What is a major benefit of minimizing transaction costs in investment funds?

Minimizing transaction costs in investment funds is crucial because these costs can eat into an investor's returns. By reducing these expenses, the fund can potentially enhance net returns for investors. When transaction costs are lower, a greater portion of the fund's gross returns is preserved, which translates to higher profits for investors after expenses are accounted for. This increased efficiency allows investors to benefit more fully from the fund's performance, making it an important consideration in investment management.

While other options may touch on different aspects of investment strategy and management, they do not accurately reflect the primary objective of minimizing transaction costs. For instance, increasing risk, simplifying strategies, or complicating tax management are not direct benefits of lowering transaction costs. Hence, the focus on net returns makes the assertion that improving financial outcomes directly ties to reducing these costs the most relevant and significant benefit.