Annual Report by Investment Company Form N CSR

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06111

Milwaukee, Wisconsin 53202
(Address of principal executive offices) (Zip code)

Milwaukee, Wisconsin 53202
(Name and address of agent for service)

Registrant's telephone number, including area code

Date of fiscal year end: July 31

Date of reporting period: July 31, 2024

(a)

Annual Report

Annual Report

Table of Contents

Report of Pichardo Asset Management ("PAM"),

the Investment Adviser (Unaudited)

Dear Fund Stockholders,

We are pleased to present the Fund's Portfolio Management Report for the year ending July 31, 2024. This report provides an overview of the global economic forecast, Mexico's economic activity, and financial markets. We also include a review of the Fund's RetuAttribution Analysis for the fiscal year ended July 31, 2024, and its long-term performance, as well as the Mexican stock exchange behavior.

The global economic growth forecast for 2024 is expected to be lower than that of 2023, with economic activity showing varying levels of dynamism across different countries. Prospects point to higher growth in advanced economies and lower growth in emerging economies, according to Banco de México, Central Bank ("BANXICO"). The United States registered higher-than-anticipated growth in the second quarter of 2024, while China exhibited a low economic dynamism. Japan's economic activity is expected to recover, following the sharp contraction observed in the previous quarter. The downside risks to the world economic growth prospects likely refer to the following:

México's Gross Domestic Product ("GDP") registered an annual growth of 1.0% in the second quarter of 2024, with productivity activity registering low growth (0.2% at a seasonally adjusted quarterly rate) showing more significant weakness than anticipated for three consecutive quarters (1Q'24 with 0.1% and 4Q'23 with -0.1%) since December 2023, decoupling from US economic activity. Source: INEGI.

Consumption maintains its dynamism, growing at an annual rate of 2.8% and remaining at high levels. In comparison, aggregate demand grew at an annualized quarterly rate of close to 6% in the first quarter of 2024, mainly driven by household consumption. However, it is showing signs of moderation that we are closely monitoring. In the external sector, manufacturing exports showed some sluggishness and a lateral trend. Source: INEGI.

Please see the July Economic Report at the Fund's webpage: mxefund.com

In most advanced economies, the disinflation process continues showing heterogeneity, but short - and long-term inflation expectations remained above the inflation targets in most advanced economies. Thus, the central banks of the advanced and emerging economies adjusted their reference rates heterogeneously. Notably, the Bank of Japan raised its interest rate. Mexico Central Bank's ("BANXICO") Board decided by

majority to lower its reference rate target for the overnight interbank rate by 25 basis points to 10.75%, a spread differential of 525 basis points to that of the U.S. The US Federal Reserve left the target range for the federal funds rate unchanged for the eighth consecutive decision. Source: Banxico.

International financial markets increased their risk-aversion, causing higher volatility by mid-July by some US employment data, suggesting a lower dynamism of the labor market in the United States; and unexpected Japan's second increase in its reference rate this year, since 2008, led to a significant appreciation of the yen and notorious depreciation of currencies.

The MXN Peso, with a profound market typically used for unwinding carry trade positions against the yen, depreciated approximately -8.6% from May 31, 2024, to July 31, 2024. Source: Bloomberg.

Following the above-mentioned higher risk aversion momentum, the main stock markets, particularly the technology sector, contracted. The ("IPyC") Mexican stock market index lowered -11.03% in US Dollars from May 31 to July 31, 2024, the end of the Fund's fiscal year. The depreciation of the MXN peso contributed -8.6%, and equities -2.43%. Source Bloomberg.

Source: Bloomberg.

Source: U.S. Bancorp Fund Services, LLC.

Performance data represents past performance; past performance does not guarantee future results.

The investment retuand principal value of an investment will fluctuate so that the investor's shares, when sold, may be worth more or less than their original cost. Performance data to the most recent month end may be obtained by calling U.S. Bancorp Fund Services, LLC, (414)765-4255, or by consulting the Fund's web page: www.mxefund.com.

The Fund's shares have traded in the market above (at a premium), at, and below (at a discount) the net asset value per share (NAV) since the commencement of the Fund's operations. Generally, shares of closed-end investment companies, including those of the Fund, trade at a discount from NAV.

The net per share asset value ("NAV") registered a retuin Mexican Pesos of minus 0.73% and a retuof -10.43% in U.S. dollars (calculated based on net asset value calculated for shareholder transactions, which does not reflect adjustments made to the net asset value for financial reporting purposes per accounting principles generally accepted in the United States of America), including a 1.91% ratio of expenses to an average net asset, for the one year, ending July 31, 2024 - Source: U.S. Bancorp; Bloomberg.The MXN peso has traded in the range of 17.52 to 19.84 pesos per U.S. dollar since Mexico's General Election outcome on June 2, 2024, with depreciation of -8.6% from May 31 to July 31, 2024. Source: Bloomberg.

Please refer to the Fund's Opportunistic Non-Transferable Rights Offering for 146% of outstanding shares at a subscription price of U.S. $8.90 per common stock on October 12, 2021, proposed by the BOD to the Fund's Stakeholders to subscribe with a high discount to market price to better assess PAM's quality portfolio management.

The retuattribution analysis presents the two largest stock detractors related to the Consumer Discretionary, automotive parts industry, and the other to the Real Estate Services, industrial parks built to suit industry. Both Companies' management continues to fully engage with frustrated financial quarters but good forward financial prospects. Challenges to those industries refer to the COVID-19 pandemic after the supply shocks (automotive parts production) and higher-than-expected interest rates in the industrial parks, which are the main conceptual elements affecting these sectors. The second lagger sector was the Materials sector, which refers to one beta stock. Despite the challenges, the Materials sector's forward fundamentals remain solid, forecasting lower interest rates in Mexico.

We are optimistic about the potential of the cheap-value Fund construction portfolio and companies in a higher economic scenario. This optimism is based on the promising demographics and nearshoring prospects, which indicate a bright future for these entities.

Source: PAM; Bloomberg.

The economic activity forecast suggests a modest expansion for the full year 2024. According to BANXICO, the stable U.S. economic growth prospect is the primary factor influencing better economic activity prospects in Mexico. Our confidence in public government finances remains unwavering for its health and stability. Please see Exhibits 1 and 2.

Compared to its history and forward earnings yield, the MEXBOL Index is attractive. This attractiveness is significant as it indicates a favorable relationship between valuation and forward earnings growth. The forward-looking data shows a double-digit discount to the 5- and 15-year average, which is a promising sign for potential investors. Please see Exhibits 3 and 4.

The Fund's investment strategy and Portfolio construction remain highly diversified, providing a secure foundation encompassing companies with local and international sales and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) exposure. PAM continues to align the Fund to its Investment Objectives and Restrictions. Our strategy is to identify companies with strong long-term fundamentals, avoiding the market's short-term volatility. We have a strong preference for experienced company management, particularly those with the ability to operate in stressful financial conditions and those with decades of international experience, primarily within the northeAmerican region, EU, and South America.

Ms. Claudia Sheinbaum, President elected, will take office on October 1, 2024. For the first time, Mexico will have a President with an absolute majority in Congress and a highly scientific and experienced cabinet. The market has good prospects for a president capable of having good relationships with entrepreneurs and the press. In a recorded message, Marcelo Ebrard, future Secretary of Economy, stated that the Mexican government would facilitate foreign investments and said, 'We are a friendly country for investments coming from the United States.' - Source: El Financiero.

Sincerely,

Eugenia Pichardo, Senior Portfolio Manager

David Estevez Analyst and Portfolio Manager

Exhibit 1.

United States of America International Trade.

Source: U.S. Census Bureau. Amounts in millions of US dollars.

Exhibit 2.

Historical Net Debt as % of GDP

As of 1H24.

Source: Ministry of Finance and Public Credit

Exhibit 3.

MEXBOL Index Forward 12-Mos Price to Earnings (P/E) Multiple

Long term, as of July 31, 2024.

Source: PAM; Bloomberg.

Exhibit 4.

MEXBOL INDEX, 12-month forward EV/EBITDA Multiple

Long term, as of July 31, 2024.

Source: PAM; Bloomberg.

DISCLAIMER

The Mexico Equity and Income Fund, Inc. ("the Fund") maintains a long-term capital appreciation investment objective through investments in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.

Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please see the Schedule of Investments in this report for a complete list of fund holdings. The information and views provided herein represent the opinion of Pichardo Asset Management, not the Fund's Board of Directors, and it does not intend to be a forecast of future events, a guarantee of future results, or investment advice. This report contains certain forward-looking statements about factors that may affect the performance of the Fund in the future.

Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict.

Investors must carefully consider the Fund's investment objectives, risks, charges, expenses and restrictions. The prospectus contains this and other important information about the investment company, which may be obtained by calling U.S. Bancorp Fund Services, LLC, (414) 765-4255. Read it carefully before investing.

All investments involve risk. Principal loss is possible.

Definitions

RELEVANT ECONOMIC INFORMATION for the years ended December 31

Sources: Banamex, Banco de Mexico, Bloomberg, MSCI.

Performance at a glance (unaudited)

Average annual total returns for common stock for the periods ended 7/31/2024

Past performance does not predict future performance. The retuand value of an investment will fluctuate so that an investor's share, when sold, may be worth more or less than their original cost. The Fund's common stock net asset value ("NAV") retuassumes, for illustration only, that dividends and other distributions, if any, were reinvested at the NAV on the ex-dividend date. The Fund's common stock market price returns assume that all dividends and other distributions, if any, were reinvested at the lower of the NAV or the closing market price on the ex-dividend date. NAV and market price returns for the period of less than one year have not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund dividends and other distributions, if any, or the sale of Fund shares.

The MSCI Mexico Index is designed to measure the performance of the large and mid cap segments of the Mexican market. With 24 constituents, the MSCI Mexico Index covers approximately 85% of the free float-adjusted market capitalization in Mexico.

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements.

Percentages are stated as a percent of net assets.

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements.

The accompanying notes are an integral part of these financial statements.

Statements of Changes in Net Assets

The accompanying notes are an integral part of these financial statements.

Financial Highlights

For a Common Share Outstanding Throughout Each Year

The accompanying notes are an integral part of these financial statements.

NOTE A: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Mexico Equity and Income Fund, Inc. (the "Fund") was incorporated in Maryland on May 24, 1990, and commenced operations on August 21, 1990. The Fund is registered under the Investment Company Act of 1940, as amended, as a closed-end, non-diversified management investment company.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 "Financial Services-Investment Companies".

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Significant accounting policies are as follows:

Portfolio Valuation.Investments are stated at value in the accompanying financial statements. Listed equity securities are valued at the closing price on the exchange or market on which the security is primarily traded (the "Primary Market") at the valuation time. If the security did not trade on the Primary Market, it shall be valued at the closing price on another comparable exchange where it trades at the valuation time. If there are no such closing prices, the security shall be valued at the mean between the most recent highest bid and lowest ask prices at the valuation time. Investments in short-term debt securities having a maturity of 60 days or less are valued at amortized cost if their term to maturity from the date of purchase was less than 60 days, or by amortizing their value on the 61st day prior to maturity if their term to maturity from the date of purchase when acquired by the Fund was more than 60 days. Other assets and securities for which no quotations are readily available will be valued in good faith at fair value using methods determined by the Board of Directors. These methods include, but are not limited to, the fundamental analytical data relating to the investment; the nature and duration of restrictions in the market in which they are traded (including the time needed to dispose of the security, methods of soliciting offers and mechanics of transfer); the evaluation of the forces which influence the market in which these securities may be purchased or sold, including the economic outlook and the condition of the industry in which the issuer participates and sum of the parts methodology. The Fund has a Valuation Committee comprised of independent directors which oversees the valuation of portfolio securities. Any securities or other assets for which market quotations are not readily available are valued at their fair value pursuant to policies and procedures adopted pursuant to Rule 2a-5 under the 1940 Act.

Investment Transactions and Investment Income.The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Interest income, including the accretion of discount and amortization of premium on investments, is recorded on an accrual basis; dividend income is recorded on the ex-dividend date or, using reasonable diligence, when known to the Fund. The collectibility of income receivable from foreign securities is evaluated periodically, and any

resulting allowances for uncollectible amounts are reflected currently in the determination of investment income. There was no allowance for uncollectible amounts at July 31, 2024.

Tax Status.No provision is made for U.S. Federal income or excise taxes as it is the Fund's intention to continue to qualify as a regulated investment company and to make the requisite distributions to its shareholders that will be sufficient to relieve it from all or substantially all U.S. Federal income and excise taxes.

The Fund is subject to the following withholding taxes on income from Mexican sources:

Investment Objectives

The Fund's investment objective is to seek high total retuthrough capital appreciation and current income. There can be no assurance that the Fund's objective will be achieved.

Investment Strategies

The Fund pursues its objective primarily by investing, under normal circumstances, at least 80% of the Fund's assets in equity and convertible securities issued by Mexican companies and debt securities of Mexican issuers.

The Fund invests in equity securities, convertible securities and debt securities and may also invest in other securities such as capital development certificates, real estate investment trusts, mutual funds, exchange traded funds, preferred stocks, rights and warrants. The Fund may, without limitation, hold cash or invest in assets in money market instruments, including U.S. and non-U.S. government securities, high grade commercial paper and certificates of deposit and bankers' acceptances issued by U.S. and non-U.S. banks.

The Adviser may invest the Fund's cash balances in any investments it deems appropriate, subject to the restrictions set forth in below under "Fundamental Investment Restrictions" and as permitted under the

RISK FACTORS

An investment in the Fund is not guaranteed to achieve its investment objective; is not a deposit with a bank; is not insured, endorsed or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; and is subject to investment risks. The value of the Fund's investments will increase or decrease based on changes in the prices of the investments it holds. You could lose money by investing in the Fund. By itself, the Fund does not constitute a balanced investment program. You should consider carefully the following principal and non-principal risks before investing in the Fund. There may be additional risks that the Fund does not currently foresee or consider material. You may wish to consult with your legal or tax advisors, before deciding whether to invest in the Fund. This section describes the risk factors associated with investment in the Fund specifically, as well as those factors generally associated with investment in an investment company with investment objectives, investment policies, capital structure or trading markets similar to the Fund's. Each risk summarized below is a risk of investing in the Fund and different risks may be more significant at different times depending upon market conditions or other factors.

The Fund may invest in securities of other investment companies ("underlying funds"). The Fund may be subject to the risks of the securities and other instruments described below through its own direct investments and indirectly through investments in the underlying funds.

Principal Risks

Investments in Foreign Securities Risks.

The Fund invests in the universe of Mexican securities market. Investing in Mexican securities presents political, regulatory and economic risks in some ways similar to those that face a re-emerging country and a developing county; and different in kind and degree from the risks presented by investing in the U.S. financial markets or any other fairly comparable emerging country in the Latin American region, pertaining

Summary of Fair Value Exposure at July 31, 2024.The Fund follows the FASB ASC Topic 820 hierarchy, under which various inputs are used in determining the value of the Fund's investments.

The basis of the hierarchy is dependent upon various "inputs" used to determine the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund's investments carried at fair value as of July 31, 2024:

* See Schedule of Investments for industry classifications.

Level 3 Reconciliation Disclosure

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of July 31, 2024:

Disclosures about Derivative Instruments and Hedging Activities

The Fund did not invest in derivative securities or engage in hedging activities during the period ended July 31, 2024.

Federal Income Taxes. The Fund intends to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all or substantially all federal income taxes. Therefore, no federal income tax provision is required. Accounting principles generally accepted in the United States of America require that permanent differences between financial reporting and tax reporting be reclassified between various components of net assets.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is "more-likely-than-not" to be sustained assuming examination by tax authorities. The Adviser has analyzed the Fund's tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2021-2023), or expected to be taken in the Fund's 2024 tax returns. The Fund identifies its major tax jurisdictions as U.S. Federal, New York State and foreign jurisdictions where the Fund makes significant investments; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Reclassification of Capital Accounts.Accounting Principles generally accepted in the United States of America require certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. The permanent differences are primarily attributed to foreign currency loss reclassifications and net operating loss. For the year ended July 31, 2024, there were no reclassifications made for permanent tax differences on the Statement of Assets and Liabilities.

Foreign Currency Translation.The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

The Fund reports realized foreign exchange gains and losses on all other foreign currency related transactions as components of realized gains and losses for financial reporting purposes, whereas such gains and losses are treated as ordinary income or loss for Federal income tax purposes.

Securities denominated in currencies other than U.S. dollars are subject to changes in value due to fluctuations in the foreign exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the level of governmental supervision and regulation of foreign securities markets and the possibilities of political or economic instability.

Distribution of Income and Gains.The Fund intends to distribute to shareholders, at least annually, substantially all of its net investment income, including foreign currency gains. The Fund also intends to distribute annually any net realized capital gains in excess of net realized capital losses (including any capital loss carryovers), except in circumstances where the Directors of the Fund determine that the decrease in the size of the Fund's assets resulting from the distribution of the gains would generally not be in the interest of the Fund's shareholders. An additional distribution may be made to the extent necessary to avoid payment of a 4% U.S. Federal excise tax.

Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized gains are determined in accordance with U.S. Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their Federal tax-basis treatment; temporary differences do not require reclassification. To the extent they exceed net investment income and net realized gains for tax purposes, they are reported as distributions from additional paid-in capital.

Distributions to Shareholders.The tax character of distributions paid to shareholders during the periods ended July 31, 2024 and July 31, 2023 were as follows:

As of July 31, 2024, the components of distributable earnings on a tax basis were as follows:

At July 31, 2024, the Fund had tax basis capital losses which may be carried forward to offset future long term capital gains indefinitely in the amount of $1,123,640. To the extent that the Fund may realize future net capital gains, those gains will be offset by any of the unused capital loss carryforward. During the year ended July 31, 2024, the Fund utilized long term capital loss carryforwards of $3,678,333.

Under current tax law, capital losses and late-year ordinary losses realized after October 31 and December 31 respectively, may be deferred and treated as occurring on the first business day of the following fiscal year. The Fund did not defer any post-October capital losses. At July 31, 2024, the Fund did not defer any late-year ordinary losses.

NOTE B: MANAGEMENT, INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES

Pichardo Asset Management, S.A. de C.V. serves as the Fund's Investment Adviser (the "Investment Adviser") under the terms of the Investment Advisory Agreement (the "Advisory Agreement") effective July 1, 2003. Pursuant to the Advisory Agreement, the Investment Adviser makes investment decisions for the Fund and supervises the acquisition and disposition of securities by the Fund. For its services, the Investment Adviser is paid a base fee, accrued daily at the annual rate of 1.00%, subject to a performance fee adjustment which increases or decreases the fee depending upon how well the Fund has performed relative to the MSCI Mexico Index (the "Index") 12 month rolling average. The fee adjustment will be calculated using a monthly adjustment rate that is based upon the Fund's relative performance to the Index. The base fee and performance fee adjustment are calculated on net assets and are calculated and paid monthly. The performance adjustment rate will be positive (resulting in an upward fee adjustment) for each percentage

point, or portion thereof, that the investment performance of the Fund exceeds the investment performance of the Index for the performance period multiplied by three (3) and will be negative (resulting in a downward fee adjustment) for each percentage point, or portion thereof, that the investment performance of the Index exceeds the investment performance of the Fund for the performance period multiplied by three (3). Determinations of the performance adjustment rate (positive or negative) will be made in increments of 0.01% of differential performance. As an example, if the Fund's performance for the preceding 12 months exceeds the performance of the Index by 1.00%, the performance adjustment rate would be 3 x 0.01, which would result in a monthly fee equal to an annual rate of 1.03%. The performance adjustment rate will be limited to a 0.15% fee adjustment, positive or negative.

For the year ended July 31, 2024, the Fund's investment performance ranged from 1.9% to (8.6)% above (below) the investment performance of the Index. Accordingly, for the year ended July 31, 2024 the net investment advisory fee consisted of the base fee of $628,756 and a net downward performance fee adjustment of $(41,302).

Effective December 9, 2021, the Fund pays each of its directors who is not a director, officer or employee of the Investment Adviser, the Administrator or any affiliate thereof an annual fee of $30,000, paid pro rata, quarterly plus a fee of $500 for each meeting held telephonically. As additional annual compensation, the Chairman of the Fund will receive $3,750, the Audit Committee Chairman and Valuation Committee Chairman will receive $2,250, and the Nomination Committee Chairman will receive $1,500. Effective April 1, 2020, the Board approved the CCO's annual compensation in the range of $45,000 to $72,000. Ms. Stephanie Darling receives annual compensation in the amount of $60,000 for serving the Fund as Chief Compliance Officer ("CCO"). In addition, the Fund reimburses the directors and CCO for travel and out-of-pocket expenses incurred in connection with Board of Directors' meetings and CCO due diligence requirements.

U.S. Bancorp Fund Services, LLC doing business as U.S. Bank Global Fund Services ("Fund Services" or the "Administrator"), serves as the Fund's Administrator and, in that capacity, performs various administrative services for the Fund. Fund Services also serves as the Fund's Accountant (the "Fund Accountant"). Equiniti Trust Company LLC serves as the Fund's Transfer Agent. U.S. Bank, N.A. serves as the Fund's custodian (the "Custodian"). The Custodian is an affiliate of the Administrator. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the directors; monitors the activities of the Fund's Custodian and Fund Accountant; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals.

NOTE C: PORTFOLIO ACTIVITY

Purchases and sales of securities other than short-term obligations, aggregated $102,113,092 and $102,811,201 respectively, for the year ended July 31, 2024.

At July 31, 2024 approximately 97.0% of the Fund's net assets were invested in Mexican securities. The Mexican securities markets are substantially smaller, less liquid, and more volatile than the major securities markets in the United States. Consequently, acquisitions and dispositions of securities by the Fund may be limited.

NOTE D: CAPITAL STOCK

During the year ended July 31, 2024, there were no shares of common stock repurchased under the guidelines set forth in the Fund's stock repurchase program.

The Fund completed an offering to issue up to 100% of the Fund's shares outstanding at 92.5% of the volume weighted average market price per share for the three consecutive trading days ending on the trading day after the Expiration Date on October 8, 2021. At the expiration of the offer on October 8, 2021, a total of 2,613,746 rights were validly exercised.

Share Repurchase

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase, from time to time, shares of its common stock in the open market.

NOTE E: RECENT MARKET EVENTS

U.S. and international markets have experienced volatility in recent months and years due to a number of economic, political and global macro factors. Uncertainties regarding interest rates, political events, rising government debt in the U.S. and trade tensions have also contributed to market volatility. Global economies and financial markets are increasingly interconnected, which increases the possibility that conditions in one country or region might adversely impact issuers in a different country or region. In particular, a rise in protectionist trade policies, slowing global economic growth, risks associated with epidemic and pandemic diseases, risks associated with the United Kingdom's departure from the European Union, the risk of trade disputes, and the possibility of changes to some international trade agreements, could affect the economies of many nations, including the United States, in ways that cannot necessarily be foreseen at the present time. Continuing market volatility as a result of recent market conditions or other events may have adverse effects on your account.

NOTE F: SUBSEQUENT EVENTS

In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition through the date the financial statements were issued. No material events or transactions occurred subsequent to July 31, 2024 that would require recognition or disclosure in these financial statements.

Report of Independent Registered Public

Accounting Firm

To the Shareholders and Board of Directors of The Mexico Equity and Income Fund, Inc.,

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of The Mexico Equity and Income Fund, Inc., (the "Fund"), including the schedule of investments, as of July 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the Fund's auditor since 2002.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2024 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

BOARD CONSIDERATION OF THE CONTINUATION OF THE FUND'S INVESTMENT ADVISORY AGREEMENT (Unaudited)

In March 2024, the Board of Directors of The Mexico Equity and Income Fund, Inc., (the "Fund"), including the Independent Directors, unanimously approved the renewal of the Fund's Investment Advisory Agreement (the "Agreement") with the Adviser for an additional one-year term. The information, material facts and conclusions that formed the basis for the Independent Directors approval are described below.

INFORMATION REVIEWED

During the course of the year, the Independent Directors review a wide variety of materials relating to the nature, extent and quality of the services provided to the Fund by the Adviser, including reports on the Fund's investment results, portfolio composition, investment strategy, economic outlook, valuation, and other matters. In addition, in connection with its annual review of the Agreement, independent counsel on behalf of the Independent Directors requested and the Independent Directors reviewed information that included materials regarding the Fund's investment results, advisory fee and expense comparisons, financial and profitability information regarding the Adviser, descriptions of various functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management and administrative services to the Fund. In connection with its review, the Independent Directors received assistance and advice in the form of a written memorandum regarding legal and industry standards with respect to the renewal of an investment advisory agreement from counsel to the Fund. The Independent Directors discussed the approval of the Agreement with representatives of the Adviser and during an executive session with counsel at which no representatives of the Adviser were present. In deciding to recommend approval of the Agreement, the Independent Directors did not identify any single or particular piece of information that, in isolation, was the controlling factor, and each Independent Director may have weighed each factor differently. This summary describes the most important, but not all, of the factors considered by the Independent Directors.

1. NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED TO THE FUND

The Independent Directors considered the nature, extent and quality of services provided by the Adviser to the Fund. The Independent Directors considered the Adviser's specific responsibilities in all aspects of day-to-day management of the Fund, as well as the qualifications, experience and responsibilities of the Fund's portfolio managers, and other key personnel at the Adviser involved in the day-to-day activities of the Fund. The Independent Directors also considered the operational strength of the Adviser. The Independent Directors also reviewed the structure of the Adviser's compliance procedures and their effectiveness. The Independent Directors reviewed the personnel responsible for providing services to the Fund and concluded, based on their experience and interaction with the Adviser, that (a) the Adviser was able to retain quality personnel, (b) the Adviser exhibited a high level of diligence and attention to detail in carrying out its responsibilities under the Agreement, (c) the Adviser was sufficiently responsive to the requests of the

Independent Directors, and (d) the Adviser had consistently kept the Independent Directors apprised of developments related to the Fund and the Mexican economic environment in general. The Independent Directors discussed in greater detail, with the assistance of the Fund's Chief Compliance Officer (the "CCO"), the Adviser's compliance policies and procedures, and, based on the assurances and information provided to them by the CCO, the Independent Directors concluded that the Adviser's policies and procedures were satisfactory and reasonably designed to prevent violations of the federal securities laws. The Independent Directors concluded that the Adviser had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures necessary to perform its duties under the Agreement and that the nature, overall quality, and extent of the management services provided to the Fund were satisfactory and the Adviser continued to be reliable.

2. INVESTMENT PERFORMANCE OF THE FUND

The Independent Directors discussed the performance of the Fund for the one-year, three-year, five-year and ten-year periods ended January 31, 2024. In assessing the quality of the portfolio management services delivered by the Adviser, the Independent Directors also compared the short-term and long-term NAV performance of the Fund on both an absolute basis and in comparison to a peer group of closed end international funds constructed by data provided by Morningstar, Inc. (the "Morningstar Peer Group") and assembled by the Fund's administrator independently from the Adviser. The Independent Directors noted that the Fund produced positive returns for the one-year, three-year, five-year and ten-year periods ended January 31, 2024. The Independent Directors noted that the Fund's performance was above the Morningstar Peer Group average and median for the one-year, three-year and five-year periods ended January 31, 2024, but was below the Morningstar Peer Group average and median for the ten-year period. The Independent Directors noted that they had reviewed the investment performance of the Fund at each quarterly Meeting over the course of the year. The Independent Directors concluded that the Fund's performance was satisfactory under existing market conditions. Although past performance is not a guarantee or indication of future results, the Independent Directors determined that the Fund and its shareholders were likely to benefit from the Adviser's continued management.

3. COSTS OF SERVICES PROVIDED

The Independent Directors next considered information prepared by the Fund's administrator comparing (i) the Fund's contractual advisory fee with the Morningstar Peer Group, and (ii) the Fund's overall expense ratio to the expense ratios of the Morningstar Peer Group. The Independent Directors noted that the Fund's contractual investment base advisory fee was higher than the Morningstar Category average and that the current year's contractual investment advisory fee adjusted for the downward performance adjustment under the fulcrum fee was still higher than the Morning start Category average. The Independent Directors further noted that the then current expense ratio for the Fund was higher than the Morningstar Category average. The Independent Directors noted that the higher expense ratio was in part due to the Fund's asset size being

significantly smaller than the average asset size of the Morningstar Category. The Independent Directors concluded that the Fund's expenses and advisory fees paid to the Adviser were not unreasonable in light of the comparative performance, expense and advisory fee information.

4. PROFITS REALIZED BY THE ADVISER

The Independent Directors also considered information regarding the overall profitability of advising the Fund to the Adviser. The Independent Directors considered both the direct and indirect benefits to the Adviser from advising the Fund. The Independent Directors also examined the level of profits that could be expected to accrue to the Adviser from the fees payable under the Agreement. The Independent Directors reviewed the audited financial information of the Adviser included in the materials for the March 2024 meeting.

The Independent Directors concluded that the Adviser's profit from advising the Fund had not been, and currently was not, excessive, and that the Adviser had adequate resources to support its services to the Fund.

CONCLUSIONS

Based on their review, including consideration of each of the factors referred to above, the Independent Directors concluded that (a) the terms of the Agreement are fair and reasonable; (b) the Adviser's fees, including the fulcrum fee, are not unreasonable in light of the services and performance that it provides to the Fund; and (c) the Agreement continued to be in the best interests of the Fund and its stockholders.

NOTE 1: INFORMATION ABOUT PROXY VOTING

Information regarding how the Fund votes proxies relating to portfolio securities is available without charge upon request by calling toll-free at 1-800-937-5449 and the SEC's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve month period ended June 30 is available on the SEC's website at www.sec.gov or by calling the toll-free number listed above.

NOTE 2: AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. The filing will be available, upon request, by calling 1-800-937-5449. Furthermore, you will be able to obtain a copy of the filing on the SEC's website at http://www.sec.gov.

NOTE 3: INFORMATION ABOUT CERTIFICATIONS

In December 2023, the Fund submitted a CEO annual certification to the NYSE in which the Fund's principal executive officer certified that she was not aware, as of the date of the certification, of any violation by the Fund of the NYSE's Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund's principal executive and principal financial officers have made certifications included in filings with the SEC on Forms N-CSR and N-CSRS, relating to, among other things, the Fund's disclosure controls and procedures and internal control over financial reporting.

NOTE 4: INFORMATION ON FORWARD LOOKING STATEMENTS

Except for historical information contained in this report for the Fund, the matters discussed in this report may constitute forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These include any adviser or portfolio manager predictions, assessments, analyses or outlooks for individual securities, industries, market sectors and/or markets. These statements involve risks and uncertainties. In addition to the general risks described for the Fund in the most recent Prospectus, other factors bearing on this report include the accuracy of the adviser's or portfolio manager's data, forecasts and predictions, and the appropriateness of the investment programs designed by the adviser or portfolio manager to implement their strategies efficiently and effectively. Any one or more of these factors, as well as other risks affecting the securities markets and investment instruments generally, could cause the actual results of the Fund to differ materially as compared to benchmarks associated with the Fund.

ADDITIONAL INFORMATION APPLICABLE TO FOREIGN SHAREHOLDERS ONLY

The percent of ordinary income distributions designated as interest related dividends for the fiscal year ended July 31, 2024 was 0.00%. (unaudited)

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) was 0.00%. (unaudited)

The Fund designates 100.00% of dividends declared for the fiscal year ended July 31, 2024 from net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003. (unaudited)

DIVIDEND REINVESTMENT PLAN

The Fund intends to distribute to shareholders substantially all of its net investment company taxable income at least annually. Investment company taxable income, as defined in section 852 of the Internal Revenue Service Code of 1986, includes all of the Fund's taxable income minus the excess, if any, of its net realized long-term capital gains over its net realized short-term capital losses (including any capital loss carryovers), plus or minus certain other required adjustments. The Fund also expects to distribute annually substantially all of its net realized long-term capital gains in excess of net realized short-term capital losses (including any capital loss carryovers), except in circumstances where the Fund realizes very large capital gains and where the Directors of the Fund determine that the decrease in the size of the Fund's assets resulting from the distribution of the gains would not be in the interest of the Fund's shareholders generally.

Pursuant to the Fund's Dividend Reinvestment Plan (the "Plan"), each shareholder will be deemed to have elected, unless the Plan Agent (as defined below) is otherwise instructed by the shareholder in writing, to have all distributions, net of any applicable U.S. withholding tax, automatically reinvested in additional shares of the Fund by American Stock Transfer and Trust Company, the Fund's transfer agent, as the Plan Agent (the "Plan Agent"). Shareholders who do not participate in the Plan will receive all dividends and distributions in cash, net of any applicable U.S. withholding tax, paid in U.S. dollars by check mailed directly to the shareholder by the Plan Agent, as dividend-paying agent. Shareholders who do not wish to have dividends and distributions automatically reinvested should notify the Plan Agent for The Mexico Equity and Income Fund, Inc., c/o Ms. Marianela Patterson, 6201 15th Ave, Brooklyn, NY 11219. Dividends and distributions with respect to shares of the Fund's Common Stock registered in the name of a broker-dealer or other nominee (i.e., in "street name") will be reinvested under the Plan unless the service is not provided by the broker or nominee or the shareholder elects to receive dividends and distributions in cash. A shareholder whose shares are held by a broker or nominee that does not provide a dividend reinvestment program may be required to have his shares registered in his own name to participate in the Plan. Investors who own shares of the Fund's Common Stock registered in street name should contact the broker or nominee for details.

The Plan Agent serves as agent for the shareholders in administering the Plan. If the Directors of the Fund declare an income dividend or a capital gains distribution payable in the Fund's Common Stock, or in cash, as shareholders may have elected, nonparticipants in the Plan will receive cash and participants in the Plan will receive Common Stock to be issued by the Fund. If the market price per share on the valuation date equals or exceeds net asset value per share on that date, the Fund will issue new shares to participants at net asset value; or, if the net asset value is less than 95% of the market price on the valuation date, then such shares will be issued at 95% of the market price.

If net asset value per share on the valuation date exceeds the market price per share on that date, participants in the Plan will receive shares of Common Stock from the Fund valued at market price. 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 preceding trading day. If the Fund should declare an income dividend or capital gains distribution payable only in cash, the Plan Agent will, as agent for the participants, buy Fund shares in the open market on the New York Stock Exchange or elsewhere, for the participants' accounts on, or shortly after, the payment date.

The Plan Agent maintains all shareholder accounts in the Plan and furnishes written confirmations of all transactions in an account, including information needed by shareholders for personal and tax records. Shares in the account of each Plan participant will be held by the Plan Agent in noncertified form in the name of the participant, and each shareholder's proxy will include those shares purchased pursuant to the Plan.

In the case of shareholders such as banks, brokers or nominees that hold shares for others who are beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the shareholders as representing the total amount registered in the shareholder's name and held for the account of beneficial owners who participate in the Plan.

There is no charge to participants for reinvesting dividends or capital gains distributions payable in either Common Stock or cash. The Plan Agent's fees for the handling or reinvestment of such dividends and capital gains distributions will be paid by the Fund. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in stock or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of dividends or capital gains distributions payable in cash.

Brokerage charges for purchasing small amounts of Common Stock for individual accounts through the Plan are expected to be less than usual brokerage charges for such transactions because the Plan Agent will be purchasing stock for all participants in blocks and prorating the lower commissions thus attainable. Brokerage commissions will vary based on, among other things, the broker selected to effect a particular purchase and the number of participants on whose behalf such purchase is being made.

The receipt of dividends and distributions in Common Stock under the Plan will not relieve participants of any income tax (including withholding tax) that may be payable on such dividends or distributions.

Experience under the Plan may indicate that changes in the Plan are desirable. Accordingly, the Fund and the Plan Agent reserve the right to terminate the Plan as applied to any dividend or distribution paid subsequent to notice of the termination sent to participants at least 30 days before the record date for such dividend or distribution. The Plan also may be amended by the Fund or the Plan Agent, but (except when necessary or appropriate to comply with applicable law, or rules or policies of a regulatory authority) only upon at least 30 days' written notice to participants. All correspondence concerning the Plan should be directed to the Plan Agent at the address above.

The Fund's Annual Stockholders meeting was held on December 15, 2023, at the offices of U.S. Bancorp Fund Services, LLC (d/b/a U.S. Bank Global Fund Services), 2020 E. Financial Way, Suite 100, Glendora, CA 91741. As of October 18, 2023, the record date, outstanding shares of common stock were 4,400,209. Holders of 3,294,449 common shares of the Fund were present at the meeting either in person or by proxy. These holders, as being holders of a majority of the outstanding shares of the Fund, constituted a quorum. The stockholders voted on one proposal. The stockholders elected one Director to the Fund's Board of Directors. The following table provides information concerning the matters voted on at the meeting:

1. Election of Directors

Required Vote for Adoption of Proposals

Proposal 1 to elect one Class I Director to the Fund's Board of Directors required the affirmative vote of a majority of votes cast at the Meeting by the holders of the Fund's common stock voting in person or by proxy on such Proposal, provided a quorum is present.

Board of Directors.The management and affairs of the Fund are supervised by the Board of Directors. The Board consists of five individuals, whom are not "interested persons" of the Fund as the term is defined in the Investment Company Act of 1940, as amended (the "1940 Act"). The Directors are fiduciaries for the Fund's shareholders and are governed by the laws of the State of Maryland in this regard. The Board establishes policies for the operation of the Fund and appoints the officers who conduct the daily business of the Fund. The Directors and Interested Officers of the Fund are listed below with their addresses, present position(s) with the Fund, length of time served, principal occupations over at least the last five years, and any other Directorships held. Please note that the Fund is not part of a fund complex.

Additional information about the Directors and Officers of the Fund is included in the Fund's most recent Proxy Statement.