Equity Income Funds

These funds seek to provide a high level of current income and income growth
by investing in the stocks of well-established companies that pay substantial
dividends. In addition to common stocks, equity income funds frequently hold
other income-oriented securities, such as long-term corporate bonds, preferred
stocks, and convertible bonds. While income is their primary objective, these
funds also seek to provide a reasonable level of long-term capital growth. Given
their relatively low price volatility (compared to other stock funds), high
dividend yields, and potential for moderate long-term capital growth, equity
income funds are attractive to more conservative and income-oriented investors,
especially retirees.