Univrsity Of Tehran Press Financial Research Journal 1024-8153 19 3 2017 09 23 Dynamic Relations between Aggregate Mutual Fund Flows and Tehran Stock Exchange’s Index:A Hidden Co-integration Approach Dynamic Relations between Aggregate Mutual Fund Flows and Tehran Stock Exchange’s Index:A Hidden Co-integration Approach 439 456 66361 10.22059/jfr.2018.242980.1006527 FA Mohammad Rostami Assistant Prof. in Financial Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran Fatemeh Tajeddin MSc.in Financial Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran Journal Article 2017 10 03 With regard to the prominent role of mutual funds in financial markets, this study aims to examine the relationship between the mutual fund flows and the index of Tehran Stock Exchange (TEDPIX). For this purpose, the researchers used the daily data of 90 mutual funds during the period from March 2011 to March 2016 through <strong><em>"</em></strong>hidden co-integration approach and CECM. The study’s contribution is the implementation of hidden co-integration technique which­ enables researchers to identify the reaction­ of heterogeneous changes amongst two time series. Although, the results showed a hidden ­co-integration relationship between time series of mutual fund flows and TEDPIX, the findings of the study did not approve the standard co-integration relation amongst two time series. More specifically, there is a long-run relationship between positive components of flows and indexes, and another long-run relationship between the negative components and indices. <br />  <br />  With regard to the prominent role of mutual funds in financial markets, this study aims to examine the relationship between the mutual fund flows and the index of Tehran Stock Exchange (TEDPIX). For this purpose, the researchers used the daily data of 90 mutual funds during the period from March 2011 to March 2016 through <strong><em>"</em></strong>hidden co-integration approach and CECM. The study’s contribution is the implementation of hidden co-integration technique which­ enables researchers to identify the reaction­ of heterogeneous changes amongst two time series. Although, the results showed a hidden ­co-integration relationship between time series of mutual fund flows and TEDPIX, the findings of the study did not approve the standard co-integration relation amongst two time series. More specifically, there is a long-run relationship between positive components of flows and indexes, and another long-run relationship between the negative components and indices. <br />  <br />  https://jfr.ut.ac.ir/article_66361_0c3af7dcb1f3a5f540893f3b629f3e5f.pdf