Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund

SECTION I SCHEME INFORMATION DOCUMENT (SID) KOTAK CRISIL-IBX FINANCIAL SERVICES 9 to 12 MONTHS DEBT INDEX FUND < S.O. 1> An open-ended Constant Maturity Index Fund tracking the CRISIL-IBX Financial Services 9 to 12 Months Debt Index. A relatively low interest rate risk and relatively low credit risk < S.O. 1 & 2> < S.O. 3> This product is suitable for Benchmark Risk-o-meter investors who are seeking* Scheme Risk-o-meter# (CRISIL-IBX Financial Services 9 - 12 Months Debt Index) • Income over Constant Maturity Period • An open-ended Constant Maturity Index Fund tracking CRISIL-IBX Financial Services 9 - 12 Months Debt Index *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. (The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made) Potential Risk Class (“PRC”) Matrix of the Scheme < S.O. 4> Credit Risk → Relatively Low (Class A) Moderate (Class B) Relatively High Interest Rate Risk ↓ (Class C) Relatively Low A-I Moderate Relatively High Offer for Units of Rs. 10 each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices New Fund Offer Opens on: New Fund Offer Closes on: Scheme re-opens on or before: 1Name 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 Address of the Companies 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400051 Corporate Address of the Asset 2nd Floor, 12-BKC, Plot No. C-12, G-Block, Bandra Kurla Management Company Complex, Bandra East, Mumbai – 400 051 Website www.kotakmf.com The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Kotak Mahindra Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on www.kotakmf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated July 14, 2025 2TABLE OF CONTENTS PART I. HIGHLIGHTS/ SUMMARY OF THE SCHEME ............................................................... 4 DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................. 9 Part II. INFORMATION ABOUT THE SCHEME ......................................................................... 10 A. How will the Scheme Allocate its Assets? .............................................................................. 10 B. Where will the Scheme Invest? ................................................................................................ 13 C. What Are the Investment Strategies? ....................................................................................... 14 D. How will the Scheme Benchmark its Performance? ................................................................ 14 E. Who Manages the Scheme? ..................................................................................................... 15 F. How is the Scheme Different from Existing Schemes of the Mutual Fund? ........................... 15 G. How has the Scheme Performed .............................................................................................. 16 H. Additional Scheme Related Disclosures .................................................................................. 16 Part III- OTHER DETAILS .............................................................................................................. 17 A. Computation of NAV ............................................................................................................... 17 B. New Fund Offer (NFO) Expenses ............................................................................................ 18 C. Annual Scheme Recurring Expenses ....................................................................................... 18 D. Load Structure .......................................................................................................................... 21 Section II ........................................................................................................................................... 23 I. INTRODUCTION .................................................................................................................... 23 A. Definitions/interpretation ......................................................................................................... 23 B. Risk factors ............................................................................................................................... 23 C. Risk mitigation strategies ......................................................................................................... 27 II. INFORMATION ABOUT THE SCHEME: ............................................................................ 29 A. Where will the scheme invest? ................................................................................................. 29 B. What are the investment restrictions? ...................................................................................... 31 C. Fundamental Attributes ............................................................................................................ 35 D. INDEX METHODOLOGY ..................................................................................................... 35 E. Other Scheme Specific Disclosures: ........................................................................................ 40 III. OTHER DETAILS ................................................................................................................... 50 A. Periodic Disclosures ................................................................................................................. 50 B. Transparency/NAV Disclosure ................................................................................................ 52 C. Transaction charges and stamp duty ........................................................................................ 53 D. Associate Transactions ............................................................................................................. 53 E. Taxation .................................................................................................................................... 53 F. Rights of Unitholders ............................................................................................................... 56 G. List of official points of acceptance: ........................................................................................ 56 H. Penalties, Pending Litigation or Proceedings, Findings of Inspections .................................. 56 3PART I. HIGHLIGHTS/ SUMMARY OF THE SCHEME Sr. No. Title Description I Name of the Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund Scheme II Category of the Other Schemes – Index Fund Scheme III Scheme Type An open-ended Constant Maturity Index Fund tracking the CRISIL-IBX Financial Services 9 - 12 Months Debt Index. A relatively low interest rate risk and relatively low credit risk IV Scheme Code It is to be obtained from NSDL and will be updated at the time of filing final < S.O 7> SID with SEBI. V Investment The investment objective of the scheme is to generate returns that are Objective < S.O 5> commensurate (before fees and expenses) with the performance of CRISIL- IBX Financial Services 9 -12 Months Debt Index that seeks to track the performance of Commercial Papers (CPs), Certificates of Deposit (CDs) & corporate bond securities maturing within 9 to 12 months from the date of inclusion in the index. However, there can be no assurance that the investment objective of the Scheme will be achieved. VI Liquidity/listing The Scheme offers Units for Subscription and Redemption at NAV based details prices on each Business Days on an ongoing basis. Since the Scheme is open-ended, it is not necessary to list the units of the Scheme on any exchange. VII Benchmark (Total CRISIL-IBX Financial Services 9 - 12 Months Debt Index Return Index) Benchmark Rationale - The Scheme is an Index Fund and would replicate/track the securities constituting CRISIL-IBX Financial Services 9 - 12 Months Debt Index, the said Index is most suited for comparing the performance of the Scheme. VIII NAV disclosure The NAVs of the Scheme will be calculated and disclosed on every Business Day on the website of the Kotak Mahindra Mutual Fund viz www.kotakmf.com and AMFI’s website www.amfiindia.com by 11.00 p.m. The First NAV of the scheme shall be declared within 5 working days from the date of allotment. For further details, refer Section II. IX Applicable Dispatch of redemption proceeds timelines The Mutual Fund shall initiate payment of redemption or repurchase proceeds to the unitholders within three working days from the date of redemption or repurchase. In case of exceptional situations listed in AMFI Circular No. AMFI/35P/MEM-COR/74/2022-23 dated January 16, 2023, the scheme 4shall is allowed additional timelines for transfer of redemption or repurchase proceeds to the unitholders. Dispatch of IDCW The Income Distribution cum capital withdrawal (IDCW) payments shall be dispatched to the unitholders within seven working days from the record date. X Plans and Options Plan- Direct Plan/Regular Plan Plans/Options and sub options under Direct Plan: This Plan is only for investors who purchase /subscribe Units in the Scheme a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Regular Plan: This Plan is for investors who wish to route their investment through any distributor. Options under each Plan(s) 1. Growth 2. Income Distribution cum Capital Withdrawal (IDCW) • Payout of Income Distribution cum Capital Withdrawal Option • Reinvestment of Income Distribution cum Capital Withdrawal Option The NAVs of the above Options will be different and separately declared; the portfolio of investments remaining the same. The AMC/Trustees reserve the right to introduce Options(s) as may be deemed appropriate at a later date subject to SEBI (MF) Regulations and circulars issued thereunder from time to time. Default Option /Sub-Options • If applicant does not indicate the choice of option between growth and Income Distribution cum capital withdrawal (IDCW) option in the application form, then the fund will accept it as an application for growth option under respective plan. • If applicant does not indicate the choice of Income Distribution cum capital withdrawal (IDCW) sub-option between payout of Income Distribution cum capital withdrawal (IDCW) and reinvestment of Income Distribution cum capital withdrawal (IDCW) then the fund will accept it as an application for reinvestment of Income Distribution cum capital withdrawal (IDCW). For detailed disclosure on default plans and options, kindly refer SAI. XI Load Structure Exit Load: Nil N No exit load will be chargeable in case of switches made between different plans/options of the scheme. The AMC reserves the right to change / modify the Load structure the Scheme, subject to maximum limits as prescribed under the SEBI (MF) Regulations and circulars issued thereunder from time to time. 5XII Minimum Initial Purchase/Switch in - Rs. 100/- and any amount thereafter Application Amount/switch in SIP Purchase - Rs. 100/- and any amount thereafter XIII Minimum Rs. 100/- and any amount thereafter Additional Purchase Amount XIV Minimum The minimum redemption amount for all plans will be Rs. 100/- or account Redemption/switch balance, whichever is lower. out amount XV. New Fund Offer NFO opens on:- _________ Period This is the NFO closes on:- _________ period during which a new scheme sells As per SEBI Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated its units to the February 27, 2025, to effectively manage the fund flows in NFO, the fund investors manager may extend or shorten the NFO period, based on his view of the market dynamics, availability of assets and his ability to deploy funds collected in NFO. However, the same shall be subject to compliance with Clause 1.10.1 and 1.10.1A of the SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 The AMC/ Trustees may change the New Fund Offer period, subject to the condition that the New Fund Offer period shall be kept open for a minimum period of 3 working days and not beyond 15 days or such other time period as permissible under SEBI (MF) Regulations. AMC/ Trustees may close the subscription list earlier by giving at least one day’s prior notice. Any such modification shall be announced by way of a notice/ addendum uploaded on website of Kotak Mahindra Mutual Fund i.e. www.kotakmf.com. <S.O.34> XVI. New Fund Offer Rs. 10 per Unit. Price: This is the price per unit that the investors have to pay to invest during the NFO. XVII Segregated Segregation of portfolio has been enabled in the scheme. portfolio/side pocketing disclosure For Details, kindly refer SAI <S.O.53> XVIII Swing pricing Not Applicable disclosure XIX Stock lending/short Securities Lending has been enabled in the scheme. selling For Details, kindly refer SAI XX How to Apply and Investors should apply through a common application form/online. other details Investors, are requested to go through the Guidelines / instructions in Key <S.O.35> Information Memorandum (KIM) cum application form for filling up the application form before investing. The investors signature on the main application form shall be the basis for all future transactions processing. Existing investors can use their Folio number at the time of investing in the same scheme or any scheme of Kotak Mahindra Mutual Fund. 6All cheques should be crossed "Account Payee Only" and drawn in favour the scheme name in which investment is intended to be made. The investors can submit the Application forms and Key Information Memorandum (along with transaction slip)/ forms for redemption/ switches at the branches of AMC or Investor Service Centres (ISCs)/Official Points of Acceptance (OPAs) of the Registrar (CAMS) or distributors or on the website of Kotak Mahindra Mutual Fund (www.kotakmf.com). Investors are also advised to refer to Statement of Additional Information before submitting the application form. For Further details refer section II. XXI. Investor services • Contact details for general service requests: 18003091490 / 044-40229101 (Monday to Friday between 9.30am to 6.00 pm & Saturday between 9.30am to 12.30pm) https://www.kotakmf.com/feedback/customer a) Contact details for complaint resolution: Ms. Sushma Mata, Investor Relations Officer Kotak Mahindra Asset Management Company Limited, 6th Floor, Kotak Towers, Building No.21, Infinity Park, Off: Western Express Highway Goregaon - Mulund Link Road, Malad (East), Mumbai 400097 Phone Number: 18003091490 / 044-40229101 Fax: 6708 2213 e-mail: https://info.kotakmf.com/write-to-us or WhatsApp us by sending us “Hi” at 9321884488. For portfolio valuation, give a missed call to 7039055555 XXII Specific attribute Not Applicable of the scheme (such as lock in, duration in case of target maturity scheme/close ended schemes) (as applicable) XXIII. Special During NFO - Switch-In from any existing schemes of Kotak Mahindra product/facility Mutual Fund (Except ETFs) and Systematic Investment Plan (SIP) are available during available during the NFO. the NFO and on ongoing basis Note: Investors also have an option to switch out all or part of their investments available in the Growth option of the Scheme of Kotak Liquid Fund and Kotak Overnight Fund (Source Schemes) to this Scheme during the NFO period, subject to the terms and conditions mentioned in the Scheme Information Document of the respective source 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. 7Ongoing Basis: The Following facilities are available under the Scheme on ongoing basis 1. Systematic Investment Plan 2. SIP Top Up Facility 3. Flex - Systematic Investment Plan Facility (‘FSIP’) Facility 4. Systematic Transfer Plan 5. Systematic Withdrawal Plan 6. Transfer of Income Distribution cum capital withdrawal (IDCW) Plan 7. Switching 8. Trigger facility 9. Daily frequency under Systematic Transfer Plan Facility 10. SIP Pause facility 11. Variable Transfer Plan (‘VTP’) 12. Smart Facility i.e. Smart Systematic Transfer Plan (SSTP) 13. Smart Systematic Investment Plan (SSIP) 14. Smart Systematic Withdrawal Plan (SSWP) 15. Freedom SIP Facility 16. Long Term Income (LTI) For further details of above special products / facilities, kindly refer SAI XXIV. Weblink Please note that this is a new scheme. TER details shall be available from the first NAV date in the following link: Link for Total Expense Ratio (TER) last 6 months, Daily TER as well as - https://www.kotakmf.com/Information/TER Link for scheme factsheet - https://www.kotakmf.com/Information/statutory-disclosure/information 8DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: <S.O.51> (i) The Draft Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. (ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well-informed decision regarding investment in the Scheme. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct (vi) A confirmation that the AMC has complied with the compliance checklist applicable for Scheme Information Documents and other than cited deviations/ that there are no deviations from the regulations (vii) 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. (viii) The index that scheme intends to track/replicate is included in the approved Index List published by AMFI. (ix) The Trustees have ensured that the Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt 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. Date: July 14, 2025 Name: Jolly Bhatt Place: Mumbai Designation: Compliance Officer 9Part II. INFORMATION ABOUT THE SCHEME A. How will the Scheme Allocate its Assets? Indicative allocations (% Instruments of total assets) Minimum Maximum Instruments forming part of the CRISIL-IBX Financial Services 9 - 12 95 100 Months Debt Index ^ Cash & Debt/Money Market Instruments* 0 5 ^Pursuant to clause 3.5.3 of Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, 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) For AAA, 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 12.9.3.3 of the SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. 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%. 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. *Debt and Money Market instruments refers to instruments other than those falling under asset allocation section of “Instruments forming part of the CRISIL-IBX Financial Services 9 -12 Months Debt Index”. 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. 10Money 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, triparty repo 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 upto 5% of the net assets in liquid and overnight mutual fund schemes 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. <S.O.21> Pursuant to para 12.11 of SEBI Master circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, as amended from time to time, the Trustees 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 para 12.24 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, 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. <S.O.17> Pursuant to para 12.25 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, 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: <S.O.14> a) Government Securities; b) T-Bills; and c) Repo on Government securities. The schemes exposure in debt instruments with special features (AT2 Bonds) will be limited to the underlying index and shall be in accordance with para 12.2.2 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. The Scheme shall not invest in the following: <S.0.18> • ADR/GDR/Overseas securities. • Derivatives and Commodity derivatives. • Short Selling • Credit Default Swaps. • Units of Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs). • Securitised debt • Debt instruments having Structured obligations and credit enhancements. • Repo/ reverse repo transactions in corporate debt securities. • Perpetual (AT1) Bonds 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. <S.O.19> 11Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sr. Type of Instrument Percentage of exposure Circular references* No. 1. Securities Lending Aggregate - 20% of net Para 12.11.2.1 of Master assets of the Scheme. Circular No. Single intermediary - 5% SEBI/HO/IMD/IMD-PoD- of the net assets of the 1/P/CIR/2024/90 dated June 27, Scheme. 2024 2. Units of Mutual Fund 5% of the net assets in Clause 4 of Seventh Schedule of liquid and overnight SEBI (Mutual Funds) mutual fund schemes Regulations 1996 3. Debt instruments with Exposure shall be limited Para 12.2.2 of SEBI Master special features (AT2 to the underlying index. Circular no. Bonds) SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2024/90 dated June 27, 2024 4. Securitized Debt The Scheme shall not N.A. invest in Securitized Debt 5. • ADR/GDR/Overseas The Scheme shall not N.A. securities. invest in ADR/GDR/Overseas Securities 6. Units of ReITS and The Scheme shall not N.A. InVIT0053 invest in Units of ReITS and InVITS 7. Derivatives and Commodity The Scheme shall not N.A. derivatives. invest in Derivatives and Commodity derivatives. 8. Repos/ Reverse repo in The Scheme shall not N.A. corporate debt securities invest in Repos/ Reverse repo in corporate debt securities 9. Credit Default Swaps The Scheme shall not N.A. invest in Credit Default Swaps 10. Short selling The Scheme shall not N.A. invest in Short selling 11. Debt instruments having The Scheme shall not N.A. Structured obligations and invest in Debt instruments credit enhancements having Structured obligations and credit enhancements 12. Perpetual (AT1) Bonds The Scheme shall not N.A. invest in Perpetual AT1 Bonds. 12Portfolio Rebalancing: <S.O.22 & 24> Pursuant to para 3.5.3.11 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 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/2024/90 dated June 27, 2024 on creation of segregated portfolio in mutual fund schemes. As per SEBI Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated February 27, 2025, the scheme shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. The Investment Committee, if so desired, can extend the timelines up to sixty (60) business days from the date of completion of mandated deployment period Short Term Defensive Consideration: <S.O.23 & 24> Subject to para 1.14.1.2 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 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. B. Where will the Scheme Invest? <S.O.29> The Scheme will invest in constituents of CRISIL-IBX Financial Services 9 - 12 Months Debt Index in line with SEBI (MF) Regulations & circulars issued thereunder from time and time and will be considered to be replicating the index accordingly. The Scheme shall invest in the following securities as per the limits specified in the asset allocation table of Scheme, subject to SEBI (MF) Regulations. a. Corporate debt (of both public and private sector undertakings) including Non-convertible debentures (including bonds) and non-convertible part of convertible securities; 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. Money market instruments permitted by SEBI/ RBI, having maturities of up to one year but not limited to: o Certificate of Deposits (CDs). o Commercial Paper (CPs) 13o Triparty repo on Government securities or treasury bills, Bills re-discounting f. Securities Lending as permitted by SEBI from time to time g. 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/2024/90 dated June 27, 2024. <S.O.30> C. What Are the Investment Strategies? <S.O.27 & 28 The Scheme follows a passive investment strategy. The Scheme will replicate income over the constant maturity period of its underlying index i.e., CRISIL-IBX Financial Services 9 - 12 Months Debt Index, subject to tracking errors. Accordingly, the Scheme will invest in securities in line with the benchmark index of the Scheme. In line with constant maturity profile of the underlying Index, the scheme follows perpetual structure, wherein the scheme would be rebalanced as per set frequency and remain in line with maturity profile. 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/2024/90 dated June 27, 2024, 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. A small portion of the net assets will be held as cash or will be invested in debt and money market instruments (as mentioned under asset allocation section) permitted by SEBI/RBI including TREPS or in alternative investment for the TREPS as may be provided by the RBI, to meet the liquidity requirements under the Scheme. 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 constant 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. D. How will the Scheme Benchmark its Performance? The performance of Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund is benchmarked against the CRISIL-IBX Financial Services 9 - 12 Months Debt Index Justification of adoption of benchmark: The Scheme is an Index Fund and would replicate/track the securities constituting CRISIL-IBX Financial Services 9 - 12 Months Debt Index, the said Index is most suited for comparing the performance of the Scheme. 14E. Who Manages the Scheme? Mr. Manu Sharma will be the Fund Manager of the Scheme. <S.O.33> NAME AGE QUALIFI BUSINESS SCHEMES MANAGED CATION EXPERIENCE Mr. Manu 44years Chartered Mr. Manu Sharma has • Kotak Savings Fund Sharma Accountant over 17 years of • Kotak Money Market Fund from the experience in the fields • Kotak Low Duration Fund Institute of of Fixed Income Fund • Kotak Corporate Bond Fund Chartered Management, • Kotak Floating Rate Fund Accountants Operations, Finance • Kotak FMP Series 292 of India & Audit and Taxation. He • Kotak FMP Series 300 M.Com joined Kotak AMC from • Kotak FMP Series 304 Deskera Systems in • Kotak FMP Series 305 September 2019 and was • Kotak FMP Series 308 based out of • Kotak FMP Series 310 Bangalore/Singapore for • Kotak CRISIL -IBX one year. Prior to it Mr. Financial Services 3-6 Manu was with Kotak Months Debt Index Fund AMC since September 2006 to June 2018 and has handled major assignments like the Fund Management, Operations and Finance for the Kotak AMC. F. How is the Scheme Different from Existing Schemes of the Mutual Fund? Kotak Crisil-IBX Financial Services 9 to 12 Months Debt Index Fund is a passive scheme that allocates its investment in Instruments forming part of the CRISIL-IBX Financial Services 9 -12 Months Debt Index. It is the only index fund of Kotak Mahindra Mutual Fund that would replicate/track the securities constituting CRISIL-IBX Financial Services 9 - 12 Months Debt Index. Hence this scheme is different from other existing Debt Index schemes of Kotak Mutual Fund. The list of existing schemes under Debt Index Funds are given below: 1. Kotak Nifty G-Sec July 2033 Index Fund 2. Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund 3. Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund 4. Kotak Nifty SDL Jul 2026 Index Fund 5. Kotak Nifty SDL Jul 2033 Index Fund 6. Kotak Nifty SDL Plus AAA PSU Bond Jul 2028 60 - 40 Index Fund 7. Kotak Nifty AAA Bond Jun 2025 HTM Index Fund 8. Kotak CRISIL-IBX AAA Financial Services Index - Sep 2027 Fund 9. Kotak CRISIL -IBX Financial Services 3-6 Months Debt Index Fund 10. Kotak CRISIL-IBX AAA Bond Financial Services Index – Dec 2026 Fund The detailed comparative table will be available in the given link: https://www.kotakmf.com/Information/statutory-disclosure/disclosuresrelatedtosidandkim 15G. How has the Scheme Performed This is a new scheme to be launched and does not have any performance track record. H. Additional Scheme Related Disclosures Since the scheme is a new fund to be launched, the following disclosures are not applicable. a) Scheme’s portfolio holdings: Not Applicable b) Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a % of NAV of the scheme - Not Applicable c) Portfolio Disclosure – Not Applicable d) Portfolio Turnover Ratio: Not Applicable e) Aggregate investment in the Scheme by: Not Applicable. For any other disclosure w.r.t investments by key personnel and AMC directors including regulatory provisions in this regard kindly refer SAI. f) Investments of AMC in the Scheme: <S.O.58> 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 6.9.3.5 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, AMC shall not be required to invest minimum amount as a percentage of AUM in the Scheme. Details of Investments of AMC in the Scheme will be available in the given link. - Not Applicable 16Part III- OTHER DETAILS A. Computation of NAV The AMC shall compute 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 its investments according to the valuation norms (Valuation Policy includes computation of NAV in case of investment in foreign securities), as specified in the Eighth Schedule of the Regulations, or such guidelines / recommendations as may be specified by SEBI from time to time. The broad valuation norms are detailed in the Statement of Additional Information. NAV of Units under the Scheme will be calculated as shown below: Market or Fair Value of Current assets including Current Liabilities and NAV = Scheme’s investments + Accrued Income - provisions including accrued expenses No. of Units outstanding under the Scheme/Option. NAV for the Schemes and the repurchase prices of the Units will be calculated and announced at the close of each Business Day. The NAV shall be computed upto four decimals. The NAV of Direct Plan will be different than the NAV of Regular Plan. Computation of NAV will be done after taking into account IDCWs paid, if any, and the distribution tax thereon, if applicable. Therefore, once IDCWs are distributed under the IDCW Option, the NAV of the Units under the IDCW Option would always remain lower than the NAV of the Units issued under the Growth Option. The income earned and the profits realized in respect of the Units issued under the Growth Option remain invested and are reflected in the NAV of the Units. Illustration for Computation of NAV: <S.O.42> As required under the Regulations, the asset management company shall ensure that the repurchase price of an open-ended scheme shall not be lower than 95% of the Net Asset Value. For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay in disclosure of NAV etc. refer to SAI. 17 N 1 0 A .1 0 V 9 = = M a r k e t oV a lu e o fS c h e m e ’in v e s t m e N 1 0 ,0 1 ,0 0 , 0 r sn o 0 F a t s . o 0 . 0 ir f U 0 n it + + s o u t C u r r e n t a s s e t s in c lu d in g A c c r u e d I n c o m e s t a n d in g u n d e r t h 1 0 ,0 0 ,0 0 0 .0 0 1 ,0 0 ,0 0 ,0 0 0 .0 0 e S - c h - e m C u r r e n t L ia b ilit ie s p r o v is io n s in c lu d in g a c c r u e d e x p e n s e s e / O p t io n . 1 0 ,0 0 0 .0 0 a n d 11 0 ,1,0 0 0 ,9,0 0 0 ,,0 00 00 0 ..0 00 0B. New Fund Offer (NFO) Expenses These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, registrar expenses, printing and stationary, bank charges etc. The AMC shall ensure that no NFO expenses will be charged to the Scheme. C. Annual Scheme Recurring Expenses These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below: The AMC has estimated that upto 1% daily net assets of the scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the mutual fund viz. www.kotakmf.com. Total Expense Ratio for the scheme Expense Head % p.a. of daily Net Assets* (Estimated p.a.) Investment Management & Advisory Fee Audit fees/fees and expenses of trustees Upto 1.00% Custodial Fees Registrar & Transfer Agent Fees including cost of providing account statements / IDCW / redemption cheques/ warrants Marketing & Selling Expenses including Agents Commission and statutory advertisement Costs related to investor communications Costs of fund transfer from location to location Cost towards investor education & awareness (1bps) <S.O.43> Brokerage & transaction cost pertaining to distribution of units Goods & Services Tax on expenses other than investment and advisory fees Goods & Services Tax on brokerage and transaction cost Other Expenses (to be specified as per Reg 52 of SEBI MF Regulations) Maximum Total expenses ratio (TER) permissible under Regulation 52 Upto 1.00% (6) (b) Additional expenses under Regulations 52(6A)(c) Upto 0.05% Additional expenses for gross new inflows from specified cities Upto 0.30% #The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is not levied/ not applicable 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-1/P/CIR/2024/90 dated June 27, 2024, all fees and expenses charged in a direct plan (in percentage terms) under various heads 18including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in a regular plan. However, Direct Plan shall have a lower expense ratio than the Regular Plan. The expenses would exclude distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under Direct Plan. Additional expenses which may be charged to the Scheme <S.O.46> The following additional expenses may be charged to the Schemes under Regulation 52 (6A), namely- • Brokerage and transaction cost incurred for the purpose of execution shall be charged to the schemes (a) upto 12 bps and 5 bps for cash market transactions and derivatives transactions respectively. Any payment towards brokerage & transaction costs, over and above the said 12 bps and 5 bps for cash market transactions and derivatives transactions respectively may be charged to the Scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52 of the SEBI (Mutual Finds) Regulations, 1996. • Expenses not exceeding of 0.30 % of daily net assets, if the new inflows from beyond top 30 cities are at least: (i) 30 % of gross new inflows in the scheme; or (ii) 15 % of the average assets under management (year to date) of the scheme; whichever is higher. Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause (ii), such expenses on daily net assets of the scheme shall be charged on proportionate basis. Provided further that expenses charged under this clause shall be utilized for distribution expenses incurred for bringing inflows from such cities. Provided further that amount incurred as expense on account of inflows from such cities shall be credited back to the scheme in case the said inflows are redeemed within a period of one year from the date of investment. Provided further that the additional TER can be charged based on inflows only from ‘retail investors’ (Para 10.1.3 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, has defined that inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be considered as inflows from “retail investor”) from beyond top 30 cities. Provided that the additional commission for beyond top 30 cities shall be paid as trail only. In case inflows from beyond top 30 cities is less than the higher of (i) or (ii) above, additional TER on daily net assets of the scheme shall be charged as follows: Daily net assets X 30 basis points X New inflows from individual investors from beyond top 30 cities ------------------------------------------------------------------------------------------- 365* X Higher of (i) or (ii) above * 366, wherever applicable. Additional expenses upto 0.05% of daily net assets of the schemes, incurred towards different heads mentioned under Regulation 52 (2) and 52 (4). With reference to SEBI’s letter no. SEBI/HO/ IMD/ IMD-SEC-3/ P/ OW/ 2023/ 5823/ 1 dated February 24, 2023, and AMFI Circular No. CIR/ ARN-23/ 2022-23 March 07, 2023, the B-30 incentive structure for new inflows has been kept in abeyance with effect from March 01, 2023 till the incentive structure is appropriately re-instated by SEBI with necessary safeguards. Clause 4 of Seventh Schedule to SEBI (Mutual Funds) Regulations, 1996 which restricts investments in mutual fund units upto 5% of net assets and prohibits charging of fees, shall not be applicable to investments in mutual funds in foreign countries made in accordance with guidelines as per Para 12.19.3.8 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. However, the management 19fees and other expenses charged by the mutual fund(s) in foreign countries along with the management fee and recurring expenses charged to the domestic mutual fund scheme shall not exceed the total limits on expenses as prescribed under Regulation 52(6). Where the scheme is investing only a part of the net assets in the overseas mutual fund(s), the same principle shall be applicable for that part of investment. TER for the Segregated Portfolio 1. AMC shall not charge investment and advisory fees on the segregated portfolio. However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata basis only upon recovery of the investments in segregated portfolio. 2. The TER so levied shall not exceed the simple average of such expenses (excluding the investment and advisory fees) charged on daily basis on the main portfolio (in % terms) during the period for which the segregated portfolio was in existence. 3. The legal charges related to recovery of the investments of the segregated portfolio may be charged to the segregated portfolio in proportion to the amount of recovery. However, the same shall be within the maximum TER limit as applicable to the main portfolio. The legal charges in excess of the TER limits, if any, shall be borne by the AMC. 4. The costs related to segregated portfolio shall in no case be charged to the main portfolio. Goods and Services tax: Goods and Services tax on investment and advisory fees may be charged to the scheme in addition to the maximum limit of TER as prescribed in Regulation 52(6)(c). Goods and Services tax on other than investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of TER as per Regulation 52. The aforesaid estimates are made in good faith by the Investment Manager and are subject to change inter se among the various heads of expenses and between the Plans. It may also be noted that the total expenses of the Plans will also be subject to change within the overall limits of expenses under Regulation 52. Actual expenses under any head and / or the total expenses may be more or less than the estimates. The Investment Manager retains the right to charge the actual expenses to the 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. Illustration of impact of expense ratio on scheme’s returns: <S.O.44> Particulars Regular Plan Direct Plan Amount Invested at the beginning of the year 10,000 10,000 Annual Returns before Expenses 800 800 Expenses other than Distribution Expenses 75 75 Distribution Expenses / Commission 25 - Returns after Expenses at the end of the Year 700 725 Illustration is given to understand the impact of expense ratio on a scheme return and this should not be construed as an indicative return of the scheme. The expenses of the Direct Plan under the Scheme will be lower to the extent of distribution expenses/ commission. 20D. Load Structure <S.O.47> Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of www.kotakmf.com or may call at 18003091490 or your distributor. Type of Load Load chargeable (as % age of NAV) Exit NIL * In terms of Para 10.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, no entry load will be charged on purchase / additional purchase / switch-in. The commission as specified in aforesaid circular, if any, on investment made by the investor shall be paid by the investor directly to the Distributor, based on his assessment of various factors including the service rendered by the Distributor. Any 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. In case of changes in load structure the addendum carrying the latest applicable load structure shall be attached to all KIM and SID already in stock till it is updated. Investors may obtain information on loads on any Business Day by calling the office of the AMC or any of the Investor Service Centers. Information on applicability of loads will also be provided in the Account Statement. As required under the Regulations, the asset management company shall ensure that the repurchase price of an open-ended scheme is not lower than 95% of the Net Asset Value. The investor is requested to check the prevailing load structure of the scheme before investing. The AMC reserves the right to change / modify the Load structure the Scheme, subject to maximum limits as prescribed under the SEBI (MF) Regulations and circulars issued thereunder from time to time. 2122Section II I. INTRODUCTION A. Definitions/interpretation The details detailed definitions/ interpretations refer to the link on website of the mutual fund viz. https://www.kotakmf.com/Information/statutory-disclosure/disclosuresrelatedtosidandkim B. Risk factors Scheme Specific Risk Factors: < S.O 8> • The Scheme is 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 AMC does not attempt to individually select securities or to take defensive positions in declining markets. The performance of the Underlying Index will have a direct bearing on the performance of the Scheme. The Scheme 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. In addition, the Scheme may be exposed to higher levels of volatility and risk than would generally be the case in a more diverse fund portfolio of debt securities. Such risks may impact the Scheme to the extent that it invests in particular issuers sectors even in cases where the investment objective is more generic. • 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 CRISIL-IBX Financial Services 9 - 12 Months Debt 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 operations, the scheme will be subject to risks relating to such deployment / operations and may also contribute to tracking errors/ difference. Risk specific to investing in companies forming part of CRISIL-IBX Financial Services 9 - 12 Months Debt Index: The underlying companies forming part of CRISIL-IBX Financial Services 9 - 12 Months Debt Index has Issuers in the financial services sector with long term conservative rating of AAA which are well researched. They also enjoy liquidity. The risk to investing in these securities would emanate from debt market risk in general. Additionally, there is a potential risk if the company's sector does not perform in line with the broader market. Regulatory restrictions may prevent the fund manager from fully replicating the index, such as limitations on group company / related party exposure etc. In such cases, the fund manager will follow the relevant regulatory provisions. 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. 23Credit 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 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 Rs 102.51 (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. 24e) 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 Trustees, under certain circumstances as described in the Statement of Additional Information (SAI). 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, there is a possibility of recall of securities lent at a higher premium than at which the security is lent or unable to recall due to low volume. Additional risk on securities lending is that there can be temporary illiquidity of the securities that are lent out and the Fund may not be able to sell such lent-out securities, resulting in an opportunity loss. In case of a default by counterparty, the loss to the Fund can be equivalent to the securities lent. 25Risks 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 recognized 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: < S.O 10> Tracking error i.e. the annualized standard deviation of the difference in daily returns between the underlying index or goods and the NAV of the ETF/ Index Fund (other than Debt ETFs/ Index Funds) based on past one year rolling data shall not exceed 2%. In case of unavoidable circumstances in the nature of force majeure, which are beyond the control of the AMCs, the tracking error may exceed 2% and the same shall be brought to the notice of Trustees with corrective actions taken by the AMC, if any. Tracking difference is the annualized difference of daily returns between the index or goods and the NAV of the Index Fund. However, the scheme will endeavor to limit the tracking difference averaged 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 Impact, if any, of securities received on corporate action. • Delay in realisation of sale proceeds, receipt of information of inflows from RTA/ Banks etc. • 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 Units of Mutual fund Schemes. Investment in units of Mutual Fund scheme involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. As the price / value / interest rates of the underlying securities in which the mutual fund scheme invests fluctuates, the value of units of mutual fund scheme may go up or down. The value of underlying securities may be affected, inter-alia, by changes in the market, interest rates, changes in credit rating, trading volumes, settlement periods and transfer procedures; the NAV is also exposed to Price/Interest-Rate Risk and Credit Risk and may be affected interalia, 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, application of swing pricing, Segregation of portfolios etc. Swing pricing / segregation of portfolios risks may amongst other things realise lower and/or nil value on redemption of underlying units. Since the Scheme may invest in schemes 26of 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 Trustees, under certain circumstances as described elsewhere in the SAI. C. Risk mitigation strategies < S.O 9> 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 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, as a constant maturity index fund structure, passively replicates Risk the index as per the investment strategy. Positioned at the very short end of the yield curve, it inherently limits volatility. Additionally, this scheme is typically chosen by investors with a clear investment horizon as per benchmark. If these investors remain invested, their profile aligns with the asset, thus automatically mitigating risk. Credit risk The Scheme will majorly invest in issuers in the financial services sector with long term conservative rating of AAA in line with the investment strategy. These instruments generally bear low credit risk. Thus, this risk is mitigated to some extent. Liquidity risk The index designed in such a manner that the securities that are liquid in the secondary markets form a part of the portfolio. i.e. Securities with high Liquidity score* and/or high ISIN outstanding form a part of the portfolio of the index (and ultimately the fund). Thus, the risk is mitigated through index design itself. Interest rate risk The fund aligns closely with the duration of the index, reducing sensitivity to interest rate fluctuations. By maintaining a consistent maturity structure and investing in high-quality securities, the scheme aims to minimize the impact of rate changes Tracking errors / Over a short period, the Scheme may carry the risk of variance between difference portfolio composition and Benchmark. The objective of the Scheme is to 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. The fund manager will endeavor to recall the securities in case lent securities are to be sold. 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. 27Units of liquid and Mutual Fund portfolios are generally well diversified and typically endeavor to overnight mutual provide liquidly on a T+1/T+2 basis. 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 mention above is based on current market conditions and may change from time to time based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our investment strategy, risk mitigation measures and other information contained herein may change.in response to the same. 28II. INFORMATION ABOUT THE SCHEME: A. Where will the scheme invest? Securities/ Instruments Definitions Securities created and issued by Government Security (G-Sec) is a tradeable instrument issued by the the Central and State Governments Central Government or the State Governments. It acknowledges the and/or repos/reverse repos in such Government’s debt obligation. They are generally long term with Government Securities as may be maturity of one year or more. In India, the Central Government issues permitted by RBI (including but both, treasury bills and bonds or dated securities while the State not limited to coupon bearing Governments issue only bonds or dated securities, which are called the bonds, zero coupon bonds and State Development Loans (SDLs). G-Secs carry practically no risk of treasury bills) default and, hence, are called risk-free gilt-edged instruments. Repos / Reverse Repos enables collateralized short term borrowing and lending through sale/purchase operations in the such government securities. Debt obligations of domestic These are instruments are issued by various government agencies and Government agencies and bodies (including but not limited to Indian Government Bond, State statutory bodies, which may or Development Loans issued and serviced at the Public Debt Office, may not carry a Central/State Bonds issued by Central & State Government PSU’s which are Government guarantee (including guaranteed by Central or State Governments. They can be issued at but not limited to Indian discount, par or premium. 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); Corporate debt (of both public and These are financial instruments issued by companies (both public and private sector undertakings) private) to raise long-term funds through public issues. They are including Nonconvertible generally rated by credit rating agencies. debentures (including bonds) and non-convertible part of convertible securities; Short Term Deposits of banks Short Term Deposits are offered by Scheduled Commercial Banks (both public and private sector) (both public and private sector banks) with a fixed/floating interest and development financial rate and maturity date. institutions to the extent permissible under SEBI Regulations; Money market instruments A. “Certificate of Deposit” or “CD” is issued by Scheduled permitted by SEBI/RBI, having Commercial Banks (SCBs) and All-India Financial Institutions. maturities of up to one year but not There is a term period of 7 days to 1 year for CDs that are issued limited to: by SCBs, whereas the term period ranges from 1 year to 3 years • Certificate of Deposits (CDs). for CDs issued by financial institutions. CDs are usually issued at • Commercial Paper (CPs) a discounted rate and redeemed at par. • Tri-party Repo, Bills re- discounting, as may be permitted B. "Commercial Paper" or "CP" is a short-term instrument issued by by SEBI from time to time. corporates and financial institutions CPs are usually issued at a discounted rate and redeemed at par. The tenor of CP ranges from 7 days to 1 year. 29C. Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity. D. Triparty Repo (TREPS) is a type of repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. E. Bills Re-discounting is an instrument where a financial institution discounts the bills of exchange that it has discounted previously with another financial institution. Units of Mutual Funds Schemes Mutual fund means a fund established in the form of a trust to raise monies through the sale of units to the public or a section of the public under one or more schemes for investing in securities, money market instruments, gold or gold related instruments, silver or silver related instruments, real estate assets and such other assets and instruments as may be specified by the SEBI from time to time: Securities Lending & Borrowing Securities Lending and Borrowing is a process through which shares as permitted by SEBI from time to or stocks are lent or borrowed from other investors or financial firms time at a specified time and price. The securities/debt instruments mentioned above could be listed or unlisted, secured or unsecured, rated and of varying maturities and other terms of issue. The securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private placement, rights offer or negotiated deals. The Schemes may also enter into repurchase and reverse repurchase obligations in all securities held by it as per guidelines/regulations applicable to such transactions. Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be allowed, in lines with para 12.30 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. 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. The interest rates were regulated till a few years back, there has been rapid deregulation and currently both the lending and deposit rates are market determined. The Central banker has in its recent credit policy meetings suggested the importance of a fully developed corporate bond market and efforts are being made to have an online trading platform for corporate bonds. 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 30put through member brokers are reported. The daily volumes in the debt market are in the region of Rs.2500- 5000 crores. RBI has introduced the Negotiated Dealing System (NDS) platform for screen-based trading in Government Securities and Money Market instruments. 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 July 11, 2025 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 5.25-5.30 91 Day Treasury Bill 5.35-5.39 364 Day Treasury Bill 5.52-5.55 P1+ Commercial Paper 90 Days 5.78-5.83 3-Year Government of India Security 5.80-5.85 5-Year Government of India Security 5.92-5.98 10-Year Government of India Security 6.27-6.30 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 July 11, 2025 and they are likely to change consequent to changes in economic conditions and RBI policy. B. 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. 31The long term rating of issuers shall be considered for the money market instruments. However, if there is no long term rating available for the same issuer, then based on credit rating mapping of Credit Rating Agency (CRAs) between short term and long term ratings, the most conservative long term rating shall be taken for a given short term rating Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and triparty repo on Government securities or treasury bills. Provided further that 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/2024/90 dated June 27, 2024. 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. 329. 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/2024/90 dated June 27, 2024, 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. In accordance with the para 12.1 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2024/90 dated June 27, 2024, 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. 13. Pursuant to para of 3.5.3 of Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, 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: 33For 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 12.9.3.3 of the Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. 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%. 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. 14. Pursuant to para 12.2.2 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2024/90 dated June 27, 2024: a) No Mutual Fund under all its schemes shall own more than 10% of such instruments issued by a single issuer; b) A Mutual Fund scheme shall not invest i. more than 10% of its NAV of the debt portfolio of the scheme in such instruments; and ii. more than 5% of its NAV of the debt portfolio of the scheme in such instruments issued by a single issuer. The above investment limit for a mutual fund scheme shall be within the overall limit for debt instruments issued by a single issuer as specified at clause 1 of the Seventh Schedule of SEBI (Mutual Fund) Regulations, 1996, and other prudential limits with respect to the debt instruments. 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/2024/90 dated June 27, 2024, and circular issued thereunder from time to time. 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 Trustees may from time to time alter these restrictions in conformity with the SEBI (MF) Regulations. All investment restrictions shall be applicable at the time of making investment. Modifications, if any, in the Investment Restrictions on account of amendments to the Regulations shall supersede/ override the provisions of the Trust Deed. 34C. Fundamental Attributes <S.O.59> As per para 1.14 of SEBI Master circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, Following are the fundamental attributes of the schemes, in terms of Regulation 18 (15A) of SEBI (MF) Regulations: (i) Type of the scheme: As mentioned under the heading “Type of the Scheme” of Part I – Sr. No. III (ii) Investment Objective: As mentioned under the heading “Investment Objective” of Part I – Sr. No. V (iii) Investment Pattern: As mentioned under the heading “How will the scheme allocate its assets” of Part II - A (iv) Terms of Issue: • Liquidity provisions such as listing, repurchase, redemption. Investors may refer Part I and Section II under ‘Other Scheme Specific Disclosures’ for detailed information on listing, repurchase and redemption. • Aggregate fees and expenses charged to the scheme. Investors may refer Part III ‘Other Details’. • Any safety net or guarantee provided – Not Applicable In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, 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 these regulations. 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 any scheme or the trust, 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, • SEBI has reviewed and provided its comments on the proposal • 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 • The Unitholders are given an option for a period of 30 calendar days to exit at the prevailing Net Asset Value without any exit load. D. INDEX METHODOLOGY About CRISIL-IBX Financial Services 9 - 12 Months Debt Index “CRISIL-IBX Financial Services 9 - 12 Months Debt Index” is a constant maturity index that seeks to track the performance of Commercial Papers (CPs), Certificates of Deposit (CDs) & corporate bond securities maturing within 9 to 12 months from the date of inclusion in the index. Asset Allocation: 100% CPs, CDs & Bonds. Index Duration: - The index will have securities maturing in the 9 to 12 months maturity at inception and securities will be reviewed on a set frequency to maintain the steady maturity profile of the index. The weights between asset classes (CPs, CDs and Bonds) are not fixed and could be different during various review periods based on the availability of securities in the market and may also drift due to price movements in the securities. Eligibility Criteria 35• Issuers in the financial services sector with long term conservative rating of AAA with a minimum amount outstanding of Rs. 1000 crores and having securities (CPs, CDs & Bonds) with residual maturity of 9 to 12 months. • Minimum security level amount outstanding of Rs. 100 crores. • Only listed issuers shall be included in the index. An issuer will be considered to be listed if at least one security (CPs or Bonds) of such issuer is listed as evaluated at the inception date of the index. CDs are not listed on the exchanges, and hence all CDs are considered eligible if they meet the remaining criteria. Universe exclusions • Perpetual Bonds • Floating rate bonds • Tax-free bonds • CE/SO rated bonds • Partly paid bonds • Partial redemption bonds • Single put/call options • Embedded put & call options with same exercise date • CPs/CDs with short-term ratings other than A1+ Issuer selection at inception • All issuers qualifying the eligibility criteria mentioned above will form a part of universe. • Up to 20 traded issuers from the universe will be ranked and selected based on liquidity. If less than 8 issuers are available, then select remaining issuers (to bring the count to 8) based on the highest amount outstanding from the universe of outstanding securities as evaluated at the inception date of the index. If the number of issuers is still below 8, then all such eligible issuers with securities maturing in the 9 to 12 months residual maturity period will be shortlisted. Count of 8 issuers will be ensured by relaxing amount outstanding criteria first and then the residual maturity criteria i.e., highest amount outstanding issuers or highest residual maturity of issuers will be selected respectively from the outstanding data. Security selection at inception For each selected issuer, the security (CPs/CDs/Bonds) with highest residual maturity maturing in the 9 to 12 months period will be selected from the eligible universe. The selected security must have a minimum amount outstanding of Rs. 100 crores. No. of constituents a) Maximum: 20 b) Minimum: 8 Weighting Approach: Weights to the issuers will be divided equally as on the base date of the index subject to issuer cap and group cap. Since it’s a sectoral index sector caps are not applicable. • Issuers weights should not exceed 15% for AAA rated issuers. Group cap of 25% will be ensured. • When any issuer is excluded, the weight of that issuer will be redistributed proportionally amongst the rest of the issuers of the index, subject to issuer & group cap. Rating change treatment In case any issuer gets downgraded below AAA, such issuers shall be excluded from the index within the next 5 working days. In that case, the weight of that issuer will be redistributed proportionally in rest of the issuers of the index, subject to issuer cap & group cap. In case of less than 8 issuers are 36present, then new issuers will be added (to bring the count to 8) from the last reviewed working data as per above mentioned issuer selection criteria at inception. Cash flow treatment Any cash flows accruing to the index on account of coupon cash flows, part/full redemption of the security or securities, will be reinvested on the same day in the index in the proportion of existing weights subject to issuer & group cap. Reconstitution/Rebalancing • Issuer selection Same process for issuer selection would be repeated as that followed at inception. • Treatment of existing issuers The eligibility criteria and process for issuer selection will be repeated. Existing issuers will be removed if they fail to qualify on the basis of the criteria and process. The objective of such reconstitution is to maintain the liquidity and duration profile of the index • Security Selection- Same as the process followed during that on the inception of index. • Treatment of existing securities The eligibility criteria and process for issuer/security selection will be repeated. Existing issuers/security will be removed if they fail to qualify basis the criteria and process. The objective of such reconstitution is to maintain the liquidity and duration profile of the index Reconstitution frequency Semi-annual (7th calendar day of March and September) Weight reset frequency i. Semi-annual (7th calendar day of March and September) ii. The weights of securities/issuer will float based on the price movement and will be reset to equal weight during the quarterly review. Tentative Portfolio/Index Constituents As on 22nd Jun, 2025 Maturity ISIN Description FIDB Issuer Rating TYPE Weight Date Kotak Kotak AAA Mahindra Inv Mahindra INE975F07ID8 23-Feb-26 Bonds 5.01% 08.1577% 23- Investments Feb-2026 Ltd. Union Bank of AAA India 0.0% CD Union Bank INE692A16IX9 27-Feb-26 CD 5.02% Taxable 27- of India Feb-2026 Small AAA SIDBI 07.11% Industries (Series IV FY- INE556F08KB4 27-Feb-26 Development Bonds 5.02% 2022-23) 27- Bank of Feb-2026 India Rural AAA RECL 07.32% Electrificatio INE020B08DW1 (Series 214-A) 27-Feb-26 n Bonds 5.02% 27-Feb-2026 Corporation Ltd. Punjab Punjab AAA INE160A08092 National Bank 05-Feb-26 National Bonds 5.02% 8.65% Basel 3 Bank 37Tier 2 Taxable 05-Feb-2026 Power AAA PFC 07.58% Finance INE134E08LZ0 (Series 222) 15-Jan-26 Bonds 5.02% Corporation 15-Jan-2026 Ltd. National Bank AAA for Agriculture National & Rural Bank for INE261F16967 Development 27-Feb-26 Agriculture CD 5.02% 0.0% CD & Rural Taxable 27- Development Feb-2026 LICHF AAA 08.57% LIC Housing INE115A07IX0 03-Mar-26 Bonds 5.01% (Tranche 287) Finance Ltd. 03-Mar-2026 L&T Finance AAA Ltd. 7.95% L&T Finance INE027E07CH5 (SERIES N) 27-Feb-26 Bonds 5.01% Ltd. Taxable 27- Feb-2026 Kotak AAA Mahindra Kotak Prime Ltd. INE916D144W2 24-Feb-26 Mahindra CP 5.02% 0.0% CP Prime Ltd. Taxable 24- Feb-2026 Axis Bank Ltd. AAA 0.0% CD Axis Bank INE238AD6AL4 05-Feb-26 CD 5.02% Taxable 05- Ltd. Feb-2026 Kotak AAA Mahindra Kotak Bank Ltd. INE237A166Z3 27-Feb-26 Mahindra CD 5.02% 0.0% CD Bank Ltd. Taxable 27- Feb-2026 Indian Bank AAA 0.0% CD INE562A16OA0 04-Feb-26 Indian Bank CD 5.02% Taxable 04- Feb-2026 HDFC Bank AAA Ltd. 0.0% CD HDFC Bank INE040A16GJ4 25-Feb-26 CD 5.02% Taxable 25- Ltd. Feb-2026 HDB Financial AAA Services 08.04% HDB (SeriesSeries INE756I07EL8 25-Feb-26 Financial Bonds 5.02% 2022 Services Ltd. A/1(FX)/186 Option 2) 25- Feb-2026 38Export Import AAA Bank Of India Export INE514E14SO0 0.0% CP 27-Jan-26 Import Bank CP 5.02% Taxable 27- Of India Jan-2026 Canara Bank AAA 0.0% CD INE476A16A65 24-Feb-26 Canara Bank CD 5.02% Taxable 24- Feb-2026 BOB earlier AAA Vijaya Bank 08.64% Bank of INE705A08078 (Compliant 22-Jan-26 Bonds 4.63% Baroda Tier II Basel III SERIES XI) 22-Jan-2026 Bajaj Housing AAA Bajaj Finance INE377Y07466 16-Feb-26 Housing Bonds 5.02% 08.00% 16- Finance Ltd. Feb-2026 Bajaj Finance AAA 08.00% (Series Bajaj INE296A07SJ6 286 Tranche 27-Feb-26 Bonds 5.01% Finance Ltd. 12 Option I) 27-Feb-2026 Index Provider About Crisil Intelligence (formerly Market Intelligence & Analytics) Crisil Intelligence is a leading provider of research, consulting, risk solutions and advanced data analytics, serving clients across government, private and public enterprises. We leverage our expertise in data-driven insights and strong benchmarking capabilities to help clients navigate complex external ecosystems, identify opportunities and mitigate risks. By combining cutting-edge analytics, machine learning and AI capabilities with deep industry knowledge, we empower our clients to make informed decisions, drive business growth and build resilient capacities. For more information, visit www.Intelligence.CRISIL.com About Crisil Crisil is a global, insights-driven analytics company. Our extraordinary domain expertise and analytical rigour help clients make mission critical decisions with confidence. Large and highly respected firms partner with us for the most reliable opinions on risk in India, and for uncovering powerful insights and turning risks into opportunities globally. We are integral to multiplying their opportunities and success. Headquartered in India, Crisil is majority owned by S&P Global. Founded in 1987 as India’s first credit rating agency, our expertise today extends across businesses: Crisi Ratings, Crisil Intelligence, Crisil Coalition Greenwich and Crisil Integral IQ. Our globally diverse workforce operates in the Americas, Asia-Pacific, Europe, Australia and the Middle East, setting the standards by which industries are measured. For more information, visit www.CRISIL.com 39E. Other Scheme Specific Disclosures: Listing and transfer Listing: of units The Scheme is open-ended in nature. It is not necessary to list the units of the scheme on any exchange. Liquidity is ensured to investors by the purchase and sale of Units from/to the Fund at prices related to the relevant Applicable NAV for the purpose of purchasing or redeeming Units from the Fund. The Trustees, however, has the right to list the Units under the Scheme on any stock exchange/s for better distribution and additional convenience to existing/prospective Unitholders. Even if the Units are listed, the Fund shall continue to offer purchase and redemption facility as specified in this scheme information document. Any listing will come only as an additional facility to investors who wish to use the services of a stock exchange for the purpose of transacting business in the Units of the Scheme. Transfer of Units: The Asset Management Company shall, on production of instrument of transfer together with relevant documents, register the transfer within 30 days from the date of such production. The Units of the Scheme will be fully and freely transferable in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 1996 as may be amended from time to time and as stated in Para 14.4.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD- PoD-1/P/CIR/2024/90 dated June 27, 2024. 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. Transfer of units held in Non-Demat [Statement of Account (‘SOA’)] mode: As per the AMFI Best Practices Guidelines Circular No.116 /2024-25 dated August 14, 2024, on ‘Standard Process for Transfer of Units held in Non- Demat (SoA) mode’, units held by individual unitholders in Non Demat (‘SoA’) mode can be transferred only in following cases- 1. Surviving joint unitholder, who wants to add new joint holder(s) in the folio upon demise of one or more joint unitholder(s). 2. A nominee of a deceased unitholder, who wants to transfer the units to the legal heirs of the deceased unitholder, post the transmission of units in the name of the nominee. 3. A minor unitholder who has turned a major and has changed his/her status from minor to major, wants to add the name of the parent / guardian, sibling, spouse etc. in the folio as joint holder(s). 4. Investors under Resident/non-resident Individual category Partial transfer of units held in a folio shall be allowed. If the request for transfer of units is lodged on the record date, the IDCW payout/ reinvestment shall be made to the transferor. Redemption of the transferred units shall not be allowed for 10 days from the date of transfer. This will enable the investor to revert in case the transfer is initiated fraudulently. 40For details, please refer Statement of Additional Information (SAI). Dematerialization of Unit holders will have an Option to hold the units by way of an Account units <S.O.57> Statement or in Dematerialized (‘Demat’) form. The unit holders who wish to trade in units would be required to have a demat account. Unit holders opting to hold the units in Demat form must provide their Demat Account details in the specified section of the application form/transaction feed. The Applicant intending to hold the units in Demat form are required to have a beneficiary account with a Depository Participant (DP) registered with NSDL / CDSL and will be required to indicate in the application the DP's name, DP ID Number and the Beneficiary Account Number of the applicant held with the DP at the time of purchasing Units. Unitholders are requested to note that request for conversion of units held in Account Statement (non-demat) form into Demat (electronic) form or vice versa should be submitted to their Depository Participants. The demat request to depository must be submitted for all units in a folio. In case Unit holders do not provide their Demat account details or the Demat details provided in the application form are incomplete / incorrect or do not match with the details with the Depository records, the Units will be allotted in account statement mode provided the application is otherwise complete in all respect and accordingly an account statement shall be sent to them 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.) Maximum There is no upper limit on the total amount that may be collected. After the Amoun minimum subscription amount has been collected, allotment will be made to t to be raised (if all valid applications. any) Minimum balance to be maintained and consequences of non- maintenance: <S.O.36> There is no requirement of minimum balance. Dividend Policy I DCW Frequency ( ID CW ) IDCW is declared subject to availability and adequacy of distributable surplus. IDCW Record Dates: At the discretion of the Trustees (If the record date is not a Business Day, the immediately following Business Day will be the record date) Under the Income Distribution cum capital withdrawal (IDCW) option, the Trustees 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 Trustees, 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 Trustees may or may not distribute surplus, even if available, by way of Income Distribution cum capital withdrawal (IDCW). 41The IDCW will be paid to only those Unitholders whose names appear on the register of Unitholders of the Scheme / Option at the close of the business hours on the record date, which will be announced in advance. In case of dynamic lien, the Income Distribution cum capital withdrawal (IDCW) may be credited to the financier The Income Distribution cum capital withdrawal (IDCW) Option will be available under two sub-options – the Payout Option and the Reinvestment Option. Payout of Income Distribution cum capital withdrawal option (IDCW): Unitholders will have the option to receive payout of their IDCW by way of Payorder / DD any other means which can be enchased or by way of direct credit / electronic payout into their account. Reinvestment of Income Distribution cum capital withdrawal option (IDCW): Under the reinvestment option, the amounts will be reinvested in the Reinvestment IDCW Option at the Applicable NAV announced immediately following the record date. The requirement of giving notice shall not be applicable for IDCW Option having frequency upto one month. However, the Trustees reserve the right to introduce new options and / or alter the IDCW payout intervals, frequency, including the day of payout. Allotment (Detailed Subject to the receipt of the specified Minimum Subscription Amount for the procedure) Scheme, full allotment will be made to all valid applications received during the New Fund Offer. The AMC/ Trustees reserves the right to reject any application inter alia in the absence of fulfillment of any regulatory requirements, fulfillment of any requirements as per the SID, incomplete/incorrect documentation and furnishing necessary information to the satisfaction of the Mutual Fund/AMC subject to SEBI (MF) Regulations and circulars issued thereunder from time to time. 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 FPI 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. Refund If application is rejected, full amount will be refunded within 5 working days of closure of NFO. If refunded later than 5 working days @ 15% p.a. for delay period will be paid and charged to the AMC. Who can invest The following are eligible to apply for purchase of the Units: This is an indicative • Resident Indian Adult Individuals, either singly or jointly (not exceeding list and investors shall three). consult their financial • Parents/Lawful guardians on behalf of Minors. advisor to ascertain • Companies, corporate bodies, registered in India. 42whether the • Registered Societies and Co-operative Societies authorised to invest in scheme is such Units. suitable to their risk • Public sector undertakings, public/Statutory corporations subject to profile. general or specific permissions granted to them by the Central/State governments from time to time. • Religious and Charitable Trusts under the provisions of 11(5) of the Income Tax Act, 1961 read with Rule 17C of the Income Tax Rules, 1962. • Trustees of private trusts authorised to invest in mutual fund schemes under their trust deeds. • Partner(s) of Partnership Firms. • Association of Persons or Body of Individuals, whether incorporated or not. • Hindu Undivided Families (HUFs). • Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions and Investment Institutions. • Non-Resident Indians/Persons of Indian origin resident abroad (NRIs) on full repatriation or non-repatriation basis. • Other Mutual Funds registered with SEBI. • 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. • Foreign Portfolio Investors • Public Financial Institution as defined under the Companies Act 2013. • 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 Trustees, 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. Who cannot invest 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. 43The Trustees/AMC reserves the right to change/modify the provisions mentioned above at a later date. How to Apply and 1. 1. The investors can submit the Application forms and Key Information other details Memorandum (along with transaction slip)/ forms for redemption/ switches at the branches of AMC or Investor Service Centres (ISCs)/Official Points of Acceptance (OPAs) of the Registrar (CAMS) or distributors or on the website of Kotak Mahindra Mutual Fund (www.kotakmf.com). 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. Further in line with Para 16.2.11 and 16.2.1 of SEBI circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 it has been decided to allow investors can directly access infrastructure of the recognised stock exchanges to purchase mutual fund units directly from Mutual Fund/ Asset Management Companies. Please refer to the SAI and Application form for the instructions. 2. Link for the list of official points of acceptance, collecting banker details etc. 3. https://www.kotakmf.com/Information/statutory- disclosure/disclosuresrelatedtosidandkim 4. Computer Age Management Services Ltd. (CAMS) (Registrar) AVA Tower, Old No. 788 & 789, Electricity Avenue, New No. 152 & 150, Anna Salai, Beside Rayala Towers, Chennai - 600002. Contact details - 044 6110 4034 Email Id – enq_k@camsonline.com Website - www.camsonline.com 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, The Asset Management Company shall, on production of instrument of transfer on the right to together with relevant documents, shall register the transfer within timelines as freely retain or defined in the SEBI Regulation. The Units of the Scheme held in the dispose of units dematerialised form will be fully and freely transferable (subject to lock-in being offered. period, if any and subject to lien, if any marked on the units) in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 2018 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/2024/90 dated June 27, 2024. Further, for the procedure of release of lien, the investors shall contact their respective DP. Transfer of units held in Non-Demat [Statement of Account (‘SOA’)] mode: As per the AMFI Best Practices Guidelines Circular No.116 /2024-25 dated August 14, 2024, on ‘Standard Process for Transfer of Units held in Non- Demat (SoA) mode’, units held by individual unitholders in Non Demat 44(‘SoA’) mode can be transferred only in following cases- 1. Surviving joint unitholder, who wants to add new joint holder(s) in the folio upon demise of one or more joint unitholder(s). 2. A nominee of a deceased unitholder, who wants to transfer the units to the legal heirs of the deceased unitholder, post the transmission of units in the name of the nominee. 3. A minor unitholder who has turned a major and has changed his/her status from minor to major, wants to add the name of the parent / guardian, sibling, spouse etc. in the folio as joint holder(s). 4. Investors under Resident/non-resident Individual category Partial transfer of units held in a folio shall be allowed. If the request for transfer of units is lodged on the record date, the IDCW payout/ reinvestment shall be made to the transferor. Redemption of the transferred units shall not be allowed for 10 days from the date of transfer. This will enable the investor to revert in case the transfer is initiated fraudulently. For details, please refer Statement of Additional Information (SAI). Cut off timing for Applicable NAV for Purchases/Switch-ins subscriptions/ redemptions/ • In respect of valid applications received upto 3.00 p.m. on a business day switches and entire amount is available in the mutual fund’s account for utilization before the cut off time of the same day – closing NAV of the day of receipt This is the time before of application; which your application (complete • In respect of valid applications received after 3.00 p.m. on a business in all respects) should day and the entire amount is available in the mutual fund’s account for utilization before cut off time of the next business day – the closing NAV reach the official of the next business day; points of Irrespective of the time of receipt of the application where the entire acceptance. 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: • It is clarified that switches will be considered as redemption in the switch- out scheme and purchase / subscription in the switch-in scheme. • 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. 1. The revised provisions for applicability of NAV based on realization of funds will be applicable to all types of investment including various systematic investments routes (viz, SIP, STP, Transfer of IDCW Plan etc.) as may be offered by the Scheme from time to time. 45Applicable NAV for Redemption/ Switch outs 1. where the application received upto 3.00 pm – closing NAV of the day of receipt of application; and 2. 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. For Details, kindly refer SAI Minimum amount Minimum application amount for purchases for purchase/redemptio Initial Purchase Additional SIP Purchase n/switches (mention (Non- SIP) Purchase (Non- the provisions for SIP) ETFs, as may be Rs. 100/- and any Rs. 100/- and any Rs. 100/- and any applicable, for direct amount thereafter amount thereafter amount thereafter subscription/redempti on with AMC. Minimum amount for redemption: The minimum redemption amount for all plans will be Rs. 100/- or account balance, whichever is lower. Accounts The AMC shall send an allotment confirmation specifying the units allotted Statements<S.O.60> by way of email and/or SMS within 5 working days of receipt of valid application/transaction to the Unit holders registered e-mail address and/ or mobile number (whether units are held in demat mode or in account statement form). A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by email on or before 12th of the succeeding month, or in physical mode before 15th of the succeeding month. Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before 18th day of April and October and to investors that have opted for delivery via physical mode, on or before the twenty-first (21st) day of April and October. However, where an investor does not wish to receive CAS through email, option shall be given to the investor to receive the CAS in physical form at the address registered with the Depositories and the AMCs/MF-RTAs For further details, refer SAI. Dividend/ IDCW The payment of dividend/IDCW to the unitholders shall be made within seven working days from the record date. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. For list of exceptional circumstances refer para 14.1.3 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. For schemes investing atleast 80% of total assets in permissible overseas investments (as per Clause 12.19 of SEBI Master circular no. 46SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024), the transfer of redemption or repurchase proceeds to the unitholders shall be made within five working days from the date of redemption or repurchase. Bank Mandate As per the directives issued by SEBI it is mandatory for an investor to declare <S.O.61> his/her bank account number. To safeguard the interest of Unitholders from loss or theft of their refund orders/redemption cheques, investors are requested to provide their bank details in the Application Form. In case an existing Unitholder is submitting a request for Change in his Bank Details, he needs to submit an old and new bank account. In absence of the same, the request for Change in Bank Mandate is liable to be rejected Investors have an option of registering their bank accounts, by submitting the necessary forms & documents. At the time of redemption, investors can select the bank account to receive the amount. Delay in payment of The Asset Management Company shall be liable to pay interest to the redemption / unitholders at rate as specified vide clause 14.2 of SEBI Master Circular repurchase SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 by proceeds/dividend SEBI for the period of such delay Unclaimed In accordance with Para 14.3 of SEBI Master Circular no. Redemption and SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 and SEBI Income Letter SEBI/HO/IMD-SEC-2/P/OW/2025/02346/1 dated January 22,2025 the Distribution cum unclaimed Redemption amount and IDCW amount that are currently allowed Capital Withdrawal to be deployed by the Mutual Fund only in call money market or money market Amount<S.O.52> 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. There shall a separate scheme/plan for Redemption amount and IDCW amount, pending for less than 3 years and more than 3 years Following are timelines for deployment by Mutual fund a) Transfer of Unclaimed redemption and dividend amount to Unclaimed Dividend and Redemption Scheme (UDRS) after 90 days and not beyond 105 days from date of issuance of the instruments b) On completion of first 3 years of a separate plan of Overnight scheme / Liquid scheme / Money Market Mutual Fund scheme, AMC shall transfer such units to UDRS plan (> 3 years) within 10 business days of subsequent month c) The amount of income accrued on daily basis on unclaimed amount beyond 3 years shall be transferred on a monthly basis ( i.e. on or before 10th calendar day of subsequent month) to the investor education scheme/folio 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-PoD- 1/P/CIR/2024/90 dated June 27, 2024. 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 47shall play a proactive role in tracing the rightful owner of the unclaimed amounts considering the steps suggested by regulator vide the referred circular. As per SEBI Circular no. SEBI/HO/IMD/IMD-SEC-3/P/CIR/2025/15 dated February 12, 2025- “Service platform for investors to trace inactive and unclaimed Mutual Fund folios- MITRA (Mutual Fund Investment Tracing and Retrieval Assistant)” A MITRA platform developed and hosted by the QRTAs (CAMS and KFintech) would be available through a link on the website of MF Central, AMCs, AMFI, the two QRTAs and SEBI. MITRA platform will facilitate the investors with a searchable database of inactive and unclaimed Mutual Fund folios at an industry-level which will empower the investors on following manner: • Enable investors/ legal claimants to identify the overlooked investments or any investments made by any other person for which he/she may be rightful legal claimant. • Encourage investors to do KYC as per the current norms thus reducing the number of non-KYC compliant folios. • Contribute towards building a transparent financial ecosystem and will be reliable medium for investors to find their inactive and unclaimed Mutual Fund investments. • Build and incorporate mitigants against fraud risk An inactive folio shall be defined as “Mutual Fund Folio(s) where no investor-initiated transaction/s (financial and non-financial) have taken place in the last 10 years, but unit balance is available”. This portal would display only Fund Names and investor has to approach the respective MFs for more information. Disclosure w.r.t As per Para 17.6 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD- investment by 1/P/CIR/2024/90 dated June 27, 2024, the following Process for Investments minors <S.O.37> in the name of a Minor through a Guardian will be applicable: a. Payment for investment by any mode shall be accepted from the bank account of the minor, parent or legal guardian of the minor, or from a joint account of the minor with parent or legal guardian. For existing folios, the AMCs shall insist upon a Change of Pay-out Bank mandate before redemption is processed. b. c. Irrespective of the source of payment for subscription, Redemption proceeds shall be credited only in verified bank account of the minor, i.e the account the minor may hold with the parent/legal guardian after completing KYC formalities. d. e. 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. f. g. 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. 48h. Please refer SAI for detailed process on investments made in the name of a Minor through a Guardian and Transmission of Units. 49III. OTHER DETAILS A. Periodic Disclosures Monthly and Half yearly The Mutual Funds/ AMCs, shall disclose portfolio (along with ISIN) as Disclosures: Portfolio / on monthly, half-yearly basis for all the schemes on the website of the Financial Results Kotak Mahindra Mutual Fund viz. www.kotakmf.com and on the website This is a list of securities of AMFI (www.amfiindia.com) within 10 days from the close of each where the corpus of the month/ half-year respectively in a user-friendly and downloadable scheme is currently spreadsheet format. The link for the mentioned disclosures - invested. The market https://www.kotakmf.com/Information/statutory-disclosure/information value of these investments is also stated in portfolio In accordance with Para 5.1 and 5.3 of SEBI Master Circular no. disclosures. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024,unitholders whose e-mail addresses are registered, Mutual Funds/AMC shall send the details of the scheme portfolio including the scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark while 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 Mutual Fund / AMC shall provide a physical copy of statement of its scheme portfolio, without charging any cost, on specific request received from a unit holder. An 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 kotakmf.com and will be sent to AMFI for posting on its website www.amfiindia.com. The link for the mentioned disclosures - https://www.kotakmf.com/Information/statutory- disclosure/financials Also an advertisement of hosting of the unaudited results shall be published in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated. Annual Report Pursuant to Regulation 56 of SEBI (Mutual Funds) Regulations, 1996 read with Para 5.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD- PoD-1/P/CIR/2024/90 dated June 27, 2024 and SEBI Mutual Fund (Second Amendment) Regulation 2018, the scheme wise annual report or abridged summary thereof will be hosted on the website in machine readable format of the Kotak Mahindra Mutual Fund viz. kotakmf.com and on the website of AMFI, immediately after approval in Annual General Meetings within a period of four months, from the date of closing of the financial year (31st March). The AMCs shall display the link prominently on the website of the Kotak Mahindra Mutual Fund viz. kotakmf.com and make the physical copies available to the unitholders, 50at 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. The link for the mentioned disclosures - https://www.kotakmf.com/Information/statutory-disclosure/financials Risk-o-meter <S.O.38> In accordance with Para 17.4 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 read with SEBI Circular no. SEBI/HO/IMD/PoD1/CIR/P/2024/150 dated November 05, 2024: The Risk-o-meter shall have following six levels of risk: i. Low Risk- Irish Green ii. Low to Moderate Risk- Chartreuse iii. Moderate Risk- Yellow iv. Moderately High Risk- Caramel v. High Risk- Orange and vi. Very High Risk- Red 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 along with 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 madee Scheme Summary In accordance with SEBI letter dated December 28, 2021 and AMFI Document (SSD) emails dated March 16, 2022 and March 25, 2022, Scheme summary <S.O.38> document for all schemes of Kotak Mahindra Mutual Fund in the requisite format (pdf, spreadsheet and machine readable format) shall be uploaded on a monthly basis i.e. 15th of every month or within 5 working days from the date of any change or modification in the scheme information on the website of Kotak Mahindra Mutual Fund i.e. www.kotakmf.com, AMFI i.e. www.amfiindia.com and Registered Stock Exchanges i.e. National Stock Exchange of India Limited and BSE Limited. Disclosure of Potential Pursuant to the para 17.5 of Master Circular No SEBI/HO/IMD/IMD-PoD- Risk Class (PRC) Matrix: 1/P/CIR/2024/90 dated June 27, 2024, all debt schemes are required to be classified in 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). 51Subsequently, 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. 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/ difference based on past one Tracking year rolling data, on a daily basis, on the website of the Fund/AMCs and Difference<S.O.39> 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 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. B. Transparency/NAV Disclosure (Details with reference to information given in Section I) <S.O.41> The NAVs of the Scheme will be calculated and disclosed on every Business day on the website of the Kotak Mahindra Mutual Fund viz www.kotakmf.com and AMFI’s website www.amfiindia.com 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 AMC/Mutual Fund. Also, information regarding NAVs can be obtained by the Unit holders / Investors by visiting the nearest ISC. 52Delay in uploading of NAV beyond 11.00 pm on every Business day shall be explained in writing to AMFI. In case the NAVs are not available before the commencement of business hours on the following business day due to any reason, a press release for revised NAV shall be issued. In terms of SEBI regulations, a complete statement of the Scheme portfolio will be sent to all unitholders, within ten days from the close of each month / half-year whose email addresses are registered with the Mutual Fund. The portfolio of the scheme (along with ISIN) shall also be disclosed on the website of Mutual Fund (kotakmf.com) and on the website of AMFI (www.amfiindia.com) on a monthly and half-yearly basis within 10 days from the close of each month/ half-year respectively in a user-friendly and downloadable spreadsheet format. C. Transaction charges and stamp duty (a) Transaction Charges - Investors are requested to note that no transaction charges shall be deducted from the investment amount given by the investor for all transactions / applications (including SIP’s) received through the distributors (i.e. in Regular Plan) and full investment amount (subject to deduction of statutory charges, if any) will be invested in the Scheme. (b) Stamp Duty - A stamp duty @ 0.005% would be levied on all applicable mutual fund transactions. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions (including reinvestment IDCW and Switch in), transfers to the unitholders would be reduced to that extent. Details regarding transaction charges and stamp duty refer to SAI. D. Associate Transactions Please refer to Statement of Additional Information (SAI) E. Taxation For details on taxation please refer to the clause on Taxation in the SAI apart from the following: The information is provided for general information purposes only. However, in view of the individual nature of tax implications, each investor is advised to consult his or her own tax adviser with respect to the specific tax implications arising out of his or her participation in the scheme. SHORT TERM & LONG TERM CAPITAL GAIN TAXATION RATES - RESIDENT INDIVIDUAL, HUF, DOMESTIC CORPORATE, NRI$ , Particulars Investments Listed Short-term capital gains Long-term capital gains made or Investments redeemed on Investments redeemed on or U nlisted or after 01-04-2025 after 01-04-2025 Holding Holding Period Holding Tax Rate^ Period Period Specified Before Listed NA > 12 months > 12 12.50% Mutual 01-04-2023 months Fund Unlisted NA > 24 months > 24 12.50% (‘SMF’) @ months On or after Listed Always Always Short Always Applicable slab 01-04-2023 and Short Term Short Term rates Unlisted Term $ Subject to NRI having Permanent Account Number (PAN) in India. The TDS deductible in case of NRI shall also be increased by applicable surcharge as per Note 1 and 4% health and education cess. In case of NRI, if 53PAN is not available and specified declaration is not provided as specified under Rule 37BC, TDS @ higher of 20% or rates calculated as above will be deducted. The tax rates are subject to DTAA benefits available to NRI's. As per the Finance Act 2013, submission of tax residency certificate (“TRC”) will be necessary for granting Double Taxation Avoidance Agreement (“DTAA”) benefits to non-residents. A Taxpayer claiming DTAA benefit shall furnish a TRC of his residence obtained by him from the Government of that country or specified territory. Further, in addition to the TRC, the non-resident shall also provide electronically filed Form 10F and such other documents /information, as may be prescribed by the Indian Tax Authorities and Kotak Mahindra Mutual Fund or Kotak Mahindra Asset Management Company Ltd. Further investor needs to certify in its No PE declaration that the one of the principle purpose of investment is not to avail the treaty benefits & the investment asset & investment income are beneficial hold by the investor claiming DTAA benefits. @ For FY 2024-25, Specified Mutual Fund is defined as where not more than thirty-five per cent of its total proceeds is invested in the equity shares of domestic companies. However, Finance (No 2) Bill, 2024 has amended the definition of Specified Mutual Fund w.e.f. FY 2025-26 as - a Mutual Fund by whatever name called, which invests more than sixty-five per cent of its total proceeds in debt and money market instruments; or a fund which invests sixty-five per cent or more of its total proceeds in units of a fund mentioned in clause (i) ^ Tax rates for resident and non-residents shall be increased by applicable surcharge as per Note 1 and 4% Health & Education Cess. TAX IMPLICATION ON INCOME DISTRIBUTION CUM CAPITAL WITHDRAWAL (IDCW) RECEIVED BY UNIT HOLDERS Categories of Unit Holders Threshold TDS Rate Taxation Rate Resident Unit Holders Rs. 10,000 10% As per applicable slab rates (w.e.f 1st plus applicable surcharge and cess (Refer Note 1) April, 2025) Non-Resident Unit Holders (subject to DTAA benefits, in case applicable) (1) FII/FPI NIL 20% plus applicable 20% plus applicable surcharge and cess surcharge and cess (Refer (Refer note 1) Note 1) (2) Foreign company/corporates Purchase in Indian Rupees NIL 20% plus applicable 35% plus applicable surcharge and cess surcharge and cess (Refer (Refer note 1) Note 1) Purchase in Foreign Currency NIL 20% plus applicable 20% plus applicable surcharge and cess surcharge and cess (Refer note 1) (Refer Note 1) (3) Others Purchase in Indian Rupees NIL 20% plus applicable At slab rates applicable surcharge and cess plus applicable surcharge (Refer note 1) and cess (Refer Note 1) Purchase in Foreign Currency NIL 20% plus applicable 20% plus applicable surcharge and cess surcharge and cess (Refer (Refer note 1) Note 1) Note 1: - A) 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 B) 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 54- 10% where domestic company is eligible & exercises the option granted u/s 115BAA or 115BAB of the Act. C) 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 D) I) In case of resident and non-resident unit holders being individual, HUF, AOP, BOI and artificial juridical person (opting old regime of taxation); Income Surcharge Rates Total Income Other Income (i.e Income Other Income (i.e Income Capital gains covered other than Capital gains other than Capital gains under section 111A, covered under section 111A, section 112A, section covered under section section 112A, section 112, 112, & 115AD(1)(b) 111A, section 112A, 115AD(1)(b) & company & company dividend. section 112, 115AD(1)(b) dividend). & company dividend). Upto 50Lakh - Nil Nil More than 50Lakh up - 10% 10% to 1 Cr More than 1 Cr but - 15% 15% up to 2Cr More than 2 Cr Up to 2 cr 15% 15% More than 2 cr but up to 5 25% 15% cr More than 5Cr 37% 15% II. In case of resident and non-resident unit holders being individual, HUF, AOP, BOI and artificial juridical person (who have not elected for old regime of taxation); Income Surcharge Rates Total Income Other Income (i.e Income Other Income (i.e Income Capital gains other than Capital gains other than Capital gains covered under covered under section 111A, section 111A, covered under section 111A, section 112A, section 112, section 112A, section 112A, section 112, 115AD(1)(b) & company section 112, & 115AD(1)(b) & company dividend). 115AD(1)(b) & dividend). company dividend. Upto 50Lakh - Nil Nil More than 50Lakh - 10% 10% up to 1 Cr More than 1 Cr but - 15% 15% up to 2Cr More than 2 Cr Up to 2 cr 15% 15% More than 2 cr 25% 15% Note 2: - W.e.f. 01.04.2020, as per Section 115R, no additional income tax payable on amount of distributed income on or after 01.04.2020. The salient features of the capital gain tax are as under: 1. Long term capital gains in excess of Rs. 1.25 lakh shall be taxable at rates mentioned in table above plus surcharge (if any, as applicable) plus health & education cess @ 4%. 2. The capital gain will be computed without giving effect to the 1st and 2nd proviso to section 48 in the manner laid down under the section i.e. without indexation benefit and without foreign currency conversion benefit Note 4: - Tax Rates Regimes available for Domestic Corporate companies- (a) 30% if investor falls into highest tax bracket. (b) 25% If total turnover or gross receipts in the financial year 2020-21 does not exceed Rs. 400 crores. 55(c) 22% lower rate is optional and subject to fulfilment of certain conditions (not claiming specified incentives and deductions) as provided in section 115BAA. (d) 15% lower rate is optional for companies engaged in manufacturing business (set-up & registered on or after 1 October 2019) subject to fulfilment of certain conditions (not claiming specified incentives and deductions as provided in section 115BAB. Further, the domestic companies are subject to minimum alternate tax (except for those who opt for lower rate of tax of 22%/15%) not specified in above tax rates Note 5: - As per section 139AA of the Income tax Act, 1961 (‘the Act’) read with rule 114AAA of the Income- tax Rules, 1962, in the case of a resident person, whose PAN has become inoperative due to PAN-Aadhaar not being linked on or before 30 June 2023, it shall be deemed that he has not furnished the PAN and tax could be withheld at a higher rate of 20% as per section 206AA of the Act Note 6: - Relaxation to non-residents from deduction of tax at higher rate in the absence of PAN subject to them providing specified information and documents. Note 7: - It is assumed that the mutual fund units are held as capital assets by the investors. Note 8: - Under Section 115BAC w.e.f. 01.04.2023, all individual, HUF, AOP, BOI is required to pay tax at concessional rates (as below) under the new tax regime subject to the condition that certain exemptions/ losses/ deductions cannot be claimed. In case such taxpayer intends to claim deductions / exemptions, it may elect to opt for existing tax and slabs rates to continue to apply. SECURITIES TRANSACTION TAX Money Market or Liquid Fund Other Than Equity Oriented Fund Nil Nil F. Rights of Unitholders Please refer to SAI for details. G. List of official points of acceptance: Please refer the given link – https://www.kotakmf.com/Information/statutory-disclosure/disclosuresrelatedtosidandkim H. 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 <S.O.48> The detailed data in respect of penalties, pending litigations, findings of inspection or investigation is available at https://www.kotakmf.com/Information/statutory-disclosure/disclosuresrelatedtosidandkim 56Notes: 1. Further, any amendments / replacement / re-enactment of SEBI Regulations subsequent to the date of the Scheme Information Document shall prevail over those specified in this Document. 2. The Scheme under this Scheme Information Document was approved by the Trustees on January 16, 2025. The Trustees have ensured that Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt 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. 3. Notwithstanding anything contained in the Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. <S.O.63> For and on behalf of the Board of Directors, Kotak Mahindra Asset Management Company Limited (Investment Manager of Kotak Mahindra Mutual Fund) Sd/- Place: Mumbai Ms. Jolly Bhatt Date: July 14, 2025 Compliance Officer Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 57