A Money market fund, also known as principal stability funds, is a type of mutual fund that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other mutual funds and pay dividends that generally reflect short-term interest rates.

Money market funds generally invest in

• Government securities
• Certificates of deposits
• Commercial paper of companies
• other highly liquid and low-risk securities.

Money market funds are generally the safest and most secure of mutual fund investments.

Black Monday for Indian stock markets. Indian stock markets recorded second biggest single day fall on March 3 on heavy selling from funds on global cues. BSE index Sensex went tumbling down by a massive 5.12% or 900.84 points, recording its second biggest fall ever (in absolute terms) in history.

On the global front, week economic data and corporate news from the U.S. on February 29 renewed the worries of a recession.

New York-based hedge fund Renaissance Technologies Corporation, with assets worth $35.4 billion (Rs 1,41,600 crore), has received approval from the Securities and Exchange Board of India (Sebi) to operate in the Indian stock markets as a foreign institutional investor.

The designation allows the firm to participate directly in India’s financial markets.RenTech is the largest hedge fund to register in India since the new scheme was unveiled.

Other funds with foreign institutional investor status.

• D.E. Shaw
• Och-Ziff Capital Management
• Citigroup’s Old Lane

 Pic: Mr Anil Ambani, Chairman, Reliance Power, announced a 3:5 bonus issue for the shareholders.

Reliance Power Ltd (RPL), part of the Reliance Anil Dhirubhai Ambani Group (RADAG), announced it would give 3 bonus shares for every 5 held in an effort to reduce losses by shareholders after the poor performance of the stock after its listing on February 11.

Briefing news persons after the Reliance Power board meeting , Reliance Power Chairman Anil Ambani said that the bonus issue would not apply to promoters Reliance Anil Dhirubhai Ambani Group and Reliance Energy who together hold 90 per cent.