Objectives and Considerations for Sovereign Wealth Funds

In recent years, sovereign wealth funds (SWFs) have gained significant attention globally due to their growing influence in financial markets. Defined as state-owned investment funds that manage national savings for the purposes of investment, SWFs play a critical role in the economic stability and development of their respective countries.

Discuss the primary objectives of sovereign wealth funds and explain the key considerations that must be taken into account when managing these funds. Additionally, provide a brief analysis of how SWFs can impact both domestic and international markets.