Reserve Funds has tripled the level of FDIC insurance on Reserve Insured Deposits, an insured money market account. It is not a mutual fund but does offer some features of a money market mutual fund.
The company has raised the insurance level from $200,000 to $600,000 in response to customer concerns over investment volatility and safety, said Bruce Bent II, president of Reserve Funds.
Reserve Insured Deposits was started in 1997 to offer investors a stable, insured vehicle for their assets during a turbulent market environment. "Back then, money funds became a safe haven for cash in volatile markets, a situation we are faced with today," Bent said.
Reserve Funds has more than $17 billion in assets under management and 17 money market funds, seven equity funds and products like Reserve Insured Deposits.