A Sovereign Wealth Fund is a state-owned investment fund that invests in assets such as stocks, bonds, real estate, or alternatives. The capital often comes from commodity export revenues, such as oil and other natural resources.

Sovereign wealth funds can have different types of priorities.

Saving funds are reserved for future generations and have a very long time horizon.

Stabilization funds are used to smooth out the volatility of government tax revenues providing funding in recessions, so they have a shorter investment horizon than saving funds.

So in summary, saving funds will have a longer time horizon than stabilization funds. All types of sovereign wealth funds will normally be able to invest in a wide range of assets, and the need for liquidity differs depending on what the fund is used for. Saving funds will have little need for liquidity while stabilization funds will need liquidity during a downturn in the economic cycle.