[nikanj]

Funds make money on failed investments too. I'd be happy to throw away someone else's money, if I got to keep 20% as a management fee - and a slice of the profits in case one of my lottery tickets is a winner.

[shagbag]

Typically they'd get 2% of assets under management, not 20%.

[zhoujianfu]

2% a year for 10 years..

[gnaritas]

Which is about 18% of the original investment, not 20, assuming no gains or losses.