BANKING AFFAIRS

Detailed explanation-1: -A sovereign wealth fund (SWF) is a state-owned investment fund that invests in both real and financial assets, including stocks, bonds, real estate, precious metals, and alternative asset classes in furtherance of its home country’s strategic, long-term priorities.

Detailed explanation-2: -Sovereign wealth funds are state-owned investment funds usually financed by surplus revenues or reserves. They are often created by commodity-rich exporters, such as Norway, Saudi Arabia, and Qatar, to stabilize national budgets, create savings for their citizens, or promote economic development.

Detailed explanation-3: -Sovereign wealth funds (SWFs) are investment vehicles set up by governments to invest their excess capital.

Detailed explanation-4: -A sovereign wealth fund (SWF), also known as a social wealth fund, is the surplus money that a country accrues over time. The government-backed pool of funds is mostly funded from a country’s foreign exchange reserves. Other sources of funds for an SWF account include: Bank reserves.

Detailed explanation-5: -It was created in 1971 for the purpose of investing funds on behalf of the government of Saudi Arabia. The wealth fund has been controlled by Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler since 2015. The present governor of PIF is Yasir Al-Rumayyan, serving under bin Salman.