Lower fees have helped funds that track stock indices soar a stunning 780% in 2005, compared with a 52% jump for actively managed funds in Europe, according to Feri Fund Market Information. "The pace of sales has really picked up," Feri managing director Diana Mackay told Bloomberg News. "Passive funds have a popularity because they're easy to understand." And lower fees haven't hurt either. For example, Fidelity International, the U.K. sister of Fidelity Investments, slashed its charge for its Moneybuilder U.K. Index Fund by 80% in September to a mere 10 pounds per 10,000 pounds invested. Richard Wastcoat, who runs Fidelity in the U.K., explains in an interview with Bloomberg News, "We deliberately undercut rivals. We wanted to get first-time investors." The fee reduction has resulted in a 20% increase in assets so far.