Sovereign wealth funds (SWFs) typically invest in diverse assets to achieve long-term returns, manage risk, and meet economic objectives. The asset allocation often depends on the fund's mandate, risk tolerance, and the economic priorities of the sponsoring country.

1. Equities: Publicly traded stocks form a significant portion of SWF portfolios. These investments offer growth potential and diversification across sectors and geographies.

2. Fixed Income: Government and corporate bonds provide stability and predictable returns, balancing the riskier equity investments.

3. Real Estate: SWFs invest in commercial, residential, and industrial real estate to gain exposure to tangible assets with the potential for steady income and capital appreciation.

4. Private Equity: Many SWFs invest in private companies or venture capital, targeting higher returns over longer investment horizons.

5. Infrastructure: Transportation, energy, and utilities investments support long-term income generation and align with sustainable development goals.

6. Commodities and Natural Resources: Some funds allocate capital to commodities like gold, oil, and gas, especially if they are sourced from resource-rich countries.

7. Alternative Investments: Hedge funds, derivatives, and emerging technologies like renewable energy or artificial intelligence provide further diversification.

By diversifying across these asset classes, SWFs aim to balance growth, stability, and sustainability to support national economic objectives.