Franklin India Money Market Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Franklin India Money Market Fund Direct Growth Plan has a NAV of ₹56.0171 as of 04 Sep 2026 and an AUM of ₹3,937 Cr. Its 1-year, 3-year and 5-year returns are 6.64%, 7.43% and 6.62%, and the scheme carries a Balanced Risk profile. Our view is that it suits investors looking for a debt fund with a steady return pattern, a broad mix of short-dated money-market instruments, and a portfolio that has held up reasonably well over longer periods.

It has also been quite measured in the near term, with returns that are close to its longer-run pace rather than showing sharp swings. That makes it more relevant for investors who want relatively stable debt exposure and can accept that short-term returns may move around modestly.

Quick facts

Particular	Details
NAV	₹56.0171 as of 04 Sep 2026
AUM	₹3,937 Cr
Expense Ratio	0.14%
Launch Date	01 Jan 2013
Min SIP	₹500
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Rohan Maru, Chandni Gupta, Rahul Goswami

The fund is managed by Rohan Maru, Chandni Gupta and Rahul Goswami.

Source data date: as of 04 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.65%	-2.95%
3M	2.14%	2.27%
1Y	6.64%	-4.43%
3Y	7.43%	5.88%
5Y	6.62%	6.29%

The fund’s short-term pattern is stable rather than dramatic. Over the last month and three months, the return path has shown small movements, which fits a money-market style portfolio where the main aim is consistency rather than aggressive capital appreciation. The 1-month result is positive while the benchmark is negative, but the 3-month figure is only slightly below the benchmark, so near-term behaviour is broadly aligned with the reference index.

The stronger part of the record is the longer horizon. The 1-year return of 6.64% is well ahead of the benchmark’s -4.43%, and the 3-year return of 7.43% also stands above the benchmark’s 5.88%. That gap suggests the fund has handled the period better than the benchmark over medium horizons, while still preserving a fairly subdued return profile.

At five years, the fund’s 6.62% is only a little above the benchmark’s 6.29%. Our read-through is that the fund has not been a high-conviction outlier, but it has delivered a steadier compounding pattern than the benchmark in the more recent medium-term window. The overall shape points to a debt strategy that may be more useful for capital preservation and liquidity management than for chasing high upside.

Source data date: as of 04 Sep 2026

Should you BUY or HOLD Franklin India Money Market?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Franklin India Money Market Fund Direct Growth Plan	6.64%	7.43%	6.62%
Union Money Market Fund Direct Growth Plan	6.89%	7.26%	6.47%
Bank of India Money Market Fund Direct Growth Plan	6.76%	Data not available	Data not available
LIC MF Money Market Fund Direct Growth Plan	6.76%	6.84%	Data not available
Bandhan Money Market Fund Direct Growth Plan	6.74%	7.45%	6.66%
Tata Money Market Fund Direct Growth Plan	6.74%	7.57%	6.83%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The fund is slightly behind the best available 1-year peer figure, but it remains in a tight cluster where the difference is modest. On the 3-year view, its 7.43% return is close to the better peer figures and ahead of some peers with available data, while its 5-year return of 6.62% is comfortably within the same broad range as the others shown.

What stands out is that the short-term comparison and the longer-term comparison do not tell exactly the same story. The fund is not the strongest on the 1-year measure among the group shown, yet its 3-year and 5-year numbers suggest dependable medium-term compounding. That mix makes it look more balanced than flashy, which can appeal to investors who value consistency over trying to stretch for every extra basis point.

Source data date: as of 04 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.67% Uttar Pradesh SDL (12-Apr-2027)	Government Securities	9.90%
Bajaj Housing Finance Ltd (23-Feb-2027) **@	Commercial Paper	7.37%
Piramal Finance Ltd (30-Oct-2026) **@	Commercial Paper	6.65%
HDFC Bank Ltd (24-Feb-2027) **	Certificate of Deposit	6.15%
Embassy Office Parks Reit (12-Mar-2027) **@	Commercial Paper	4.90%
IDBI Bank Ltd (11-Mar-2027) **	Certificate of Deposit	4.90%
National Bank for Agriculture & Rural Development (22-Jan-2027) **	Certificate of Deposit	4.45%
HDFC Bank Ltd (02-Nov-2026) **	Certificate of Deposit	3.77%
National Bank for Agriculture & Rural Development (28-Jan-2027) **	Certificate of Deposit	3.71%
L&T Finance Ltd (10-Jun-2027) **@	Commercial Paper	3.60%

The largest disclosed holding is the 7.67% Uttar Pradesh SDL line at 9.90%, which is meaningful but not extreme for a debt portfolio. From there, the weights taper down gradually rather than collapsing quickly, with the tenth holding still at 3.60%. That pattern suggests that no single position dominates the visible list, even though the top line does carry the most influence.

The top 10 holdings together account for approximately 55.4% of the portfolio, so the fund is moderately concentrated in its largest disclosed positions but still leaves room for a longer tail of holdings. With 32 holdings in total, the portfolio appears spread across many instruments, which may help soften the effect of any one issuer or security. At the same time, the presence of several closely sized certificate-of-deposit and commercial-paper positions means the fund’s outcome may still be shaped by its core short-dated credit exposures.

That combination can be useful for investors who want diversified debt exposure without expecting equity-like movement. It also means the portfolio’s stability may depend on how the shorter-duration instruments behave as they mature and roll over.

To see all holdings, visit the Franklin India Money Market Fund Direct Growth Plan page

Source data date: as of 04 Sep 2026

Who should invest

This fund may suit investors with a moderate risk tolerance who want debt exposure with a relatively steady return pattern rather than sharp price moves. Its 1-year, 3-year and 5-year returns show a consistent compounding profile, and the benchmark comparison suggests it has been able to hold up well over medium horizons.

The main trade-off is that the fund’s upside is naturally limited compared with more aggressive investment options, so it is better viewed as a stability-oriented debt holding. Investors with a medium-to-long horizon and a preference for controlled movement may find that balance more relevant than chasing the highest possible return in any single period.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: No exit load.

Source data date: as of 04 Sep 2026

Frequently asked questions

What is the current NAV of Franklin India Money Market Fund Direct Growth Plan?
Its current NAV is ₹56.0171 as of 04 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 6.64%, 7.43% and 6.62%.

How has the fund performed versus its benchmark?
It has outperformed the benchmark over 1 year, 3 years and 5 years. The benchmark figures for those periods are -4.43%, 5.88% and 6.29%.

How does it compare with peer funds on returns?
Its 1-year return is slightly below the strongest peer figure shown, while its 3-year and 5-year results sit in the same broad range as the peer set. That points to a competitive but not dominant return profile.

Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹500.

What are the fund’s risk and exit-load features?
The fund carries a Balanced Risk profile and has no exit load. Its portfolio is spread across 32 holdings, with the top 10 accounting for approximately 55.4% of the portfolio.

Bottom line

Franklin India Money Market Fund Direct Growth Plan looks steady rather than adventurous. Its near-term return pattern is close to its longer-term compounding trend, and its medium-horizon results are stronger than the benchmark’s. The peer comparison also places it comfortably within the same return band as similar money-market funds. With a Balanced Risk profile and a portfolio that is spread across 32 holdings, it may appeal to investors who want a measured debt allocation with controlled movement and a reasonably even performance record.

Published on 5 September 2026 at 3:00 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.