A Sovereign Wealth Fund (SWF) is a type of state-owned investment fund or entity that is typically formed from:
Surpluses in the balance of payments
Official foreign exchange transactions
Profits from privatizations
Transfer payments from the government
Budget surpluses
In addition, receipts from resource exports

A sovereign wealth fund (SWF) is a state-owned investment fund that manages and invests a nation's surplus revenues, often derived from natural resources like oil or gas, or from foreign exchange reserves. These funds aim to stabilize the economy, generate long-term wealth, and support future generations. SWFs invest in diverse assets, including stocks, bonds, real estate, and infrastructure, both domestically and internationally. Notable examples include Norway's Government Pension Fund Global and Saudi Arabia's Public Investment Fund. SWFs play a significant role in global financial markets due to their substantial capital and long-term investment horizons. They also serve strategic purposes, such as funding public projects or diversifying a country's economy. However, their influence sometimes raises concerns about transparency and political motives.