Inflation Hedging in Defined Contribution Pension plan by Investing in Tehran Stock-Exchange

Zobeiri, Hoda; Motameni, Mani

doi:10.29252/jemr.10.40.67

Volume 11, Issue 40 (6-2020) jemr 2020, 11(40): 67-98 | Back to browse issues page

‎ 10.29252/jemr.10.40.67

‎ 20.1001.1.22286454.1399.10.40.1.0

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Zobeiri H, Motameni M. Inflation Hedging in Defined Contribution Pension plan by Investing in Tehran Stock-Exchange. jemr 2020; 11 (40) :67-98
URL: http://jemr.khu.ac.ir/article-1-1862-en.html

Inflation Hedging in Defined Contribution Pension plan by Investing in Tehran Stock-Exchange

Hoda Zobeiri ^*

¹, Mani Motameni²

1- University of Mazandaran , hoda.zobeiri@gmail.com
2- University of Mazandaran

Abstract: (4339 Views)

Due to pension fund problems in Iran, the multi-pillar social insurance system has been released in 2017. According to this, the first pillar is regarding to low income groups and finance through the public fund. The second pillar is defined benefit and finance pay as you go. The third pillar is defined contribution and fully funded finance. Contributions are transferred to the individual account. The pension fund directors supposed to investments the accounts and to return the Contribution fund and its returns in retirement time. The main issue is that the old age pensions are not guaranteed in this plan and face with financial risk and inflation. Due to high inflation of Iran’s economy, the main challenge of third pillar plan is the inflation. This paper is main to inflation hedging in defined contribution pension plan by Investing in Tehran Stock-Exchange. By using NARDL model and 133 monthly data up to 2020 the results show that TSE index can hedge the inflation.

Keywords: Pension Fund, Iran, Stock-Exchange, Inflation

Full-Text [PDF 1732 kb] (2101 Downloads)

Type of Study: Applicable | Subject: سایر
Received: 2019/09/20 | Accepted: 2020/07/1 | Published: 2020/09/22

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