The Comparative Performance of Load and No‐Load Mutual Funds in Canada

Abstract This paper investigates, using both single‐factor and multi‐factor models, the absolute performance of Canadian equity funds and the relative performance of load versus no‐load funds. Consistent with a wealth of other studies, I find that the typical fund manager in Canada is unable to surpass his risk‐adjusted benchmark. Moreover, the advantage possessed by load funds, in being able to undertake fewer liquidity‐motivated trades than …