The average UK fund returned less than the FTSE 100 and FTSE All Share last year, at a time when the best performers tended to be invested in Japan, emerging markets or commodities.

Research by fund data firm Lipper reveals that the average UK-domiciled fund returned 19.93% last year to December 23, meaning investors would have been better off investing in a passive product tracking the FTSE 100, which returned 20.25%, or the FTSE All Share, which rose 21.50% over the same period.