--- title: "Meaning & Key Takeaway of: Mutual funds charge 2% per year and then…" description: "\"Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public..." image: "https://sms4smile.com/quotes/i/392/charlie-munger-458_brokers_mutual-funds-charge-2-per-year-and-then_1898303.jpg" --- # Mutual funds charge 2% per year and then brokers switch… ![“Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the…” quote by Charlie Munger](https://sms4smile.com/quotes/i/392/charlie-munger-458_brokers_mutual-funds-charge-2-per-year-and-then_1898303.jpg) [Download](https://sms4smile.com/quotes/i/392/charlie-munger-458_brokers_mutual-funds-charge-2-per-year-and-then_1898303.jpg) [Open image](https://sms4smile.com/quotes/i/392/charlie-munger-458_brokers_mutual-funds-charge-2-per-year-and-then_1898303.jpg) > “Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it's disgusting. It's much better to be part of a system that delivers value to the people who buy the product. But if it makes money, we tend to do it in this country.” [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The financial industry often imposes high fees and unnecessary trading that erode investor returns, benefiting insiders over ordinary people. **In simple terms:** High fees and frequent trading hurt average investors. Key Takeaway Demand lower fees and transparent investing. Themes finance ethics investor protection conflict of interest Mood critical concerned Type cautionary analytical When to use this quote - retirement planning - personal investing - advisor selection - regulatory reform Key Concepts fee structures principal‑agent problem value creation Questions to Reflect On - How can investors verify true value? - What incentives drive fee structures? A Different Perspective Lower fees alone may not guarantee better outcomes without proper education. ★ ★ ★ ★ ★ No ratings yet [Brokers](https://sms4smile.com/quotes/about/brokers/) [Brokers Switch](https://sms4smile.com/quotes/about/brokers-switch-1689119/) [Country](https://sms4smile.com/quotes/about/country/) [Customer](https://sms4smile.com/quotes/about/customer/) [Disgusting](https://sms4smile.com/quotes/about/disgusting/) [Fund](https://sms4smile.com/quotes/about/fund/) [Funds](https://sms4smile.com/quotes/about/funds/) [Funds Charge](https://sms4smile.com/quotes/about/funds-charge-1689118/) [General public](https://sms4smile.com/quotes/about/general-public/) [Guy](https://sms4smile.com/quotes/about/guy/) [Ifs](https://sms4smile.com/quotes/about/ifs/) [Making money](https://sms4smile.com/quotes/about/making-money/) [Mutual](https://sms4smile.com/quotes/about/mutual/) [Mutual fund](https://sms4smile.com/quotes/about/mutual-fund/) [Mutual funds](https://sms4smile.com/quotes/about/mutual-funds/) [People](https://sms4smile.com/quotes/about/people/) [Percentages](https://sms4smile.com/quotes/about/percentages/) [Poor](https://sms4smile.com/quotes/about/poor/) [Products](https://sms4smile.com/quotes/about/products/) [Terrible](https://sms4smile.com/quotes/about/terrible/) [Thinking](https://sms4smile.com/quotes/about/thinking/) [Values](https://sms4smile.com/quotes/about/values/) [Year Brokers](https://sms4smile.com/quotes/about/year-brokers-2785331/) [Years](https://sms4smile.com/quotes/about/years/) ## Related quotes > [The general systems of money management today require people to pretend to do something they can't do and like something they don't. 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That's different from the brokers who we sort of disdain as sort of just errand boys.](https://sms4smile.com/quotes/melvin-van-peebles/i-was-a-trader-for-a-company-that-s-different-from-the-brokers-who-we/) [Melvin Van Peebles](https://sms4smile.com/quotes/author/melvin-van-peebles/) > [The government consists of a gang of men exactly like you and me. They have, taking one with another, no special talent for the…](https://sms4smile.com/quotes/h-l-mencken/the-government-consists-of-a-gang-of-men-exactly-like-you-and-me-they/) [H. L. 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