In this guide
- 1. How to invest in Moroccan All Shares index funds in 2024
- 2. Where can I invest in the Moroccan All Shares index?
- 3. How do I invest in the MASI index?
- 4. The different ways to invest in the MASI
- 5. How much does it cost to invest in the Moroccan All Shares index?
- 6. Should I invest in the Moroccan All Shares index?
- 7. FAQs
How to invest in Moroccan All Shares index funds in 2024
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It only takes a few minutes to invest in the Moroccan All Shares index. One of the simplest and most popular ways to invest is to buy shares in a Vanguard Moroccan All Shares ETF through an online trading platform.
Where can I invest in the Moroccan All Shares index?
Copy link to sectionAccording to our expert research, Plus500 is the best ETF broker to invest in Moroccan All Shares index funds.
Both Moroccan All Shares ETFs and Moroccan All Shares CFDs are available to invest in through Plus500 .
Here are three more places to buy the Moroccan All Shares, ranked according to their cost, security, and features.
We found 4 online brokers for users based in
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How do I invest in the MASI index?
Copy link to sectionThe easiest way is to sign up to a stock broker, open an investment account, and buy shares in an Moroccan All Shares ETF or CFD. This guide explains how to do it:
Step 1. Sign up to Plus500
Copy link to sectionWe recommend using Plus500 to invest in Moroccan All Shares. Sign up for a brokerage account and deposit some money. You may need to supply a form of photo ID to verify the account.
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Step 2. Decide how to buy Moroccan All Shares
Copy link to sectionThis boils down to choosing between an Moroccan All Shares ETF or CFD. ETFs are generally better suited to investors who want to passively track the Moroccan All Shares’s performance. CFDs offer a greater range of trading options: you can use leverage, short the index, or buy and sell it outside of trading hours.
Step 3. Invest in the Moroccan All Shares
Copy link to sectionSign into your trading account and search for the Moroccan All Shares. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.
Step 4. Monitor your investment
Copy link to sectionWhen you buy a CFD, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.
Your trading account will show the price change in the Moroccan All Shares since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the Moroccan All Shares and close your position, ideally at a profit!
The different ways to invest in the MASI
Copy link to sectionAs we mentioned above, there are numerous ways to put your money into the Moroccan All Shares. ETFs and CFDs are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.
Moroccan All Shares ETFs
Copy link to sectionAn ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.
An Moroccan All Shares ETF is one way of investing in the Moroccan All Shares. It’s simply an investment fund that mirrors the performance of the Moroccan All Shares. When you buy shares in the fund, the value of your investment will rise or fall with the Moroccan All Shares itself.
ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the Moroccan All Shares index, because you can buy or sell shares in the fund throughout the day.
Examples of popular MASI ETFs
- VanEck Africa Index ETF (AFK)
- iShares MSCI Frontier and Select EM ETF (FM)
- FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE)
Moroccan All Shares index funds
Copy link to sectionAn index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the Moroccan All Shares. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.
However, there are a couple of differences. Moroccan All Shares index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in Moroccan All Shares index funds.
That means an Moroccan All Shares mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.
Examples of popular MASI index funds/mutual funds
- JPMorgan Emerging Markets Equity Fund-A JFAMX
- MFS Emerging Markets Equity Fund Class
Moroccan All Shares CFDs
Copy link to sectionCFDs (contracts for difference) are a way to speculate on Moroccan All Shares price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the Moroccan All Shares – but it’s separate from it.
As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.
All of this means Moroccan All Shares CFDs offer the potential to outperform a fund that passively tracks the Moroccan All Shares’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.
Moroccan All Shares futures
Copy link to sectionFutures contracts are agreements to buy or sell the MASI at an agreed price on a set date in the future. Moroccan All Shares futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.
Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.
Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the Moroccan All Shares then you might want to short the Moroccan All Shares so that you still make some money if the price falls.
Moroccan All Shares stocks
Copy link to sectionAnother way to invest in the Moroccan All Shares is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the Moroccan All Shares in order to get broad exposure to its performance.
The most heavily weighted stocks in the Moroccan All Shares tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.
One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.
For the Moroccan All Shares index, the largest stocks you might choose to invest in are:
| Company | Index weight |
|---|---|
| Attijariwafa Bank (ATW) | 13.9% |
| Itissalat Al-Maghrib (IAM) | 9.5% |
| Banque Centrale Populaire (BCP) | 8.1% |
| LafargeHolcim Maroc (LHMT) | 6.8% |
| Bank of Africa (BOA) | 6.2% |
| Taqa Morocco (TQMT) | 4.6% |
| Ciments du Maroc (CMAC) | 4.0% |
| Cosumar (CSRC) | 4.3.7% |
| Société d’Exploitation des Ports (MSAS) | 3.3% |
The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.
How much does it cost to invest in the Moroccan All Shares index?
Copy link to sectionFrom $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD, or share, plus the fees associated with it.
| Instrument | Trading fee | Management fee |
|---|---|---|
| Exchange traded funds | $0-$5.99 | 0-0.2% |
| Index fund / mutual fund | $0-$5.99 | 0.1-2% |
| Individual stock | $0-$3 | None |
| CFD | $0 | None |
*A fee comparison of 3 leading brokers for example purposes
ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.
All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars.
Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.
Should I invest in the Moroccan All Shares index?
Copy link to sectionYes, Moroccan All Shares investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It gives you an instantly diverse portfolio with exposure to a broad area of the stock market.
The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The Moroccan All Shares is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.
What are the advantages of investing in the Moroccan All Shares index?
Copy link to sectionAn index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the Moroccan All Shares index:
- The MASI is a diversified index. Like most indexes, the Moroccan All Shares includes a diverse range of companies from various sectors of the North African economy. This can reduce risk as a decline in one sector may be offset by an increase in another.
- Its diversification has helped keep its performance stable. As previously mentioned, the MASI is well diversified, which has historically helped its price remain fairly stable. In 2022, the banking sector in Morocco was down 10%, but the telecom sector was up 20%. As a result of diversification, the MASI only fell 5% in the same year.
- Morocco has good growth potential. The Moroccan economy has been growing at a steady pace in recent years. In 2022, its GDP grew by 7.7%, which was the highest of any North African country. Any future growth will be reflected in the index performing well.
- MASI is comprised of the best Moroccan companies. The Moroccan All Shares index is comprised of Morocco’s leading companies. Investing in index funds or ETFs that track the index is an easy way to invest in the best Moroccan companies.
What are the disadvantages of investing in the Moroccan All Shares index?
Copy link to sectionThe main risk of investing in the Moroccan All Shares is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of Moroccan All Shares investing.
- Political instability may impact performance. While Morocco is a politically stable country, there is always the risk of political instability, which could negatively impact the index.
- Currency fluctuations may affect returns. The Moroccan Dirham is not a freely convertible currency. This means that fluctuations in its value could impact returns. If the Moroccan Dirham were to devalue against the US Dollar, the value of investments in the MASI would decline.
- It can be a volatile index. The MASI is a volatile index, so it can be difficult to predict future movements. For short-term traders, volatility may be an issue; however, for long-term investors, volatility may not be much of a concern.
FAQs
Copy link to sectionShould I invest in the Moroccan All Shares through an index fund or ETF?
How should a beginner invest in the Moroccan All Shares?
Can I invest in the Moroccan All Shares from the UK?
Does the Moroccan All Shares pay dividends?
Which Moroccan All Shares fund is best?
More indices to invest in
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