How does one compare index-tracking ISAs?

[fivemack]

The aim is, in the further reckless pursuit of responsible frugality, to put £100 monthly into an index-tracking ISA. I presume that I can do this despite having put £3000 into a mini cash ISA this tax year.

So I google for 'index-tracking ISAs', and get the impression that these are less well-catalogued by independent sources than cash ISAs; fool.co.uk has a list of index-tracking ISAs consisting entirely of sponsored links. Google is a little better, and I come up with a few fund-management companies and grovel around further.

M&G Index Tracker A	0.30% annual charge	Tracks FTSE All-Share; "dividend type: distributing"; "regular saving scheme: yes"
L&G UK Index	0.53% annual charge	Tracks FTSE All-Share; doesn't say anything about dividends
Fidelity Moneybuilder UK Index Fund	0.1% management charge	Tracks FTSE All-Share; doesn't say anything about dividends; minimum investment "500, top-up 250"

This would seem to be an easy decision, so I must be missing something. I can't work out what 'dividend type: distributing' means: obviously I want dividends to be reinvested.

On a third hand, given how the pricing of computers and cameras has historically behaved just after I finally decide to buy them, and how the pricing of equities has historically behaved just after I lose confidence and sell everything, maybe I should stay in cash until the unprecedentedly well-correlated set of handbaskets that seem to be making up the international markets proceed up the roller-coaster


to that place where all handbaskets are proverbially destined.

Comments

[fivemack.livejournal.com]

Friends Provident seem to want to sell me life insurance or a pension - I've already got a pension, and life insurance seems unnecessary if I have no dependents. Their Web site raises innavigability to an art form, and whilst their list of funds (PDF) (http://www.friendsprovident.co.uk/doclib/xinv16e.pdf) has an attractive picture of a respectable-looking white-haired gent relaxing in a rowing boat on the cover, it also indicates that they want to charge 1.35% annually for the privilege of owning their UK index tracker.

Bonds seem to have no advantage over keeping the money in good savings accounts in the current market, though I suppose 3.65% tax-free (http://www.nsandi.com/products/fisc/rates.jsp) actually means 6.08%. But I would not be amazed if interest rates rose to the point that a best-buy Internet savings account paid more than 6.08% by 2009.

Not babooning.