The inverter fuse serves two purposes: to protect the inverter and to protect the wire. The only way to protect the wire is to install the fuse as close to the battery as possible. As you may or may not know, not all fuses are equal and there are different fuses for different uses. In the case of an inverter, you need to use a class T fuse (a high amperage, extremely fast short circuit response) with the amp rating recommended by the manufacturer. Also be aware that not all fuses are ignition protected. An ignition protected fuse is required in areas where a spark may start a fire. A good example of where a ignition protected fuse is required is in a gasoline engine room.