IFA BestInvest claims the performance of investment funds offered over the counter at high-street banks is well below average.
It looked at the record of 39 high-street banks' funds in the UK all companies sector over the past five years and found they suffered poor performance.
It found investors had only a one in 10 chance of choosing a top-quartile fund and a 40 per cent chance of languishing in the third quartile. Over 60 per cent of banks' funds underperformed the sector average.
BestInvest says the huge marketing advantage held by the banks means the public often look no further when choosing an investment.
The IFA claims the banks know who has cash to invest and cross-sell on statements, in their branches and through websites. But this promotion does not equate to strong performance.
BestInvest deputy managing director Jason Hollands says: “Banks have made such a hash of actively man-aging money that many of them have thrown in the towel and are focusing on index funds or contracting out investment management to other companies. Clearly, investors could do much better by taking independent advice and selecting from the entire market.”