Fees can significantly reduce your overall investment returns over time. For example, let's say you have an investment portfolio of $10,000 with an annual return of 7%. If your fund has a 1% annual fee, your return would effectively be 6% after fees. Over 30 years, your investment would grow to about $57,308 with the fee, instead of $76,123 without the fee. That’s a difference of nearly $19,000! So, keeping an eye on fees is crucial for maximizing your earnings.

Investment fees are charges that investors incur when buying, selling, or holding an investment. These can come in various forms such as management fees, sales commissions, or fund expenses. Higher fees can significantly cut into your profits, especially over time, which is why understanding and minimizing them is key to effective investing.