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Kotak Nifty Next 50 Index FundAn open ended scheme replicating/tracking Nifty Next 50 Index

NFO Opens: 17th February 2021 NFO Closes: 24th February 2021

FROM GULLY CRICKET TO TEAM INDIA

FROM MICROCAP STOCKS TO NIFTY 50

GULLY CRICKET

RANJI TROPHY

U-19 + BENCH

TEAM INDIA NIFTY 50

NIFTY NEXT 50

MICRO AND SMALL CAP STOCKS

MIDCAP STOCKS

A lot of competition- few survivors

Leaders with steady growth

On fast track to success – potential superstars

First step to success – many compete, few would leave a mark

The cricket analogy is used as a paradigm for selection process.

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Nifty Next 50: Captures potential blue chips of tomorrow

Stocks in the current NIFTY 50 that moved from NIFTY Next 50 in the last decade

Source: NSE, as on Jan 31, 2021

Name Moved in Name Moved in

Kotak Mahindra Bank Ltd. 2010 Indian Oil Corporation Ltd. 2017

Bajaj Auto Ltd. 2010 Bajaj Finance Ltd. 2017

Dr. Reddy's Laboratories Ltd. 2010 UPL Ltd. 2017

Grasim Industries Ltd. 2010 Titan Company Ltd. 2018

Grasim Industries Ltd. 2011 Bajaj Finserv Ltd. 2018

Coal India Ltd. 2011 JSW Steel Ltd. 2018

Asian Paints Ltd. 2012 Britannia Industries Ltd. 2019

UltraTech Cement Ltd. 2012 Shree Cement Ltd. 2020

IndusInd Bank Ltd. 2013 HDFC Life Insurance Company Ltd. 2020

Tech Mahindra Ltd. 2014 Divi's Laboratories Ltd. 2020

Adani Ports and Special Economic Zone Ltd. 2015 SBI Life Insurance Company Ltd. 2020

Eicher Motors Ltd. 2016

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Nifty Next 50 portfolio is more diversified as compared to Nifty 50

Source: NSE, as on Jan 31, 2021

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Nifty 50 Nifty Next 50

Nifty Next 50 sector distribution is more diversified than Nifty 50.Within financial services sector as well, Nifty Next 50 portfolio ismore diversified than that of Nifty 50.

27%

19%

17%

11%

7%

6%

5%2%2%2%2%

Nifty 50

HDFC Bank Ltd.

Housing DevelopmentFinance Corporation Ltd.ICICI Bank Ltd.

Kotak Mahindra BankLtd.Axis Bank Ltd.

Bajaj Finance Ltd.

16%

12%

11%

9%9%

9%

8%

7%

7%

5%5%2%

Nifty Next 50ICICI Lombard GeneralInsurance Company Ltd.Bandhan Bank Ltd.

ICICI Prudential LifeInsurance Company Ltd.Bajaj Holdings &Investment Ltd.Piramal Enterprises Ltd.

HDFC Asset ManagementCompany Ltd.

Sector Distribution – Financial Services

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Nifty Next 50 Index has shown return potential similar or better to Nifty Midcap 150 index with lesser risk

Maximum drawdown in a calendar year

Nifty Next 50

Nifty Midcap 150

Difference

2010 -23.31% -31.99% 8.68%

2011 -38.11% -41.62% 3.51%

2012 -37.99% -41.24% 3.25%

2013 -22.20% -32.48% 10.28%

2014 -10.34% -20.87% 10.53%

2015 -12.13% -11.92% -0.21%

2016 -20.97% -18.45% -2.53%

2017 -8.98% -10.01% 1.03%

2018 -19.78% -23.50% 3.72%

2019 -19.68% -24.42% 4.74%

2020 -40.36% -43.06% 2.70%

Source: NSE, as on Jan 31, 2021

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Nifty Next 50 - TRI Nifty Midcap 150 - TRI (Normalized)

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Nifty Next 50: 3 year rolling returns

3 YEAR ROLLING RETURNS

Period Average returns Standard deviation

Nifty 50 Nifty Next 50 Nifty Midcap 150 Nifty 50 Nifty Next 50 Nifty Midcap 150

12 year 10.42% 13.84% 13.21% 5.77% 9.99% 11.07%

10 year 10.96% 14.79% 14.64% 5.71% 9.95% 10.96%

7 year 12.02% 16.05% 17.05% 4.67% 8.88% 9.82%

5 year 10.74% 14.12% 15.49% 3.87% 8.70% 10.10%

3 year 10.26% 8.80% 9.08% 4.49% 6.76% 7.18%

1 year 6.03% 0.48% 0.76% 4.06% 3.01% 4.15%

In last 12 years, Nifty Next 50 has outperformed Nifty 50 on 71% of trading days andNifty Midcap 150 on 57% of the trading days with lesser risk*

* On the basis of 3-year rolling return. 12 years include time period from 1st February 2009 to 31st January 2021. Source: NSE, as on Jan 31, 2021.This is just the index performance and has got nothing to do with futuristic performance of the scheme. Also past performance may or may not be sustained in future

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Why Nifty Next 50 Index Fund?

Well diversified large cap index with the potential to give superior returns with relatively lesser risk

Though it has underperformed Nifty 50 in the last 2-3 years, it has displayed long term outperformance

Easy to understand

Convenient to invest

Low cost as compared to actively managed funds

Low riskNo biases as it is tracking an index

Transparency

Performance potential

A strategy to balance investor’s active portfolio

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Nifty Next 50 UniverseStock Sector Stock Sector

ACC Ltd. Cement & Cement Products ICICI Lombard General Insurance Company Ltd. Financial ServicesAbbott India Ltd. Pharmaceuticals ICICI Prudential Life Insurance Company Ltd. Financial Services

Adani Green Energy Ltd. Power Indraprastha Gas Ltd. Oil & GasAdani Transmission Ltd. Power Indus Towers Ltd. TelecomAlkem Laboratories Ltd. Pharmaceuticals Info Edge (India) Ltd. ITAmbuja Cements Ltd. Cement & Cement Products InterGlobe Aviation Ltd. Services

Aurobindo Pharma Ltd. Pharmaceuticals Larsen & Toubro Infotech Ltd. ITAvenue Supermarts Ltd. Consumer Goods Lupin Ltd. Pharmaceuticals

Bajaj Holdings & Investment Ltd. Financial Services Marico Ltd. Consumer GoodsBandhan Bank Ltd. Financial Services Motherson Sumi Systems Ltd. Automobile

Bank of Baroda Financial Services Muthoot Finance Ltd. Financial ServicesBerger Paints India Ltd. Consumer Goods NMDC Ltd. Metals

Biocon Ltd. Pharmaceuticals Oracle Financial Services Software Ltd. ITBosch Ltd. Automobile Petronet LNG Ltd. Oil & Gas

Cadila Healthcare Ltd. Pharmaceuticals Pidilite Industries Ltd. ChemicalsColgate Palmolive (India) Ltd. Consumer Goods Piramal Enterprises Ltd. Financial Services

Container Corporation of India Ltd. Services Power Finance Corporation Ltd. Financial ServicesDLF Ltd. Construction Procter & Gamble Hygiene & Health Care Ltd. Consumer Goods

Dabur India Ltd. Consumer Goods Punjab National Bank Financial ServicesGeneral Insurance Corporation of India Financial Services SBI Cards and Payment Services Ltd. Financial Services

Godrej Consumer Products Ltd. Consumer Goods Siemens Ltd. Industrial ManufacturingHDFC Asset Management Company Ltd. Financial Services Tata Consumer Products Ltd. Consumer Goods

Havells India Ltd. Consumer Goods Torrent Pharmaceuticals Ltd. PharmaceuticalsHindustan Petroleum Corporation Ltd. Oil & Gas United Breweries Ltd. Consumer Goods

Hindustan Zinc Ltd. Metals United Spirits Ltd. Consumer Goods

Source: NSE, as on Jan 31, 2021

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Kotak Nifty Next 50 Index Fund–Scheme Features

Scheme Features

Name of the Scheme Kotak Nifty Next 50 Index Fund

Type of scheme An open ended scheme replicating/tracking the NIFTY Next 50 Index

Investment Objective

The investment objective of the scheme is to replicate the composition of the Nifty Next 50 andto generate returns that are commensurate with the performance of the NIFTY Next 50 Index,subject to tracking errors.

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

Benchmark Nifty Next 50 Index TRI (Total Return Index)

Fund Manager Mr. Devender Singhal and Mr. Satish Dondapati

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Scheme Features

Minimum amount for purchase/redemption/switches

(Direct Plan & Regular Plan)

Minimum Investment Size:

Minimum Redemption Size:

Load Structure (During NFO and continuous offer)

Entry Load: NILIn terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no entry loadwill be charged on purchase / additional purchase / switch-in. The commission as specified inthe aforesaid circular, if any, on investment made by the investor shall be paid by the investordirectly to the Distributor, based on his assessment of various factors including the servicerendered by the Distributor.Exit load: NIL

Available Plans/OptionsA) Regular Plan B) Direct Plan Options: Dividend Payout, Dividend Reinvestment & Growth (applicable for all plans)

SIP Rs. 1000/- (Subject to a minimum of 6 SIP installments of Rs. 1000/- each)

Initial Purchase (Non- SIP) Rs. 5000/- and in multiples of Rs. 1 for purchases, and Re 0.01 for switches

Additional Purchase (Non- SIP) Rs. 1000/- and in multiples of Rs. 1 for purchases, and Re 0.01 for switches.

In Rupees Rs. 1000/-

In Units 100 units

Riskometer

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Kotak Nifty Next 50 Index Fund

This product is suitable for investors who are seeking*

Long term capital growth

Returns that are commensurate with theperformance of NIFTY Next 50 Index,subject to tracking error.

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

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme relateddocuments carefully.

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Thank You