Investors seeking regular income flows and having the willingness to forgo capital growth often select equity funds promising income for their investment needs. The presence of both debt and equity income funds in a portfolio also increases diversification. Further, equity income funds provide a steady and regular income stream from dividends which can go a long way in healing losses made by falling stock prices. Equity income funds provide investors with a convenient method of holding a diversified portfolio which generates a regular income stream.
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.
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 7.25% in the last one year period.
Michelle Borré is the fund manager and she has managed this equity income mutual fund since 2009.
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 35.33% in the last one year period.
The equity income mutual fund has an expense ratio of 1.11% compared to a category average of 1.15%.
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 9.83% in the last one year period.
As of July 2013, this equity income mutual fund held 116 issues, with 2.54% of its total assets invested in General Dynamics.
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 33.68%.
Martha Ortiz is the fund manager and she has managed this equity income mutual fund since 2009.
Madison Equity Income A (MENAX) seeks steady constant returns and high income from option premiums. The fund invests in mid cap and large cap equity securities. Companies with 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 10.27% in the last year.
The equity income mutual fund has an expense ratio of 1.24% compared to a category average of 1.23%.
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.
Read the analyst report on OPPEXRead the analyst report on ABVAXRead the analyst report on NBHAXRead the analyst report on DVEIXRead the analyst report on MENAX
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