A Sovereign Wealth Fund (SWF) is a government-owned investment fund that is used to invest a country's surplus financial resources for the benefit of its citizens. SWFs are typically established and managed by a country's central bank or a government agency. The assets of an SWF are usually derived from the country's natural resources, such as oil and gas, or from foreign currency reserves.The main objectives of SWFs are to diversify the country's investment portfolio, to stabilize its economy, and to provide long-term financial security for its citizens. They are usually established to save for future generations, for example, when a country has finite natural resources such as oil and gas.SWFs are typically managed by professional investment managers and are subject to strict regulations and oversight. They invest in a wide range of assets, including stocks, bonds, real estate, and infrastructure projects. Some of the largest SWFs in the world include the Abu Dhabi Investment Authority, the China Investment Corporation, and the Norway Government Pension Fund Global.SWFs have been growing in popularity in recent years, and they have become major players in the global financial markets. However, some concerns have been raised about the transparency and governance of these funds, and their potential impact on global financial markets.
