Sovereign Wealth Fund
A Sovereign Wealth Fund (SWF) is a state-owned investment fund or entity that manages a country's reserves for the purpose of generating long-term wealth. Governments use these funds to invest in various assets, such as stocks, bonds, real estate, and infrastructure, to diversify their revenue sources and stabilize their economies. SWFs often arise from surplus revenues, like profits from natural resources, and serve multiple goals, including saving for future generations, funding public services, and stabilizing the economy during downturns. Examples include Norway's Government Pension Fund and the Abu Dhabi Investment Authority.
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A sovereign wealth fund (SWF) is a state-owned investment fund that manages a country's surplus financial resources. These funds invest in a variety of assets, such as stocks, bonds, real estate, and infrastructure projects, both domestically and internationally. SWFs are typically funded by revenues from natural resources, like oil or gas, and aim to generate long-term wealth for the nation. They help stabilize the economy, provide financial security for future generations, and can be used to fund social programs or boost the nation's economy during downturns.