$10 Trillion in Mutual Funds Go on Sale

To make sure you benefit from the trend toward lower fund costs, check your funds carefully. If you are paying more than 1% or so for a domestic equity fund, shop for a cheaper one. Odds are slim that an expensive fund can outdo its benchmark over the long term.

Suppose you are still paying a sizable load. Talk to your adviser about why the commission is so high. In some cases, a steep load could be worthwhile. Say the company charges a 5% sales commission when you buy a fund -- and then low annual fees. For a long-term investor, that could be cheaper than paying a small up-front sales commission followed by high annual expenses for years to come.

If you are dissatisfied with sales costs, complain. Your adviser may be willing to drop loads altogether. Instead of charging sales commissions every time a client buys a fund, many advisers have been switching to what are called fee-based accounts. These typically charge clients 1% annually, regardless of how many funds they buy or sell. By holding low-cost funds in a fee-based account, you may be able to get sound advice without overpaying.