Journal of Banking & Finance Vol. 27 No. 7 2003
Should you carry the load? A comprehensive analysis of load and no-load mutual fund out-of-sample performance
Abstract
This paper compares the out-of-sample performance of no-load and load mutual funds. Unlike previous studies, this paper provides a more comprehensive analysis as it uses methodologies to incorporate loads directly into the returns. We find two important results. First, after adjusting for loads in the returns data, no-load funds are found to perform much better than load funds, with the differences found to be significant at the 1% level across many different performance metrics. Second, we find that within load funds themselves there is little significant difference in out-of-sample performance between high-load funds and low-load funds even after adjusting for loads.
- DOI
- 10.1016/s0378-4266(02)00256-x
- Volume
- 27
- Issue
- 7
- Pages
- 1245-1271
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref