Franklin India Money Market Fund turns Rs 10,000 SIP to Rs 70 lakh in 23 years

Franklin India Money Market Fund has turned Rs 10,000 monthly SIP to Rs 70 lakh since its inception in 23 years. A lump sum investment of Rs 10,000 would have grown nearly fivefold to Rs 49,649 since its inception with a CAGR of 7.14%.

The fund has recently achieved a dual milestone of completing 23 years of existence and surpassing Rs 3,400 crore assets under management (AUM). These dual milestones highlight the fund’s enduring characteristics of providing relatively low risk, high liquidity and optimal yield for investors seeking to park their short-term surpluses, according to a press release by the fund house.

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Launched in 2002, the fund invests in money market instruments like certificate of deposits, commercial papers and treasury bills with maturities of up to one year, making it ideal for investors looking for short term investment avenues with relatively low risk and providing liquidity of the corpus with optimum return potential.

On the basis of trailing returns, the fund has outperformed its benchmark NIFTY Money Market Index A-I over the past one year, five years and 15 years as well for the period ending May 30, 2025, the release said.

“We feel that investors may benefit from a soft interest rate environment by investing in a money market portfolio which is deployed with an optimal duration. The portfolio may likely benefit from accrual strategy with optimal duration risk,” said Chandni Gupta, Vice President and Portfolio Manager – Fixed Income, Franklin Templeton Asset Management India.

The scheme invested 87.21% in money market instruments and 12.02% in government securities at the end of May 2025. The fund is jointly managed by Chandni Gupta and Rohan Maru.

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With a robust track record, disciplined investment approach, and strong focus on liquidity and capital preservation, Franklin India Money Market Fund continues to be a sound choice for investors seeking short term investment solutions.

The fund is suitable for investors who are seeking regular income for short-term and a money market fund that invests in money market instruments.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)