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: 4/30/2006

Item 1. Schedule of Investments.

The Mexico Equity and Income Fund, Inc.
Schedule of Investments	April 30, 2006 (Unaudited)
MEXICO - 98.84%	Shares		Value
COMMON STOCKS - 95.87%
Airlines - 4.86%
Grupo Aeroportuario del Pacifico, S.A. de C.V. - Class B (a)	1,048,600	$	3,478,121
Grupo Aeroportuario del Sureste, S.A. de C.V. - Class B	199,900		773,410
			4,251,531
Cement - 8.24%
Cemex, S.A. de C.V. CPO	598,937		4,047,932
Corporacion Moctezuma, S.A. de C.V.	500,000		1,039,078
Grupo Cementos de Chihuahua, S.A. de C.V.	650,000		2,114,299
			7,201,309
Communications - 13.63%
America Movil, S.A. de C.V. - Class L	413,600		764,230
America Movil, S.A. de C.V. - Class L - ADR	72,670		2,682,250
America Telecom, S.A. de C.V. - Class A1 (a)	1,370,000		8,465,715
			11,912,195
Financial Groups - 4.06%
Grupo Financiero Banorte, S.A. de C.V. - Class O	1,360,400		3,552,343
Food, Beverage & Tobacco - 9.28%
Alsea, S.A. de C.V.	758,994		3,223,196
Gruma, S.A. de C.V.	592,300		1,855,971
Grupo Bimbo, S.A. de C.V. - Class A	968,400		3,029,230
			8,108,397
Housing - 14.13%
Consorcio ARA, S.A. de C.V.	225,900		1,194,662
Corporacion GEO, S.A. de C.V. (a)	1,055,500		3,956,873
SARE Holding, S.A. de C.V. (a)	2,841,306		3,345,129
Urbi, Desarrollos Urbanos, S.A. de C.V. (a)	471,300		3,854,717
			12,351,381
Industrial Conglomerates - 9.22%
Grupo IMSA, S.A. de C.V. UBC	354,000		1,194,660
Industrias CH, S.A. (a)	1,340,100		3,680,961
Mexichem, S.A. de C.V.	2,327,900		3,186,599
			8,062,220
Infrastructure - 12.32%
Carso Infraestructura y Construccion, S.A. (a)	4,236,800		3,081,657
Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)	1,117,650		3,481,958
Grupo Mexicano de Desarrollo, S.A. (a)	64,600		93,391
Impulsora del Desarrollo y el Empleo en America Latina, S.A. de C.V. (a)	1,009,023		991,929
Promotora y Operadora de Infraestructura, S.A. de C.V. (a)	4,235,900		3,123,103
			10,772,038

Schedule of Investments (continued)		April 30, 2006 (Unaudited)
Common Stocks (continued)		Shares		Value
Media - 3.07%
Grupo Televisa, S.A. - ADR		100,400		2,128,480
Grupo Televisa, S.A. - CPO		130,400		554,237
				2,682,717
Mining - 5.18%
Grupo Mexico, S.A. de C.V. - Class B		1,292,300		4,526,991
Retailing - 11.88%
Grupo Elektra, S.A. de C.V.		331,700		3,577,595
Organizacion Soriana, S.A. de C.V. - Class B (a)		245,700		1,107,787
Wal-Mart de Mexico, S.A. de C.V. - Class V		2,000,854		5,703,812
				10,389,194
TOTAL COMMON STOCKS (Cost $67,599,979)				83,810,316
CORPORATE BONDS - 0.83%		Titles
TVACB-04, 10.4500%, 12/15/2011 (b)		11,265,000		724,637
TOTAL CORPORATE BONDS (Cost $1,000,000)				724,637
TREASURY OBLIGATIONS - 1.88%		Shares
Mexican Cetes, 7.5000%, 02/15/2007		19,260,000		1,641,970
TOTAL TREASURY OBLIGATIONS (Cost $1,709,684)				1,641,970
INVESTMENT COMPANIES - 0.26%
GBM Fondo de Mercado de Dinero S.A. de C.V. SIID para Personas Fisicas (a)		102,772		227,702
TOTAL INVESTMENT COMPANIES (Cost $227,918)				227,702
TOTAL MEXICO (Cost $70,537,580)				86,404,625
UNITED STATES - 1.14%
INVESTMENT COMPANIES - 1.14%%
First American Treasury Obligations Fund, 4.0156%	$	1,000,738		1,000,738
TOTAL INVESTMENT COMPANIES (Cost $1,000,738)				1,000,738
TOTAL UNITED STATES (Cost $1,000,738)				1,000,738
Total Investments (Cost $71,538,318) - 99.98%				87,405,363
Other Assets in Excess of Liabilities - 0.02%				16,309
TOTAL NET ASSETS - 100.00%			$	87,421,672

ADR American Depositary Receipt

(a) Non-Income Producing Security

(b) Fair Valued Security

The cost basis of investments for federal income tax purposes at April 30, 2006 was as follows:

Cost of investments*	$71,538,318
Gross unrealized appreciation	17,362,090
Gross unrealized depreciation	(1,480,825)
Net unrealized appreciation	$15,881,265
*Because tax adjustments are calculated annually, the above table reflects the tax
adjustments outstanding at the Fund's previous fiscal year end. For the previous
fiscal year's federal income tax information, please refer to the Notes to Financial
Statements section in the Fund's most recent semi-annual or annual report.

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       6/21/2006                                                                                                 

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       6/21/2006                                                                                                  

By (Signature and Title) __/s/ Gerald Hellerman                                               

                                                                      Gerald Hellerman, Chief Financial Officer

Date       6/22/2006                                                                                                  

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:          6/21/2006	/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:      6/22/2006	/s/ Gerald Hellerman
	Gerald Hellerman       Chief Financial Officer