COMMENT
Why Index-Tracking ISAs Are Good For You

I've been paying to an index-tracking equity ISA for nearly five years and, rather pleasingly, it's got quite a lot of money in it these days. I've got so used to steadily drip-feeding money in on a monthly basis that I don't even really notice it going out of my bank account. And, of course, there's the added bonus of the tax-free status that ISAs offer.

You might think that working for the Fool that I would have opted for a Self-Select ISA so that I could buy and sell my own shares. Not so. I had a little go at buying my own shares once upon a time and discovered that I'm not at all interested in the following the ins and outs of a handful of individual companies. I'm also utterly hopeless at maths and get no pleasure at all out trying to understand company reports. In fact I find them rather boring -- even if my colleagues do seem to gobble them up for lunch. And don't get me started on choosing a managed fund.

I'm far better suited to understanding general principles rather than the nitty gritty and I came to the conclusion that, as long as I had finger in the overall pie that makes up the stock market, I'd be okay over the long term. Hence the reason I went for an index-tracking ISA. My money simply gets invested in the biggest companies of the countries I'm investing in which gives me real diversification.

So five years ago I signed up for an index-tracking ISA and I've been paying into ever since because it continues to have low management costs, no initial charges and no exit fees. The best thing is that I can manage the whole lot online and can chop and change my monthly payments at the drop of a hat. At no extra cost. I like that sort of flexibility.

Both Fidelity and Legal & General are currently advertising their wares in our ISA centre. You can also check out our index tracker discussion board for more information.