A sovereign wealth fund 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. Countries like Norway and Singapore have established successful sovereign wealth funds. These funds can help finance public projects, stabilize the economy during downturns, and save for future generations. By investing wisely, sovereign wealth funds aim to enhance national wealth and ensure long-term financial security.