Investment fees can significantly affect your overall returns. For example, if you invest $10,000 in a mutual fund with a 1% management fee, after 20 years, assuming an average annual return of 7%, your investment would grow to about $38,600. However, if the fee were 2%, your investment would only grow to about $28,800. That's a difference of almost $10,000! Being aware of these fees helps you choose investments that will grow your money more efficiently.

Investment fees are costs associated with managing an investment. These fees can include management fees, transaction fees, and expense ratios. Understanding these fees is crucial because they can reduce your overall returns, affecting your investment growth over time.