UPDATE 1-Money manager Franklin quarterly profit up 7 percent

Feb 1 (Reuters) - Money manager Franklin Resources Inc , which runs the Franklin and Templeton funds, said on Friday that its quarterly profit rose 7 percent, even though additional customer investments slowed.

Net income for Franklin's fiscal first quarter ended Dec. 31 totaled $516.1 million, or $2.42 per share, compared with $480.8 million, or $2.20 per share, for the same period a year earlier, the San Mateo, California-based firm said.

Analysts on average had expected net income of $2.38 per share, according to Thomson Reuters I/B/E/S.

Customers added only about $300 million to Franklin's funds and accounts during the quarter but market appreciation and other gains added $24.8 billion and acquisitions added $8.7 billion. Franklin ended the quarter with total assets under management of $781.8 billion, up 17 percent from a year earlier.

Inflows of $6.9 billion into Franklin's fixed income products were nearly offset by outflows of $6.4 billion from equities. Customers also added $500 million to hybrid funds and withdrew $700 million from money market funds.