Outlook Money – 01.03.2018

62 Outlook Money March 2018 http://www.outlookmoney.com

Morningstar Mutual Fund Guide

@2017. All rights reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. This Report is issued by Morningstar Investment
Adviser India Private Limited (“Morningstar”), which is registered with SEBI (Registration number INA000001357) and provides investment advice
and research. Please visit http://www.outlookindia.com/outlookmoney/invest/picking-the-right-mutual-funds-2542 and read important
statutory disclosures, as mandated by SEBI, regarding the information, data, analyses and opinions given in this report.

Disclaimer

Fixed Inc Style Box (Long) Med Ltd

Average Eff Duration -

Average Eff Maturity 2.6

Average Coupon 8.8

Average Price -

Average Credit Quality A

Fixed-Income Stats

Kotak Income Opportunities

T

he fund is managed by Deepak
Agrawal and he has been with the
fund house for 15 years. Deepak has co-
managed this fund since May 2010 and
took over as the lead manager in July

2015. The Fixed Income team is headed
      by Lakshmi Iyer, and her presence
      and contribution towards the overall
      strategy formation, is a big positive.
      While the fund invests in high
      yielding bonds, it is less volatile relative
      to its peers through its conservative
      approach. The investment process is
      highly research-oriented, with economic,
      credit and liquidity analysis used to
      determine the fund strategy. The
      manager typically looks for corporate
      bonds that provide attractive yields,
      and which in his view, offer adequate
      comfort on the credit quality of the
      instruments. He conducts rigorous

Investment Strategy

Trailing Returns

Data Point: Return Calculation Benchmark: None

YTD 1 Year 3 Years 5 Years 10 Years

Kotak Income Opp Reg Gr 0.49 5.91 8.51 8.83 —

India Fund Short-Term Bond 0.32 4.41 6.4 1 7.0 9 7.14

Morningstar Category India Fund

Corporate Credit

Fund Size (`) 50 billion

Inception Date 11/5/2010

Annual Report Net Expense Ratio 1.80

Morningstar Rating Overall ****

Manager Name Deepak Agrawal

Minimum Investment (`) 5,000

Morningstar Analyst Rating Bronze

Fund Snapshot

Top Holdings

Portfolio

Weighting

(%)

HPCL-Mittal Pipelines Limited 3.63

Reliance Jio Infocomm Limited 3.04

Sterlite Industries (India)

Limited

2.98

Punjab and Sind Bank 2.84

India Infoline Housing Finance

Limited

2.39

Yes Bank Limited 2.30

Andhra Bank 2.25

Andhra Bank 2.23

S. D. Corporation Private

Limited 2.00

Sarvoday Advisory Services

Private Limited 2.00

qualitative and quantitative research

to establish whether prospective

investments have the competitive,

financial and strategic advantage to

deliver on that potential. The manager

avoids duration bets and typically

maintains the average maturity in the

range of 1.5 to 2.5 years.

It is a well-diversified fund with

60-70 securities and each security’s

limit is capped at 5%. The fund typically

maintains 30-40% AAA, 40-60% in AA

and 10-30% in A-rated instruments. To

maintain portfolio liquidity, the manager

ensures that at least 35% assets are in

below one-year maturity instruments,

generating higher yield. Given that the

fund is focused towards safety and

liquidity, it’s a great option for investors

looking at enhancing portfolio yields

without taking on too much credit risk.

Fixed Income Style Box

Ltd Mod Ext

Low

Med

High

Calculation Benchmark: None

Return

YTD 2017 2016 2015 2014 2013

0.0

2.0

4.0

6.0

8.0

10.0

Calendar Year Returns

Kotak Income Opp Reg Gr India Fund Short-Term Bond

0.5

6.6

0.3

4.9

10.4

8.2

9.1

6.9

7. 3
   6.6

11.1

9.3