a user-friendly and downloadable spreadsheet format.
Half yearly The AMCs, shall disclose portfolio (along with ISIN) as on fortnightly, monthly,
Disclosures: Portfolio / half-yearly basis for all the schemes on the website of the Kotak Mahindra
Financial Results Mutual Fund viz. [Link] & [Link] and on the
website of AMFI ([Link]) within 5 days of every fortnight and
This is a list of securities within 10 days from the close of each month/ half-year respectively in a user-
where the corpus of the friendly and downloadable spreadsheet format.
scheme is currently
invested. The market In accordance with para no. 5.4.2 of Master Circular No. SEBI/HO/IMD/IMD-
value of these PoD-1/P/CIR/2023/74 May 19, 2023,unitholders whose e-mail addresses are
registered, AMC shall send the details of the scheme portfolio including the
78
investments is also stated scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark while
in portfolio disclosures. communicating the fortnightly, monthly and half-yearly statement of scheme
portfolio via email within 5 days of every fortnight for debt schemes, 10 days
from the close of each month for other schemes and 10 days from the 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 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
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 Results The soft copy of unaudited financial results shall within one month from the
close of each half year i.e. 31st of March and the 30th of September, be hosted on
the website [Link] & [Link] and will be sent to
AMFI for posting on its website [Link].

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
SEBI Circular No. Cir/IMD/DF/16/2011 dated September 8, 2011(para 5.4 of
Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023),
read with 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 Kotak Mahindra Mutual Fund viz.
[Link] 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 viz. [Link] 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. 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.

79
Risk-o-meter In accordance with para 17.4 of SEBI Master Circular No SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 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

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.
Disclosure of Potential Pursuant to the para 17.5 of Master Circular No SEBI/HO/IMD/IMD-PoD-
Risk Class (PRC) 1/P/CIR/2023/74 May 19, 2023, all debt schemes are required to be classified in
Matrix: terms of a Potential Risk Class matrix consisting of parameters based on
maximum interest rate risk (measured by Macaulay Duration (MD) of the
scheme) and maximum credit risk (measured by Credit Risk Value (CRV) of
the scheme).

Subsequently, once a PRC cell selection is done by the Scheme, any change in
the positioning of the Scheme into a cell resulting in a risk (in terms of credit
risk or duration risk) which is higher than the maximum risk specified for the
chosen PRC cell, shall be considered as a fundamental attribute change of the
Scheme in terms of Regulation 18(15A) of SEBI (Mutual Fund) Regulations,
1996. The scheme would have the flexibility to take interest rate risk and credit
risk below the maximum risk as stated in the PRC matrix.

At all points of time, positioning of the aforementioned Index Fund in the

Potential Risk Class (PRC) matrix shall be in the same cell as that of positioning
of the index in the PRC matrix. However, the movement of the scheme to lower
risk cell in the PRC matrix shall be allowed on account of investment into higher
rated securities and exposure to cash within the permitted range of replication
mechanism.

The Mutual Funds shall be required to inform the unitholders about the PRC
classification and subsequent changes, if any, through SMS and by providing a
link on their website referring to the said change.

The AMC shall also publish the PRC Matrix in the scheme wise Annual Reports
and Abridged summary.
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
80
 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. [Link], AMFI i.e. [Link] and
Registered Stock Exchanges i.e. National Stock Exchange of India Limited and
BSE Limited.
Monthly Disclosures The scheme shall disclose the following on monthly basis:
i. Name and exposure to top 7 issuers and stocks respectively as a percentage of
NAV of the scheme
ii. Name and exposure to top 7 groups as a percentage of NAV of the scheme.
iii. Name and exposure to top 4 sectors as a percentage of NAV of the scheme.

Change in constituents of the index, if any, shall be disclosed on the AMC

website on the day of change.
Tracking Error and The scheme shall disclose the tracking error based on past one year rolling data,
Tracking Difference on a daily basis, on the website of the Fund/AMCs and AMFI.

Tracking difference is the difference of return between the scheme and

benchmark annualized over a specified period. The tracking difference for debt
ETF/Index Fund for one year period shall not exceeds 1.25%.

In case the tracking difference over one year period for Debt ETFs/ Index Funds
is higher than 1.25%, the same shall be brought to the notice of trustees with
corrective actions taken by the AMC, if any.
Associate Transactions Please refer to Statement of Additional Information (SAI).
Taxation: TDS and Taxability applicable in case of IDCW distributed to Unit holders
The information is
provided for general TDS Rates Taxability
information purposes Thre Section Base Rate Base rate
only. However, in view shold
of the individual nature limit
of tax implications, each RESIDENT
investor is advised to Resident Unit Rs.5, 194K 10% Slab rates plus
consult his or her own tax Holder 000 applicable surcharge
adviser with respect to and cess (Refer Note 1)
the specific tax NON-RESIDENT UNIT HOLDERS (subject to DTAA benefits)
implications arising out (1)FII/FPI NILs 196D 20% plus 20% plus applicable
of his or her participation r.w.s applicable surcharge and cess
in the scheme. 115AD surcharge and (Refer Note 1)
(1)(i) cess (Refer
note 1)
(2) Foreign company/corporates
Purchase in NIL 196A 20% plus 40% plus applicable
Indian Rupees applicable surcharge and cess
surcharge and (Refer Note 1)
cess (Refer
note 1)
Purchase in NIL 196A 20% plus 20% plus applicable
Foreign r.w.s applicable surcharge and cess
Currency 115A surcharge and (Refer Note 1)
cess (Refer
note 1)
(3) Others
Purchase in NIL 196A 20% plus At slab rates applicable
Indian Rupees applicable plus applicable
81
 surcharge and surcharge and cess
cess (Refer (Refer Note 1)
note 1)
Purchase in NIL 196A 20% plus 20% plus applicable
Foreign r.w.s applicable surcharge and cess
Currency 115A surcharge and (Refer Note 1)
cess (Refer
note 1)

Taxability applicable in case of Capital Gains to Unit holders

A) Applicable tax rates based on prevailing tax laws for units acquired
before 01.04.2023
Unit
Holders
Taxation Resident Non – Resident
FPI Other than FPI
Listed Unlisted
Short As per the 30% As per As per applicable
Term rates plus applicable slab rate plus
Capital applicable applicable slab rate surcharge &cess
Gain to the surcharge & plus (Refer note 1)
assessee HE cess surcharge
under the (Refer note 1) &cess
Indian (Refer note
Income- 1)
tax laws
plus
applicable
surcharge
& HE cess
(Refer
note 1)
Long 20% with 10% (without 20% with 10% (without
Term indexation indexation & indexation indexation &
Capital plus without plus without foreign
Gain applicable foreign applicable currency
(Refer surcharge currency surcharge fluctuation
note 2 & HE cess fluctuation & HE cess benefit)
below) (Refer benefit) (Refer note plus applicable
note 1) plus 1) surcharge & HE
applicable cess (Refer note
surcharge & 1)
HE cess
(Refer note 1)
B) Applicable tax rates based on prevailing tax laws for units acquired on
or after 01.04.2023

The units of Specified Mutual Funds acquired on or after 01.04.2023 shall,

irrespective of its period of holdings, be deemed to be short-term capital gain
u/s 50AA of Income Tax Act in the hands of unit holder. Therefore, the gains
arising transfer of such units will be taxable income at the applicable slab rate
plus applicable surcharge and cess in the hands of unit holder.
82
“Specified Mutual Funds” means a mutual fund where not more than 35% of
its total proceeds is invested in the equity shares of domestic companies.

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. 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 and 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 (i.e Income Other Income (i.e Income other
Income other than Capital gains than Capital gains covered
covered under section under section 111A, section
111A, section 112A, section 112A, section 112,
112, 115AD(1)(b)& 115AD(1)(b)& company
company IDCW) IDCW).
i.e income from IDCW i.e income from IDCW
distribution and Capital distribution and Capital gains
gains other than on equity other than on equity oriented
oriented fund fund
Upto Nil
50Lakh
More 10%
than 50Lak
h up to 1 Cr
More than 1 15%
Cr but up to
2Cr
More than 2 Up to 2 cr 15%
Cr
More than 2 cr but up to 5 cr 25%
More than 5Cr 37%

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);

83
 Income Surcharge Rates
Total Other Income (i.e Income Other Income (i.e Income
Income other than Capital gains other than Capital gains
covered under section 111A, covered under section 111A,
section 112A, section 112, section 112A, section 112,
115AD(1)(b)& company 115AD(1)(b)& company
IDCW) IDCW).
i.e income from IDCW i.e income from IDCW
distribution and Capital gains distribution and Capital gains
other than on equity oriented other than on equity oriented
fund fund

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

More than 2 cr 25%

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 gains in case of non-residents (other than FPI) would
be taxable @ 10% on transfer of capital assets, being unlisted securities,
computed without giving effect to first and second proviso to section 48 i.e.
without taking benefit of foreign currency fluctuation and indexation benefit. In
case of listed securities being units of Mutual Fund, the tax payable would be @
20% after indexation benefit.

Note 3) Long term capital gains in the case of FPIs would be taxable @10% on
transfer of capital assets being securities (listed or unlisted) without giving effect
to the first and second proviso to section 48 i.e. without taking the benefit of
foreign currency fluctuation and without indexation.
Further surcharge rate on FPI is restricted to 15% even if total income of FPI
exceeds Rs. 2,00,00,000

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.

For further details on taxation please refer to the clause on taxation in the SAI.

84
 Tax Status of Investor For all new purchases, the AMC reserves the right to update the tax status of
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 of IDCW and Switch in) to the
unitholders would be reduced to that extent.
For Investor Ms. Sushma Mata
Grievances please Kotak Mahindra Asset Management Company Limited
contact 6th Floor, Kotak Towers, Building No.21,
Infinity Park, Off: Western Express Highway
Goregaon - Mulund Link Road, Malad (East), Mumbai 400097
Phone Number: 18003091490 / 044-402291015 Fax: 6708 2213
e-mail: mutual@[Link]

D. Computation of NAV

The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the
number of Units outstanding on the valuation date.

The AMC shall value scheme investments according to the valuation norms, as specified in the Eighth
Schedule of the Regulations, or such guidelines / recommendations as may be specified by SEBI from
time to time and publish the same. 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 Scheme 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 four decimals. The NAV of Direct Plan
will be different than the NAV of Regular Plan.

Illustration for Computation of NAV:

85
 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

Sale and Repurchase Price calculated is explained in the following example:

Sale / Repurchase Price = Applicable NAV$ x (1 - Exit Load)*

Eg: If Applicable NAV = Rs. 10/-; Exit Load =1.00%, then
Sale / Repurchase Price = 10 x (1-1.00%)
= Rs. 9.90/-
The Sale/repurchase price shall not be lower than 95% of the NAV.

86
V. FEES AND EXPENSES

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

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. Total Expense Ratio (TER)

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.

The total expense ratio of the scheme including the investment and advisory fees shall not exceed 1.00
per cent of the daily net assets.

Total Expense Ratio for the schemes

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 as amended
from time to time, with no sub-limit on investment and advisory fees.

Expenses Structure % of daily Net Assets

Investment Management and Advisory Fees
Trustee fee
Audit fees
Custodian fees
RTA Fees
Marketing & Selling expense incl. agent commission
Cost related to investor communications
Cost of fund transfer from location to location
Cost of providing account statements and IDCW redemption cheques and
warrants
Upto 1.00%
Costs of statutory Advertisements
Cost towards investor education & awareness (at least 1 bps)
Brokerage & transaction cost over and above 12 bps for cash.
Goods and Services tax on expenses other than investment and advisory
fees
Goods and Services tax on brokerage and transaction cost
Other Expenses (including listing expenses)*
Maximum total expense ratio (TER) permissible under Regulation 52 Upto 1.00%
(6)(b)
Additional expenses under regulation 52 (6A) (c) Nil

87
 Additional expenses for gross new inflows from specified cities Upto 0.30%

In accordance with SEBI’s letter no. SEBI/HO/ IMD/ IMD-SEC-3/ P/ OW/ 2023/ 5823/ 1 dated
February 24, 2023, the B-30 incentive structure for new inflows has been kept in abeyance till the
incentive structure is re-instated by SEBI.

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 10.1.12 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-/P/CIR/2023/74

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.

Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. vis-a-vis
the Regular Plan, and no commission shall be paid from Direct plan. Both the plans viz. Regular and
Direct plan shall have common portfolio.

All scheme related expenses including commission paid to distributors, by whatever name it may be
called and in whatever manner it may be paid, shall necessarily paid from the scheme only within the
regulatory limits and not from the books of AMC, its associate, sponsor, trustees or any other entity
through any route in terms of SEBI circulars, subject to the clarifications provided by SEBI to AMFI
vide letter dated February 21, 2019 on implementation of para 10.1.12 (a) of SEBI Master Circular No.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023 on Transparency on Total Expense Ratio
(TER).

Additional expenses which may be charged to the Scheme:

The following additional expenses may be charged to the Scheme 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 for cash market transactions. Any payment
towards brokerage & transaction costs, over and above the said 12 bps for cash market transactions
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.

 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 utilised 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’ as
per para 10.1.3 of SEBI Master Circular [Link]/HO/IMD/IMD-PoD-1/P/CIR/2023/74 May 19, 2023,
88
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.

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 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)(b). 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 scheme,
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.

The mutual fund shall update the current expense ratios on the website ([Link]) at least
three working days prior to the effective date of the change. The web link for TER is
[Link]

For the actual current expenses being charged, the investor may refer to the website of the mutual fund.

Illustration of impact of expense ratio on scheme’s returns:

Particulars Regular Plan Direct Plan

Amount Invested at the beginning of the year 10,000 10,000

89
 Annual Returns before Expenses <8% return> 800 800
Expenses other than Distribution Expenses 75 75
Distribution Expenses / Commission 25 -
Returns after Expenses at the end of the Year 700 725
Return % after expenses at the end of the year 7% 7.25%

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.

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 [Link] or may call at 1800-22-
2626 or your distributor.

Entry Load*: Nil

*In terms of para 10.4.1 (a) of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 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: Nil

Units issued on reinvestment of IDCWs shall not be subject to entry and exit load.

Any imposition or enhancement of Load in future shall be applicable on prospective investments only. For
any change in load structure AMC will issue an addendum and display it on the website/Investor Service
Centres.

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.

The investor is requested to check the prevailing load structure of the scheme before investing.

90
VI. RIGHTS OF UNITHOLDERS

Please refer to SAI for details.

91
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
the financial services sector, or for had certified that they met the customer. Action has
defaults with respect to share already been taken on the errant employee and the process
holders or debenture holders and has been reiterated for stricter compliance. The Penalty
depositors, or for economic was paid on 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 para 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,
92
 2022 to July 15, 2022. The penalty was paid on August
11, 2022.
6. During an Incognito visit on the Bank’s Ulubari Branch,
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 s
 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
[Link]

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.

10. Reserve Bank of India (RBI) vide its mail dated January
11, 2024, had levied a penalty of INR 30,000 on Kotak
Mahindra Bank, Sector 9C, Chandigarh Branch for the
following deficiencies observed during incognito visit of
Senior RBI Official to the branch on December 21, 2023:

(i) The branch was not providing the exchange

facilities for the soiled notes to the public as per
extant RBI instructions.
(ii) The bank branch attached to the respective Currency
Chest had not displayed a board indicating the
availability of note and coin exchange facility with

93
 the legend “Soiled/ mutilated Notes and Coins are
accepted and exchanged here” for information of
general public.
(iii) Cash Teller was not aware of the Note Refund
Rules.

Details of all enforcement actions Kotak Mahindra Asset Management Company Limited
taken by SEBI in the last three (AMC) has been served a Show Cause Notice (SCN) by SEBI,
years and/ or pending with SEBI vide its letter No. SEBI/HO/IMD/DF2/OW/P/2019/11854/1
for the violation of SEBI Act, 1992 dated May 10, 2019, and Supplementary Show Cause Notice
and Rules and Regulations framed vide SEBI’s letter No.
there under including debarment SEBI/HO/IMD/DF2/OW/P/2019/014772/1 dated June 12,
and/ or suspension and/ or 2019, issued under Section 11(1), 11B and 11B (2) of
cancellation and/ or imposition of Securities and Exchange Board of India Act, 1992 read with
monetary provisions of SEBI (Mutual Fund) Regulations, 1996, in the
penalty/adjudication/enquiry matter of Kotak Mahindra Asset Management Co. Ltd. The
proceedings, if any, to which the alleged charge is, that on maturity date of Kotak FMP Series
Sponsor(s) and/ or the AMC and/ 127 and 183, close ended debt schemes, investors were not
or the Board of Trustees /Trustee paid full proceeds on the declared NAV due to pending
Company and/ or any of the recovery of dues from Essel Group of Companies. The AMC
directors and/ or key personnel vide its letter dated August 29, 2019, had filed its reply to the
(especially the fund managers) of aforesaid show cause notice and supplementary show cause
the AMC and Trustee Company notice.
were/ are a party
Kotak Mahindra Asset Management Company Limited
(AMC) has been served a Show Cause Notice (SCN) by SEBI,
vide its 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
94
 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 May 09, 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 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.

The Scheme under this Scheme Information document was approved by the Board of Kotak Mahindra
Trustee Management Company limited on January 30, 2024. The Trustees have ensured that Kotak
Nifty AAA Bond Jun 2025 HTM Index 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.

95
 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). Cuttack: 1st Floor, Gopal Bhawan, Plot No-553, Machua Bazar,
Opposite Bsnl Office, Buxi Bazar, Mangalabag, Cuttack – 753001 (Orissa). 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: CREM-Corporate Real Estate Management, 22, Camac street, 3rd
floor, Block – D, Kolkata – 700 016 (Bengal). Lucknow: 2nd Floor,Aryan Business Park, 90, [Link] [Exchange Cottage], Off:Park Road, Hajratganj, Lucknow - 226001. Ludhiana: Lower
Ground Floor, SCO 13, Shanghai Tower, Feroze Gandhi Market, Ludhiana - 141001 (Punjab). Mangalore: [Link]. 5-4-169/21, 3rd Floor, Lalbagh Towers, Ballalbhag Circle, Near Kalyan
Jewellers, [Link], 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. [Link] Deshmukh’s Hospital, Ramdaspeth, Nagpur - 440011. Nadia: B-8/25(CA), 1st Floor, Royal Banquet Building, Near Kalyani Ghoshpara Station, Kalyani, Nadia -
741235 (West Bengal). 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, [Link], 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 [Link], 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, [Link], Indore - 452001. Jaipur: R-7, Yudhisthir Marg ,C-Scheme, Behind Ashok Nagar Police Station, 63/ 2, The Mall, Jaipur - 302001. Jorhat: Dewal Road,
Second Floor, Left Side Second Building, Near Budhi Gukhani Mandir, Gar Ali, Jorhat - 785 001 (Assam). 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, [Link] 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: Tirthkala,
First Floor, Opposite BMCB Bank, New Station Road, Bhuj, Kutch – 370 001 (Gujarat). 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. [Link]
(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
 II. COMPUTER AGE MANAGEMENT SERVICES LIMITED (CAMS) - TRANSACTION POINT (Cont.)
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, 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 [Link]-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 [Link] 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, [Link].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, [Link] 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, Dhanwanthri Complex, Kalinga Road, Opposite Chandramouli
Departmental Store, Near Seven Roads Junction, Srikakulam – 532 001 (AP). 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, [Link] Sons, Athwalines, Surat - 395001. Surendranagar: Shop No. 12, [Link], Swastik Cross Road, Surendranagar -
363001. Tezpur Sonitpur: Kanak Tower 1st Floor, Opposite IDBI Bank/ ICICI Bank, [Link] Road, Tezpur Sonitpur, Assam – 784001. Thane: Dev Corpora, 1st floor, Office no. 102, Cadbury
Junction, Eastern Expressway, Thane (West) – 400 [Link]: 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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Mahindra Mutual Fund has entered or may enter into specific arrangement for purchase/sale/switch of units and secured internet site operated by Kotak Mahindra Mutual Fund.