Equity funds whose primary objective is income generation offer an additional choice to investors who choose regular income over long term-capital appreciation. A portfolio holding debt as well as equity income funds are also better diversified. This is because the value of the underlying equity securities is dependent on the particular industry which they represent. 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, investors can click here to see the complete list of funds.
AllianceBernstein Value Fund A (ABVAX) invests in an equity portfolio consisting of 95 to 150 large cap under-valued U.S. companies. At times, the fund invests in ETFs instead of equity securities. The equity income mutual fund returned 27.35% in the last one year period.
Joseph G. Paul is the fund manager and he has managed this equity income mutual fund since 2009.
Neuberger Berman Equity Income A (NBHAX) seeks total return. The majority of its assets are invested in equity securities which generate income. This includes convertible securities, common stocks and master limited partnerships. The equity income mutual fund returned 10.73% in the last one year period.
The equity income mutual fund has an expense ratio of 1.13% compared to a category average of 1.21%.
Transamerica Partners Large Value (DVEIX) invests in securities via underlying master fund. A large share of its assets is invested in large cap companies and securities having similar economic characteristics. The market cap of the large cap companies should be greater than the market cap of the smallest company listed on Russell 1000 Index. The equity income mutual fund has a five year annualized return of 25.87%.
As of May 2013, this equity income mutual fund held 104 issues, with 4.5% of its total assets invested in Exxon Mobil Corporation
Oppenheimer Capital Income A (OPPEX) seeks total return. Investments are made in both equity and debt securities of both domestic and foreign companies regardless of the market cap. A minimum of 65% of its assets are invested in income generating securities. The equity income fund returned 7.66% in the last one year period.
Michelle K. BorrÃ is the fund manager and she has managed this equity income mutual fund since 2009.
Madison Equity Income A (MENAX) invests in mid cap and large cap equity securities. Companies which have growth potential are also considered for investment. A minimum of 65% of its assets are invested in large cap companies. The equity income mutual fund has returned 9.47% in the last one year period.
The equity income mutual fund has an expense ratio of 1.24% in line with the category average.
To view the Zacks Rank and past performance of all Equity Income mutual funds, investors can click here to see the complete list of funds.
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.
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