Top Income Equity Funds

Today we are featuring top-performing “Income" equity mutual funds, which primarily invest in equity securities of companies in search of income.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Income Equity Funds.

3 Solid Samples

Federated Market Opportunity A ( FMAAX) was incepted in December 2000. The investment seeks to achieve moderate capital appreciation and high current income.

The fund invests primarily in equity securities of companies that are undervalued or securities that appear to have low volatility in share price relative to the overall equity market during periods of market turbulence. As of April 2009, its portfolio turnover was 212%.

Shareholders have to make a minimum initial investment of $1,500 to enter this Zacks#1 Rank (“Strong Buy”) fund. The fund has an expense ratio of 1.25%.

Steven J Lehman has been lead manager of the fund since December 2000. Lehman is a Chartered Financial Analyst and has been with Federated since May 1997.

Forester Value Fund (FVALX) seeks maximum long term capital growth. The fund primarily invests in stocks of large U.S. companies that it believes are undervalued and have great appreciation potential.

The fund places special focus on companies whose current market prices are low in relation to earnings and have great appreciation potential. The fund has an expense ratio of 1.35%.

The fund distributes dividends and capital gains annually. As of June 2009, its portfolio turnover was 269%.

Thomas H. Forester has been lead manager of the fund since September 1999. Forester is a Chartered Financial Analyst and has been president of Forester Capital Management since its inception.

UBS PACE Alternative Strategies A (PASIX) was incepted in August 2000. The fund seeks to track the investment performance of the Standard & Poor's 500 Composite Stock Price Index ('S&P 500 Index'), which emphasizes securities issued by large U.S. companies.

At least 95% of the total fund's assets are usually invested in stocks of companies included in the S&P 500 Index. The S&P index is often considered to be the performance benchmark for U.S. stock market performance in general. However, there is no assurance that the fund will track the performance of the S&P 500 Index perfectly.

The fund distributes dividends to shareholders twice a year. Capital gains, if any, are distributed annually.

Dennis M. Bein has been lead manager of the fund since April 2006. Bein joined Analytic Investors 12 years ago and hold the Chartered Financial Analyst Degree.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.