We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How do I Choose the Best Equity Income Fund?

By Dana DeCecco
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Choosing the best equity income fund might require some research on your part. Equity income funds are available in the form of mutual funds, exchange traded funds and index funds. You also have the option to build an equity income fund by purchasing dividend yielding stocks. To choose the best equity income fund, you will need to consider your financial goals, and you should look at various analysts' scores and rankings of funds. You also might want to consult with a financial advisor.

Dividend income and capital appreciation are two factors to consider when searching for the best equity income fund. The primary objective of the investment is to generate income from dividends. The secondary objective is capital appreciation from the increase in value of the individual stocks.

Financial services websites and fund brokers evaluate various income producing funds. These services provide scores and rankings. Industry analysts take into account performance, risk and expenses to arrive at a list of recommended funds. The investor seeking the best equity income fund may focus on funds paying the highest dividends while providing growth potential.

Several equity income funds focus on dividend income as their primary objective. Mutual funds with dividends being the primary source of total returns might be attractive to investors. Exchange traded funds that focus on dividends are another option.

These types of funds focus on current income and not growth. A solid track record of paying high dividends should be taken into consideration. Short and long-term track records should be examined for performance under various market conditions.

By investing in individual stocks that historically pay high dividends, you can create a portfolio of stocks that provide a source of income. You might want to research blue-chip, low-risk stocks paying the highest dividends. Dividends are generally paid on a monthly or quarterly basis.

The best income equity fund might incorporate a diversified portfolio. Many funds focus on specific stock market sectors. Investing in a specific sector or industry might not provide enough diversity.

Risk management might require a more diversified portfolio. Some income equity funds are focused on level of risk. The risk level associated with the fund might be a major factor in fund selection.

Market fluctuations might cause the equity income fund to be worth more or less than the original cost when redeemed. The collection of dividends might enhance or offset this difference in value. A well diversified portfolio might decrease the risk of fund devaluation caused by negative market fluctuations.

Professional advisors are available to guide you to choose the best equity income fund. You also might decide to purchase a fund through an online broker. If you are an experienced investor, you might prefer to create a fund by investing in dividend-paying stocks.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.