If ‘time value of money’ had to teach us anything it would be that money available at the present time is worth more than the same amount in the future. Nevertheless, money put away for a rainy day is always a bonus.


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In a mutual fund query written in to ET Mutual Funds, a government employee asked one of the most common questions that is on everyone’s minds today – ‘Am I doing enough?’


The 27-year old said that the person's monthly salary was amounting to Rs 40,000. However the employee's ambition was to save Rs 1 crore over a span of 20 years.


“I am a 27-year-old government employee. My salary is Rs 40,000 per month. I have three LIC policies - total Rs 2,500 per month and one HDFC ULIP plan- Rs 1,000 per month, two mutual funds - ICICI Prudential Balanced Fund: Rs 1,000 per month and Sundaram Rural India Fund: Rs 1,000 per month. All are for more than 20 years. I am also investing Rs 5,000 per month in PPF. I want to create Rs 1 crore after 20 years. Are there any changes or additions required?”


So far the employee’s investments per month were amounting to over Rs 15,000 per month.


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