Why does it make sense to avoid paying high fees when investing with mutual funds or stock brokers?
A) The funds with high fees are too expensive.
B) The funds with high fees likely hire managers who are not experts.
C) The funds with high fees do not perform any better than other funds.
D) It does make sense, since you should pay high fees to get access to experts.

Question

Quizplus · Accepted Answer

Studies have shown that mutual funds with high fees do not necessarily outperform other funds with lower fees. Additionally, high fees can eat into your potential returns over the long term, so it is generally beneficial to look for low-cost options when investing.

Why Does It Make Sense to Avoid Paying High Fees