With investors consistently and rather alarmingly rushing to the exits of equity mutual funds ever since the May 6 Flash Crash-shareholders have yanked $72.9 billion out of stock funds-asset managers are aggressively reducing fees at an unprecedented rate.

Now that some of the biggest names in the mutual fund industry have started shaving fees, the trend is likely to continue, especially because investors' risk appetite doesn't appear to be returning anytime soon (see "Less Than One-Third of Investors Ready for Risk," page 4).

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