It is a government-owned investment fund. Some of the major advantages of the Sovereign Wealth Fund are discussed below in detail to get a better understanding. Alternative Income Sources: If the country is greatly dependent on natural resources, Sovereign wealth funds can supplement the national income when those resources are depleted. Counter-Economic Recession: Sovereign  Funds can offset the impact of the economic recession and the increase in government expenditures.The Income Source: Apart from taxes, Sovereign wealth funds can replace the company's income.