Fidelity has renamed its Income Plus fund and is to include it in its low cost MoneyBuilder range.

The fund will be rebranded as the Fidelity MoneyBuilder Dividend fund from 28 September and will continue to be managed by Michael Clark.

The equity income fund's initial charge will be reduced to 0 per cent from its current level of 3.5 per cent, the annual management charge will remain at 1 per cent.

The fund's strategy will remain the same, investing in a portfolio of  companies able to deliver consistent dividend growth.
 
Gary Shaughnessy, UK managing director at Fidelity International, said, 'Many investors underestimate the importance of dividends to the growth potential of their investments.

'Reinvesting the dividends from investments can make a significant difference to capital returns thanks to compounding.'

Michael Clark added, 'I am confident that my approach can continue to provide good returns, particularly given the challenging economic backdrop facing the UK.

'Moreover, equities are relatively cheap right now as sentiment has become depressed due to macroeconomic concerns.'

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