Investors who tend to concentrate on high performance funds could lose out amid a sudden change in the market, warns research by F&C Investments.
Figures have shown that even the highest performing funds will have periods when their methodology "is not in vogue".
Few managers have proved that they perform consistently well across market conditions over the last five years, the study has shown.
Richard Philbin, head of funds of funds at F&C, commented: "A handful of extremely capable fund managers have demonstrated their ability to consistently perform well across a range of market conditions."
He outlined the fact that most funds are unable to deliver consistently due to manager turnover and the fickle nature of investment styles.
Mr Philbin's colleague Dean Cheeseman went on to say that focusing on funds currently topping performance tables is risky because the position can be rapidly reversed with market change.
Poll results released by The Association of Investment Companies (AIC) and Unbiased.co.uk have shown that fund managers are largely optimistic about 2008, while remaining cautious about the ongoing effects of the credit crunch.
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