Mutual fund investors are better served by following a "buy and hold" investment strategy rather than moving in and out of top performing funds, according to the SEC.

The SEC last week issued a series of tips to investors which warns that factors such as fund expenses and fund size are just as important as short-term performance when deciding whether to buy a fund. In addition, fund investors should not chase recent high returns because gains may be difficult to repeat as a hot-performing fund grows in size, the SEC said.

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