There are more mutual funds available than there are stocks on the NY Stock exchange. What makes the choice of funds even more difficult is that each fund may have numerous classes. For example, checking the American Funds Capital Income Builder annual report shows that the fund family offers the same fund in 16 different classes. The main difference is the fund’s expense ratio and the fees that the fund charges for either purchase or redemption.
While fees and expenses are not the most important factor in deciding which fund to buy, once you make a decision on the fund, being able to choose the one with the lowest expenses is important.