Question
Which of the following are the state-owned investment
funds which also invest in alternative investments such as private equity fund?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.
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