As you complete levels and gain experience points, you'll have the opportunity to upgrade your characters by purchasing combo moves and other upgrades. Some of the upgrades are Hero-specific, but many are available to all the game's characters; these Fellowship Upgrades show up in the second column on the upgrade screen. In general, if an upgrade is available as a Fellowship Upgrade, you should purchase the Fellowship version rather than the Hero-specific version. More often than not, you'll receive a substantial discount, and on the higher-leveled upgrades, that can be a big deal.
It is worth noting that these combos are extremely important. While you'll be hard-pressed to earn a good rating in most of the levels if you just hack away blindly, effectively using combos will return a hefty reward by making it much easier to go on regular killing sprees of the excellent and perfect variety. You'll then earn more experience, allowing you to purchase even better combos and upgrades.
Eventually, you will likely wind up with enough points to purchase every upgrade available to your Heroes, but some should have a higher priority than others. We've given our thoughts on relative importance in this section.
Fellowship Upgrades can be purchased for your entire party, or for an individual. When purchasing Fellowship Upgrades it is important to always purchase them for the entire party, however, and not for individual members. If you cannot afford to purchase one for the entire party at that time, but you can afford to get it for one individual, then hold off and wait for the end of the next level. You're wasting points otherwise.