Net retail sales of tracker funds hit a record high of £1.9bn last year, up some £200m on 2010, according to the Investment Management Association (IMA).
Funds under management in the funds of funds category also broke records, reaching £60.2bn, an increase of nearly £4bn from 2010. Net retail sales were the second highest on record though, down on 2010's £6.5bn.
Richard Saunders [pictured], IMA CEO, said: "Funds tracking equity indices accounted for 8% of total equity fund sales, the highest level since 2003," he said.
He added trackers' share of total funds under management was also the highest on record at 6.8%.
Investors added £5.2bn of funds of funds to their portfolios in 2011.
Saunders said: "In gross sales terms, £1 in every £9 invested in funds was invested in funds of funds. Funds of funds also saw their highest ever share of total funds under management, over 10% at the end of 2011."
The Cautious Managed sector of funds of funds was the most popular in 2011, accounting for £1.4bn of net retail sales - a fall of £400m in 2010. Balanced Managed brought in £745m, with the Strategic Bond sector the third most popular with £341m.
Sales of ethical funds fell to £201m in 2011, from £297m in 2010.
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