Why your money isn't safe even in a money market fund?

I am writing a post after long time. But the recent financial crisis has given me sufficient material to write about.

Usually money market funds ( liquid, liquid plus ) funds are considered the safest amongst all kinds of funds. But after reading this Bloomberg article, probably you must do a re-think of your liquid fund investments.

Quoting from the article:
"Losses on the securities firm's debt forced the fund to break the buck, meaning its net asset value fell below the $1 a share price paid by investors, New York-based Reserve Management Corp., its closely held owner, said yesterday in a statement. Redemptions will take as long as seven days."
Sounds scary.. huh?

But this does not eliminate the tax-efficiency of debt/liquid fund investment over an FD. The risk is just part and parcel of investing. Go ahead and choose one for yourself from here.