IMA statistics reveal tracker funds have been on an upward trend relative to the rest of the industry for the last couple of years. As at the end of September 2012 such investments represented 7.6 per cent of total funds under management in the UK at £47.7bn.

Broadening the outlook from index trackers to exchange traded products and there’s an increasingly huge breadth and depth of passive products available, with almost 2,000 ETFs and ETPs registered in Europe, currently representing assets of £207bn from 46 providers.

This guide examines such subjects as the advantages and disadvantages of passive investing, how costs differ from actively invested funds and how advisers can compare similar products.

Answers provided by Phil Reid at HSBC Global Asset Management; Deborah Fuhr, partner at ETFGI; and Nick Blake, Head of Retail at Vanguard Asset Management.