Sovereign Wealth Fund - How Far it is Successful in India?

Sovereign wealth funds have attracted a lot of attention in recent years as more countries open funds and invest in big-name companies and assets. Some experts estimate that all sovereign wealth funds combined to hold more than $5 trillion in assets in 2012, a number that is expected to grow relatively quickly. A sovereign wealth fund is a state-owned pool of money that is invested in various financial assets. The money typically comes from a nation's budgetary surplus. When a nation has excess money, it uses a sovereign wealth fund as a way to funnel it into investments rather than simply keeping it in the central bank or channeling it back into the economy. The motives for establishing a sovereign wealth fund vary by country. The primary functions of a sovereign wealth fund are to stabilize the country's economy through diversification and to generate wealth for future generations. The paper focuses on various types of SWFs, need for SWF in India and risks in it.