Mutual Funds From Amazon? A Prime Opportunity, Says One Research Firm
Investing.com - Amazon (NASDAQ:AMZN) has disrupted a lot of industries. One Wall Street firm says mutual funds could easily be another one. Sanford C. Bernstein Research says the e-commerce giant is "well-placed" to sell mutual funds, partly because of its Prime service, which counts more than 100 million subscribers.In a note to clients, the firm says given the fund industry's profitability, Amazon might be tempted to enter it, which would trigger a price war to attract and retain customers. Bernstein says such a move would probably be a popular one among consumers. It cites a recent survey by LendEDU that showed 41% of Prime users would open an Amazon retirement savings account.Amazon has yet to indicate any interest in asset management, but Chinese Internet giant Alibaba (NYSE:BABA) has already entered the business through its Ant Financial subsidiary