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: July 31, 2008

Date of reporting period:  4/30/2008

Item 1. Schedule of Investments.

THE MEXICO EQUITY AND INCOME FUND, INC.
	Schedule of Investments (Unaudited)			April 30, 2008
	MEXICO - 95.76%	Shares		Value
	COMMON STOCKS - 94.66%
	Cement - 2.01%
	Corporacion Moctezuma, S.A. de C.V.	397,213	$	1,037,270
	Grupo Cementos de Chihuahua, S.A. de C.V.	385,854		1,967,759
				3,005,029
	Communications - 6.91%
	America Movil, S.A. de C.V. - Class L	1,425,000		4,139,650
	America Movil, S.A. de C.V. - Class L ADR	55,771		3,232,487
	Axtel, S.A. de C.V. CPO (a)	1,602,100		2,963,245
				10,335,382
	Financial Groups - 2.49%
	Corporativo GBM SAB de CV	3,775,500		3,721,956
	Food, Beverage, and Tobacco - 5.75%
	Embotelladoras Arca S.A.	393,600		1,501,037
	Fomento Economico Mexicano, S.A. de C.V.	1,625,700		7,098,754
				8,599,791
	Housing - 13.12%
	Corp GEO S.A. de C.V.	713,900		2,666,724
	Consorcio ARA, S.A. de C.V.	6,140,500		6,433,950
	Desarrolladora Homex, S.A. de C.V. (a)	535,300		5,327,610
	SARE Holding, S.A. de C.V. (a)	2,619,711		3,621,576
	Urbi, Desarrollos Urbanos, S.A. de C.V.	495,800		1,588,734
				19,638,594
	Industrial Conglomerates - 13.54%
	Industrias CH, S.A. - Class B (a)	1,536,641		7,029,249
	Mexichem, S.A. de C.V.	1,849,606		13,241,513
				20,270,762
	Infrastructure - 22.86%
	Empresas ICA Sociedad Conroladora, S.A. de C.V. (a)	2,172,300		13,153,405
	Grupo Mexicano de Desarrollo, S.A. (a)	1,964,600		5,244,552
	Promotora y Operadora de Infraestructura, S.A. de C.V. (a)	4,400,283		15,816,057
				34,214,014
	Media - 4.88%
	Grupo Televisa, S.A. CPO	1,131,064		5,579,430
	Grupo Televisa, S.A. - ADR	70,096		1,729,969
				7,309,399
	Mining - 10.65%
	Grupo Mexico, S.A. - Series B	1,985,266		14,511,772
	Industrias Penoles, S.A.	48,677		1,434,263
				15,946,035

Schedule of Investments (continued)			April 30, 2008
COMMON STOCKS (continued)	Shares		Value
Real Estate Developer - 8.52%
GMD Resorts SAB de CV	1,663,600	$	1,808,132
Grupe, S.A. de C.V. (a)(b)	4,071,100		10,945,539
			12,753,671
Shipping - 0.15%
Grupo TMM S.A. - ADR	120,535		229,017
Waste Management - 3.78%
Promotora Ambiental, S.A. de C.V. (a)	1,944,125		5,653,277
TOTAL COMMON STOCKS (Cost $99,770,777)		$	141,676,927
INVESTMENT COMPANIES - 0.82%	Shares
GBM Fondo de Mercado de Dinero S.A. de C.V., SIID(a)	472,619	$	1,221,657
TOTAL INVESTMENT COMPANIES (Cost $1,220,290)			1,221,657
SHORT-TERM INVESTMENTS - 0.28%
Mexican CETES	4,594,580	$	412,353
0.000% Coupon, 7.345% Effective Yield, 02/19/2009 (c)
TOTAL SHORT-TERM INVESTMENTS (Cost $401,922)			412,353
TOTAL MEXICO (Cost $101,392,989)		$	143,310,937
UNITED STATES - 0.69%	Shares
INVESTMENT COMPANIES - 0.69%
First American Treasury Obligation - Class A, 1.252%	1,039,965	$	1,039,965
TOTAL INVESTMENT COMPANIES (Cost $1,039,965)			1,039,965
TOTAL UNITED STATES (Cost $1,039,965)			1,039,965
TOTAL INVESTMENTS - 96.45% (Cost $102,432,954)			144,350,902
OTHER ASSETS IN EXCESS OF LIABILITIES - 3.55%			5,308,481
TOTAL NET ASSETS - 100.00%		$	149,659,383

Footnotes and Abbreviations

ADR - American Depository Receipts.

(a) Non-income producing security.

(b) Affiliated company.

(c) Effective yield based on the purchase price. The calculation assumes the security

      is held to maturity.

The cost basis of investments for federal income tax purposes at April 30, 2008 was as follows:
Cost of investments*	$	102,432,954
Gross unrealized appreciation		42,610,314
Gross unrealized depreciation		(692,365	)
Net unrealized appreciation	$	41,917,948

*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.

TRANSACTIONS WITH AFFILIATES
The following issuer is affiliated with the Fund; that is, the Fund held 5% or more of the outstanding voting shares during the period
from August 1, 2007 through April 30, 2008.  As defined in Section (2)(a)(3) of the Investment Company Act of 1940, such issuers are:
	Issuer Name		Grupe, S.A.de C.V.
	August 1, 2007
	Shares		4,071,300
	Cost	$	5,548,588
	Gross Additions
	Shares		—
	Cost	$	—
	Gross Deductions
	Shares		200
	Cost	$	158
	February 29, 2008
	Shares		4,071,100
	Cost	$	5,548,430
	Market Value	$	10,945,539
	Realized gain (loss)	$	441
	Investment income	$	—
	* As a result of the Fund's beneficial ownership of this common stock, regulators require that the Fund state that it may be deemed
	an affiliate of the respective issuer.

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   May 26, 2008                                                                              

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   May 26, 2008                                                                              

By (Signature and Title)   /s/ Gerald Hellerman                                

Gerald Hellerman, Chief Financial Officer

Date   May 27, 2008                                                                              

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:   May 26, 2008	/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:   May 27, 2008	/s/ Gerald Hellerman
	Gerald Hellerman Chief Financial Officer