VANCOUVER, BRITISH COLUMBIA - Like doughnuts and double-doubles, we just love our high-fat mutual funds. But recent industry figures show we're starting to kick the habit.

Consumer watchdog Investors-Aid says Canadians pay the highest investment costs in the world; and not by a little, by a lot.

Compared to Europe, Japan, Australia, and the US, a Harvard Business School study found Canada's costs right at the top. We pay 67% more than in the US; and a whopping 263% more than the frugal Dutch. And this doesn't even include commissions.

And high costs mean low returns; the average mutual fund investor gets only a small fraction of the higher returns easily available on lower cost product.

"It's like someone who is overweight running a marathon; he's going to get beat by the skinny guy from Kenya," says Investors-Aid founder Garth Rustand. "High costs come off your return and add little value. The best funds are almost always lower cost."

Canadians are starting to get the message; low cost fund growth was double that of regular mutual funds.

So how do you kick the nasty habit?

Ask your advisor what you're paying now. If it's more than 2%, including commission, you have work to do. It is easy to cut costs by up to 90% using high quality bank dividend funds or index funds. The best equity funds for consumers have annual costs as low as .17% and are easily available through advisors or discount brokers.

Financial health is best on a low fat diet.