Investors have poured £650m into UK All Companies funds in March, making it the most popular sector for the first time since December 2013, Investment Association figures show.
The inflows helped create record net retail sales of over £4bn in March with £1.7bn going into tracker funds, the highest level since June 2013.
First quarter net flows totalling £6.6bn represent the highest level since Q1 2014.
Within UK equities tracker funds took the bulk of inflows with £596m compared to £328m in active funds.
IA chief executive Chris Cummings says: “We are now starting to see some signs of investor confidence returning following a period of reduced risk appetite in the context of geopolitical and economic uncertainty throughout 2016.”