Yearly Fees
Mutual fund fees can be broken down into ongoing yearly fees and loads, and each can seriously eat away at your returns. Ongoing expenses usually include a management fee — between 0.5 percent and 2 percent of the assets, according to Investopedia — administrative costs and the 12b-1 fee.
It’s important to note that there is no clear correlation between high expense ratios and high returns. In other words, just because your ongoing expenses are high doesn’t necessarily mean you’ll enjoy high returns. Instead, look for these top characteristics of the best mutual funds.