In the following video Fool contributor, Matt Thalman discusses one reason why investors should avoid buying mutual funds and should stick to an index fund. While Matt believes there are a number of reasons why the individual investor should avoid mutual fund, today he focuses on expenses. He emphasizes the additionally expenses an investor will pay to own a mutual fund as opposed to an index fund and how those higher costs will affect an investor's long-term returns.

Fool contributor Matt Thalman and The Motley Fool have no position in any stocks mentioned. Check back Monday thru Friday as Matt explains what caused the Dow's winners and losers of the day and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.