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

Parnassus Equity Income (PRBLX) was incepted in September 1992. The investment seeks current income and capital appreciation.

The fund invests primarily in a diversified portfolio of equity securities which include common and preferred stock as well as convertible bonds. As of March 2009, its portfolio turnover was 70.20%.

Shareholders have to make a minimum initial investment of $2,000 to enter this Zacks#1 Rank (“Strong Buy”) fund. It has topped the total returns of its benchmark index in the last 1-, 3- and 5-year periods.

Federated Equity Income A (LEIFX) seeks above-average income and capital appreciation. The fund focuses on stocks of companies that have the potential to pay high, growing dividends.

The fund ordinarily selects securities that have a comparatively low volatility in share price relative to the overall equity market, but may also invest in companies that offer superior growth prospects.

AT&T Inc. (T), Johnson & Johnson (JNJ) and Wyeth (WYE) are among the fund’s key holdings.

FAM Equity-Income (FAMEX) seeks current income as well as long-term capital appreciation. The fund mainly invests in income-producing stocks that pay dividends.

This open-end, no-load mutual fund pays dividends on a quarterly basis. Capital gains, if any, are distributed in December.

Paul Hogan has managed the fund since its inception in April 1996. It has an expense ratio of 1.40%.

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 new 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.

Zacks Investment Research
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