A Sovereign Wealth Fund (SWF) is a state-owned investment fund that manages a country's reserves. These funds are typically created from surplus revenues, such as profits from natural resources like oil or gas, and are used to invest in various assets, including stocks, bonds, and real estate. The goal is to generate returns that can support the country's economy and provide financial stability. SWFs can also play a role in diversifying a nation's income sources and preparing for future economic challenges. Countries like Norway and Singapore have established successful SWFs, which help manage wealth for future generations while contributing to global financial markets.