investigating the relationship between mutual funds flows and the stock index in tehran stock market

the purpose of this study is to investigate the relationshipbetween the mutual funds flows and the return of stock index using 65mutual funds in the period of 2008 to 2011.in this study, the dailychanges of the total number of units of mutual funds and the changesof the total values of units of mutual funds were considered as acriteria for the net of mutual funds flows. the results of johansen testshow that the series are integrated and there is a significantrelationship between the total net of mutual funds flows and the indexof tehran stock market in a long term period. after running thegranger causality test, the results indicated that there is a mutualcausal relationship between the total number of units of mutual fundsand the index. the same relationship is seen between the changes oftotal values of units of mutual funds and the index.