1) The document discusses various investment options such as real estate, precious metals, equity, mutual funds, life insurance policies. 2) It recommends investing 20% of the total funds (Rs. 1 crore) in real estate property in Kharghar, Mumbai and another 20% (Rs. 1 crore) in gold as precious metals. 3) It suggests investing 25% (Rs. 1.25 crore) in equities like HUL shares and another 25% (Rs. 1.25 crore) in the BNP Paribas mutual fund. 4) The remaining 10% (Rs. 50 lakhs) is recommended for investment in a LIC life insurance policy

1. Principles of
investment
(Project)
Sowjanya Sampathkumar
FYBFM
Roll no - 50

2. Why should we invest?
One of the most compelling reasons for you to invest is the
prospect of not having to work your entire life! Bottom line, there
are only two ways to make money: by working and/or by having
your assets work for you.
If you keep your money in your back pocket instead of investing
it, your money doesn't work for you and you will never have more
money than what you save. By investing your money, you are
getting your money to generate more money by earning interest
on what you put away or by buying and selling assets that
increase in value.
It really doesn't matter how you do it. Whether you invest
in stocks, bonds, mutual funds, options and futures, precious
metals, real estate, the objective is the same: to make
investments that will generate more cash for you in the future.

3. Property
Why to invest in real estate
property-
High Tangible Asset Value
Attractive and Stable Income Return
Reliable return
Inflation Hedging
The Bottom Line
Diversification
Tax benefits
The rates of a property in Kharghar are minimum starting at Rs.7000
per sq.feet. So with Rs. 1,00,00,000 (i.e. 20% of 5,00,00,000) we could
easily invest in a 3 bedroom apartment which would approximately be
1428 sq.feet.
The prices per sq.feet are rising rapidly and would prove to be very
high in the following years as the features available around the city
are in abundance as follows
Kharghar is a node of the city of Navi
Mumbai in Maharashtra, India. It is developed and maintained
by CIDCO and is a less than one hour drive from the heart of
Mumbai city.
It is planned as a polycentric new town with a series of nodal
concentrations along mass-transport corridors. Encircled by lush
green mountains from all sides, Kharghar in Navi Mumbai is no
less than a hill station in the rains.

4. Kharghar has one of the most prestigious educational institutions
of India viz. National Institute of Fashion Technology (NIFT)
It also houses the important Tata Memorial Hospital (Cancer
Research Institute).
There are a number of premium residential projects sprung up in
Kharghar. Due to Hexblox like residential projects and upcoming
metro project Kharghar is one of the posh area of Navi Mumbai
which can be considered as Colaba of Mumbai.
CIDCO also built an 18-hole golf course opposite Central Park in
Kharghar .The much awaited Central Park in Sector 23 is being
planned on the concept of London's Central Park and will span
around 80 hectares and cover three sectors. It also attempts to
put Navi Mumbai on international map. ISCKON has commenced
construction of their temple at the start of the Central Park. It is
believed this will be the biggest ISCKON temple in India.
Siemens India Ltd. has an office in Kharghar .Marathon Realty
Group has recently announced the development of Mini-SEZ of
Panvel very close to the proposed Navi Mumbai International
Airport.
Kharghar also has skywalk to facilitate hindrance free movement
between Kharghar railway station & city node.

5. Precious
Metals- gold
Gold prices over a month span
Gold prices over the past decades.

6. Famed investor Warren Buffett describes the dynamics of this
phenomenon best when he talks about gold: "Gold is a way of
going long on fear, and it has been a pretty good way of going
long on fear from time to time. But you really have to hope
people become more afraid in a year or two years than they are
now. And if they become more afraid, you make money; if they
become less afraid, you lose money. But the gold itself doesn't
produce anything."
Gold prices generally rise when sentiments on the economy and
the financial markets are bearish or there is uncertainty over
future trends
Thus, if you had invested Rs 1 lakh in gold in September 2008, it
would have fetched Rs 2.3 lakh in September 2011.
Amarsingh Deo, head of Commodities & Currencies Research at
Aditya Birla Money, says gold has been supported by a sharp
increase in demand, mainly for investment, and the global
economic situation, especially the debt crisis in Europe. In spite of
the relentless rise in prices, gold is behaving like a Giffen good,
one whose demand rises with prices.
Keeping the following factors and the price fluctuation of the gold
over a long time period it is very much preferable to invest in it. So
thus by spending 1,25,00,000 (25% of 5,00,00,000) in this metal
commodity at this time where the gold rate is approx to Rs.27960 per
24 karat/ 10g we would be getting nearly 4500 grams of gold dated
now.
If you invest in physical bars and coins of gold, silver and platinum, you'd
also be wise to buy a safe and insure your mini Fort Knox, and that type of
security will cut into your gains.
Many holders of gold store it in form of bullion coins or bars as a hedge
against inflation or other economic disruptions.

7. Equity
6 most important points on why to invest in shares:
1. You’re not buying shares; you’re buying a company.
2. The only reason you buy a share is because the company is making a
profit.
3. If you buy a share when the company isn’t making a profit, then you’re
not investing; you’re speculating.
4. A share’s price is dependent on the company, which in turn is
dependent on its environment, which includes its customer base, its
industry, the general economy, and politics.
5. If you have no idea about the prospects of a company, and sometimes
even if you think you do, always use stop-loss orders.
6. Even if your philosophy is ‘buy and hold for the long term’, continue to
monitor your shares and consider selling them if they’re not appreciating
or if general economic conditions have changed.
Hindustan Unilever Limited (HUL) is an Indian consumer
goods company based in Mumbai, Maharashtra. It is owned by
Anglo-Dutch company. Unilever which owns a 67% controlling
share in HUL. HUL's products include foods, beverages, cleaning
agents and personal care products.
HUL was established in 1933 as Lever Brothers India Limited and,
in 1956, became known as Hindustan Lever Limited, as a result of
a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai. The
company was renamed in June 2007[
as “Hindustan Unilever
Limited”.

8. The Most Trusted Brands from HUL in the top 100 list (their
rankings in brackets) are: Clinic Plus , Lifebuoy , Fair & Lovely ,
Rin , Surf Excel , Lux , Pepsodent , Closeup , Pond’s , Sunsilk ,
Dove , Vim , Pears. Surf Excel EasywashTRESemmé, Clinic Plus,
Comfort, Bru Exotica Guatemala, Closeup and many more.
The company has a distribution channel of 6.3 million outlets and
owns 35 major Indian brands.
It is also said that the prices of HUL shares are going to rise up
really well, as an analyst pointed out that with the monsoon
season being in full swing the farmers back there in the villagers
are experiencing heavy liquidity as the crops have had a good
yield and have given them huge profits. And as HUL products are
very common among every corner in India it is said that the
prices of the shares are going to boom up soon as the
consumption level of the products are going to increase in the
future coming period.
Over the years HULs market performance has given the investors a reason to further
invest more in the company’s shares.
So by looking at all the dimensions of HUL , today’s rate of a share is
Rs.615 , so by investing 1,25,00,000(25% of 5,00,00,000) I would get
20,325 shares of HUL. Further the value of the share would be
increasing as HUL has most of the times been in a bullish market.
And accordingly I could plan it either as a long term or a short term
investment.

9. Mutual funds
A mutual fund is a type of professionally managed collective
investment vehicle that pools money from many investors to
purchase securities. .
Hedge funds are not considered a type of (unregistered) mutual
fund. While they are another type of collective investment
vehicle, they are not governed by the Investment Company Act of
1940 and are not required to register with the Securities and
Exchange Commission.
Mutual funds have advantages compared to direct investing in
individual securities.
These include:
Increased diversification
Daily liquidity
Professional investment management
Ability to participate in investments that may be available only
to larger investors
Ease of comparison
Mutual funds have disadvantages as well, which include:[4]
Fees
Less control over timing of recognition of gains
Less predictable income
No opportunity to customize

10. Investment Objective
The investment objective of the Scheme is to generate long-term
capital growth from a diversified and actively managed portfolio
of equity and equity related securities The Scheme will invest in a
range of companies, with a bias towards large & medium market
capitalization companies.
BNP Paribas Equity Fund (G)
The scheme is ranked 1 in Large Cap category by Crisil.
Scheme details
Fund Type Open-Ended
Investment Plan Growth
Launch date Sep 03, 2004
Benchmark CNX NIFTY
Asset Size (Rs cr) 118.72 (Jun-30-2013)
Minimum Investment Rs.5000
Fund Manager Shreyash Devalkar
BNP PARIBAS equity fund is placed first in the large cap market
followed by UTI mutual fund and Birla sunlife.
So hence investing Rs. 1,00,00,000 in BNP PARIBAS mutual fund of
this scheme will help us in huge profits as it has been ranked as the
best by the top analysts.

11. Life insurance
policies
Life insurance solely can’t be bought as an investment.
Life insurance premiums, depending upon the policy selected,
include the costs of -
1) death-benefit coverage
2) built-in investment returns (average 8.0% to 9.5% post-tax)
3) significant overheads, including commissions.
This implies that if you buy insurance solely as an investment, you
are incurring costs that you would not incur in alternate investment
options.
It is, however, important to insure your life if you’re financial
needs and profile so require. Use our Are You Adequately
Insured planning tool to find out if you need life insurance, and if
yes, how much.
Life insurance is a contract between an insured and an insurer or
assurer, where the insurer promises to pay a
designated beneficiary a sum of money (the "benefits") upon the
death of the insured person. Depending on the contract, other
events such as terminal illness or critical illness may also trigger
payment. The policy holder typically pays a premium, either

12. regularly or as a lump sum. Other expenses (such as funeral
expenses) are also sometimes included in the benefits.
Chart of a life
insurance.
So investing in life insurance is mandatory as it is very essential to.
Life insurance not just is an investment but an essential uses of
money.
Life Insurance Corporation of India (LIC)
It has been stated as the Best Insurance Company in India dominating the
market since then it established in market. In other word, It is the synonyms
of Insurance in India, most important they have best settlement ratio.
So investing Rs 50,00,000 in LIC as a life insurance policy would be
appropriate.