Question

    Which of the following are the state-owned investment

    funds which also invest in alternative investments such as private equity fund?
    A State Wealth Fund Correct Answer Incorrect Answer
    B Foreign Wealth Fund Correct Answer Incorrect Answer
    C Sovereign Wealth Fund Correct Answer Incorrect Answer
    D International Wealth Fund Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Sovereign Wealth Fund which is also known as the sovereign investment fund is an investment fund for real and financial assets. These financial assets include bonds, stocks, real estate and precious metals. Sovereign Funds are the state-owned investment funds which also invest in alternative investments such as private equity fund. The SWFs are funded by the foreign exchange reserves that are held by the central bank.

    Practice Next