Investment fees can significantly reduce your overall returns. For example, if you're investing in a fund with a 1% fee, this may seem small, but over time, it can add up. Let's say you invest $10,000 with an annual return of 7%. Without any fees, in 20 years, you would have about $38,697. But, if you have a 1% fee, your returns drop to approximately $29,960 due to that fee. This shows how important it is to understand what fees you're paying and how they affect your long-term growth.

Investment fees are charges incurred by an investor to manage their investments. These can include management fees, expense ratios for mutual funds or ETFs, and transaction fees. High fees can erode your investment returns over time, making it crucial to be aware of what fees you are paying.