Business Studies · Financial Management

Consider the following statements regarding wealth management in India: Statement 1: The importance of wealth management is increasingly evident due to increasing life expectancy in India, necessitating a much larger retirement corpus to sustain a person post-retirement. Statement 2: Wealth management is strictly limited to the selection of equity stocks and does not involve insurance products or estate planning. Statement 3: A key function of wealth management in banks is to help clients manage debt-to-income ratios by providing structured credit solutions using investment portfolios as collateral. Statement 4: Regulatory bodies like SEBI and RBI have no role in overseeing wealth management activities as they are private contracts. Statement 5: Wealth management provides a significant competitive advantage to banks by increasing the 'Share of Wallet' of the customer, leading to higher cross-selling opportunities. Statement 6: The 'Wealth Effect' resulting from professional management of assets can support higher levels of private investment in the national economy. Statement 7: Behavioral finance is an irrelevant concept in wealth management because all investors act with perfect rationality. Which of the options correctly identifies the true statements?