Explain Sovereign Wealth Funds

Main objective of this article is to Explain Sovereign Wealth Funds, here explain this topic in International Business perspective. The two main purposes of Sovereign Wealth Funds are short term foreign currency stabilization and liquidity management. Sovereign Wealth Funds are owned and managed by governments or central banks of various countries around the world to invest their trade surplus globally, usually on a long term basis. They are funded by trade surplus of international trade, foreign currency deposit, International Monetary Fund reserves and other national funds like pension funds and oil funds.