European investors are increasingly keen on low cost funds that track market indices, instead of paying fund managers to pick stocks and beat the markets, and are particularly attracted to those that track alternative asset classes, according to a new survey.

The French business school Edhec asked 111 asset management firms, pensions funds and family offices whether they expected to use more index tracking funds. In the case of one type, exchange-traded funds, 69% of the investors said they would buy more.