We study the behavior of mutual fund investors with a specific focus on fund flows - performance relationship. Using a comprehensive survivorship bias free sample of Canadian open-end equity mutual funds and panel data analysis we find evidence of a rational response of fund flows to upside and...

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...