This is not your father's equity-income fund.
The beauty of an equity-income fund is that it's a two-fer--investors get the benefit of investing in a company that not only looks promising, but also pays a dividend.
The FAM Equity-Income Fund (FAMEX) isn't your ordinary equity-income fund. For starters, it's a concentrated fund that currently has about 31 stocks in its portfolio. Second, all companies must pay a dividend, even if it's only one penny each quarter. Finally, since the fund's inception in 1996, about 15 percent of its assets have been in cash, primarily because the fund's managers are picky about what stocks make it into the portfolio and are disciplined in waiting for companies to hit the buy price. "My job is to take as much risk out of the investment process as I possibly can," says Paul Hogan, co-manager of the fund.
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