GABELLI EQUITY TRUST INC, N-30B-2, 1995-06-02

GABELLI EQUITY TRUST INC
N-30B-2, 1995-06-02

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<PAGE>

FIRST QUARTER REPORT

THE GABELLI
EQUITY TRUST INC.

MARCH 31, 1995

<PAGE>

[GRAPHIC]

INVESTMENT OBJECTIVE:

The Gabelli Equity Trust Inc. is a
closed-end, non-diversified
management investment company
whose primary objective is long-term
growth of capital, with income as a
secondary objective.

THIS REPORT IS PRINTED ON RECYCLED PAPER.

<PAGE>
[PHOTO]
[Caption: The Gabelli Equity Trust Inc. logo]

To our Shareholders,

In the first quarter of 1995, The Gabelli Equity Trust Inc.'s ("Equity
Trust") net asset value per share, after adjusting for the $0.25 distribution
paid on March 28, 1995, increased 5.3% to $9.71 as of March 31, 1995. This
compares to the 9.7% return in the unmanaged Standard & Poor's 500 Composite
Stock Price Index for the quarter. For the twelve months ended March 31,
1995, the Equity Trust's net asset value increased 8.9%, after adjusting for
all distributions and the spin-off of The Gabelli Global Multimedia Trust Inc.
("Multimedia Trust"). The S&P 500 Index was up 15.6% for the same period.

Since inception on August 21, 1986, the Equity Trust's net asset value
has achieved a 186.5% total return, which equates to a 13.0% average annual
return. The three and five year average annual returns were 12.3% and 10.4%,
respectively.

The Equity Trust's common shares ended the first quarter at $9.875 per
share on the New York Stock Exchange, an increase of 5.2% for the first
quarter and up 12.5% for the twelve months ended March 31, 1995, after
adjusting for all distributions and the Multimedia Trust spin-off.

WHAT WE DO

We do what is described as bottom up research: we read annual
reports; we visit the competition; we talk to customers; we go belly to belly
with management. We structure our portfolio by picking stocks.

In past reports, we have tried to articulate our investment philosophy
and methodology. The graphic on the inside of the front cover further
illustrates the interplay among the four components of our valuation approach.

Our focus is on free cash flow; earnings before interest, taxes,
depreciation and amortization (EBITDA) minus the capital expenditures
necessary to grow the business. We believe free cash flow is the best
barometer of a business' value. Rising free cash flow often foreshadows net
earnings improvement. We also look at earnings per share trends. Unlike Wall
Street's ubiquitous earnings momentum players, we do not try to forecast
earnings with accounting precision and then trade stocks based on quarterly
expectations and realities. We simply try to position ourselves in front of
long-term earnings uptrends. In addition, we analyze on and off balance sheet
assets and liabilities such as plant and equipment, inventories, receivables,
and legal, environmental and health care issues. We want to know everything
and anything that will add to or detract from our private market value
estimates. Finally, we look for a catalyst; something happening in the
company's industry or indigenous to the company itself that will surface
value. In the case of the independent telephone stocks, the catalyst is a
regulatory change. In the agricultural equipment business, it is the
increasing worldwide demand for American food and feed crops. In other
instances, it may be a change in management, sale or spin-off of a division,
or the development of a profitable new business.

<PAGE>

When we identify stocks that qualify as fundamental and conceptual
bargains, we then become patient investors. This has been a proven long-term
method for preserving and enhancing wealth in the U.S. equities market. At
the margin, our new investments are focused on businesses that are well
managed and will benefit from sustainable long-term economic dynamics. These
include macro trends, such as globalization of the market in filmed
entertainment and telecommunications, and micro trends, such as increased
focus on productivity enhancing goods and services.

COMMENTARY

Robust corporate profits and investors' growing confidence that the
Federal Reserve will successfully engineer a soft landing for the economy
propelled the stock market to record highs in the first quarter of 1995.
Large cap growth stocks, particularly in the technology and consumer
non-durable sectors, led the market. Broader market indices such as the Value
Line Composite (+5.2%) and small cap indices like the Russell 2000 (+4.6%)
also performed well on an absolute return basis, but lagged the more w idely
followed market yardsticks.

The Market
- ----------

We were pleasantly surprised by the market's strength in the first
quarter. Corporate earnings continued to exceed consensus expectations with
some signs of a slowing economy. Federal Reserve Chairman Alan Greenspan
hinted that further short-term rate hikes may not be necessary. Long bonds
rallied on the news, providing an additional tailwind for equities.

With this strong quarter behind us, we look to the future. Our
concerns include an anemic dollar that central bank intervention alone may not
be able to cure. Will Doctor Greenspan, however reluctantly, be forced to
administer an interest rate booster shot to prop up the greenback? We can't
ignore the possibility of more inflation than is currently anticipated. Raw
materials prices, oil and gold are rising again. Also, all may not be as
quiet as it seems on the labor front. Finally, our distrust of strong
consensus opinion makes us cautious. At current levels, the market may
already be fully discounting all the good news.

A New Era of Global Consolidation
- ---------------------------------

On the positive side of the ledger, accelerating merger and
acquisition activity in a broad range of industries is once again focusing
Wall Street's attention on value. In our 1994 Annual Report, we discussed the
dawning of a new era of strategic global consolidation. Our thesis is that in
an increasingly competitive global business environment, corporate managements
here and abroad are recognizing that extending product lines and building
international distribution systems are critical to growth, if not survival.

The necessary financial ingredients are in place. The world is full
of willing lenders, equity is a viable currency, and there are still a lot of
attractive franchises that are far cheaper to buy than build. Also, the weak
dollar makes shopping for businesses in the U.S. stock market a real bargain
for European and Japanese companies. Capital gains tax relief in the U.S.
would help further incentivize sellers.

We also opined that General Electric's (GE - $54.125 - NYSE)
unsolicited bid for Kemper Corporation (KEM - $40.375 - NYSE) signalled the
re-emergence of the hostile tender offer. We believe deals are going to be

<PAGE>

aggressively pursued regardless of target companies' willingness to politely
negotiate. Our opinions are being validated by a surge in hostile bids.
Already in 1995, we have seen six unsolicited bids for companies totalling
more than $20 billion. This compares to approximately $24 billion in hostile
bids for all of 1994.

This dynamic has a powerful impact on investor perception. Ingersoll
Rand's (IR - $32.875 - NYSE) hostile bid for Clark Equipment Company (CKL -
$82.50 - NYSE) in late March, almost single-handedly sparked a sharp rally in
cyclical stocks. Investors who had been rotating out of industrial companies
due to expectations of decelerating earnings began positively reassessing this
sector on the basis of cash flow and long-term strategic values.

How does this impact the Equity Trust? As cash flow oriented value
investors focusing on dominant franchise companies, we expect to benefit in
two ways from ongoing global consolidation. Firstly, we think our portfolio
represents an excellent shopping list for corporate bargain hunters. We
expect to move more of our portfolio inventory over the next several years.
Secondly, as deal flow accelerates, investors' focus shifts from net earnings
to cash flow (a much better barometer of business worth), he lping others
"discover" our type of value. This will serve as a rising tide that should
lift many of the boats in our portfolio.

Taking Advantage of the Dollar
- ------------------------------

While the weak dollar is problematic for certain sectors of the U.S.
economy and the broad stock market, it is a boon for American manufacturers
with "world class" products and well developed international distribution
systems. Ten years ago, smart investors avoided companies that competed with
Japan. Today, due in part to the cheap dollar versus the yen, those same smart
folks are seeking out efficient U.S. companies that are going head to head
against the Japanese. Auto and auto parts manufacturers like General Motors
Corporation (GM - $44.25 - NYSE) and Echlin Inc. (ECH - $38.50 - NYSE),
telecommunications equipment makers like AT&T Corporation (T - $51.75 - NYSE)
and agricultural equipment companies like Deere & Company (DE - $81.25 - NYSE)
are some of the more direct beneficiaries.

I Have Just One Word for You, Edgar: Entertainment!
- ---------------------------------------------------

As of this writing, Seagram Company Ltd. (VO - $31.75 - NYSE) is
expected to announce the sale of its 25% ownership position in E.I. du Pont de
Nemours (DD - $60.50 - NYSE) and the purchase of a majority stake in MCA, the
filmed entertainment producer and distributor currently owned by Japan's
Matsushita Electric (MC - $158.00 - NYSE). We are reminded of the famous line
in Mike Nichols' award winning film The Graduate: "I have just one word for
you, Benjamin: Plastics!" Someone has convinced Seagram's CEO Edgar Bronfman
that the future is in filmed entertainment, not chemicals or plastics. No
details on the proposed transaction have been released and if it does
transpire, only time will tell if it will ultimately be a box office
blockbuster for Seagrams' shareholders. However, as interactive media becomes
a reality worldwide, we do see unparalleled growth potential for entertainment
software providers. It underscores our belief that portfolio companies like
Time Warner Inc. (TWX - $37.75 - NYSE) and Viacom Inc. (VIA - $45.75 - ASE;
VIA'B - $44.75 - ASE) are materially undervalued at their current prices.

<PAGE>
LET'S TALK STOCKS

The following are stock specifics on selected holdings of the Equity
Trust's investments. Favorable EBITDA prospects do not necessarily translate
into higher stock prices, but they do express a positive trend which we
believe will develop over time.

American Express Company (AXP - $34.875 - NYSE), founded in 1850, is a
diversified travel and financial services company operating in 160 countries
around the world. The company is best known for its American Express Card.
Less recognized, however, are its other operations such as Minneapolis-based
American Express Financial Advisors, Inc. (formerly IDS Financial Services),
which sells financial products ranging from mutual funds to annuities. In
1993, American Express completed the sale of The Boston Company, Inc. and the
brokerage and asset management divisions of Shearson Lehman Brothers Inc. The
former went to Mellon Bank Corporation, while the latter joined Primerica's
Smith Barney unit. In 1994, Harvey Golub, Chairman and CEO, continued to
demonstrate his desire to refocus AXP on its core charge card and travel
services businesses by spinning off Lehman Brothers Holdings Inc. ( LEH -
$18.00 - NYSE). This divestiture places American Express in a strong position
to focus on growing its earnings at a double-digit rate over the balance
of this decade.

Time Warner Inc. (TWX - $37.75 - NYSE; Reset Notes, Zero Coupon - $97.125;
Conv. Sub. Deb. 8.75% - $100.375) is one of the largest diversified media and
publishing companies in the world with a market capitalization of over $15
billion. Warner Brothers Studios, the company's filmed entertainment
subsidiary, was ranked number one at the box office for the third consecutive
year. Time Warner is restructuring its business into copyright and creativity
(notably publishing, music and filmed entertainment) on one side and
distribution (mostly cable) on the other. Under the aegis of Gerald M. Levin,
investors can expect significant returns.

General Motors Corporation (GM - $44.25 - NYSE) is benefitting from sharp
recovery in North American auto sales. In 1994, its North American operations
were profitable for the first time in four years and international profits
continue to grow. Additionally, with Jack Smith at the helm, GM is
improving the style and quality of its cars, rationalizing its production
processes and greatly reducing its costs. With peak earning power of over $10
per share, GM remains a core holding.

Media General, Inc. (MEG'A - $32.25- ASE) is a Richmond, Va. - based company
with interests in newspapers (Richmond, Va; Tampa, Fl. and Winston-Salem,
N.C.) TV stations (Tampa; Charleston, S.C. and Jacksonville, Fl.) and cable
television (Fairfax County, Va). With a cyclical recovery in the operations
and values of media properties, the defense of the Richmond franchise from
encroachment from the Washington Post and the pickup in the transactions in
the cable arena, this company is poised for a rebound.

Pittway Corporation (PRY'A - $46.375- ASE; PRY - $45.50 - ASE) has undergone
significant changes over the past few years, including, selling or spinning
off businesses representing half its sales volume and over 60% of its income.
The company has two remaining core businesses, manufacturing and distributing
professional burglar and fire alarm equipment and publishing trade magazines
and directories. The Ademco Security Group, approximately 75% of revenue,
is having banner years. Penton Publishing appears to be emerging from three
years of difficult operating conditions as operating margins are now showing
improvement. Pittway is involved in real estate and other promising ventures
including a 45% interest in a leading manufacturer of encryption equipment and
a 5% equity interest in a satellite broadcast company.

<PAGE>

Sprint Corporation (FON - $30.25 - NYSE) remains very attractive in light of
its very low valuation and prospects for earnings acceleration. It trades at
59% of our $67 estimate of private market value. We expect the telephone and
cellular operations to be the main contributors to operations due to the
continuation of strong customer growth. We point out subscriber growth of 67%
in cellular last year. The long distance operations should maintain less
spectacular call volume growth at the industry average of approximately 8%.
Sprint's high cost structure also provides an opportunity for earnings
acceleration through further cost restructuring. An alliance with a
multinational communications partner also appears imminent and will provide
Sprint with the critical mass necessary to position itself strategically as a
dominant player in the multinational telecommunications market.

Viacom Inc. (VIA - $45.75 - ASE; VIA'B - $44.75 - ASE) has evolved into one of
the world's dominant media companies. Following its recent acquisitions
of Paramount Communications and Blockbuster Entertainment, the company is now
selling non-core assets and focusing on the global expansion of its media
franchises.

Chris-Craft Industries, Inc. (CCN - $33.375 - NYSE) is primarily engaged in
television broadcasting through its roughly 70% ownership of BHC
Communications, Inc. (BHC - $73.75 - ASE). BHC owns and operates independent
TV stations in Los Angeles (KCOP) and Portland, Oregon (KPTV). BHC controls
50% of United Television, Inc. (UTVI - $61.50 - NASDAQ) operator of an
NBC-affiliated TV station, an ABC affiliate and three independent outlets. BHC
has entered into a partnership agreement with Paramount Communications, Inc.
to form and launch a new, fifth television network to be called United
Paramount Television Network. With about $1.5 billion of marketable securities
and cash, derived from the 1993 disposition of Time Warner securities, CCN is
strongly positioned to expand its operations. CCN is the eighth largest TV
station group owner in the U.S., covering almost 20% of TV households.

Harcourt General, Inc. (H - $39.00 - NYSE) operates three business segments:
publishing, specialty retailing and professional services. Publishing
operations are worldwide and include a balanced mix of education, scientific,
technical, medical, professional and trade publications. Specialty retailing
now consists of just Neiman Marcus and Bergdorf Goodman since the company has
arranged to sell its Contempo Casuals unit. Professional services are
represented by Drake Beam Morin, the leading provider of human resources
consulting services to corporations. Harcourt had almost $15 per share in
cash assets at the end of 1994. The company earlier this year accepted, under
terms of its "Dutch Auction" self-tender offer, 5.4 million shares at $40.50
per share. Subsequently, Harcourt's board approved a program to repurchase up
to 2.5 million shares of its roughly 75 million shares outstanding

10% DISTRIBUTION POLICY

Pursuant to the Equity Trust's 10% Distribution Policy, the Equity
Trust will distribute $0.25 per share at the end of each of the first three
calendar quarters. The final distribution in December is an adjusting
distribution in order to meet the Equity Trust's 10% payout goal as well as
Internal Revenue Code requirements.

The Equity Trust recently distributed its first quarter distribution
of $0.25 per share on March 28, 1995. The next distribution is scheduled for
payment in June of 1995.

IN CONCLUSION

After a flat 1994, we are delighted the Equity Trust has generated
strong returns in the first quarter of 1995. We remain cautious regarding the
short-term prospects for the broad market. With accelerating merger and

<PAGE>

acquisition activity worldwide, we do expect investors to focus more
intensely on value to the general advantage of our portfolio.

In closing, we thank you for the trust you have shown in our investing
abilities and express our dedication to achieving our shared financial goal:
to increase the value of the assets you have entrusted to us.

Sincerely,

/S/ MARIO J. GABELLI

Mario J. Gabelli, CFA
President and Chief Investment Officer

May 1, 1995

------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 1995
--------------

Time Warner Inc. Sprint Corporation
Chris-Craft Industries, Inc. American Express Company
Viacom Inc. General Motors Corporation
United Television, Inc. Media General, Inc.
Pittway Corporation Harcourt General, Inc.
------------------------------------------------------------

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<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO CHANGES
QUARTER ENDED MARCH 31, 1995
(UNAUDITED)
<CAPTION>
OWNERSHIP AT
MARCH 31,
SHARES 1995
---------- ------------
<S> <C> <C>
NET PURCHASES
COMMON STOCKS
American Brands, Inc. ... 25,000 175,000
AMETEK, Inc. ............ 5,000 170,000
Barrick Gold
Corporation (a)........ 15,000 15,000
Belize Holdings Inc.
(b).................... 11 1,011
CANAL+, Sponsored ADR.... 2,000 18,000
Carter-Wallace, Inc. .... 5,200 120,200
Chris-Craft Industries,
Inc. (b)............... 9,213 316,313
Chris-Craft Industries,
Inc., Class B (b)...... 14,897 511,449
CLARCOR Inc. ............ 1,000 66,000
Compania de Telefonos de
Chile SA, Sponsored
ADR.................... 600 1,600
Crane Co................. 10,500 71,925
CTS Corporation.......... 7,000 125,000
Dole Food Company,
Inc. .................. 2,000 65,000
Financial Security
Assurance.............. 10,000 15,000
Fomento Economico
Mexicano SA, ADR....... 35,000 150,000
Frontier Corporation
(c).................... 50,000 50,000
Future Germany Fund...... 831 61,123
Gaylord Entertainment
Company, Class A....... 5,000 15,000
General Host
Corporation (b)........ 7,200 73,500
Grupo Televisa SA, GDR... 13,000 15,500
Guardsman Products,
Inc. .................. 6,500 40,000
Hilton Hotels
Corporation............ 4,000 59,000
IDEX Corporation......... 131,000 400,000
Keystone International,
Inc. .................. 10,000 20,000
Liberty Corporation...... 2,000 32,000
Lufkin Industries,
Inc. .................. 3,000 25,000
Manitowoc Company,
Inc. .................. 4,000 40,000
Marion Merrell Dow
Inc. .................. 15,000 100,000
Mark IV Industries,
Inc. (d)............... 69,589 169,589
Maritime Telegraph and
Telephone Company,
Limited................ 5,000 10,000
Martin Marietta Materials
Group.................. 2,500 12,500
Meredith Corporation
(e).................... 10,000 20,000
Morgan Grenfell SMALLCap
Fund, Inc. ............ 1,905 17,356
Neiman-Marcus Group,
Inc. .................. 2,400 433,000
New Germany Fund......... 938 71,326
NEXTEL Communications,
Inc., Class A.......... 7,500 30,000
Park-Ohio Industries,
Inc. (f)............... 26,715 26,715
Pegasus Gold Inc. ....... 5,000 55,000
Philippine Long Distance
Telephone Company...... 300 2,300
PS Group, Inc. .......... 2,000 4,000
Puritan Bennett
Corporation............ 4,000 12,000
Quaker Oats Company...... 10,000 60,000
Shaw Cable Systems, Ltd,
Class B, Conv. ........ 5,000 5,000
Sierra On-Line, Inc.
(e).................... 10,000 20,000
Telecom Argentina Stet-
France Telecom S.A.,
Sponsored ADR.......... 1,000 4,000
Tele-Communications,
Inc., Class A.......... 50,000 462,125
Telefonica de Argentina
S.A., ADR, Class B
(e).................... 4,500 7,500
Telefonos de Mexico S.A.,
Sponsored ADR.......... 3,000 13,000
Time Warner Inc. ........ 5,000 235,000
PREFERRED STOCKS
Sprint Corporation,
8.250%, Conv. Pfd. .... 30,000 30,000
Telecomunicacoes de
Sao Paulo SA-TELESP,
Pfd., Registered (g)... 1,420,482 2,130,723
CORPORATE BOND
Time Warner Inc., Conv.
Sub. Deb. ............. $ 772,000 $35,000,000
</TABLE>

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<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO CHANGES -- (CONTINUED)
QUARTER ENDED MARCH 31, 1995
(UNAUDITED)
<CAPTION>
OWNERSHIP AT
MARCH 31,
SHARES 1995
---------- ------------
<S> <C> <C>
NET SALES
COMMON STOCKS
American Barrick
Resources
Corporation (a)........ 15,000 --
AMR Corporation.......... 8,000 87,000
Banco Santander, ADR..... 2,000 24,000
Bucyrus Erie Company,
New.................... 356 --
Caesars World, Inc. ..... 100,000 --
Century Telephone
Enterprises, Inc. ..... 3,000 179,500
Coca-Cola Enterprises
Inc. .................. 50,000 265,000
Donaldson Company,
Inc. .................. 3,000 236,500
Dr Pepper/Seven-Up
Companies, Inc. (h).... 60,000 --
ITT Corporation.......... 5,700 106,300
Japan Telecom Co.,
Ltd. .................. 5 --
Johnson & Johnson........ 35,000 185,000
Mellon Bank Corporation.. 19,500 --
Modine Manufacturing
Company................ 20,000 315,000
Morrison Knudsen
Corporation............ 30,000 --
Motorola, Inc. .......... 5,000 20,000
Navistar International
Corporation............ 10,000 370,000
PepsiCo, Inc. ........... 5,000 150,000
Pet Incorporated (i)..... 300,000 --
Philip Morris Companies
Inc. .................. 5,000 20,000
Philips Electronics N.V.,
New York............... 50,000 140,000
RB & W Corporation (f)... 80,000 --
Rochester Telephone
Corporation (c)........ 60,000 --
Royal PTT Nederland NV,
Sponsored ADR, 144A.... 2,000 48,000
Salomon Inc. ............ 8,000 22,000
Sequa Corporation,
Class B................ 2,000 40,000
Southwestern Bell
Corporation............ 27,200 190,000
Tambrands Inc. .......... 5,000 55,000
Tenneco Inc. ............ 1 102,204
United Television,
Inc. .................. 9,000 360,000
Unitrin, Inc. ........... 30,000 50,000
Varity Corporation, New.. 30,000 250,000
Viacom Inc., Class B..... 5,000 245,000
Westvaco Corporation..... 5,000 25,000

PREFERRED STOCK
Telecomunicacoes de
Sao Paulo SA-TELESP,
Pfd., Receipts (g)..... 1,420,482 --

COMMON STOCK WARRANTS
AND RIGHTS
Viacom Inc., Contingent
Value Rights, expires
07/07/1995............. 10,000 50,000

CORPORATE BOND
Mark IV Industries, Inc.,
Conv. Deb. (d)......... $1,000,000 --
<FN>
- ---------------
(a) Name change from American Barrick Resources Corporation to Barrick Gold
Corporation.
(b) Stock dividend.
(c) Name change from Rochester Telephone Corporation to Frontier Corporation.
(d) Conversion -- 69.589422 shares of Mark IV Industries, Inc. Common Stock
per 1,000 Principal Amount of
Mark IV Industries Inc., Conv. Deb.
(e) 2 for 1 stock split.
(f) Merger -- 0.33394 shares of Park-Ohio Industries, Inc. for each share of RB &
W Corporation.
(g) Assimilation of shares -- Telecomunicacoes de Sao Paulo SA-TELESP, Pfd.
Receipts into Telecomunicacoes de
Sao Paulo SA-TELESP, Pfd. Registered.
(h) Tendered all shares @ $33.00 per share.
(i) Purchase offer @ $26.00 per share.
</TABLE>

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<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS
MARCH 31, 1995 (UNAUDITED)
<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS--83.8%
INDUSTRIAL EQUIPMENT AND SUPPLIES--13.1%
170,000 AMETEK, Inc. .......................................................... $
3,081,250
180,000 Ampco-Pittsburgh Corporation...........................................
1,417,500
350,000 AptarGroup, Inc. ......................................................
10,018,750
7,000 Caterpillar Inc. ......................................................
389,375
66,000 CLARCOR Inc. ..........................................................
1,394,250
71,925 Crane Co. .............................................................
2,184,722
125,000 CTS Corporation........................................................
3,937,500
124,000 Deere & Company........................................................
10,075,000
236,500 Donaldson Company, Inc. ...............................................
5,912,500
19,125 Duriron Company, Inc. .................................................
392,063
3,000 Fibreboard Corporation, New+...........................................
94,500
120,000 Greif Brothers Corporation, Class A....................................
6,585,000
1,700 Greif Brothers Corporation, Class B (a)................................
93,288
40,000 Guardsman Products, Inc. ..............................................
500,000
400,000 IDEX Corporation+......................................................
11,950,000
20,000 Keystone International, Inc. ..........................................
432,500
35,000 Lafarge Corporation....................................................
656,250
25,000 Lufkin Industries, Inc. ...............................................
450,000
12,000 M/A-Com, Inc.+.........................................................
118,500
40,000 Manitowoc Company, Inc. ...............................................
995,000
169,589 Mark IV Industries, Inc. ..............................................
3,476,575
12,500 Martin Marietta Materials Group........................................
240,625
5,500 Minerals Technologies Inc. ............................................
177,375
370,000 Navistar International Corporation+....................................
4,717,500
130,000 Nortek Inc.+...........................................................
1,348,750
5,000 Nortek Inc., Special Conv.+(a).........................................
51,875
5,000 PACCAR Inc. ...........................................................
212,500
45,000 Pittway Corporation....................................................
2,047,500
395,000 Pittway Corporation, Class A...........................................
18,318,125
2,000 Scientific-Atlanta Inc. ...............................................
46,750
29,000 Sequa Corporation, Class A+............................................
848,250
40,000 Sequa Corporation, Class B+............................................
1,280,000
82,500 SPS Technologies, Inc.+................................................
2,444,063
100,000 St. Joe Paper Company..................................................
6,187,500
250,000 Varity Corporation, New+...............................................
9,500,000
20,000 Watts Industries, Inc., Class A........................................
440,000
------------
112,015,336
------------
TELECOMMUNICATIONS -- 11.7%
10,000 ALLTEL Corporation.....................................................
287,500
168,000 AT&T Corporation.......................................................
8,694,000
3,000 Ameritech Corporation..................................................
123,750
70,000 BC TELECOM Inc. .......................................................
1,200,815
80,000 BCE Inc. ..............................................................
2,470,000
500 BellSouth Corporation..................................................
29,750
7,000 British Telecommunications plc, Sponsored ADR..........................
442,750
1,000 Bruncor, Inc. .........................................................
17,154
50,000 Cable & Wireless plc, Sponsored ADR....................................
943,750
35,000 Cincinnati Bell Inc. ..................................................
752,500
1,600 Compania de Telefonos de Chile SA, Sponsored ADR.......................
106,800
141,000 C-TEC Corporation+.....................................................
2,996,250
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)
<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
30,000 C-TEC Corporation, Class B+............................................ $
633,750
50,000 Frontier Corporation...................................................
1,131,250
440,000 GTE Corporation........................................................
14,630,000
15,000 Hong Kong Telecommunications Ltd., Sponsored
ADR....................... 292,500
1,000 Hungarian Telephone & Cable Corporation+...............................
11,375
1,020,000 Jamaica Telephone Ltd. ORD+............................................
109,843
40,000 Lincoln Telecommunications Company.....................................
610,000
10,000 Maritime Telegraph and Telephone Company,
Limited...................... 146,528
2,500 MCI Communications Corporation.........................................
51,563
3,000 MFS Communications Company, Inc.+......................................
105,000
20,000 Motorola, Inc. ........................................................
1,092,500
3,000 NewTel Enterprises Limited.............................................
43,690
50,000 NYNEX Corporation......................................................
1,981,250
160,000 Outlet Communications, Inc., Class A+..................................
4,720,000
30,000 Pacific Telesis Group..................................................
907,500
2,300 Philippine Long Distance Telephone Company.............................
139,150
3,000 Quebec-Telephone.......................................................
42,082
48,000 Royal PTT Nederland NV, Sponsored ADR, 144A
(c)........................ 1,692,000
10,000 Singapore Telecommunications Limited ORD...............................
19,476
20,000 Southern New England Telecommunications
Corporation.................... 667,500
190,000 Southwestern Bell Corporation..........................................
8,003,750
667,500 Sprint Corporation.....................................................
20,191,875
3,000,000 STET-Societa Finanziaria Telefonica p.a. ORD+..........................
7,683,373
4,000 Telecom Argentina Stet-France Telecom S.A., Sponsored
ADR.............. 173,000
500 Telecom Corporation of New Zealand Limited, Sponsored
ADR.............. 29,875
3,200,000 Telecom Italia SpA, ORD+...............................................
7,448,838
260,000 Telecomunicacoes Brasileiras SA (Telebras), Sponsored
ADR.............. 6,792,500
5,927 Telecomunicacoes Brasileiras SA (Telebras), Sponsored ADR, 144A
(c)+... 154,843
7,500 Telefonica de Argentina S.A., ADR, Class B.............................
180,937
55,000 Telefonica de Espana, Sponsored ADR....................................
2,062,500
13,000 Telefonos de Mexico S.A., Sponsored ADR................................
370,500
------------
100,183,967
------------
BROADCASTING--8.2%
135,000 BHC Communications, Inc., Class A+.....................................
9,956,250
70,000 Capital Cities/ABC, Inc. ..............................................
6,177,500
316,313 Chris-Craft Industries, Inc. ..........................................
10,556,946
511,449 Chris-Craft Industries, Inc., Class B (a)..............................
17,069,596
10,000 Flextech plc ORD+......................................................
63,030
15,500 Grupo Televisa SA, GDR.................................................
257,688
128,000 Havas, Sponsored ADR...................................................
2,400,000
32,000 Liberty Corporation....................................................
880,000
17,000 LIN Television Corporation+............................................
565,250
50,000 Television Broadcasting ORD............................................
170,726
360,000 United Television, Inc. ...............................................
22,140,000
------------
70,236,986
------------
FINANCIAL SERVICES--6.0%
570,000 American Express Company...............................................
19,878,750
24,000 Banco Santander, ADR...................................................
852,000
260 Berkshire Hathaway Inc.+...............................................
5,889,000
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)

<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
31,200 Berliner Bank Aktiengesellschaft....................................... $
7,146,647
18,000 Commerzbank AG, Sponsored ADR..........................................
843,279
15,500 Deutsche Bank AG, ADR..................................................
7,334,973
15,000 Financial Security Assurance...........................................
322,500
25,000 Hibernia Corporation...................................................
193,750
100,000 Lehman Brothers Holdings Inc. .........................................
1,800,000
33,000 Midland Company........................................................
1,460,250
12,000 Morgan (J.P.) & Co. Incorporated.......................................
732,000
60,000 Riggs National Corporation+............................................
555,000
22,000 Salomon Inc. ..........................................................
745,250
10,000 SunTrust Banks, Inc. ..................................................
535,000
50,000 Unitrin, Inc. .........................................................
2,425,000
2,000 U.S. Trust Corporation.................................................
138,125
8,000 Value Line, Inc. ......................................................
260,000
------------
51,111,524
------------
ENTERTAINMENT--4.6%
29,000 Bay Meadows Operating Company..........................................
478,500
1,500 Churchhill Downs Inc. .................................................
66,000
15,000 Gaylord Entertainment Company, Class A.................................
393,750
50,000 GC Companies Inc.+.....................................................
1,637,500
10,000 GTECH Holdings Corporation+............................................
216,250
12,000 PolyGram NV............................................................
658,500
13,650 Sony Music Entertainment ORD...........................................
689,965
120,000 THORN EMI plc, Sponsored ADR...........................................
2,125,200
235,000 Time Warner Inc. ......................................................
8,871,250
61,072 Todd-AO Corporation....................................................
351,164
290,000 Viacom Inc., Class A+..................................................
13,267,500
245,000 Viacom Inc., Class B+..................................................
10,963,750
------------
39,719,329
------------
WIRELESS COMMUNICATIONS--4.2%
250,000 AirTouch Communications Inc.+..........................................
6,812,500
110,000 Allen Group Inc. ......................................................
2,722,500
13,500 BCE Mobile Communications Inc.+........................................
446,200
179,500 Century Telephone Enterprises, Inc. ...................................
5,452,313
90,000 COMSAT Corporation.....................................................
1,676,250
10,000 Contel Cellular Inc.+..................................................
252,500
34,000 LIN Broadcasting Corporation+..........................................
4,139,500
30,000 NEXTEL Communications, Inc., Class A+..................................
408,750
41,000 Securicor Group plc, ORD...............................................
998,477
4,000 Securicor Group plc, Class A ORD.......................................
59,627
5,500 Teleglobe Inc. ........................................................
82,556
322,000 Telephone and Data Systems, Inc. ......................................
12,719,000
7,500 Vodafone Group, Sponsored ADR..........................................
248,438
------------
36,018,611
------------
CABLE--4.1%
18,000 CANAL+, Sponsored ADR..................................................
439,775
65,000 Comcast Corporation, Class A...........................................
1,011,562
68,125 Comcast Corporation, Class A Special...................................
1,064,453
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)

<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CABLE (CONTINUED)
81,036 International Family Entertainment Inc., Class B+......................
$ 1,245,928
475,000 Media General, Inc., Class A...........................................
15,318,750
150,000 Multimedia, Inc., New+.................................................
5,681,250
5,000 Shaw Cable Systems, Ltd, Class B, Conv. ...............................
30,824
40,000 Shaw Communications Inc., Class B, Conv. ..............................
246,596
462,125 Tele-Communications, Inc., Class A+....................................
9,704,625
------------
34,743,763
------------
AUTOMOTIVE: PARTS AND ACCESSORIES--3.8%
34,000 APS Holding Corporation, Class A+......................................
867,000
3,500 Detroit Diesel Corporation+............................................
84,000
72,500 Echlin Inc. ...........................................................
2,791,250
150,000 Genuine Parts Company..................................................
5,981,250
80,000 Handy & Harman.........................................................
1,320,000
113,000 Johnson Controls, Inc. ................................................
5,748,875
315,000 Modine Manufacturing Company...........................................
10,552,500
30,000 Pep Boys - Manny, Moe & Jack...........................................
930,000
10,100 Quaker State Corporation...............................................
138,875
27,500 Republic Automotive Parts, Inc.+.......................................
412,500
50,000 SPX Corporation........................................................
725,000
128,000 Standard Motor Products, Inc. .........................................
2,576,000
30,000 Wynn's International, Inc. ............................................
648,750
------------
32,776,000
------------
CONSUMER PRODUCTS--3.8%
175,000 American Brands, Inc. .................................................
6,868,750
40,000 Black & Decker Corporation.............................................
1,155,000
60,000 Brunswick Corporation..................................................
1,207,500
120,200 Carter-Wallace, Inc. ..................................................
1,427,375
50,000 Church & Dwight Co., Inc. .............................................
912,500
12,500 Duracell International Inc. ...........................................
559,375
33,000 First Brands Corporation...............................................
1,241,625
12,000 Gillette Company.......................................................
979,500
6,000 National Presto Industries Inc. .......................................
243,750
30,000 Outboard Marine Corp. .................................................
630,000
26,715 Park-Ohio Industries, Inc.+............................................
307,223
20,000 Philip Morris Companies Inc. ..........................................
1,305,000
60,000 Procter & Gamble Company...............................................
3,975,000
130,000 Ralston Purina Group...................................................
6,207,500
50,000 Scotts Company, Class A+...............................................
915,625
55,000 Tambrands Inc. ........................................................
2,454,375
100,000 Whitman Corporation....................................................
1,912,500
------------
32,302,598
------------
DIVERSIFIED INDUSTRIAL--3.8%
16,000 Culbro Corporation+....................................................
240,000
40,000 GATX Corporation.......................................................
1,790,000
106,300 ITT Corporation........................................................
10,909,038
375,000 Lamson & Sessions Co.+.................................................
2,156,250
26,000 Lawter International, Inc. ............................................
341,250
75,000 Minnesota Mining and Manufacturing Company.............................
4,359,375
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)
<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DIVERSIFIED INDUSTRIAL (CONTINUED)
115,000 National Service Industries, Inc. ..................................... $
3,105,000
102,204 Tenneco Inc. ..........................................................
4,816,363
43,000 Thomas Industries Inc. ................................................
704,125
90,000 Trinity Industries, Inc. ..............................................
3,363,750
100,000 Tyler Corporation+.....................................................
387,500
------------
32,172,651
------------
FOOD AND BEVERAGE--3.5%
8,500 Brau und Brunnen.......................................................
1,871,050
30,000 Campbell Soup Company..................................................
1,451,250
265,000 Coca-Cola Enterprises Inc. ............................................
5,531,875
65,000 Dole Food Company, Inc. ...............................................
1,885,000
30,000 Eskimo Pie Corporation.................................................
607,500
150,000 Fomento Economico Mexicano SA, ADR.....................................
240,000
10,000 Foster's Brewing Group Limited, ADR....................................
7,700
34,000 General Mills, Inc. ...................................................
2,027,250
20,000 Guinness plc, Sponsored ADR............................................
752,200
45,000 Kellogg Company........................................................
2,626,875
150,000 PepsiCo, Inc. .........................................................
5,850,000
60,000 Quaker Oats Company....................................................
1,987,500
41,666 Ralcorp Holdings Inc.+.................................................
989,567
45,000 Ralston-Continental Baking Group+......................................
168,750
50,000 Seagram Company Ltd....................................................
1,587,500
50,000 Wrigley, (Wm) Jr. Company..............................................
2,218,750
------------
29,802,767
------------
PUBLISHING--2.9%
382,000 Harcourt General, Inc. ................................................
14,898,000
35,000 Independent Newspapers ORD.............................................
140,642
12,000 McGraw-Hill, Inc. .....................................................
861,000
20,000 Meredith Corporation...................................................
520,000
190,002 New York Times Company, Class A........................................
4,393,796
5,000 News Corporation Limited, ADS..........................................
95,625
149,000 Oriental Press Group ORD...............................................
63,595
2,024 Pearson plc ORD........................................................
18,398
39,500 Reader's Digest Association Inc., Class B..............................
1,762,688
20,000 South China Morning Post Holdings ORD..................................
11,188
230,000 Western Publishing Group, Inc.+........................................
1,955,000
------------
24,719,932
------------
BUSINESS SERVICES--2.2%
216,000 Ecolab, Inc. ..........................................................
5,238,000
60,000 Gerber Scientific, Inc. ...............................................
862,500
125,000 International Business Machines Corporation............................
10,234,375
125,000 Landauer, Inc. ........................................................
2,281,250
------------
18,616,125
------------
HEALTH CARE--2.1%
10,000 Amgen Inc.+............................................................
673,750
6,500 Biogen, Inc.+..........................................................
258,375
185,000 Johnson & Johnson......................................................
11,007,500
24,000 Mallinckrodt Group, Inc. ..............................................
810,000
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)

<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
100,000 Marion Merrell Dow Inc. ............................................... $
2,475,000
10,000 Pfizer Inc. ...........................................................
857,500
12,000 Puritan Bennett Corporation............................................
280,500
56,000 Sandoz Ltd., Sponsored ADR.............................................
1,785,000
------------
18,147,625
------------
AUTOMOTIVE--1.8%
4,400 Daimler-Benz Aktiengesellschaft, ADR...................................
197,450
36,000 Ford Motor Company.....................................................
972,000
305,000 General Motors Corporation.............................................
13,496,250
30,000 Harley-Davidson, Inc. .................................................
720,000
7,500 Volkswagen AG, Sponsored ADR...........................................
378,750
------------
15,764,450
------------
ENERGY -- 1.7%
34,000 Apache Corporation.....................................................
926,500
30,000 Atlantic Richfield Company.............................................
3,450,000
52,500 British Petroleum Company plc, ADR.....................................
4,403,437
115,000 Burlington Resources Inc. .............................................
4,686,250
4,000 Chevron Corporation....................................................
192,000
300,000 Kaneb Services, Inc.+..................................................
562,500
30,000 Santa Fe Energy Resources, Inc. .......................................
288,750
------------
14,509,437
------------
CONSUMER SERVICES -- 1.5%
450,000 Rollins, Inc. .........................................................
12,375,000
20,000 Sierra On-Line, Inc.+..................................................
440,000
------------
12,815,000
------------
RETAIL -- 1.0%
25,000 Crown Books Corporation+...............................................
390,625
50,000 Earl Scheib, Inc.+.....................................................
362,500
73,500 General Host Corporation...............................................
486,938
30,000 Lillian Vernon Corporation.............................................
618,750
433,000 Neiman-Marcus Group, Inc. .............................................
6,170,250
22,000 Strawbridge & Clothier, Series A.......................................
429,000
------------
8,458,063
------------
HOTELS AND CASINOS -- 0.7%
59,000 Hilton Hotels Corporation..............................................
4,373,375
50,000 Mirage Resorts, Incorporated+..........................................
1,400,000
------------
5,773,375
------------
AIRLINES -- 0.6%
87,000 AMR Corporation+.......................................................
5,633,250
------------
ELECTRONICS -- 0.6%
1,000 Hitachi, Ltd., ADR.....................................................
101,625
1,000 Matsushita Electric Industrial Co. Ltd., ADR...........................
158,000
1,500 NEC Corp., ADR.........................................................
78,750
140,000 Philips Electronics N.V., New York.....................................
4,777,500
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)
<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ELECTRONICS (CONTINUED)
2,000 Sony Corporation....................................................... $
97,750
------------
5,213,625
------------
COUNTRY/CLOSED-END FUNDS -- 0.4%
1,000 Clemente Global Growth Fund Inc. ......................................
7,875
70,000 Emerging Germany Fund..................................................
481,250
25,000 France Growth Fund Inc. ...............................................
240,625
61,123 Future Germany Fund....................................................
916,845
34,250 Italy Fund, Inc. ......................................................
269,719
17,356 Morgan Grenfell SMALLCap Fund, Inc. ...................................
160,543
71,326 New Germany Fund.......................................................
855,912
32,769 Royce Value Trust, Inc. ...............................................
372,747
------------
3,305,516
------------
AVIATION: PARTS AND SERVICES -- 0.3%
50,000 Curtiss-Wright Corporation.............................................
1,875,000
145,000 Hi-Shear Industries Inc.+..............................................
616,250
4,000 PS Group, Inc.+........................................................
38,500
------------
2,529,750
------------
PAPER AND FOREST PRODUCTS -- 0.3%
12,500 Plum Creek Timber Company, L.P. .......................................
275,000
35,000 Rayonier Inc. .........................................................
1,089,375
25,000 Westvaco Corporation...................................................
1,037,500
------------
2,401,875
------------
METALS AND MINING -- 0.3%
15,000 Barrick Gold Corporation...............................................
375,000
13,500 Homestake Mining Company...............................................
249,750
20,000 Newmont Gold Company...................................................
827,500
55,000 Pegasus Gold Inc. .....................................................
673,750
10,000 Placer Dome Inc. ......................................................
243,750
------------
2,369,750
------------
SPECIALTY CHEMICAL -- 0.2%
55,500 Ferro Corporation......................................................
1,408,313
36,000 Pratt & Lambert, Inc. .................................................
756,000
------------
2,164,313
------------
TRANSPORTATION -- 0.1%
11,000 Florida East Coast Industries Inc. ....................................
811,250
------------
OTHER -- 0.3%
67,500 Associated Group Inc., Class A +.......................................
1,333,125
67,500 Associated Group Inc., Class B +.......................................
1,282,500
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)
<CAPTION>
MARKET
SHARES VALUE
- --------------- ------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
OTHER (CONTINUED)
1,011 Belize Holdings Inc.................................................... $
15,923
10,000 Sotheby's Holdings, Class A............................................
122,500
------------
2,754,048
------------
TOTAL COMMON STOCKS.....................................................................
717,070,916
------------
PREFERRED STOCKS -- 0.9%
AUTOMOTIVE -- 0.5%
75,000 General Motors Corporation, Depositary Shares, Pfd., $3.25.............
4,312,500
------------
TELECOMMUNICATIONS -- 0.2%
30,000 Sprint Corporation, 8.250%, Conv. Pfd. ................................
1,001,250
8,000 Tele-Communications, Inc., Jr. Pfd., Class B, Ex., 6.000%..............
500,000
2,130,723 Telecomunicacoes de Sao Paulo SA-TELESP, Pfd.,
Registered.............. 220,420
------------
1,721,670
------------
CONSUMER PRODUCTS -- 0.2%
34,000 Fieldcrest Cannon Inc., 6.000%, Series A, Conv. Pfd., 144A (c).........
1,619,250
------------
DIVERSIFIED INDUSTRIAL -- 0.0%
3,500 GATX Corporation, 3.875%, Conv. Pfd. ..................................
190,750
------------
PUBLISHING -- 0.0%
2,500 News Corporation Ltd., Sponsored ADR, Pfd. ............................
43,125
------------
TOTAL PREFERRED STOCKS..................................................................
7,887,295
------------
COMMON STOCK WARRANTS AND RIGHTS--0.0%
ENTERTAINMENT--0.0%
50,000 Viacom Inc., Contingent Value Rights, expires
07/07/1995+.............. 96,875
------------
<CAPTION>
PRINCIPAL
AMOUNT
- ---------------
CORPORATE BONDS -- 7.0%
ENTERTAINMENT -- 6.6%
$20,500,000 Time Warner Inc., Reset Note,
Zero Coupon through 08/15/1995 due 08/15/2002........................
19,910,625
35,000,000 Time Warner Inc., Conv. Sub. Deb.,
8.750% due 01/10/2015................................................
35,131,250
1,575,000 Viacom Inc., Ex., Sub. Deb.,
8.000% due 07/07/2006................................................
1,426,359
------------
56,468,234
------------
INDUSTRIAL EQUIPMENT AND SUPPLIES -- 0.3%
3,300,000 Nortek Inc., Sr. Sub. Note,
9.875% due 03/01/2004................................................
2,970,000
------------
</TABLE>

<PAGE>
<TABLE>
THE GABELLI EQUITY TRUST INC.

PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 1995 (UNAUDITED)
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
- --------------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.1%
$500,000 GenCorp Inc., Conv. Sub. Deb.,
8.000% due 08/01/2002................................................ $
490,000
------------
PUBLISHING -- 0.0%
200,000 News American Holdings Incorporated, Gtd. Ex. Sub. Note,
Zero Coupon due 03/31/2002...........................................
164,500
------------
BROADCASTING -- 0.0%
FRF 125,000 Havas, Conv. Bonds, Payment-in-kind,
3.000% due 12/31/1997................................................
29,320
------------
TOTAL CORPORATE
BONDS................................................................... 60,122,054
------------
U.S. TREASURY BILLS -- 7.5%
$65,000,000 5.870% to 5.890%++ due 04/20/1995 -- 02/08/1996
(d).................... 64,020,789
------------
REPURCHASE AGREEMENT -- 0.5%
4,036,000 Agreement with Carroll McEntee, 6.220% dated 03/31/1995, to be
repurchased at $4,038,092 on 04/03/1995, collateralized by $3,990,000
U.S. Treasury Bonds, 7.375% due 11/15/1997 (value $4,261,564)........
4,036,000
------------
TOTAL INVESTMENTS (COST $601,200,364)(B)........................................
99.7% 853,233,929
OTHER ASSETS AND LIABILITIES (NET)..............................................
0.3 2,275,716
----- ------------
NET ASSETS...................................................................... 100.0%
$855,509,645
=====
=============
NET ASSET VALUE ($855,509,645/88,146,636 SHARES
OUTSTANDING)........................... $9.71
=====
<FN>
- ---------------
(a) Security fair valued under procedures established by the Board of Directors.
(b) Aggregate cost for Federal tax purposes was $600,730,163. Net unrealized
appreciation for Federal tax purposes was $252,503,766. (gross unrealized
appreciation was $272,672,480 and gross unrealized depreciation was
$20,168,714).
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(d) Securities pledged as collateral for futures contracts.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.

ADR -- American Depositary Receipt, ADS -- American Depositary Share,
FRF -- French Franc,
GDR -- Global Depositary Receipt, ORD -- Ordinary Share
</TABLE>

<TABLE>
FUTURES CONTRACTS--SHORT POSITION
<CAPTION>
NUMBER OF
UNREALIZED
CONTRACTS
DEPRECIATION
- --------- ------------
<C> <S> <C>
340 S&P 500 Index Futures, June 1995.............................
$2,007,062

==========
</TABLE>

<PAGE>

AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH
PURCHASE PLAN

ENROLLMENT IN THE PLAN

It is the policy of The Gabelli Equity Trust Inc. ("Equity Trust") to
automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Equity Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Equity Trust to issue
shares to participants upon an income dividend or a capital gains distribution
regardless of whether the shares are trading at a discount or a premium to net
asset value. All distributions to shareholders whose shares are registered in
their own names will be automatically reinvested pursuant to the Plan in
additional shares of the Equity Trust. Plan participants may send their stock
certificates to State Street Bank and Trust Company to be held in their dividend
reinvestment account. Registered shareholders wishing to receive their
distribution in cash must submit this request in writing to:

The Gabelli Equity Trust Inc.
c/o State Street Bank and Trust Company
P.O. Box 8200
Boston, MA 02266-8200

Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact State Street Bank and Trust
Company at 1 (800) 336-6983.

Shareholders wishing to liquidate reinvested shares held at State Street
Bank and Trust Company must do so in writing. Please submit your request to the
above mentioned address. Include in your request your name, address and account
number. The cost to liquidate shares is $2.50 per transaction as well as the
brokerage commission incurred. Brokerage charges are expected to be less than
the usual brokerage charge for such transactions.

If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your dividends will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at such institution will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.

The number of shares of Common Stock distributed to participants in the
Plan in lieu of cash dividends is determined in the following manner. Under the
Plan, whenever the market price of the Equity Trust's Common Stock is equal to
or exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Equity Trust's Common Stock. The valuation
date is the dividend or distribution payment date or, if that date is not a New
York Stock Exchange trading day, the next trading day. If the net asset value of
the Common Stock at the time of valuation exceeds the market price of the Common
Stock, participants will receive shares from the Equity Trust valued at market
price. If the Equity Trust should declare a dividend or capital gains
distribution payable only in cash, State Street will buy Common Stock in the
open market, or on the New York Stock Exchange or elsewhere, for the
participants' accounts, except that State Street will endeavor to terminate
purchases in the open market and cause the Equity Trust to issue shares at net
asset value if, following the commencement of such purchases, the market value
of the Common Stock exceeds net asset value.

The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.

The Equity Trust reserves the right to amend or terminate the Plan as
applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change

<PAGE>

sent to the members of the Plan at least 90 days before the record date for such
dividend or distribution. The Plan also may be amended or terminated by State
Street on at least 90 days' written notice to participants in the Plan.

VOLUNTARY CASH PURCHASE PLAN

The Voluntary Cash Purchase Plan is yet another vehicle for our
shareholders to increase their investment in the Equity Trust. In order to
participate in the Voluntary Cash Purchase Plan, shareholders must have their
shares registered in their own name and participate in the Dividend Reinvestment
Plan.

Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to State Street Bank and Trust Company for investments
in the Equity Trust's shares at the then current market price. Shareholders may
send an amount from $250 to $3,000. State Street Bank and Trust Company will use
these funds to purchase shares in the open market on or about February 15 and
August 15 of each year. State Street Bank and Trust Company will charge each
shareholder who participates $0.75, plus a pro rata share of the brokerage
commissions. Brokerage charges for such purchases are expected to be less than
the usual brokerage charge for such transactions. It is suggested that any
voluntary cash payments be sent to State Street Bank and Trust Company, P.O. Box
8200, Boston, MA 02266-8200, such that State Street receives such payments
approximately 10 days before February 15 or August 15. A payment may be
withdrawn without charge if notice is received by State Street Bank and Trust
Company at least 48 hours before such payment is to be invested.

For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Equity Trust.

<PAGE>
DIRECTORS AND OFFICERS

THE GABELLI EQUITY TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1434

Directors
Mario J. Gabelli, CFA, Chairman
Paul R. Ades
Attorney-at-Law
Partner, Murov & Ades
Dr. Thomas E. Bratter
President, John Dewey Academy
Bill Callaghan
President, Bill Callaghan Associates
Felix J. Christiana
Former Senior Vice President,
Dollar Dry Dock Savings Bank
James P. Conn
Managing Director/Chief Investment Officer,
Financial Security Assurance
Karl Otto Pohl
Former President, Deutsche Bundesbank
Anthony R. Pustorino
Certified Public Accountant
Professor, Pace University
Salvatore J. Zizza
Chairman & Chief Executive Officer,
The Lehigh Group, Inc.

Officers
Mario J. Gabelli, CFA
President &
Chief Investment Officer
Bruce N. Alpert
Vice President & Treasurer
Marc S. Diagonale
Vice President
J. Hamilton Crawford, Jr.
Secretary
Brigid O. Bieber
Assistant Secretary
Richard W. Ingram
Assistant Treasurer

Investment Advisor
Gabelli Funds, Inc.
One Corporate Center
Rye, New York 10580-1434

Custodian
Boston Safe Deposit and Trust Company

Counsel
Willkie Farr & Gallagher

Transfer Agent and Registrar
State Street Bank and Trust Company

Stock Exchange Listing
NYSE-Symbol: GAB

Shares Outstanding: 88,146,636

The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "General Equity Funds," in Saturday's The New York Times and Monday's
The Wall Street Journal. It is also listed in Barron's Mutual Funds/Closed End
Funds section under the heading "General Equity Funds".

The Net Asset Value may be obtained each day by calling (914) 921-5071.

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For general information about
the Gabelli Funds, call 1-800-GABELLI
(1-800-422-3554), fax us at
914-921-5118 or, visit our Internet
homepage at:
http://networth.galt.com/gabelli

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Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Equity Trust may from time to time
purchase shares of its capital stock in the open market when the Equity Trust
shares are trading at a discount of 10% or more from the net asset value of the
shares.
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<PAGE>

THE GABELLI EQUITY TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1434
(914) 921-5070

FIRST QUARTER REPORT
MARCH 31, 1995

03/95