Strategy And Objective

The Equity Income Fund seeks to provide a high level of total return on its assets with an emphasis on income.The Equity Income Fund will seek to achieve its investment objective through a combination of capital appreciation and current income by investing, under normal market conditions, at least 80% of its net assets in income producing equity securities. Income producing equity securities include, for example, common stock, preferred stock, and convertible securities. In making stock selections, Gabelli Funds, LLC, the Equity Income Fund s adviser (the Adviser ), looks for securities that have a better yield than the average of the Standard and Poor s 500 Index (the S&P 500 Index ), as well as capital gains potential.