expenses

Diversification — not putting all your eggs in one basket — is one of the most cherished principles of investing. That’s one reason why mutual funds have become a popular choice for many investors’ workplace retirement accounts. They’re an easy way to invest in many different securities at once, and to do so at a lower cost than you might be able to achieve on your own.

When you’re choosing among mutual funds, you should take into account what the fund will cost you in fees and expenses. The higher those costs, the better the fund’s performance needs to be to compensate for them.