The world’s second-largest asset manager has slashed the cost of fund investing, in a record move that is expected to save investors more than $350 million this year alone.

Asset manager Vanguard said on Monday it was lowering the cost of investing across its fund lineup in its largest cut ever and estimated that this would translate into savings of more than $350 million for its investors this year.

Even if they don’t race to the bottom on price, active managers, in particular, still need to ensure their prices are fair and that they offer something that can’t be replaced with passive.

The Pennsylvania-based fund giant stands to gain ground against rivals such as BlackRock while earning more goodwill from retail investors.

Malvern-based Vanguard is pricing active funds cheaper as it competes with Schwab, Fidelity, and other mass-market money managers.

The next leg of the price war toward 0% fees for investors has begun to unfold in the growing world of exchange-traded funds. The Vanguard Group, the world’s second-largest asset manager, this week slashed the cost of investing in its funds,

Vanguard on Monday announced reductions to the management fees of 87 investment funds, reportedly the largest such cuts in company history.

Vanguard just announced its largest fee cut in the asset manager's history, which is great news for investors. Here's what you need to know.