UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-02605
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FRANKLIN MONEY FUND
-------------------
(Exact name of registrant as specified in charter)

ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
------------------------------------------------
(Address of principal executive offices) (Zip code)

CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
--------------------------------------------------------------
(Name and address of agent for service)

Registrant's telephone number, including area code: (650) 312-2000
--------------

Date of fiscal year end: 6/30
----

Date of reporting period: 12/31/07
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

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DECEMBER 31, 2007
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SEMIANNUAL REPORT AND SHAREHOLDER LETTER INCOME
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WANT TO RECEIVE
THIS DOCUMENT
FASTER VIA EMAIL?
FRANKLIN MONEY FUND
Eligible shareholders can
sign up for eDelivery at
franklintempleton.com.
See inside for details.
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[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

FRANKLIN o Templeton o Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a
recognized leader in fixed income investing and
also brings expertise in growth- and value-style
U.S. equity investing.

TEMPLETON. Founded in 1940, Templeton pioneered
international investing and, in 1954, launched
what has become the industry's oldest global
fund. Today, with offices in over 25 countries,
Templeton offers investors a truly global
perspective.

MUTUAL SERIES. Founded in 1949, Mutual Series is
dedicated to a unique style of value investing,
searching aggressively for opportunity among what
it believes are undervalued stocks, as well as
arbitrage situations and distressed securities.

TRUE DIVERSIFICATION Because our management groups work independently
and adhere to different investment approaches,
Franklin, Templeton and Mutual Series funds
typically have distinct portfolios. That's why
our funds can be used to build truly diversified
allocation plans covering every major asset
class.

RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as well
as the reliable, accurate and personal service
that has helped us become one of the most trusted
names in financial services.

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MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
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[GRAPHIC OMITTED]

Not part of the semiannual report

Contents

SHAREHOLDER LETTER ........................................................ 1

SEMIANNUAL REPORT

Franklin Money Fund ....................................................... 3

Performance Summary ....................................................... 4

Your Fund's Expenses ...................................................... 5

Financial Highlights and Statement of Investments ......................... 7

Financial Statements ...................................................... 9

Notes to Financial Statements ............................................. 12

The Money Market Portfolios ............................................... 16

Shareholder Information ................................................... 27

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Semiannual Report

Franklin Money Fund

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin Money Fund seeks to provide as
high a level of current income as is consistent with preservation of
shareholders' capital and liquidity. The Fund invests all of its assets in the
shares of The Money Market Portfolio (the Portfolio), which has the same
investment goal and policies. The Portfolio, in turn, mainly invests in
high-quality, short-term U.S. dollar denominated money market securities of
domestic and foreign issuers. The Fund attempts to maintain a stable $1.00 share
price.

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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN WILL FLUCTUATE. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.
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This semiannual report for Franklin Money Fund covers the period ended December
31, 2007.

PERFORMANCE OVERVIEW

Declining short-term interest rates during the period under review resulted in a
decrease in the Fund's yield. In this environment, the Fund's seven-day
effective yield fell from 4.73% on June 30, 2007, to 4.50% on December 31, 2007.

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AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR INSTITUTION. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
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ECONOMIC AND MARKET OVERVIEW

The U.S. economy decelerated during the six-month period ended December 31,
2007. In the third quarter, gross domestic product (GDP) growth advanced at a
4.9% annualized rate, the fastest pace in four years. During the reporting
period, consumer spending and personal income supported economic expansion, but
signs of a slowing economy became evident as a number of indicators reflected a
housing market correction, financial market strains and softening business and
consumer spending, as well as upward inflation pressures from increasing food,
energy and commodity prices and a weaker dollar. In the fourth quarter, GDP
growth slowed to an estimated 0.6% annualized rate.

Oil prices exhibited continued volatility, reaching a historical high in
November. Core inflation, which excludes food and energy costs, rose modestly
for the period, signaling that inflation risk remains. For December 2007, core
inflation had a 12-month increase of 2.4%. 1 The Federal Reserve Board's (Fed's)
preferred measure of inflation, the core personal consumption expenditures price
index, reported a 12-month increase of 2.2%. 2

1. Source: Bureau of Labor Statistics.

2. Source: Bureau of Economic Analysis.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 8.

Semiannual Report | 3

PORTFOLIO BREAKDOWN
12/31/07
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% OF TOTAL
NET ASSETS
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Certificates of Deposit 67.7%
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Commercial Paper 25.9%
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Bank Notes 4.2%
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Repurchase Agreements 1.3%
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U.S. Government Agency Securities 0.3%
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Other Net Assets 0.6%
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PERFORMANCE SUMMARY
SYMBOL: FMFXX
12/31/07

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Seven-day effective yield* 4.50%
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Seven-day annualized yield 4.40%
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Total annual operating expenses** 0.68%
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* The seven-day effective yield assumes compounding of daily dividends.

** Figures are as stated in the Fund's prospectus current as of the date of this
report.

Annualized and effective yields are for the seven-day period ended 12/31/07. The
Fund's average weighted maturity was 23 days. Yield reflects Fund expenses and
fluctuations in interest rates on Portfolio investments.

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN WILL FLUCTUATE. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.

As investor uncertainty continued in the latter half of 2007, the Fed was
committed to act in an effort to restore normalcy to U.S. financial markets. The
Fed cut the discount rate (the Fed's interest rate charged to member banks) four
times, bringing the rate to 4.75%. It also lowered the federal funds target rate
three times. Minutes released from its December meeting, in which the Fed
lowered the federal funds target rate to 4.25%, cited an uncertain outlook for
economic growth and inflation and the need for the committee to be
"exceptionally alert to economic and financial developments."

Over the period, investors sought relative safety in short-term U.S. Treasuries,
Treasury yields declined and the yield curve steepened. Short-term, two- and
five-year yields declined significantly, with the two-year bill yielding 3.05%
at the end of December, down from 4.87% a year earlier. The 10-year U.S.
Treasury note ended December yielding 4.04%, compared with 5.03% at the
beginning of the period.

INVESTMENT STRATEGY

Consistent with our strategy, we invest, through the Portfolio, mainly in
high-quality, short-term U.S. dollar denominated money market securities of
domestic and foreign issuers, including bank obligations, commercial paper,
repurchase agreements and U.S. government securities. We maintain a
dollar-weighted average portfolio maturity of 90 days or less. We seek to
provide shareholders with a high-quality, conservative investment vehicle; thus,
we do not invest the Fund's cash in derivatives or other relatively volatile
securities that we believe involve undue risk.

MANAGER'S DISCUSSION

We continued to invest the Portfolio's assets in high-quality money market
securities. For example, on December 31, 2007, 100% of the securities purchased
for the Portfolio carried short-term credit ratings of A-1 or P-1, or higher, by
independent credit rating agency Standard & Poor's or Moody's Investors
Service. 3

We appreciate your support, welcome new shareholders and look forward to serving
your investment needs in the years ahead.

3. These do not indicate ratings of the Fund.

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 2007, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT
OUR MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY
NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY.
THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET,
COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES
CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR
WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR
INVESTMENT MANAGEMENT PHILOSOPHY.

4 | Semiannual Report

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs:

o Transaction costs, including sales charges (loads) on Fund purchases and
redemption fees; and

o Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing
costs, sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help
you understand these costs and compare them with those of other mutual funds.
The table assumes a $1,000 investment held for the six months indicated.

ACTUAL FUND EXPENSES

The first line (Actual) of the table provides actual account values and
expenses. The "Ending Account Value" is derived from the Fund's actual return,
which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.
IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."
IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Information in the second line (Hypothetical) of the table can help you compare
ongoing costs of investing in the Fund with those of other mutual funds. This
information may not be used to estimate the actual ending account balance or
expenses you paid during the period. The hypothetical "Ending Account Value" is
based on the Fund's actual expense ratio and an assumed 5% annual rate of return
before expenses, which does not represent the Fund's actual return. The figure
under the heading "Expenses Paid During Period" shows the hypothetical expenses
your account would have incurred under this scenario. You can compare this
figure with the 5% hypothetical examples that appear in shareholder reports of
other funds.

Semiannual Report | 5

Your Fund's Expenses (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR
REDEMPTION FEES. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you compare total costs of owning
different funds. In addition, if transaction costs were included, your total
costs would have been higher. Please refer to the Fund prospectus for additional
information on operating expenses.

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BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 7/1/07 VALUE 12/31/07 PERIOD* 7/1/07-12/31/07
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Actual $1,000 $1,023.60 $3.10
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Hypothetical (5% return before expenses) $1,000 $1,022.07 $3.10
- --------------------------------------------------------------------------------------------------------

*Expenses are calculated using the most recent six-month annualized expense
ratio of 0.61%, which includes the expenses incurred by the Portfolio,
multiplied by the average account value over the period, multiplied by 184/366
to reflect the one-half year period.

6 | Semiannual Report

Franklin Money Fund

FINANCIAL HIGHLIGHTS

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SIX MONTHS ENDED
DECEMBER 31, 2007 YEAR ENDED JUNE 30,
(UNAUDITED) 2007 2006 2005 2004 2003
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PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)
Net asset value, beginning of period .. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-----------------------------------------------------------------------------------
Income from investment operations -
net investment income ............... 0.023 0.046 0.036 0.015 0.004 0.010

Less distributions from net investment
income .............................. (0.023) (0.046) (0.036) (0.015) (0.004) (0.010)
-----------------------------------------------------------------------------------
Net asset value, end of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===================================================================================

Total return a ........................ 2.36% 4.72% 3.62% 1.55% 0.44% 0.93%

RATIOS TO AVERAGE NET ASSETS b
Expenses before waiver and payments
by affiliates c ..................... 0.61% 0.68% 0.67% 0.66% 0.66% 0.62%
Expenses net of waiver and payments
by affiliates c ..................... 0.61% 0.68% 0.67% 0.66% 0.65% 0.62%
Net investment income ................. 4.59% 4.64% 3.59% 1.53% 0.44% 0.93%

SUPPLEMENTAL DATA
Net assets, end of period (000's) $2,308,719 $1,959,218 $1,688,245 $1,446,027 $1,615,830 $1,956,924

a Total return does not reflect sales commissions or contingent deferred sales
charges, if applicable, and is not annualized for periods less than one year.

b Ratios are annualized for periods less than one year.

c The expense ratio includes the Fund's share of the Portfolio's allocated
expenses.

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 7

Franklin Money Fund

STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED)

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SHARES VALUE
- ----------------------------------------------------------------------------
MUTUAL FUND (COST $2,305,549,217) 99.9%
a The Money Market Portfolio, 4.80% ..... 2,305,549,217 $2,305,549,217
OTHER ASSETS, LESS LIABILITIES 0.1% ... 3,169,851
---------------
NET ASSETS 100.0% ..................... $2,308,719,068
===============

a The rate shown is the annualized seven-day yield at period end.

8 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Franklin Money Fund

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007 (unaudited)

Assets:
Investments in Portfolio, at value and cost ................ $2,305,549,217
Receivables from capital shares sold ....................... 19,798,726
---------------
Total assets ......................................... 2,325,347,943
---------------
Liabilities:
Payables:
Capital shares redeemed ................................. 15,358,670
Affiliates .............................................. 721,501
Distributions to shareholders ........................... 91,590
Accrued expenses and other liabilities ..................... 457,114
---------------
Total liabilities .................................... 16,628,875
---------------
Net assets, at value .............................. $2,308,719,068
===============
Net assets consist of paid-in capital ...................... $2,308,719,068
===============
Shares outstanding ............................................ 2,308,800,449
===============
Net asset value per share a ................................... $ 1.00
===============

a Redemption price is equal to net asset value less contingent deferred sales
charges, if applicable.

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 9

Franklin Money Fund

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended December 31, 2007 (unaudited)

Investment income:
Dividends from Portfolio ................................................. $54,999,447
------------
Expenses:
Administrative fees (Note 3a) ............................................ 3,177,203
Transfer agent fees (Note 3c) ............................................ 1,498,013
Reports to shareholders .................................................. 89,190
Registration and filing fees ............................................. 65,206
Professional fees ........................................................ 18,418
Directors' fees and expenses ............................................. 34,082
Other .................................................................... 29,129
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Total expenses ..................................................... 4,911,241
------------
Net investment income ........................................... 50,088,206
------------
Net increase (decrease) in net assets resulting from operations ............. $50,088,206
============

10 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Franklin Money Fund

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

-----------------------------------
SIX MONTHS ENDED
DECEMBER 31, 2007 YEAR ENDED
(UNAUDITED) JUNE 30, 2007
-----------------------------------

Increase (decrease) in net assets:
Net investment income from operations ..................................................... $ 50,088,206 $ 85,427,732
-----------------------------------
Distributions to shareholders from net investment income .................................. (50,088,206) (85,453,313)
Capital share transactions (Note 2) ....................................................... 349,501,216 270,998,749
-----------------------------------
Net increase (decrease) in net assets ............................................... 349,501,216 270,973,168
Net assets (there is no undistributed net investment income at beginning or end of period):
Beginning of period ....................................................................... 1,959,217,852 1,688,244,684
===================================
End of period ............................................................................. $ 2,308,719,068 $1,959,217,852
===================================

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 11

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin Money Fund (Fund) is registered under the Investment Company Act of
1940, as amended, (1940 Act) as a diversified, open-end investment company.

The Fund invests substantially all of its assets in The Money Market Portfolio
(Portfolio), which is registered under the 1940 Act as a diversified, open-end
investment company. The accounting policies of the Portfolio, including the
Portfolio's security valuation policies, will directly affect the recorded value
of the Fund's investment in the Portfolio. The financial statements of the
Portfolio, including the Statement of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

The Fund holds Portfolio shares that are valued at its proportionate interest in
the closing net asset value of the Portfolio. As of December 31, 2007, the Fund
owns 38.79% of the Portfolio.

B. INCOME TAXES

No provision has been made for U.S. income taxes because it is the Fund's policy
to qualify as a regulated investment company under the Internal Revenue Code and
to distribute to shareholders substantially all of its taxable income and net
realized gains.

C. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Income and estimated expenses are accrued daily. Dividends from net investment
income received from the Portfolio are normally declared daily. Distributions to
shareholders are determined according to income tax regulations (tax basis).
Distributable earnings determined on a tax basis may differ from earnings
recorded in accordance with accounting principles generally accepted in the
United States of America. These differences may be permanent or temporary.
Permanent differences are reclassified among capital accounts to reflect their
tax character. These reclassifications have no impact on net assets or the
results of operations. Temporary differences are not reclassified, as they may
reverse in subsequent periods.

D. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the reporting period. Actual results could differ from those
estimates.

12 | Semiannual Report

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. GUARANTEES AND INDEMNIFICATIONS

Under the Fund's organizational documents, its officers and directors are
indemnified by the Fund against certain liabilities arising out of the
performance of their duties to the Fund. Additionally, in the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. Currently, the Fund expects the
risk of loss to be remote.

2. CAPITAL STOCK

At December 31, 2007, there were an unlimited number of shares authorized
(without par value).

Transactions in the Fund's shares at $1.00 per share were as follows:

-------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007
-------------------------------------

Shares sold ................................................... $ 1,509,446,348 $ 1,989,869,927
Shares issued in reinvestment of distributions ................ 50,692,559 84,894,434
Shares issued on merger (Note 5) .............................. -- 83,564,029
Shares redeemed ............................................... (1,210,637,691) (1,887,329,641)
-------------------------------------
Net increase (decrease) ....................................... $ 349,501,216 $ 270,998,749
=====================================

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
directors of the Fund are also officers and/or trustees of the Portfolio and of
the following subsidiaries:

- ----------------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
- ----------------------------------------------------------------------------------------

Franklin Advisers, Inc. (Advisers) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. ADMINISTRATIVE FEES

The Fund pays an administrative fee to Advisers based on the Fund's average
daily net assets as follows:

- --------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- --------------------------------------------------------------------------------
0.455% Up to and including $100 million
0.300% Over $100 million, up to and including $250 million
0.280% In excess of $250 million

Semiannual Report | 13

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

B. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the period:

Contingent deferred sales charges retained ......................... $269,668

C. TRANSFER AGENT FEES

For the period ended December 31, 2007, the Fund paid transfer agent fees of
$1,498,013, of which $966,144 was retained by Investor Services.

4. INCOME TAXES

At December 31, 2007, the cost of investments for book and income tax purposes
was the same.

5. MERGER

On August 31, 2006, the Fund acquired the net assets of the Franklin Federal
Money Fund pursuant to an agreement of merger. The merger was accomplished by a
taxable exchange, and accounted for as a purchase.

The selected financial information and shares outstanding immediately before and
after the acquisition were as follows:

- --------------------------------------------------------------------------------
SUBSIDIARY SHARES AT $1.00 PER SHARE
- --------------------------------------------------------------------------------
Franklin Federal Money Fund ....................... $ 83,564,029
Franklin Money Fund ............................... $ 1,720,884,199
Franklin Money Fund - post merger ................. $ 1,804,448,228

6. REGULATORY AND LITIGATION MATTERS

As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, including the Securities and Exchange
Commission ("SEC"), relating to certain practices in the mutual fund industry,
including late trading, market timing and marketing support payments to
securities dealers who sell fund shares ("marketing support"), Franklin
Resources, Inc. and certain of its subsidiaries (collectively, the "Company"),
entered into settlements with certain of those regulators and governmental
entities. Specifically, the Company entered into settlements with the SEC, among
others, concerning market timing and marketing support.

14 | Semiannual Report

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

6. REGULATORY AND LITIGATION MATTERS (CONTINUED)

On June 6, 2007, the SEC posted for public comment the proposed plan of
distribution for the market timing settlement. Once the SEC approves the final
plan of distribution, disbursements of settlement monies will be made promptly
to individuals who were shareholders of the designated funds during the relevant
period, in accordance with the terms and conditions of the settlement and plan.

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, Company directors,
fund directors, and employees, have been named in private lawsuits (styled as
shareholder class actions, or as derivative actions on behalf of either the
named funds or Franklin Resources, Inc.). The lawsuits relate to the industry
practices referenced above.

The Company and fund management believe that the claims made in each of the
private lawsuits referenced above are without merit and intend to defend against
them vigorously. The Company cannot predict with certainty the eventual outcome
of these lawsuits, nor whether they will have a material negative impact on the
Company. If it is determined that the Company bears responsibility for any
unlawful or inappropriate conduct that caused losses to the Funds, it is
committed to making the Funds or its shareholders whole, as appropriate.

7. NEW ACCOUNTING PRONOUNCEMENTS

The Fund adopted Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No. 109" (FIN 48), on December 31, 2007. FIN 48
clarifies the accounting for uncertainty in tax positions taken or expected to
be taken in a tax return. FIN 48 provides guidance on the measurement,
recognition, classification and disclosure of tax positions, along with
accounting for the related interest and penalties. The Fund has reviewed the tax
positions for each of the three open tax years as of June 30, 2007 and has
determined that the implementation of FIN 48 did not have a material impact on
the Fund's financial statements.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement"
(SFAS 157), which defines fair value, establishes a framework for measuring fair
value, and expands disclosures about fair value measurements. SFAS 157 is
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The Fund believes the adoption of SFAS 157
will have no material impact on its financial statements.

Semiannual Report | 15

The Money Market Portfolios

FINANCIAL HIGHLIGHTS

THE MONEY MARKET PORTFOLIO

-------------------------------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 2007 YEAR ENDED JUNE 30,
(UNAUDITED) 2007 2006 2005 2004 2003
-------------------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning
of period .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------------
Income from investment operations:

Net investment income .............. 0.025 0.052 0.041 0.020 0.009 0.014

Net realized gains (losses) ........ -- -- c -- -- -- --
-------------------------------------------------------------------------------------------
Less distributions from net
investment income .................. (0.025) (0.052) (0.041) (0.020) (0.009) (0.014)
-------------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===========================================================================================

Total return a ........................ 2.56% 5.28% 4.15% 2.06% 0.94% 1.41%

RATIOS TO AVERAGE NET ASSETS b
Expenses before waiver and payments
by affiliates and
expense reduction .................. 0.16% 0.15% 0.16% 0.16% 0.16% 0.15%
Expenses net of waiver and payments
by affiliates and expense
reduction .......................... 0.16% d 0.15% d 0.16% d 0.16% d 0.15% d 0.15%
Net investment income ................. 5.04% 5.17% 4.09% 2.04% 0.93% 1.39%

SUPPLEMENTAL DATA
Net assets, end of period (000's) ..... $ 5,943,654 $6,580,101 $4,993,739 $5,676,479 $5,505,394 $5,331,200

a Total return is not annualized for periods less than one year.

b Ratios are annualized for periods less than one year.

c Amount rounds to less than $0.001 per share.

d Benefit of expense reduction rounds to less than 0.01%.

16 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED)

- -------------------------------------------------------------------------------------------------------------------
THE MONEY MARKET PORTFOLIO PRINCIPAL AMOUNT a VALUE
- -------------------------------------------------------------------------------------------------------------------

INVESTMENTS 100.0%
BANK NOTE (COST $250,000,000) 4.2%
Wells Fargo Bank NA, 4.40%, 1/07/08 ...................................... $ 250,000,000 $ 250,000,000
---------------
CERTIFICATES OF DEPOSIT 67.7%
Abbey National Treasury Service, Stamford Branch, 4.86%, 1/23/08 ......... 225,000,000 225,000,679
Bank of Ireland, Connecticut Branch, 4.94%, 1/16/08 ...................... 50,000,000 50,000,000
Bank of Montreal, Chicago Branch, 5.18%, 1/04/08 ......................... 225,000,000 225,000,000
Bank of Nova Scotia, Portland Branch, 4.71%, 1/08/08 ..................... 225,000,000 225,000,000
Bank of Scotland, New York Branch, 4.93%, 1/28/08 ........................ 99,500,000 99,505,846
Banque Nationale De Paris, New York Branch, 5.17%, 1/03/08 ............... 250,000,000 250,000,138
Barclays Bank PLC, New York Branch, 4.96% - 5.35%, 1/23/08 - 2/20/08 ..... 100,000,000 100,000,000
Barclays Bank PLC, New York Branch, 5.02%, 2/22/08 ....................... 150,000,000 150,000,000
Calyon NY, New York Branch, 5.06%, 3/10/08 ............................... 275,000,000 275,000,000
Dexia Bank, New York Branch, 5.10%, 1/14/08 .............................. 225,000,000 225,000,401
Dexia Credit Local NY, New York Branch, 4.95%, 2/15/08 ................... 50,000,000 50,000,617
Landesbank Hessen Thueringen Girozentrale, 5.20%, 1/10/08 ................ 225,000,000 225,000,554
Lloyds Bank PLC, New York Branch, 4.92%, 1/18/08 ......................... 275,000,000 275,001,293
Royal Bank of Canada, New York Branch, 5.06%, 1/15/08 .................... 225,000,000 225,000,864
Royal Bank of Scotland NY, New York Branch, 4.80%, 2/04/08 ............... 225,000,000 225,000,000
Royal Bank of Scotland NY, New York Branch, 4.96%, 2/20/08 ............... 50,000,000 50,000,686
Societe Generale, New York Branch, 4.95%, 3/06/08 ........................ 275,000,000 275,000,000
Svenska Handelsbanken, New York Branch, 4.87%, 1/22/08 ................... 225,000,000 225,001,301
Toronto Dominion Bank, New York Branch, 4.77%, 1/09/08 ................... 225,000,000 225,000,000
UBS AG, Stamford Branch, 5.18%, 1/07/08 .................................. 225,000,000 225,000,185
Westpac Banking Corp., New York Branch, 5.14%, 1/11/08 ................... 200,000,000 200,000,821
---------------
TOTAL CERTIFICATES OF DEPOSIT (COST $4,024,513,385) ...................... 4,024,513,385
---------------
b COMMERCIAL PAPER 25.9%
Bank of Scotland UK Branch, 1/25/08 ...................................... 125,000,000 124,602,500
Commonwealth Bank of Australia, 1/10/08 - 2/21/08 ........................ 85,000,000 84,693,167
Commonwealth Bank of Australia, 1/16/08 .................................. 101,600,000 101,396,800
Export Development Corp., 1/22/08 ........................................ 199,500,000 198,898,341
Goldman Sachs Group Inc., 1/07/08 ........................................ 50,000,000 49,956,250
Internationale Nederlanden U.S., 1/24/08 ................................. 225,000,000 224,311,437
Merrill Lynch & Co. Inc., 1/02/08 ........................................ 275,000,000 274,959,132
PepsiCo Inc., 1/10/08 - 1/17/08 .......................................... 30,150,000 30,110,053
Procter & Gamble Co., 1/17/08 ............................................ 75,000,000 74,860,000
Toyota Motor Credit Corp., 2/19/08 ....................................... 225,000,000 223,637,188
United Parcel Service Inc., 1/17/08 ...................................... 150,000,000 149,720,000
---------------
TOTAL COMMERCIAL PAPER (COST $1,537,144,868) ............................. 1,537,144,868
---------------
U.S. GOVERNMENT AND AGENCY SECURITY (COST $18,533,327) 0.3%
b FHLB, 1/02/08 ............................................................ 18,535,000 18,533,327
---------------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENTS (COST $5,830,191,580) ..... 5,830,191,580
---------------

Semiannual Report | 17

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)

c REPURCHASE AGREEMENT (COST $80,445,000) 1.3%
Deutsche Morgan Grenfell, 1.50%, 1/02/08 (Maturity Value $80,451,704)
Collateralized by U.S. Treasury Note, 3.50%, 1/15/11 .................. $ 80,445,000 $ 80,445,000
---------------
TOTAL INVESTMENTS (COST $5,910,636,580) 99.4% ............................ 5,910,636,580
OTHER ASSETS, LESS LIABILITIES 0.6% ...................................... 33,017,900
---------------
NET ASSETS 100.0% ........................................................ $5,943,654,480
===============

SELECTED PORTFOLIO ABBREVIATION

FHLB - Federal Home Loan Bank

a The principal amount is stated in U.S. dollars unless otherwise indicated.

b The security is traded on a discount basis with no stated coupon rate.

c See Note 1(b) regarding repurchase agreements.

18 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

The Money Market Portfolios

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2007 (unaudited)
----------------
THE
MONEY MARKET
PORTFOLIO
----------------
Assets:
Investments in securities, at amortized cost ............. $ 5,830,191,580
Repurchase agreements, at value and cost ................. 80,445,000
----------------
Total investments .................................. $ 5,910,636,580
Cash ..................................................... 5,684
Interest receivables ..................................... 33,864,419
----------------
Total assets ....................................... 5,944,506,683
----------------
Liabilities:
Payables:
Affiliates ............................................ 821,917
Distributions to shareholders ......................... 3,970
Accrued expenses and other liabilities ................... 26,316
----------------
Total liabilities .................................. 852,203
----------------
Net assets, at value ............................ $ 5,943,654,480
----------------
Net assets consist of:
Paid-in capital .......................................... $ 5,943,673,949
Accumulated net realized gain (loss) ..................... (19,469)
----------------
Net assets, at value ............................ $ 5,943,654,480
================
Shares outstanding .......................................... 5,943,673,949
================
Net asset value per share ................................... $ 1.00
================

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 19

The Money Market Portfolios

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended December 31, 2007 (unaudited)
----------------
THE
MONEY MARKET
PORTFOLIO
----------------
Investment income:
Interest ................................................. $ 175,221,805
----------------
Expenses:
Management fees (Note 3a) ................................ 5,062,338
Custodian fees (Note 4) .................................. 59,656
Reports to shareholders .................................. 4,925
Professional fees ........................................ 35,762
Other .................................................... 65,438
----------------
Total expenses ........................................ 5,228,119
Expense reductions (Note 4) ........................... (163)
----------------
Net expenses ....................................... 5,227,956
----------------
Net investment income ........................... 169,993,849
----------------
Net increase (decrease) in net assets resulting from
operations ............................................... $ 169,993,849
================

20 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

The Money Market Portfolios

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

------------------------------------
THE MONEY MARKET PORTFOLIO
------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 2007 YEAR ENDED
(UNAUDITED) JUNE 30, 2007
------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ............................................... $ 169,993,849 $ 318,082,571
Net realized gain (loss) from investments ........................... -- (19,469)
------------------------------------
Net increase (decrease) in net assets resulting from operations... 169,993,849 318,063,102
------------------------------------
Distributions to shareholders from net investment income ............... (169,993,849) (318,082,571)
Capital share transactions (Note 2) .................................... (636,446,832) 1,586,381,761
------------------------------------
Net increase (decrease) in net assets ............................ (636,446,832) 1,586,362,292
Net assets (there is no undistributed net investment income at
beginning or end of period):
Beginning of period .................................................... 6,580,101,312 4,993,739,020
====================================
End of period .......................................................... $ 5,943,654,480 $ 6,580,101,312
====================================

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 21

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The Money Market Portfolios (Trust) is registered under the Investment Company
Act of 1940, as amended, (1940 Act) as a diversified, open-end investment
company, consisting of one portfolio, The Money Market Portfolio (Portfolio).
The shares of the Portfolio are issued in private placements and are exempt from
registration under the Securities Act of 1933.

The following summarizes the Portfolios' significant accounting policies.

A. SECURITY VALUATION

Securities are valued at amortized cost which approximates market value. This
method involves valuing an instrument at its cost and thereafter assuming a
constant amortization to maturity of any discount or premium. All security
valuation procedures are approved by the Trust's Board of Trustees.

B. REPURCHASE AGREEMENTS

The Portfolio may enter into repurchase agreements, which are accounted for as a
loan by the Portfolio to the seller, collateralized by securities which are
delivered to the Portfolio's custodian. The market value, including accrued
interest, of the initial collateralization is required to be at least 102% of
the dollar amount invested by the Portfolio, with the value of the underlying
securities marked to market daily to maintain coverage of at least 100%. All
repurchase agreements held by the Portfolio at period end had been entered into
on December 31, 2007. Repurchase agreements are valued at cost.

C. INCOME TAXES

No provision has been made for U.S. income taxes because it is the Portfolio's
policy to qualify as a regulated investment company under the Internal Revenue
Code and to distribute to shareholders substantially all of its taxable income
and net realized gains.

D. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Amortization of
premium and accretion of discount on debt securities are included in interest
income. Dividends from net investment income are normally declared daily and
distributed monthly. Distributions to shareholders are determined according to
income tax regulations (tax basis). Distributable earnings determined on a tax
basis may differ from earnings recorded in accordance with accounting principles
generally accepted in the United States of America. These differences may be
permanent or temporary. Permanent differences are reclassified among capital
accounts to reflect their tax character. These reclassifications have no impact
on net assets or the results of operations. Temporary differences are not
reclassified, as they may reverse in subsequent periods.

22 | Semiannual Report

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. ACCOUNTING ESTIMATES

F. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified by the Trust against certain liabilities arising out of the
performance of their duties to the Trust. Additionally, in the normal course of
business, the Trust enters into contracts with service providers that contain
general indemnification clauses. The Trust's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Trust that have not yet occurred. Currently, the Trust expects the
risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

At December 31, 2007, there were an unlimited number of shares authorized
(without par value). Transactions in the Portfolio's shares at $1.00 per share
were as follows:

----------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007
----------------------------------------

Shares sold ..................................... $ 4,179,828,442 $ 9,565,818,487
Shares issued on merger (Note 6) ................ -- 84,125,474
Shares issued in reinvestment of distributions... 169,997,366 318,075,338
Shares redeemed ................................. (4,986,272,640) (8,381,637,538)
----------------------------------------
Net increase (decrease) ......................... $ (636,446,832) $ 1,586,381,761
========================================

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
trustees of the Trust are also officers and/or directors of the Franklin Money
Fund, the Institutional Fiduciary Trust, and the Franklin Templeton Money Fund
Trust, and of the following subsidiaries:

- --------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
- --------------------------------------------------------------------------------
Franklin Advisers, Inc. (Advisers) Investment manager
Franklin Templeton Investor Services, LLC Transfer agent
(Investor Services)

Semiannual Report | 23

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEES

The Portfolio pays an investment management fee to Advisers
of 0.15% per year of the average daily net assets of the Portfolio.

B. TRANSFER AGENT FEES

Investor Services, under terms of an agreement, performs shareholder servicing
for the Portfolio and is not paid by the Portfolio for the services.

C. OTHER AFFILIATED TRANSACTIONS

At December 31, 2007, the shares of the Portfolio were owned by the following
funds:

-----------------------------------
PERCENTAGE OF
SHARES OUTSTANDING SHARES
-----------------------------------

Institutional Fiduciary Trust - Money Market Portfolio ................... 3,271,421,541 55.04%
Franklin Money Fund ...................................................... 2,305,549,217 38.79%
Franklin Templeton Money Fund Trust -
Franklin Templeton Money Fund .......................................... 221,989,467 3.74%
Institutional Fiduciary Trust - Franklin Cash Reserves Fund .............. 144,713,724 2.43%

4. EXPENSE OFFSET ARRANGEMENT

The Portfolio has entered into an arrangement with their custodian whereby
credits realized as a result of uninvested cash balances are used to reduce a
portion of the Portfolio's custodian expenses. During the period ended December
31, 2007, the custodian fees were reduced as noted in the Statement of
Operations.

5. INCOME TAXES

For tax purposes, realized capital losses occurring subsequent to October 31,
may be deferred and treated as occurring on the first day of the following
fiscal year. At June 30, 2007, the Portfolio deferred realized capital losses of
$19,469.

At December 31, 2007, the cost of investments for book and income tax purposes
was the same.

6. MERGER

On August 31, 2006, the Franklin Money Fund acquired all of the assets, subject
to liabilities, of the Franklin Federal Money Fund pursuant to an agreement of
merger. The merger was accomplished by a taxable exchange and accounted for as a
purchase, and resulted in the Franklin Money Fund owning shares of the U.S.
Government Securities Money Market Portfolio. The

24 | Semiannual Report

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

6. MERGER (CONTINUED)

Franklin Money Fund then used the share of the U.S. Government Securities Money
Market Portfolio to purchase in-kind additional shares of the Portfolio. The
U.S. Government Securities Money Market Portfolio then liquidated and
transferred its portfolio securities to the Portfolio.

The selected financial information and shares outstanding immediately before and
after the acquisition were as follows:

- --------------------------------------------------------------------------------
FUND NAME SHARES AT $1.00 PER SHARE
- --------------------------------------------------------------------------------
The U.S. Government Money Market Portfolio ... 84,125,474
The Money Market Portfolio ................... 5,604,232,120
The Money Market Portfolio - post merger ..... 5,688,357,594

7. REGULATORY AND LITIGATION MATTERS

The Company and fund management believe that the claims made in each of the
private lawsuits referenced above are without merit and intend to defend against
them vigorously. The Company cannot predict with certainty the eventual outcome
of these lawsuits, nor whether they will have a material negative impact on the
Company. If it is determined that the Company bears responsibility for any
unlawful or inappropriate conduct that caused losses to the Trust, it is
committed to making the Trust or its shareholders whole, as appropriate.

Semiannual Report | 25

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

8. NEW ACCOUNTING PRONOUNCEMENTS

The Portfolio adopted Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No. 109" ("FIN 48"), on December 31, 2007. FIN
48 clarifies the accounting for uncertainty in tax positions taken or expected
to be taken in a tax return. FIN 48 provides guidance on the measurement,
recognition, classification and disclosure of tax positions, along with
accounting for the related interest and penalties. The Trust reviewed the tax
positions for each of the three open tax years as of June 30, 2007 and have
determined that the adoption of FIN 48 did not have a material impact on the
Portfolio's financial statements.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement"
("SFAS 157"), which defines fair value, establishes a framework for measuring
fair value, and expands disclosures about fair value measurements. SFAS 157 is
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The Trust believes the adoption of SFAS 157
will have no material impact on its financial statements.

26 | Semiannual Report

Franklin Money Fund

SHAREHOLDER INFORMATION

PROXY VOTING POLICIES AND PROCEDURES

The Fund has established Proxy Voting Policies and Procedures (Policies) that
the Fund uses to determine how to vote proxies relating to portfolio securities.
Shareholders may view the Fund's complete Policies online at
franklintempleton.com. Alternatively, shareholders may request copies of the
Policies free of charge by calling the Proxy Group collect at 1-954/527-7678 or
by sending a written request to: Franklin Templeton Companies, LLC, 500 East
Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy
Group. Copies of the Fund's proxy voting records are also made available online
at franklintempleton.com and posted on the U.S. Securities and Exchange
Commission's website at sec.gov and reflect the most recent 12-month period
ended June 30.

QUARTERLY STATEMENT OF INVESTMENTS

The Fund files a complete statement of investments with the U.S. Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
website at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800/SEC-0330.

Semiannual Report | 27

This page intentionally left blank.

Literature Request

LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT
1-800/DIAL BEN(R) (1-800/342-5236) OR VISIT FRANKLINTEMPLETON.COM. INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES
BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE
CAREFULLY READ THE PROSPECTUS BEFORE INVESTING. TO ENSURE THE HIGHEST QUALITY OF
SERVICE, WE MAY MONITOR, RECORD AND ACCESS TELEPHONE CALLS TO OR FROM OUR
SERVICE DEPARTMENTS. THESE CALLS CAN BE IDENTIFIED BY THE PRESENCE OF A REGULAR
BEEPING TONE.

FRANKLIN TEMPLETON FUNDS

INTERNATIONAL

Mutual European Fund
Templeton BRIC Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Small Cap Fund
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund 1

GLOBAL

Mutual Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund 1
Templeton Growth Fund
Templeton World Fund

GROWTH

Franklin Capital Growth Fund
Franklin Flex Cap Growth
Fund Franklin Growth Opportunities Fund 2
Franklin Small Cap Growth Fund II 3
Franklin Small-Mid Cap Growth Fund

VALUE

Franklin All Cap Value Fund
Franklin Balance Sheet Investment Fund 1
Franklin Equity Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 1
Franklin MidCap Value Fund
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Recovery Fund 4
Mutual Shares Fund

BLEND

Franklin Balanced Fund
Franklin Convertible Securities Fund
Franklin Focused Core Equity Fund
Franklin Growth Fund
Franklin Rising Dividends Fund

SECTOR

Franklin Biotechnology Discovery Fund
Franklin DynaTech Fund
Franklin Global Communications Fund
Franklin Global Health Care Fund
Franklin Global Real Estate Fund
Franklin Gold and Precious Metals Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Technology Fund
Franklin Utilities Fund
Mutual Financial Services Fund

ASSET ALLOCATION

Franklin Templeton Corefolio(R) Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund
Franklin Templeton 2015 Retirement Target Fund
Franklin Templeton 2025 Retirement Target Fund
Franklin Templeton 2035 Retirement Target Fund
Franklin Templeton 2045 Retirement Target Fund

INCOME
Franklin Adjustable U.S. Government Securities Fund 5
Franklin Floating Rate Daily Access Fund
Franklin High Income Fund
Franklin Income Fund
Franklin Limited Maturity U.S. Government Securities Fund 5
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund 5
Templeton Global Bond Fund
Templeton Income Fund
Templeton International Bond Fund

TAX-FREE INCOME 6

NATIONAL FUNDS

Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund 7

LIMITED-TERM FUNDS

California Limited-Term Tax-Free Income Fund
Federal Limited-Term Tax-Free Income Fund
New York Limited-Term Tax-Free Income Fund

INTERMEDIATE-TERM FUNDS

California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
New York Intermediate-Term Tax-Free Income Fund

STATE-SPECIFIC

Alabama
Arizona
California 8
Colorado
Connecticut
Florida
Georgia
Kentucky
Louisiana
Maryland
Massachusetts 7
Michigan 7
Minnesota 7
Missouri
New Jersey
New York 8
North Carolina
Ohio 7
Oregon
Pennsylvania
Tennessee
Virginia

INSURANCE FUNDS

Franklin Templeton Variable Insurance Products Trust 9

1. The fund is closed to new investors. Existing shareholders and select
retirement plans can continue adding to their accounts.

2. Effective 11/1/07, Franklin Aggressive Growth Fund changed its name to
Franklin Growth Opportunities Fund. The fund's investment goal and strategy
remained the same.

3. The fund is closed to new investors. Existing shareholders can continue
adding to their accounts.

4. The fund is a continuously offered, closed-end fund. Shares may be purchased
daily; there is no daily redemption. However, each quarter, pending board
approval, the fund will authorize the repurchase of 5%-25% of the outstanding
number of shares. Investors may tender all or a portion of their shares during
the tender period.

5. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.

6. For investors subject to the alternative minimum tax, a small portion of fund
dividends may be taxable. Distributions of capital gains are generally taxable.

7. The fund invests primarily in insured municipal securities.

8. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA) and
limited-term, intermediate-term and money market portfolios (CA and NY).

9. The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

12/07 Not part of the semiannual report

[LOGO](R)
FRANKLIN TEMPLETON One Franklin Parkway
INVESTMENTS San Mateo, CA 94403-1906

o WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?

Eligible shareholders can sign up for eDelivery at franklintempleton.com.
See inside for details.

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

FRANKLIN MONEY FUND

INVESTMENT MANAGER

Franklin Advisers, Inc.

DISTRIBUTOR

Franklin Templeton Distributors, Inc.
1-800/DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES

1-800/632-2301

Authorized for distribution only when accompanied or preceded by a prospectus.
Investors should carefully consider a fund's investment goals, risks, charges
and expenses before investing. The prospectus contains this and other
information; please read it carefully before investing.

To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
identified by the presence of a regular beeping tone.

111 S2007 02/08

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy
of its code of ethics that applies to its principal executive officers and
principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1) The Registrant has an audit committee financial expert serving on its
audit committee.

(2) The audit committee financial expert is John B. Wilson, and he is
"independent" as defined under the relevant Securities and Exchange Commission
Rules and Releases.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. N/A

ITEM 6. SCHEDULE OF INVESTMENTS. N/A

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES
FOR CLOSED-
END MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT
INVESTMENT COMPANIES. N/A

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END
MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY Holders. There have been no
changes to the procedures by which shareholders may recommend nominees to the
Registrant's Board of Trustees that would require disclosure herein.

ITEM 11. CONTROLS AND PROCEDURES.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision and
with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.

(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.

ITEM 12. EXHIBITS.

(a)(1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Galen G. Vetter, Chief Executive Officer - Finance and Administration, and
Laura F. Fergerson, Chief Financial Officer and Chief Accounting Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Galen G. Vetter, Chief Executive Officer - Finance and Administration, and Laura
F. Fergerson, Chief Financial Officer and Chief Accounting Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN MONEY FUND

By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Executive Officer - Finance and Administration
Date February 27, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Executive Officer - Finance and Administration
Date February 27, 2008

By /S/LAURA F. FERGERSON
---------------------
Laura F. Fergerson
Chief Financial Officer and Chief Accounting Officer
Date February 27, 2008