Sovereign wealth fund is a state-owned investment fund that funds in financial and real assets like precious metal, real estate, stock, bonds or in alternative investments such as hedge fund or private equity funds. You can read about the Sovereign Wealth Fund (SWF) – Objectives, Significance of SWF in the given link.
The sovereign wealth funds are generated from the foreign exchange reserves, or from revenues generated through commodity exports.
Further readings:
- National Investment and Infrastructure Fund (NIIF) – Established for Infrastructure Projects
- Sovereign Gold Bond Scheme [UPSC Notes GS-II]
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