N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06111

The Mexico Equity and Income Fund, Inc.

(Exact name of registrant as specified in charter)

615 East Michigan Street

Milwaukee, WI 53202

(Address of principal executive offices) (Zip code)

Mr. Gerald Hellerman

C/O U.S. Bancorp Fund Services, LLC

615 E. Michigan Street

Milwaukee, WI 53202

(Name and address of agent for service)

866-700-6104

Registrant's telephone number, including area code

Date of fiscal year end: 7/31/2006

Date of reporting period: 10/31/2005

Item 1. Schedule of Investments.

THE MEXICO EQUITY AND INCOME FUND, INC.
Schedule of Investments (unaudited)		October 31, 2005
MEXICO - 99.80%	Shares		Value
COMMON STOCKS - 97.93%
Cement - 10.02%
Cemex, S.A. de C.V. CPO	901,937	#	4,693,869
Grupo Cementos de Chihuahua, S.A. de C.V.	350,000		953,410
			5,647,279
Communications - 16.82%
America Movil, S.A. de C.V. - Class L	2,864,100		3,752,235
America Movil, S.A. de C.V. - Class L ADR	114,070		2,994,338
America Telecom, S.A. de C.V. - Class A1*	686,000		2,734,968
			9,481,541
Construction - 6.53%
Carso Infraestructura y Construccion, S.A.*	2,208,800		1,646,540
Empresas ICA, S.A. de C.V.*	5,230,500		2,031,968
			3,678,508
Financial Groups - 2.05%
Grupo Financiero Banorte, S.A. de C.V. - Class O	135,600		1,156,161
Food, Beverage, and Tobacco - 12.42%
Alsea, S.A. de C.V.	980,953		2,457,499
Alsea II, S.A. de C.V. - Class A^	29,441		65,512
Embotelladoras Arca, S.A.	230,000		501,349
Fomento Economico Mexicano, S.A. de C.V. UBD	205,723		1,396,982
Gruma, S.A. de C.V. - Class B	693,200		1,800,244
Grupo Modelo, S.A. de C.V. - Class C	254,500		781,280
			7,002,866
Housing - 16.05%
Corporacion GEO, S.A., de C.V. - Class B*	785,200		2,428,656
SARE Holding, S.A. de C.V. - Class B*	4,408,806		4,537,365
Urbi, Desarrollos Urbanos, S.A. de C.V.*	325,400		2,081,739
			9,047,760
Industrial Conglomerates - 10.77%
Alfa, S.A. - Class A	107,400		624,156
Grupo Carso, S.A. de C.V. - Class A1	338,000		721,723
Industrias CH, S.A. - Class B*	1,012,400		2,112,002
Mexichem, S.A. de C.V.	2,090,000		2,616,012
			6,073,893
Media - 9.51%
Groupo Televisa, S.A. ADR	25,100		1,834,810
Grupo Televisa, S.A. CPO	966,100		3,524,736
			5,359,546
Mining - 4.85%
Grupo Mexico, S.A. de C.V. - Class B	1,417,800		2,735,563

THE MEXICO EQUITY AND INCOME FUND, INC.
Schedule of Investments (unaudited) (continued)			October 31, 2005
COMMON STOCKS (continued)	Shares		Value
Retailing - 6.03%
Wal-Mart de Mexico, S.A. de C.V. - Class V	695,984		3,398,774
Transportation Sector - 2.88%
Grupo Aeroportuario del Sureste, S.A. de C.V. - Class B	499,300		1,625,370
TOTAL COMMON STOCKS (Cost $46,427,339)			55,207,261
CORPORATE BONDS - 1.58%	Titles
TVACB-04, 12.1800%, 12/15/2011^	11,265,000	$	891,152
TOTAL CORPORATE BONDS (Cost $1,000,000)			891,152
INVESTMENT COMPANIES - 0.29%	Shares
GBM Fondo Corporativo de Liquidez Inmediata, S.A. de C.V.
SIID para Personas Morales - Class B*	1,026,879		161,989
TOTAL INVESTMENT COMPANIES (Cost $159,159)			161,989
TOTAL MEXICO (Cost $47,586,498)			56,260,402
UNITED STATES - 0.24%
INVESTMENT COMPANIES - 0.24%
First American Treasury Obligations Fund, 3.1206% - Class A	134,562	$	134,562
TOTAL UNITED STATES (Cost $134,562)			134,562
TOTAL INVESTMENTS - 100.04% (Cost $47,721,060)			56,394,964
OTHER LIABILITIES IN EXCESS OF ASSETS - (0.04)%			(22,194)
TOTAL NET ASSETS - 100.00%		$	56,372,770
Footnotes and Abbreviations
* - Non-Income producing security.
ADR - American Depository Receipts.
^ - Fair valued security.

The cost basis of investments for federal income tax purposes at October 31, 2005 was as follows:
Cost of investments*	$47,706,719
Gross unrealized appreciation	9,173,972
Gross unrealized depreciation	(485,727)
Net unrealized appreciation	$8,688,245
* Tax adjustments are calculated annually at July 31, 2005.

For certain federal income tax information, as well as other information regarding securities valuation and other significant accounting policies, please refer to the footnotes to the Fund’s most recent semi-annual or annual report.

Item 2. Controls and Procedures.

(a)   The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)   There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The Mexico Equity and Income Fund, Inc.                 

By (Signature and Title) /s/ Maria Eugenia Pichardo                     

Maria Eugenia Pichardo, President

Date December 19, 2005                                                            

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title) /s/ Maria Eugenia Pichardo                    

Maria Eugenia Pichardo, President

Date December 19, 2005                                                            

By (Signature and Title) /s/ Gerald Hellerman                              

Gerald Hellerman, Chief Financial Officer

Date December 19, 2005                                                            

EX-99.CERT

CERTIFICATION

I, Maria Eugenia Pichardo, certify that:

1.   I have reviewed this report on Form N-Q of The Mexico Equity and Income Fund, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.   The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 19, 2005	/s/ Maria Eugenia Pichardo
	Maria Eugenia Pichardo President

CERTIFICATION

I, Gerald Hellerman, certify that:

1.   I have reviewed this report on Form N-Q of The Mexico Equity and Income Fund, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.   The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 19, 2005	/s/ Gerald Hellerman
	Gerald Hellerman Chief Financial Officer