The Australia and New Zealand Banking Group (ASX: ANZ) share price has now fallen 35% in 12 months. Look out below!

Source: Google finance

Source: Google finance

As can be seen above, it’s been an uncomfortable 12 months for holders of ANZ Banking Group shares. Indeed, with ANZ’s share price having underperformed the market – or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) – by around 17%, investors will likely be asking themselves if it’s time to get out.

Should you sell your ANZ shares?

ANZ shares have been on a tumultuous ride in recent times. However, it’s important shareholders focus on ANZ’s underlying business and make an investment decision given the risk-adjusted returns on offer. After all, share prices are almost always volatile and inherently riskier than other forms of investment.

The only way to determine their true value is to conduct rigorous due diligence and analysis on the shares. Only then can you make an informed buy or sell decision.

Foolish takeaway

We’ve warned for many years that the banks are facing significant headwinds. But despite the ANZ share price falling hard, I think there could be more pain in store. While the risk-reward proposition has improved over the past year, I think it’d be wise for shareholders to reassess their weighting in all bank shares. In my book, ANZ is a hold — at best.

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Motley Fool writer/analyst Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.