A sovereign wealth fund (SWF) is a state-owned investment fund that manages a country's surplus revenues. These funds are typically created from sources like oil revenues, foreign exchange reserves, or budget surpluses. The primary goal of SWFs is to invest in various assets, such as stocks, bonds, real estate, and infrastructure, to generate returns for the country. Sovereign wealth funds help stabilize national economies by providing a financial buffer during economic downturns. They can also support long-term development projects and contribute to the overall wealth of a nation. Many countries, including Norway and China, have established significant SWFs to manage their financial resources effectively.