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As at 29 September, £61.9bn lay in UK All Companies funds that had outperformed the FTSE All-Share over one year, while £31.2bn had been invested in funds that had underperformed.

However, just £40bn sat in UK All Companies funds that had outperformed the FTSE All-Share over three years, compared with £46.5bn in underperforming portfolios.

Over longer periods, this gap turned into a gulf, with £30.2bn in funds that had outperformed the index over five years against £48bn in funds that had undershot the target.

Kevin Tooze, managing director of Essex-based IFA Equity Partners, said the findings did not surprise him. He said investors were increasingly keeping broadly diversified core holdings and moving in and out of regional or specialist sectors such as UK All Companies on a satellite basis.

"Things are so much more fluid now. People do hop in and out over one or three years. They look for value, and not necessarily over the long term. Investors have taken a knock by leaving funds in the market for the long term. They are seeking to make a quick profit."

Mr Tooze said the sheer diversity of funds in the sector had added to this tendency, as investors now had a range of areas to choose from, including a number of mid-cap, large-cap, special situations and recovery specialisms alongside growth, value, top-down and bottom-up styles.

He added platforms had also helped investors move between portfolios faster by giving them attractive bid-offer spreads on their switches.

However, Mr Tooze said the short-term performance craze was not a beneficial trend for investors.

"Trying to second-guess the market like that is a dangerous game," he said. "Calling the bottom and the top is the panacea, but it's very difficult."