Originally Posted by netsurferrr
I see. Here´s another question. In the situation mentioned above, the fund company liquidated the fund at par and the customers got their full account balance the day the fund was liquidated back, right?
I'm not sure about liquidation, but I have read about several situations where the fund family bought the distressed short term debt at par and ate the small loss, leaving the fund at $1.00. Fund companies, with the exeption mentioned above, have always decided the relatively low cost of keeping the buck is worth avoiding the very bad PR.
If you want even more safety than a normal MMF, you can buy funds that invest exclusively in U.S. goverment obligations. The yields are ususally slightly lower for these.