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
---------

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: 12/31/08
---------

ITEM 1. REPORTS TO STOCKHOLDERS.

(GRAPHIC)

DECEMBER 31, 2008

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

FIXED INCOME

FRANKLIN MONEY FUND

WANT TO RECEIVE THIS
DOCUMENT
FASTER VIA EMAIL?

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

(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO)

FRANKLIN - Templeton - Mutual Seires

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.

MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS

(GRAPHIC)

Not part of the semiannual report

Contents

SHAREHOLDER LETTER ................................... 1
SEMIANNUAL REPORT
Franklin Money Fund .................................. 3
Performance Summary .................................. 5
Your Fund's Expenses ................................. 6
Financial Highlights and Statement of Investments .... 8
Financial Statements ................................. 10
Notes to Financial Statements ........................ 13
The Money Market Portfolios .......................... 17
Shareholder Information .............................. 27

Shareholder Letter

Dear Shareholder:

The six-month period ended December 31, 2008, was an extraordinary and stressful
time for investors and those of us who have worked in financial markets for many
years. During this turbulent period, the U.S. recession deepened as unemployment
and foreclosure rates surged. Most stocks and bonds suffered major losses as
investors worried about an uncertain future. Although this environment is bound
to provoke great concern, we think it is important to put short-term market
developments in perspective. Keep in mind that as daunting as current conditions
may be, we have navigated through other periods of high market volatility, such
as the stock market crash of 1987. We remain committed to our long-term
perspective and our disciplined investment philosophy. Therefore, we view recent
declines as potential opportunities to find bargains that we believe may be well
positioned to become eventual winners. Although conditions remain challenging,
our experience gives us ample reason to be optimistic about future market
stabilization and recovery.

In the enclosed semiannual report for Franklin Money Fund, the portfolio manager
discusses market conditions, investment management decisions and Fund
performance during the period under review. You will also find performance data
and financial information. Please remember that all securities markets
fluctuate, as do mutual fund share prices. As always, we recommend investors

Shareholders who are registered at franklintempleton.com can receive this report
via email by selecting eDelivery options under "My Profile." Not all accounts
are eligible for eDelivery.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Not part of the semiannual report | 1

consult their financial advisors and review their portfolios to design a
long-term strategy and portfolio allocation that meet their individual needs,
goals and risk tolerance. We firmly believe that most people benefit from
professional advice, and that advice is invaluable as investors navigate
changing market environments.

As a Franklin Money Fund shareholder, you continue to benefit from convenient,
easy access to your money and a high degree of credit safety. You can also enjoy
a wide range of services, including check-writing privileges and access to your
account at ATMs nationwide.(1) If you would like more information or more
frequent updates, franklintempleton.com provides daily prices, monthly
performance figures, portfolio holdings and other information. You can also
access your account, buy and sell shares, read timely articles, and find helpful
financial planning tools. We hope you will take advantage of these online
services.

We thank you for investing with Franklin Templeton, welcome your questions and
comments, and look forward to serving your investment needs in the years ahead.

Sincerely,

/s/ Charles B. Johnson

Charles B. Johnson
Chairman
Franklin Money Fund

THIS LETTER REFLECTS OUR ANALYSIS AND OPINIONS AS OF DECEMBER 31, 2008. THE
INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET, COUNTRY,
INDUSTRY, SECURITY OR FUND. STATEMENTS OF FACT ARE FROM SOURCES CONSIDERED
RELIABLE.

(1.) Check minimum of $500 ($10 charge for writing a check under $500). A
Franklin Templeton Cash Advantage Card is available for Franklin money fund
accounts registered to one or more individuals. It is not available to
accounts registered as UGMAs/UTMAs, certain trusts, retirement plans,
accounts that require more than one signature, accounts with non-U.S.
addresses (including U.S. territories), corporations, partnerships or other
such legal entities. The Cash Advantage Card is a Platinum MasterCard(R)
offered by Franklin Templeton Bank & Trust, F.S.B. to Fund shareholders.
Others terms apply. For more information, please call Franklin Templeton
Shareholder Services at (800) 632-2301.

2 | Not part of the semiannual report

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.

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 (800) 342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.

This semiannual report for Franklin Money Fund covers the period ended December
31, 2008.

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 2.02% on June 30, 2008, to 0.36% on December 31, 2008.

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.

ECONOMIC AND MARKET OVERVIEW

During the six months under review, economic conditions deteriorated. The
Conference Board's Consumer Confidence Index fell to an all-time low since it
began in in 1967 as the U.S. economy faltered and as stock markets declined. The
government's abrupt conservatorship of Fannie Mae and Freddie Mac and the
failure of several blue-chip banks and financial institutions roiled equity
markets. Despite government interventions and massive emergency funding, the
nation's economic troubles were exacerbated as manufacturing activity weakened
at its fastest pace in nearly 30 years and as home prices continued to fall.
Jobless claims mounted and the unemployment rate rose to 7.2% by period-end.(1)
Economic growth, as measured by gross domestic product (GDP), fell in the third
and fourth quarters at annualized rates of 0.5% and an estimated 3.8%,
reflecting a broad-based contraction in consumer spending, falling corporate
profits and slowing export growth.

(1.) Source: Bureau of Labor Statistics.

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 9.

Semiannual Report | 3

PORTFOLIO BREAKDOWN
12/31/08

% OF TOTAL
NET ASSETS
----------

Commercial Paper 40.8%
U.S. Government & Agency Securities 25.0%
Repurchase Agreements 21.0%
Certificates of Deposit 9.3%
Short-Term Investments & Other Net Assets 3.9%

Oil prices soared to a record high in July, rising above $145 per barrel, before
dramatically retreating to $45 by period-end. Many other commodities such as
agricultural products and precious and base metals followed similar trends.
Partially as a result of the steep price corrections, inflation declined
significantly late in the review period, and December's inflation rate was an
annualized 0.1%.(1) Core inflation, which excludes food and energy costs, rose
at a 1.8% annual rate; this level was within the Federal Reserve Board's (Fed's)
informal target range of 1.5%-2.0%.(1) The core personal consumption
expenditures price index reported a 12-month increase of 1.7%.(2)

A slowing economy and decelerating inflation prompted policymakers to further
lower interest rates and enact stimulus plans. During the six months under
review, the Fed lowered the federal funds target rate to a range of 0% to 0.25%
from 2.00% at the start of the reporting period. The Fed and U.S. Treasury
Department also introduced new programs such as the Primary Dealer Credit
Facility (PDCF) and the Troubled Asset Relief Program (TARP), which were
intended to stimulate market liquidity.

Volatility remained high throughout the reporting period but intensified in
September as stocks fluctuated wildly, Treasury prices soared and yields across
the maturity spectrum plummeted. Investors drove the yield on the three-month
Treasury bill to a multi-decade low, and LIBOR (London InterBank Offered Rate)
rates, which banks charge one another for loans, jumped to record highs. Fixed
income spreads were generally wide relative to Treasury yields over the period
due to heightened market turbulence and risk aversion. The yield curve steepened
and the spread between the two-year Treasury yield and the 10-year Treasury
yield increased to 149 basis points (100 basis points equal one percentage
point) at the end of December from 136 basis points at the beginning of the
reporting period. The two-year Treasury bill yield fell from 2.63% to 0.76% over
the six-month period. Over the same period, the 10-year U.S. Treasury note yield
fell from 3.99% to 2.25%.

(2.) Source: Bureau of Economic Analysis.

4 | Semiannual Report

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, 2008, 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.

PERFORMANCE SUMMARY
SYMBOL: FMFXX
12/31/08

Seven-day effective yield* 0.36%
Seven-day annualized yield 0.36%
Total annual operating expenses** 0.62%

* 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 12/31/08. The
Fund's average weighted maturity was 49 days. Yield reflects Fund expenses and
fluctuations in interest rates on Portfolio investments.

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 2008, 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.

(3.) These do not indicate ratings of the Fund.

Semiannual Report | 5

Your Fund's Expenses

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

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

- - 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.

6 | Semiannual Report

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.

BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 7/1/08 VALUE 12/31/08 PERIOD* 7/1/08-12/31/08
- ------- ----------------- -------------- -----------------------

Actual $1,000 $1,007.10 $3.04
Hypothetical (5% return before expenses) $1,000 $1,022.18 $3.06

* Expenses are calculated using the most recent six-month annualized expense
ratio of 0.60%, which includes the expenses incurred by the Portfolio,
multiplied by the average account value over the period, multiplied by
184/365 to reflect the one-half year period.

Semiannual Report | 7

Franklin Money Fund

FINANCIAL HIGHLIGHTS

SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 2008 ------------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
----------------- ---------- ---------- ---------- ---------- ----------

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 ............ 0.007 0.036 0.046 0.036 0.015 0.004
Less distributions from net investment
income ........................... (0.007) (0.036) (0.046) (0.036) (0.015) (0.004)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total return(a) ...................... 0.71% 3.70% 4.72% 3.62% 1.55% 0.44%
RATIOS TO AVERAGE NET ASSETS(b)
Expenses before waiver and payments
by affiliates(c) ................. 0.60% 0.60% 0.68% 0.67% 0.66% 0.66%
Expenses net of waiver and payments
by affiliates(c) ................. 0.60% 0.60% 0.68% 0.67% 0.66% 0.65%
Net investment income ................ 1.37% 3.53% 4.64% 3.59% 1.53% 0.44%
SUPPLEMENTAL DATA
Net assets, end of period (000's) .... $3,136,996 $2,499,432 $1,959,218 $1,688,245 $1,446,027 $1,615,830

(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.

The accompanying notes are an integral part of these financial statements.

8 | Semiannual Report

Franklin Money Fund

STATEMENT OF INVESTMENTS, DECEMBER 31, 2008 (UNAUDITED)

SHARES VALUE
------------- ---------------

MUTUAL FUNDS (COST $3,146,219,228) 100.3%
(a) The Money Market Portfolio, 0.81% ....... 3,146,219,228 $3,146,219,228
OTHER ASSETS, LESS LIABILITIES (0.3)% ... (9,223,129)
--------------
NET ASSETS 100.0% ....................... $3,136,996,099
==============

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

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 9

Franklin Money Fund

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2008 (unaudited)

Assets:
Investment in Portfolio, at value and cost ................. $3,146,219,228
Receivables from capital shares sold ....................... 15,348,654
Prepaid expense (Note 5) ................................... 360,165
--------------
Total assets ....................................... 3,161,928,047
--------------
Liabilities:
Payables:
Capital shares redeemed ................................. 23,438,329
Affiliates .............................................. 957,888
Distributions to shareholders ........................... 106,647
Accrued expenses and other liabilities ..................... 429,084
--------------
Total liabilities .................................... 24,931,948
--------------
Net assets, at value .............................. $3,136,996,099
==============
Net assets consist of paid-in capital ...................... $3,136,996,099
==============
Shares outstanding ......................................... 3,137,077,516
==============
Net asset value per share(a) ............................... $ 1.00
==============

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

The accompanying notes are an integral part of these financial statements.

10 | Semiannual Report

Franklin Money Fund

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended December 31, 2008 (unaudited)

Investment income:
Dividends from Portfolio ...................................... $25,926,752
-----------
Expenses:
Administrative fees (Note 3a) ................................. 4,121,673
Transfer agent fees (Note 3c) ................................. 1,536,704
Reports to shareholders ....................................... 86,625
Registration and filing fees .................................. 136,343
Professional fees ............................................. 34,408
Trustees' fees and expenses ................................... 37,500
Temporary Guarantee Program fee (Note 5) ...................... 305,140
Other ......................................................... 81,870
-----------
Total expenses ............................................. 6,340,263
-----------
Net investment income ................................... 19,586,489
-----------
Net increase (decrease) in net assets resulting from operations .. $19,586,489
===========

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 11

Franklin Money Fund

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED
DECEMBER 31, 2008 YEAR ENDED
(UNAUDITED) JUNE 30, 2008
----------------- --------------

Increase (decrease) in net assets:
Net investment income from operations ...................... $ 19,586,489 $ 82,606,117
Distributions to shareholders from net investment income ... (19,586,489) (82,606,117)
Capital share transactions (Note 2) ........................ 637,563,877 540,214,370
-------------- --------------
Net increase (decrease) in net assets ................... 637,563,877 540,214,370
Net assets (there is no undistributed net investment income
at beginning or end of period):
Beginning of period ........................................ 2,499,432,222 1,959,217,852
-------------- --------------
End of period .............................................. $3,136,996,099 $2,499,432,222
============== ==============

The accompanying notes are an integral part of these financial statements.

12 | Semiannual Report

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 an 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 an 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. At December 31, 2008, the Fund
owned 34.35% 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.

The Fund has reviewed the tax positions, taken on federal income tax returns,
for each of the three open tax years and as of December 31, 2008, and has
determined that no provision for income tax is required in the Fund's financial
statements.

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.

Semiannual Report | 13

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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.

E. GUARANTEES AND INDEMNIFICATIONS

Under the Fund's organizational documents, its officers and trustees 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. SHARES OF BENEFICIAL INTEREST

At December 31, 2008, 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, 2008 JUNE 30, 2008
----------------- ---------------

Shares sold ..................................... $ 2,421,202,564 $ 2,997,825,651
Shares issued in reinvestment of distributions .. 18,920,193 83,305,207
Shares redeemed ................................. (1,802,558,880) (2,540,916,488)
--------------- ---------------
Net increase (decrease) ......................... $ 637,563,877 $ 540,214,370
=============== ===============

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 Fund are also officers, directors 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

14 | Semiannual Report

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

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
0.330% Over $100 million, up to and including $250 million
0.280% In excess of $250 million

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 .. $333,378

C. TRANSFER AGENT FEES

For the period ended December 31, 2008, the Fund paid transfer agent fees of
$1,536,704, of which $1,082,647 was retained by Investor Services.

4. INCOME TAXES

At December 31, 2008, the cost of investments for book and income tax purposes
was the same.

5. TEMPORARY GUARANTEE PROGRAM FOR MONEY MARKET FUNDS

On October 6, 2008, the Board of Trustees of the Fund approved the participation
by the Fund in the U.S. Department of the Treasury's Temporary Guarantee Program
for Money Market Funds ("Program") through December 18, 2008, which has
subsequently been extended through April 30, 2009. Under the Program, shares
held by the Fund as of the close of business on September 19, 2008 ("Program
Date") are insured against loss in the event the Fund liquidates its holdings
during the term of the Program and the per share value at the time of
liquidation drops below $0.995 per share. For participation in the initial three
months of the Program, the Fund paid 0.01% of its net assets as of the Program
Date, and paid an additional 0.015% of its net assets as of the Program Date to
participate in the extension. This expense was borne by the Fund. The fees are
amortized over the term of the Program and are reflected in the Fund's Statement
of Operations. The U.S. Department of the Treasury may extend the Program at its
discretion, through September 18, 2009. If the Program is extended, the Fund
will consider whether to continue to participate.

Semiannual Report | 15

Franklin Money Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

6. FAIR VALUE MEASUREMENTS

The Fund adopted Financial Accounting Standards Board (FASB) Statement No. 157,
"Fair Value Measurement" (SFAS 157), on July 1, 2008. SFAS 157 defines fair
value, establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. The Fund has determined that the implementation
of SFAS 157 did not have a material impact on the Fund's financial statements.

SFAS 157 establishes a fair value hierarchy that distinguishes between market
data obtained from independent sources (observable inputs) and the Fund's own
market assumptions (unobservable inputs). These inputs are used in determining
the value of the Fund's investments and are summarized in the following fair
value hierarchy:

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)

- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.

At December 31, 2008, all of the Fund's investments in securities carried at
fair value were in Level 2 inputs.

16 | Semiannual Report

The Money Market Portfolios

FINANCIAL HIGHLIGHTS

THE MONEY MARKET PORTFOLIO

SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 2008 ----------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
----------------- ---------- ---------- ---------- ---------- ----------

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 ............. 0.009 0.040 0.052 0.041 0.020 0.009
Net realized and unrealized gains
(losses) ....................... --(a) -- --(a) -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Less distributions from net investment
income ............................ (0.009) (0.040) (0.052) (0.041) (0.020) (0.009)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total return(b) ...................... 0.95% 4.10% 5.28% 4.15% 2.06% 0.94%

RATIOS TO AVERAGE NET ASSETS(c)
Expenses before waiver and payments
by affiliates ..................... 0.16% 0.16% 0.15% 0.16% 0.16% 0.16%
Expenses net of waiver and payments by
affiliates(d) ..................... 0.16% 0.16% 0.15% 0.16% 0.16% 0.15%
Net investment income ................ 1.84% 4.02% 5.17% 4.09% 2.04% 0.93%

SUPPLEMENTAL DATA
Net assets, end of period (000's) .... $9,156,824 $7,028,194 $6,580,101 $4,993,739 $5,676,479 $5,505,394

(a) Amount rounds to less than $0.001 per share.

(b) Total return is not annualized for periods less than one year.

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

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 17

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2008 (UNAUDITED)

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

INVESTMENTS 96.1%
CERTIFICATES OF DEPOSIT 9.3%
Australia and New Zealand Banking Group Ltd., New York Branch, 0.80%, 2/11/09 ............... $ 50,000,000 $ 50,000,000
Bank of Montreal, Chicago Branch, 0.11%, 2/03/09 ............................................ 100,000,000 100,001,833
Bank of Nova Scotia, Houston Branch, 0.25%, 2/03/09 ......................................... 100,000,000 100,000,000
Bank of Nova Scotia, Houston Branch, 1.00% - 1.15%, 1/07/09 - 2/09/09 ....................... 100,000,000 100,000,000
Banque Nationale De Paris, New York Branch, 1.71%, 1/05/09 .................................. 50,000,000 50,000,000
Banque Nationale De Paris, San Francisco Branch, 0.03%, 1/08/09 ............................. 100,000,000 100,000,000
Banque Nationale De Paris, San Francisco Branch, 1.97%, 2/06/09 ............................. 50,000,000 50,000,000
Chase Bank USA NA, Delaware Branch, 1.50%, 2/12/09 .......................................... 100,000,000 100,000,000
The Toronto-Dominion Bank, New York Branch, 1.00%, 1/07/09 - 3/10/09 ........................ 100,000,000 100,000,000
Westpac Banking Corp., New York Branch, 1.20%, 3/11/09 - 3/16/09 ............................ 100,000,000 100,003,961
--------------
TOTAL CERTIFICATES OF DEPOSIT (COST $850,005,794) ........................................... 850,005,794
--------------
(b) COMMERCIAL PAPER 40.8%
Australia and New Zealand Banking Group Ltd., 4/03/09 ....................................... 50,000,000 49,810,889
BP Capital Markets PLC, 1/09/09 - 3/17/09 ................................................... 155,377,000 155,137,777
Chevron Texaco Corp., 1/15/09 - 1/16/09 ..................................................... 109,500,000 109,457,300
Chevron Texaco Corp., 2/04/09 ............................................................... 100,000,000 99,891,389
Coca-Cola Co., 1/07/09 ...................................................................... 50,000,000 49,985,833
Coca-Cola Co., 1/08/09 ...................................................................... 148,245,000 148,194,555
Colgate-Palmolive Co., 1/22/09 .............................................................. 35,800,000 35,798,329
Commonwealth Bank of Australia, 2/10/09 - 3/16/09 ........................................... 99,500,000 99,307,350
(c) Eli Lilly & Co., 144A, 1/12/09 .............................................................. 100,000,000 99,957,222
Export Development Canada, 4/02/09 .......................................................... 119,500,000 119,077,102
Export Development Canada, 1/20/09 - 5/11/09 ................................................ 129,500,000 129,112,147
General Electric Capital Corp., 3/06/09 ..................................................... 275,000,000 273,533,333
Government of Canada, 4/07/09 (Canada) ...................................................... 100,000,000 99,640,000
Government of Canada, 5/14/09 (Canada) ...................................................... 100,000,000 99,371,944
Government of Canada, 5/26/09 (Canada) ...................................................... 150,000,000 149,123,958
Government of Canada, 1/12/09 - 6/03/09 (Canada) ............................................ 90,000,000 89,723,139
Johnson & Johnson, 1/30/09 .................................................................. 171,000,000 170,807,150
Merck & Co. Inc., 1/06/09 ................................................................... 162,600,000 162,560,479
Nestle Capital Corp., 1/05/09 ............................................................... 196,500,000 196,499,782
Nestle Capital Corp., 1/26/09 ............................................................... 100,000,000 99,996,528
PepsiCo Inc., 1/15/09 ....................................................................... 100,000,000 99,994,167
Pfizer Inc., 3/09/09 - 3/16/09 .............................................................. 100,000,000 99,755,695
Procter & Gamble Co., 1/20/09 ............................................................... 50,000,000 49,971,500
Proctor & Gamble International Funding, 1/13/09 ............................................. 50,000,000 49,980,833
Proctor & Gamble International Funding, 1/26/09 ............................................. 100,000,000 99,875,000
Province of British Columbia, 1/20/09 - 4/30/09 (Canada) .................................... 194,900,000 194,277,065
Province of Ontario, 2/12/09 (Canada) ....................................................... 99,500,000 99,356,057
Province of Ontario, 2/13/09 (Canada) ....................................................... 100,000,000 99,851,889
Shell International Finance, 4/01/09 ........................................................ 100,000,000 99,512,500
Total Fina ELF Capital, 1/05/09 ............................................................. 146,200,000 146,181,108
Toyota Motor Credit Corp., 2/09/09 .......................................................... 250,000,000 249,282,292
United Parcel Service of America Inc., 1/06/09 .............................................. 10,000,000 9,999,986
--------------
TOTAL COMMERCIAL PAPER (COST $3,735,024,298) ................................................ 3,735,024,298
--------------

18 | Semiannual Report

The Money Market Portfolios

STATEMENT OF INVESTMENTS, DECEMBER 31, 2008 (UNAUDITED) (CONTINUED)

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

INVESTMENTS (CONTINUED)
U.S. GOVERNMENT AND AGENCY SECURITIES 25.0%
(b) FHLB, 1/02/09 - 2/09/09 ..................................................................... $ 56,700,000 $ 56,699,782
FHLB, 2.50% - 3.25%, 1/14/09 - 3/17/09 ...................................................... 138,285,000 138,290,707
(b) FHLB, 4/02/09 ............................................................................... 100,000,000 99,292,222
(b) FHLB, 6/24/09 ............................................................................... 105,791,000 105,545,565
(b) FHLB, 6/25/09 ............................................................................... 100,000,000 99,766,667
(b) FHLMC, 3/13/09 .............................................................................. 150,000,000 149,940,833
(b) FHLMC, 1/05/09 - 6/17/09 .................................................................... 318,200,000 317,833,624
(b) FNMA, 3/09/09 ............................................................................... 100,000,000 99,502,153
(b) FNMA, 2/17/09 - 5/11/09 ..................................................................... 330,299,000 329,166,733
(b) International Bank for Reconstruction & Development, 1/06/09 (Supranational)(d) ............. 81,400,000 81,385,868
(b) U.S. Treasury Bill, 1/22/09 ................................................................. 320,000,000 319,998,133
(b) U.S. Treasury Bill, 1/29/09 ................................................................. 45,000,000 44,999,650
(b) U.S. Treasury Bill, 6/04/09 ................................................................. 100,000,000 99,515,542
(b) U.S. Treasury Bill, 7/02/09 ................................................................. 150,000,000 149,162,042
(b) U.S. Treasury Bill, 9/15/09 ................................................................. 200,000,000 199,386,055
--------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES (COST $2,290,485,576) ........................... 2,290,485,576
--------------
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENTS (COST $6,875,515,668) ........................ 6,875,515,668
--------------
(e) REPURCHASE AGREEMENTS 21.0%
Banc of America Securities LLC, 0.01%, 1/02/09 (Maturity Value $863,000,479)
Collateralized by U.S. Treasury Notes, 4.50% - 4.75%, 2/28/09 - 5/15/36; and
U.S. Government Agency Securities, 3.85% - 6.38%, 6/15/09 - 1/13/23 ................... 863,000,000 863,000,000
Barclays Capital Inc., 0.03%, 1/02/09 (Maturity Value $200,000,333)
Collateralized by U.S. Government Agency Securities, 4.12% - 5.50%,
8/20/12 - 5/06/13 ..................................................................... 200,000,000 200,000,000
Deutsche Bank Securities Inc., 0.02%, 1/02/09 (Maturity Value $170,000,189)
Collateralized by U.S. Treasury Notes, 4.25%, 1/15/10 .................................... 170,000,000 170,000,000
HSBC Securities (USA) Inc., 0.03%, 1/02/09 (Maturity Value $694,001,157)
Collateralized by U.S. Government Agency Securities, 3.25% - 7.25%, 1/15/10 - 7/15/37;
U.S. Treasury Bills, 3.375%, 4/15/32; and U.S. Treasury Notes,
2.375%, 4/15/11 ....................................................................... 694,000,000 694,000,000
--------------
TOTAL REPURCHASE AGREEMENTS (COST $1,927,000,000) ........................................... 1,927,000,000
--------------
TOTAL INVESTMENTS (COST $8,802,515,668) 96.1% ............................................... 8,802,515,668
OTHER ASSETS, LESS LIABILITIES 3.9% ......................................................... 354,308,525
--------------
NET ASSETS 100.0% ........................................................................... $9,156,824,193
==============

See Abbreviations on page 26.

(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) Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be sold in transactions exempt from registration only to
qualified institutional buyers or in a public offering registered under the
Securities Act of 1933. This security has been deemed liquid under
guidelines approved by the Trust's Board of Trustees. At December 31, 2008,
the value of this security was $99,957,222, representing 1.09% of net
assets.

(d) A supranational organization is an entity formed by two or more central
governments through international treaties.

(e) See Note 1(b) regarding repurchase agreements.

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 19

The Money Market Portfolios

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2008 (unaudited)

THE
MONEY MARKET
PORTFOLIO
--------------

Assets:
Investments in securities, at amortized cost .. $6,875,515,668
Repurchase agreements, at value and cost ...... 1,927,000,000
--------------
Total investments ....................... $8,802,515,668
Cash .......................................... 353,771,481
Interest receivable ........................... 1,803,618
--------------
Total assets ............................ 9,158,090,767
--------------
Liabilities:
Payables:
Affiliates ................................. 1,182,958
Distributions to shareholders .............. 7,782
Accrued expenses and other liabilities ........ 75,834
--------------
Total liabilities ....................... 1,266,574
--------------
Net assets, at value ................. $9,156,824,193
--------------
Net assets consist of:
Paid-in capital ............................... $9,160,079,148
Accumulated net realized gain (loss) .......... (3,254,955)
--------------
Net assets, at value ................. $9,156,824,193
==============
Shares outstanding ............................... 9,160,079,148
==============
Net asset value per share ........................ $ 1.00
==============

The accompanying notes are an integral part of these financial statements.

20 | Semiannual Report

The Money Market Portfolios

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended December 31, 2008 (unaudited)

THE
MONEY MARKET
PORTFOLIO
------------

Investment income:
Interest ...................................................... $85,120,398
-----------
Expenses:
Management fees (Note 3a) ..................................... 6,389,560
Custodian fees (Note 4) ....................................... 68,589
Reports to shareholders ....................................... 4,144
Professional fees ............................................. 47,983
Other ......................................................... 97,241
-----------
Total expenses ............................................. 6,607,517
Expense reductions (Note 4) ................................ (166)
-----------
Net expenses ............................................ 6,607,351
-----------
Net investment income ................................ 78,513,047
-----------
Net realized gain (loss) from investments ........................ (3,235,486)
-----------
Net increase (decrease) in net assets resulting from operations .. $75,277,561
===========

The accompanying notes are an integral part of these financial statements.

Semiannual Report | 21

The Money Market Portfolios

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

THE MONEY MARKET PORTFOLIO
----------------------------------
SIX MONTHS ENDED
DECEMBER 31, 2008 YEAR ENDED
(UNAUDITED) JUNE 30, 2008
----------------- --------------

Increase (decrease) in net assets:
Operations:
Net investment income ............................................... $ 78,513,047 $ 271,686,303
Net realized gain (loss) from investments ........................... (3,235,486) --
-------------- --------------
Net increase (decrease) in net assets resulting from operations .. 75,277,561 271,686,303
-------------- --------------
Distributions to shareholders from net investment income ............... (78,513,047) (271,686,303)
Capital share transactions (Note 2) .................................... 2,131,865,489 448,092,878
-------------- --------------
Net increase (decrease) in net assets ............................ 2,128,630,003 448,092,878
Net assets (there is no undistributed net investment income at beginning or
end of period):
Beginning of period .................................................... 7,028,194,190 6,580,101,312
-------------- --------------
End of period .......................................................... $9,156,824,193 $7,028,194,190
============== ==============

The accompanying notes are an integral part of these financial statements.

22 | Semiannual Report

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 an 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 Portfolio's 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, 2008. 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.

The Portfolio has reviewed the tax positions, taken on federal income tax
returns, for each of the three open tax years and as of December 31, 2008, and
has determined that no provision for income tax is required in the Portfolio's
financial statements.

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

Semiannual Report | 23

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
(CONTINUED)

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.

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, on behalf of the Portfolio, 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, 2008, 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, 2008 JUNE 30, 2008
----------------- ---------------

Shares sold ................... $ 8,536,262,263 $ 8,390,404,437
Shares issued in reinvestment
of distributions ........... 78,513,607 271,685,448
Shares redeemed ............... (6,482,910,381) (8,213,997,007)
--------------- ---------------
Net increase (decrease) ....... $ 2,131,865,489 $ 448,092,878
=============== ===============

24 | Semiannual Report

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

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, directors and/or trustees of the
Franklin Money Fund, the Franklin Templeton Money Fund Trust, the Institutional
Fiduciary Trust, and of the following subsidiaries:

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

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

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, 2008, the shares of the Portfolio were owned by the following
entities:

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

Institutional Fiduciary Trust - Money Market Portfolio ............ 5,241,160,726 57.22%
Franklin Money Fund ............................................... 3,146,219,228 34.35%
Franklin Templeton Money Fund Trust -
Franklin Templeton Money Fund .................................. 610,928,822 6.67%
Institutional Fiduciary Trust - Franklin Cash Reserves Fund ....... 161,770,372 1.76%

4. EXPENSE OFFSET ARRANGEMENT

The Portfolio has entered into an arrangement with its 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, 2008,
the custodian fees were reduced as noted in the Statement of Operations.

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At June 30, 2008, the Portfolio had tax basis capital losses of
$19,469 expiring in 2016.

At December 31, 2008, the cost of investments for book and income tax purposes
was the same.

Semiannual Report | 25

The Money Market Portfolios

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

6. FAIR VALUE MEASUREMENTS

The Portfolio adopted Financial Accounting Standards Board (FASB) Statement No.
157, "Fair Value Measurement" (SFAS 157), on July 1, 2008. SFAS 157 defines fair
value, establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. The Portfolio has determined that the
implementation of SFAS 157 did not have a material impact on the Portfolio's
financial statements.

SFAS 157 establishes a fair value hierarchy that distinguishes between market
data obtained from independent sources (observable inputs) and the Trust's own
market assumptions (unobservable inputs). These inputs are used in determining
the value of the Portfolio's investments and are summarized in the following
fair value hierarchy:

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)

- Level 3 - significant unobservable inputs (including the Portfolio's
own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. Money market securities
may be valued using amortized cost, in accordance with the 1940 Act. Generally,
amortized cost reflects the current fair value of a security, but since the
value is not obtained from a quoted price in an active market, such securities
are reflected as a Level 2.

At December 31, 2008, all of the Portfolio's investments in securities carried
at fair value were in Level 2 inputs.

ABBREVIATIONS

SELECTED PORTFOLIO

FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corp.
FNMA - Federal National Mortgage Association

26 | Semiannual Report

Franklin Money Fund

SHAREHOLDER INFORMATION

PROXY VOTING POLICIES AND PROCEDURES

The Fund's investment manager 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 (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 (800)
SEC-0330.

Semiannual Report | 27

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Literature Request

LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT
(800) DIAL BEN/(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

VALUE

Franklin All Cap Value Fund
Franklin Balance Sheet Investment 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(2)
Mutual Shares Fund

BLEND

Franklin Focused Core Equity Fund
Franklin Large Cap Equity Fund
Franklin Rising Dividends Fund

GROWTH

Franklin Capital Growth Fund(1)
Franklin Flex Cap Growth Fund
Franklin Growth Fund
Franklin Growth Opportunities Fund(3)
Franklin Small Cap Growth Fund(4)
Franklin Small-Mid Cap Growth Fund

SECTOR

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

GLOBAL

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

INTERNATIONAL

Franklin India Growth Fund
Franklin International Growth Fund
Franklin International Small Cap Growth Fund
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
Templeton Frontier Markets Fund

HYBRID

Franklin Balanced Fund
Franklin Convertible Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Templeton Income 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

FIXED INCOME

Franklin Adjustable U.S. Government Securities Fund(5)
Franklin Floating Rate Daily Access Fund
Franklin High 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 Global Total Return 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-/INTERMEDIATE-TERM FUNDS

California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
Federal Limited-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.) 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.

(3.) 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.

(4.) Effective 3/31/08, Franklin Small Cap Growth Fund II changed its name to
Franklin Small Cap Growth Fund. The fund's investment goal and strategy
remained the same.

(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 four or more variations, including long-term
portfolios, intermediate-term portfolios, portfolios of insured securities,
a high-yield portfolio (CA only) and money market portfolios.

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

12/08 Not part of the semiannual report

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

- - 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.
(800) DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES

(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 S2008 02/09

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 Jennifer J. Bolt, 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
Jennifer J. Bolt, 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/Jennifer J. Bolt
------------------
Jennifer J. Bolt
Chief Executive Officer - Finance and Administration
Date February 25, 2009

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/Jennifer J. Bolt
------------------
Jennifer J. Bolt
Chief Executive Officer - Finance and Administration
Date February 25, 2009

By /S/LAURA F. FERGERSON
---------------------
Laura F. Fergerson
Chief Financial Officer and Chief Accounting Officer
Date February 25, 2009