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Top 5 Equity Income Mutual Funds
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ShareEquity funds whose primary objective is income generation offer greater choice to investors who choose regular income over long term-capital appreciation. A portfolio providing income as well as holding equities also offers better diversification. A steady income stream from regular dividends also helps to soften the impact of falling stock prices. Funds holding income generating equity securities offer a convenient route to investors looking to hold a well diversified portfolio.
Below we will share with you 5 top rated equity income mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all equity income funds, then click here.
Fidelity Equity-Income (FEQIX) seeks income with a secondary objective of capital growth. The majority of the fund’s assets are invested in equity securities which generate significant income. It seeks to acquire large cap value stocks and purchases both domestic and foreign securities. The equity income mutual fund returned 13.16% in the last one year period.
As of October 2010, this equity income mutual fund held 199 issues, with 2.90% of its total assets invested in J.P. Morgan Chase & Co.
Parnassus Equity Income (PRBLX) invests at least 75% of its assets in equity securities which generate income from regular dividends. The fund holds a wide range of equity securities such as common and preferred stocks and related convertible securities. The equity income mutual fund has a five year annualized return of 6.81%.
Todd C. Ahlsten is the fund manager and he has managed this equity income mutual fund since 2001.
Neuberger Berman Equity Income A (NBHAX) seeks total return. The fund invests a large share of its assets in equity securities which generate income. This includes convertible securities, common stocks and master limited partnerships. The equity income mutual fund returned 23.62% in the last one year period.
The equity income mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.16% compared to a category average of 1.38%.
American Funds Income Fund of America A (AMECX) invests heavily in dividend paying securities. It uses at least 60% of its assets to purchase equity securities but may also invest in debt. Not more than 25% of its assets may be invested in foreign securities excluded from the S&P 500 Composite Index. The equity income mutual fund has a ten year annualized return of 5.71%.
Abner D. Goldstine is the fund manager and he has managed this equity income mutual fund since 1973.
Alpine Dynamic Dividend (ADVDX) seeks high current income from dividends as well as capital appreciation over the long term. The majority of the fund’s assets are invested in domestic and foreign companies that pay out regular dividend income. The equity income mutual fund returned 12.72% in the last one year period.
The equity income mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.18% compared to a category average of 1.13%.
To view the Zacks Rank and past performance of all equity income mutual funds, then click here.
About Zacks Mutual Fund Rank
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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.
Read the full analyst report on FEQIX
Read the full analyst report on PRBLX
Read the full analyst report on NBHAX
Read the full analyst report on AMECX
Read the full analyst report on ADVDX
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| Market Summary | May 26, 2012 09:02 am ET |
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