Performance of Canadian Mutual Funds and Investors

Posted: 25 Aug 2004

See all articles by Rajeeva Sinha

Rajeeva Sinha

University of Windsor - Odette School of Business

Vijay M. Jog

Carleton University - Eric Sprott School of Business

Date Written: August 17, 2004

Abstract

The study examines the performance of a comprehensive sample of Canadian open end equity mutual funds and investors. Our results show that while majority of funds do outperform their chosen benchmarks, the performance is lackluster in comparison to some well recognized bench marks like the TSE 300 and the 90 day T-Bill rates. These returns are even lower when one accounts for the timing of entry and exit by mutual fund investors. We also find that returns of mutual funds are adversely affected by active trading. Advisory and non advisory expenses are negatively related to performance. Accordingly, we conclude that investors are likely to be better off by following a passive and indexed based investment approach in the long term.

Keywords: Open end mutual funds, Mutual funds performance, Investor returns

JEL Classification: D14, G23

Suggested Citation

Sinha, Rajeeva and Jog, Vijay M., Performance of Canadian Mutual Funds and Investors (August 17, 2004). Available at SSRN: https://ssrn.com/abstract=581443

Rajeeva Sinha (Contact Author)

University of Windsor - Odette School of Business ( email )

401 Sunset
Windsor N9B 3P4, Ontario
Canada
519-253-3000 Extn. 3124 (Phone)
1-519-973-7073 (Fax)

HOME PAGE: http://www.uwindsor.ca/sinha

Vijay M. Jog

Carleton University - Eric Sprott School of Business ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S SB6
Canada
613-520-2600 (Phone)
613-520-4427 (Fax)

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