Investment fees can eat into your returns, so it's crucial to understand them. For example, if you invest $10,000 in a fund with a 1% annual fee, you are effectively losing $100 each year to fees. Over 20 years, assuming a 7% return, that $10,000 could grow to about $38,697 without fees, but with fees, it would only grow to approximately $33,201, costing you nearly $5,496 in lost growth. Always review what fees you are paying before investing.

Investment fees refer to the charges that investors pay for managing their investments. These can include management fees, trading fees, and advisory fees. Understanding these fees is crucial because they can significantly reduce overall returns, especially over the long term.