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Top Notch Performer

From being a volatile fund, Templeton India Money Market Account has evolved into a consistent outperformer

This fund has taken a break from its past. At one time, it was known for its higher-than-average expense ratio and volatile performance. There were periods of outperformance followed by periods of underperformance and the cycle would continue.

The change took place in 2006. From June that year, the fund has been a consistent outperformer and last year was the best performer in its category. A successful attempt has also been made to gradually lower the expense ratio from 1 (September 2006) to 0.75 (August 2008).

TIMMA is India's first money market fund. Its portfolio comprises of high-quality, short-term paper. The fund has always been bullish on the Financial Services sector but recently has also found exposure to the Telecom sector (Reliance Telecom). A large chuck of the portfolio has been allocated to Commercial Paper (CP) and Certificate of Deposit (CD) of private and public sector banks with almost 50% of the corpus allocated to CP issued by Citibank.