According to the report from financial advisory firm deVere Group, 68% of all new clients who sought advice in the first four months of this year ‘lacked any truly beneficial diversification in their portfolios’.

Nigel Green, chief executive of the deVere Group, said: “It’s extremely concerning that our advisers have reported so few investors when they first came to us had a well-diversified portfolio.”

The report highlighted that a significant number of investors were over-exposed to bank deposits.

Green said: “Lessons need to be learned from what has happened since the start of the global crash and more recently in Cyprus.

“Perspectives need to be broadened as bank deposits are not as safe as they once were, especially as a growing number of countries – including Switzerland once arguably the world’s ultimate safe banking haven – have changed or are in the process of changing their laws to enable depositors’ funds, over a certain level, to be raided should a bank and/or wider system face collapse.

“Certainly, in today’s world, leaving more than around £80,000, or the equivalent of that, in an account in any one institution, is not something we typically would advise.”

The current low interest rate environment coupled with rising inflation is another concern, and investors are being advised to reduce the amount of cash in their portfolios.

Greed added: “Are bank deposits safe? Most of the time, yes; but it is vital that nowadays you are not over exposed to them because when they’re not safe, you could stand to lose a great deal fast. Now more than ever, investors need to strategically spread risk.”