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The consumer organisation has warned that such investments are not always as safe as they may seem and can "be confusing, complex and costly."

In a report on structured products the Which? Money team found some products promised to "guarantee" investors' money or offer "100 per cent capital protection", but at the same time provided contradictory information warning investors of the risks if the product provider, or counter party providing the capital protection, failed.

James Daley, editor of Which? Money, said: "When stock markets are falling and banks are going bust the offer of a guarantee on your savings or investments can be very appealing, but guaranteed investments are not always what they appear to be.

"Although not all protected investments are bad news, phrases such as 'capital guarantee' and '100 per cent protection' are bandied around far too often and do not stand up to scrutiny.

"We would advise people to beware of products which make such a bold claim, unless they are backed by the government."

In response to Which? Money's report Marc Chamberlain, executive director of Morgan Stanley, said a lot of progress had been made in the market.

He said: "The market has become in the last nine months a lot more transparent. I think everyone is naming counterparties and highlighting the risk.

"We have been doing products for the last six months backed by the government. We have been doing products whereby the credit risk element, or the return of the capital is provided for with gilts, so people are doing that.

"Individuals have a different market view and an attitude to risk. There are a lot of products out there but I think they are products that will be right for certain people at certain times. It is key that these products are advised sales."

Jo Roberts, director of Staffordshire-based IFA Needanadviser, said she was not a big fan of structured products and agreed with some of the observations made by Which?.

She said: "I do not like structured products at all. They tend to be quite complicated in their make up and trying to get Joe Public to understand them is very difficult, so unless it is a straightforward product with a guarantee, clients always misinterpret the risk."

Ms Roberts said she had met one client who had invested £30,000 in the belief that it was guaranteed and then they were left with £3,000.

She said: "This happened before she was my client, but since I heard that I have always been very wary."