There has been a rise in passive investors in the current tax year, according to new research into self-invested personal pensions (Sipps) and Isas.
Interactive Investor said that among its clients passives make up three of the five most popular funds in Sipps.
Meanwhile, the online investment service said the top five Isa collectives held are all actively-managed funds, though two of the five most bought this tax year are passives.
On the Sipp side, Interactive Investor found 42 per cent of net fund purchases over the past tax year were in passive funds. Meanwhile, 25 per cent of net Isa fund purchases have been passives over the same period.
An Interactive Investor spokesman said: "Looking at the most popular funds bought over the past few years, this represents a considerable shift towards low-cost passive options."
Interactive Investor reported that in a “very volatile year for markets”, investors have been split when it comes to tax-wrapped fund investments - either choosing high-profile, active fund managers, or low-cost index funds.
Rebecca O’Keeffe, head of investment at Interactive Investor, said: “In theory, in a low interest, low return environment, where returns to active management may be less than the additional management costs, low-cost options such as tracker funds or ETFs make good sense.
“In contrast, when markets are volatile, there are good reasons for preferring active management where there is scope for a manager to add value by choosing which sectors and stocks to hold.”
Interactive Investor's assets under administration were £3bn on 31 August 2015, up by more tha 80 per cent from £1.64bn on 31 March 2014.