Net retail sales of passive tracker funds hit a record £590m during October, according to the Investment Management Association - the highest level since July, when net retail sales hit £558m.
Tracker fund assets under management totalled £89.3bn at the end of October 2014, taking their overall share of industry funds under management to 10.9 per cent - their highest level to date - up from 9.7 per cent in October 2013.
Tracker fund provider Legal & General Investment Management predicts tracker funds' share will continue to grow significantly, reaching 19 per cent of industry funds under management by 2020.