Sovereign Investment Fund

A Sovereign Investment Fund (SIF) is a state-owned investment fund that manages and invests a country's surplus reserves, typically accumulated from revenues such as exports of natural resources. Unlike Sovereign Wealth Funds (SWFs), which often focus on long-term global investments, Sovereign Investment Funds are typically more involved in domestic investments, targeting national infrastructure, economic development, and strategic industries.

Example

A government may establish a sovereign investment fund to invest in local infrastructure projects, such as roads and energy grids, aiming to stimulate economic growth.