Mutual funds can be a great way to build wealth, however there is so much variety and so many pieces of information to look at that it can get overwhelming. One thing is for sure, is that paying attention to fund fees can help you save a lot of money!
For example, if a mutual fund has an expense ratio of 2%, then this can really eat into your returns or make your losses worse. For $10,000 that would be $200 in expense fees! For $100,000 it would be $2000. And for $1,000,000 it would be $20,000.
THAT IS A LOT OF MONEY.
Watch out for excessive fees. Sometimes using a financial adviser who can help you understand the funds, their expenses and your particular situation can help greatly.