The rapid rise of index-tracking funds saw a new high in 2019 with more than £18bn invested, double the previous year.

According to new figures from fund manager trade body the Investment Association, a record £18.1bn was placed in tracker funds in 2019.

This was up nearly 70% on 2017’s £10.8bn and twice that of 2018.

Overall UK savers invested £15bn into the UK retail fund market, double the previous year.

Key highlights in 2019 were:

•  The amount managed in funds on behalf of UK savers grew to new heights of £1.3 trillion as global markets recovered but there was £3.2bn in outflows from active funds in 2019

• Half of the £18.1bn net retail flow into tracker funds went to equity trackers (£8.9bn)

• £1.3bn of net retail sales flowed into responsible investment funds in the final quarter of 2019, up from £190m in the first quarter of 2019

Chris Cummings, chief executive of the Investment Association, said: “Amid significant political uncertainty and challenging economic headwinds globally, the amount managed in funds on behalf of UK savers grew to new heights of £1.3 trillion.

“As global stock markets climbed, many savers swung heavily behind tracker funds in 2019.

“We also saw investors ramping up the hunt for funds that consider the impact of their investment strategy on the wider world, as they ploughed £1.3bn into responsible investment funds in the final quarter of the year alone.”