401(K) plans typically offer an array of mutual funds for participants to choose from. These investments allow for growth from the dollars contributed to the plan.
Mutual funds serve a vital role for smaller investors to gain exposure to a variety of investments. There are several mutual funds including target retirement, index, actively managed funds. Within the fine print, you might find a variety of hidden fees. Mutual fund fees can be an expensive way to invest.
We have compiled a few pointers in the 401(K) Series 4 and 5 on how to identify highly feed mutual funds and some basic information on the types of fees commonly charged by funds.