₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

Franklin India Money Market Fund has completed 23 years since launch in 2002. Data shared by Franklin Templeton India Mutual Fund shows that a ₹10,000 monthly Systematic Investment Plan (SIP) in the fund since inception would be worth over ₹70 lakh as of May 30, 2025.

A one-time investment of ₹10,000 made at launch would have grown to ₹49,649.

The fund, which invests in short-term money market instruments such as certificates of deposit (CDs), commercial papers (CPs), and treasury bills, has crossed ₹3,400 crore in assets under management (AUM).

According to the fund house, it has outperformed its benchmark—the NIFTY Money Market Index A-I—over 1-year, 5-year, and 15-year periods, based on trailing returns.

“The portfolio may likely benefit from accrual strategy with optimal duration risk,” said Chandni Gupta, Vice President and Portfolio Manager – Fixed Income, Franklin Templeton India.

The fund held about 87% in money market instruments and 12% in government securities as of May-end 2025.

Money market funds are typically used by investors seeking capital preservation, high liquidity, and lower risk over short durations.

However, even such funds are not entirely risk-free. They may be impacted by changes in interest rates, credit risk of underlying instruments, or broader economic conditions.

While the historical returns may appear attractive, experts caution that past performance may not sustain in future, especially as interest rate cycles shift. Investors should evaluate their time horizon and risk appetite, and not assume that low-risk categories are immune to market fluctuations.