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                                  AMERICAN FLAG

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                                                               THE GABELLI
                                                               EQUITY TRUST INC.

THIRD QUARTER REPORT
SEPTEMBER 30, 2002

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                                   THE GABELLI
                                EQUITY TRUST INC.

          Our cover icon represents the underpinnings of Gabelli.  The
          Teton  mountains in Wyoming  represent what we believe in in
          America  -- that  creativity,  ingenuity,  hard  work  and a
          global uniqueness  provide enduring values.  They also stand
          out  in  an   increasingly   complex,   interconnected   and
          interdependent economic world.

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ALABAMA       ALASKA    ARIZONA     ARKANSAS    CALIFORNIA COLORADO CONNECTICUT DELAWARE      FLORIDA       GEORGIA
HAWAII        IDAHO     ILLINOIS    INDIANA     IOWA       KANSAS   KENTUCKY    LOUISIANA     MAINE         MARYLAND
MASSACHUSETTS MICHIGAN  MINNESOTA   MISSISSIPPI MISSOURI   MONTANA  NEBRASKA    NEVADA        NEW HAMPSHIRE NEW JERSEY
NEW MEXICO    NEW YORK  N. CAROLINA N. DAKOTA   OHIO       OKLAHOMA OREGON      PENNSYLVANIA  RHODE ISLAND  S. CAROLINA
S. DAKOTA     TENNESSEE TEXAS       UTAH        VERMONT    VIRGINIA WASHINGTON  WEST VIRGINIA WISCONSIN     WYOMING


          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.

TO OUR SHAREHOLDERS,

      In the  third  quarter  of  2002,  ongoing  economic  uncertainty  in part
reflecting  oil  prices  over $30 per  barrel,  a crisis  in  confidence  in the
integrity of corporate America and the increasing probability of military action
against Iraq weighed  heavily on the stock  market.  Near panic  selling in July
pushed market  indices to  multi-year  lows. A brief rally in August gave way to
another  wave of  selling in  September,  and at the close of the  quarter,  the
leading market indices were  re-testing  July lows.  Although the Gabelli Equity
Trust (the  "Trust")  declined a  disappointing  20.15%,  positive  returns from
selected consumer goods,  industrial,  cable television and media stocks,  which
were hurt in the second quarter,  buoyed performance.  Notwithstanding  that, we
believe we can continue to provide  returns over the long term  outpacing  those
achieved in unmanaged  baskets of securities by doing what we do best -- picking
stocks.

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MARIO GABELLI

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THE GABELLI
EQUITY TRUST INC.


TABLE I

COMPARATIVE RESULTS
--------------------------------------------------------------------------------


             AVERAGE ANNUAL RETURNS THROUGH SEPTEMBER 30, 2002 (A)
             -----------------------------------------------------
                                                        YEAR TO      SINCE
                                              QUARTER     DATE    INCEPTION (B)  10 YEAR  5 YEAR    3 YEAR    1 YEAR
                                              -------     ----    -------------  -------  ------    ------    ------
                                                                                        
  Gabelli Equity Trust:
    NAV Return (c) .......................    (20.15)%  (27.89)%       9.59%      7.75%   (0.28)%   (7.34)%  (19.00)%
    Investment Return (d) ................    (26.56)%  (27.53)%      10.45%      9.97%     4.41%   (2.19)%  (19.04)%

  S&P 500 Index ..........................    (17.27)%  (28.15)%      10.31%      8.99%   (1.62)%  (12.88)%  (20.47)%
  Dow Jones Industrial Average ...........    (17.40)%  (23.11)%      12.00%     11.13%     0.83%   (8.19)%  (12.49)%
  Nasdaq Composite Index .................    (19.90)%  (39.91)%       7.22%      7.23%   (7.01)%  (24.71)%  (21.80)%


(a) Returns  represent past  performance  and do not guarantee  future  results.
    Investment  returns and the principal value of an investment will fluctuate.
    When  shares are sold,  they may be worth  more or less than their  original
    cost.  The Dow Jones  Industrial  Average is an unmanaged  index of 30 large
    industrial  stocks.  The  S&P  500  and the  Nasdaq  Composite  Indices  are
    unmanaged  indicators of stock market performance.  Dividends are considered
    reinvested (except for the Nasdaq Composite Index).  Performance for periods
    less than one year are not annualized.
(b) From commencement of investment operations on August 21, 1986.
(c) Total returns and average annual returns  reflect changes in net asset value
    ("NAV"),  reinvestment of  distributions,  adjustments for rights offerings,
    spin-offs and taxes paid on undistributed  long-term  capital gains, and are
    net of expenses.  Since Inception return based on initial net asset value of
    $9.34.
(d) Total returns and average annual returns  reflect  changes in closing market
    values  on the New  York  Stock  Exchange,  reinvestment  of  distributions,
    adjustments for rights offerings,  spin-offs and taxes paid on undistributed
    long-term capital gains. Since Inception return based on an initial offering
    price of $10.00.


--------------------------------------------------------------------------------

COMMON STOCK 10% DISTRIBUTION POLICY

      The Trust  continues to maintain its 10%  Distribution  Policy whereby the
Trust pays out to common stock  shareholders  10% of its average net assets each
year.  Pursuant  to this  policy,  the  Trust  distributed  $0.27  per  share on
September 24, 2002.


      Under the policy,  distributions are made at the annual rate of 10% of the
average of the calendar  quarter-end  net assets of the Trust's  common stock at
December  2001  and  March,  June,  and  September  2002.  The  Trust  currently
distributes  $0.27 per share to common  stock  shareholders  at  quarter-end  in
March,  June,  and  September.  The fourth  quarter  distribution  is a variable
adjusting distribution in December. The adjusting distribution is the greater of
the remaining portion of 10% of the average net assets to be distributed (10% of
the average net assets less the  cumulative  $0.81 per share ($0.27 x 3) paid in
March, June, and September) or the distribution required by IRS regulations.

      As of  September  30,  2002,  there would be no  requirement  for a fourth
quarter  distribution to common stock  shareholders.  10% of the Trust's average
net assets using calendar quarter-end net assets of the Trust's common stock for
the past four quarters equates to $0.78 per share. The distribution of $0.27 per
share paid in  September  brought the total  distribution  for 2002 to $0.81 per
share,  thus satisfying the Trust's 10% Distribution  Policy for 2002. The Board
of Directors will determine the amount of any potential  distribution of income,
capital gains or capital (non-taxable return of principal) to be made at the end
of the fourth  quarter at a meeting in late  November.  In any event,  the Trust
will continue to make every effort to provide our common stock shareholders with
consistent distributions throughout the year pursuant to our policy.

      On November  20, 2002,  the Board of Directors  declared a $0.14 per share
cash distribution  payable on December 24, 2002 to common stock  shareholders of
record on December 16,  2002.  Additionally,  the Board of Directors  declared a
$0.27 per share  cash  distribution  payable on March 25,  2003 to common  stock
shareholders  of  record  on  March  17,  2003,  pursuant  to  the  Trust's  10%
Distribution Policy. The Board of Directors will continue to monitor the Trust's
10%  Distribution  Policy in light of the net asset  value and the  current  low
interest rate environment.

PREMIUM / DISCOUNT DISCUSSION

      As a refresher to our shareholders,  the price of a closed-end mutual fund
is  determined in the open market by willing  buyers and sellers.  Shares of the
Trust trade on the New York Stock Exchange and may trade at a premium to (higher
than) net asset  value  ("NAV")  (the  market  value of the  Trust's  underlying
portfolio)  or  a  discount  to  (lower  than)  net  asset  value.  Of  the  519
publicly-traded  closed-end funds in the U.S., approximately 27% currently trade
at premiums to NAV versus 26% five years ago and 58% ten years ago.  For general
equity funds such as the Trust, approximately 13% currently trade at premiums to
NAV versus 22% five years ago and 29% ten years ago.

      Ideally,  the  Trust's  market  price will  generally  track the NAV.  The
Trust's  premium or  discount  to NAV  fluctuates  over time.  Over our  Trust's
16-year  history,  the range fluctuated from a 38% premium in June 2002 to a 27%
discount in December  1987.  The average  variance  from NAV for the Trust since
inception is a 0.2% discount to NAV.  Beginning in early 2001,  the market price
of the Trust  exceeded the NAV and this premium has gradually  increased  since.
The  previous  extended  period in which a  premium  existed  occurred  during a
20-month period from August 1993 to March 1995.

      "Mr.  Market" often provides  opportunities  to invest at a discount.  The
Trust has undertaken various initiatives to narrow the discount when appropriate
through distribution policies,  rights offerings,  share repurchase programs and
use of leverage.

      The Trust's long-term investment goal is to generate a real rate of return
of 10%.  We believe  that our stock  selection  process  adds to the  investment
equation.  We have a successful  history of  investment  providing  shareholders
average  annual  returns of 10% since  inception.  However,  it is  important to
remember  that "Mr.  Market" is a pendulum  that swings both ways. As the market
moves  away from  momentum  investing  and back to basics,  we  believe  that an
excessive premium for the Trust is not likely to be sustainable.

                                       2

September 30, 2002
------------------
Net Asset Value             $ 5.79
Market Price                 $7.06
Premium                     21.93%

[GRAPH OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS:

 9/30/86               0.0067
10/31/86               0.0046
11/30/86              -0.039
12/31/86              -0.0661
 1/31/87              -0.1363
 2/28/87              -0.1323
 3/31/87              -0.1555
 4/30/87              -0.1393
 5/31/87              -0.1788
 6/30/87              -0.2028
 7/31/87              -0.2
 8/31/87              -0.2052
 9/30/87              -0.2128
10/31/87              -0.2074
11/30/87              -0.2154
12/31/87              -0.2061
 1/31/88              -0.2235
 2/29/88              -0.1145
 3/31/88              -0.1523
 4/30/88              -0.1477
 5/31/88              -0.1906
 6/30/88              -0.0819
 7/31/88              -0.0984
 8/31/88              -0.0942
 9/30/88              -0.1097
10/31/88              -0.1256
11/30/88              -0.1104
12/31/88              -0.1113
 1/31/89              -0.1214
 2/28/89              -0.1108
 3/31/89              -0.1006
 4/30/89              -0.0925
 5/31/89              -0.0699
 6/30/89              -0.0468
 7/31/89              -0.0854
 8/31/89              -0.0243
 9/30/89              -0.0385
10/31/89              -0.0257
11/30/89              -0.0217
12/31/89               0.0076
 1/31/90               0.0534
 2/28/90              -0.0156
 3/31/90               0.0242
 4/30/90               0.0033
 5/31/90              -0.0056
 6/30/90              -0.0049
 7/31/90              -0.0176
 8/31/90              -0.018
 9/30/90              -0.0348
10/31/90              -0.1187
11/30/90              -0.0327
12/31/90               0.029
 1/31/91              -0.0091
 2/28/91               0.0269
 3/31/91               0.015
 4/30/91              -0.0257
 5/31/91              -0.01
 6/30/91               0.0138
 7/31/91              -0.0032
 8/31/91              -0.0009
 9/30/91              -0.0298
10/31/91              -0.0083
11/30/91              -0.1014
12/31/91              -0.0366
 1/31/92              -0.0077
 2/29/92               0.0141
 3/31/92               0.0045
 4/30/92               0.0069
 5/31/92               0.0092
 6/30/92               0.0032
 7/31/92               0.0165
 8/31/92               0.0309
 9/30/92               0.0427
10/31/92              -0.0068
11/30/92              -0.0461
12/31/92              -0.0257
 1/31/93              -0.0312
 2/28/93              -0.0046
 3/31/93               0.0265
 4/30/93               0.0436
 5/31/93               0.012
 6/30/93              -0.0207
 7/31/93              -0.0093
 8/31/93              -0.0358
 9/30/93               0.0088
10/31/93               0.0601
11/30/93               0.0659
12/31/93               0.0573
 1/31/94               0.0797
 2/28/94               0.0673
 3/31/94               0.0733
 4/30/94              -0.027
 5/31/94               0.0524
 6/30/94               0.0542
 7/31/94               0.0233
 8/31/94               0.0597
 9/30/94               0.0185
10/31/94               0.0375
11/30/94               0.0622
12/31/94               0.0121
 1/31/95               0.0047
 2/28/95               0.03
 3/31/95               0.017
 4/30/95              -0.0122
 5/31/95              -0.024
 6/30/95              -0.0081
 7/31/95              -0.044
 8/31/95              -0.0697
 9/30/95              -0.0845
10/31/95              -0.1206
11/30/95              -0.075
12/31/95              -0.0578
 1/31/96              -0.0625
 2/29/96              -0.0821
 3/31/96              -0.0385
 4/30/96              -0.0732
 5/31/96              -0.0916
 6/30/96              -0.047
 7/31/96              -0.0576
 8/31/96              -0.0708
 9/30/96              -0.0474
10/31/96              -0.0405
11/30/96              -0.0644
12/31/96              -0.0394
 1/31/97              -0.0741
 2/28/97              -0.0644
 3/31/97              -0.0424
 4/30/97              -0.0077
 5/31/97              -0.0688
 6/30/97              -0.0613
 7/31/97              -0.0693
 8/31/97              -0.0676
 9/30/97              -0.0397
10/31/97              -0.0636
11/30/97              -0.0175
12/31/97               0.0316
 1/31/98               0.0119
 2/28/98              -0.0088
 3/31/98              -0.022
 4/30/98              -0.0788
 5/31/98              -0.0885
 6/30/98              -0.04
 7/31/98              -0.042
 8/31/98              -0.0814
 9/30/98              -0.0091
10/31/98               0.0025
11/30/98               0.0216
12/31/98               0.0026
 1/31/99               0.0103
 2/28/99               0.0264
 3/31/99               0.0202
 4/30/99              -0.0068
 5/31/99              -0.006
 6/30/99              -0.0163
 7/31/99               0.007
 8/31/99               0.0159
 9/30/99               0.0126
10/31/99              -0.0045
11/30/99              -0.0178
12/31/99              -0.0147
 1/31/00              -0.0331
 2/29/00              -0.0835
 3/31/00              -0.0438
 4/30/00              -0.078
 5/31/00              -0.046
 6/30/00               0.0097
 7/31/00              -0.0093
 8/31/00               0.0073
 9/30/00              -0.0179
10/31/00              -0.0298
11/30/00               0.0332
12/31/00               0.0493
 1/31/01              -0.045
 2/28/01              -0.0067
 3/31/01               0.1048
 4/30/01               0.0937
 5/31/01               0.1453
 6/30/01               0.1596
 7/31/01               0.1107
 8/31/01               0.1614
 9/30/01               0.2041
10/31/01               0.2241
11/30/01               0.2314
12/31/01               0.2029
 1/31/02               0.2497
 2/28/02               0.2463
 3/30/02               0.2311
 4/30/02               0.248
 5/30/02               0.2955
 6/30/02               0.3215
 7/31/02               0.3318
 8/31/02               0.3392
 9/30/02               0.2193

COMMENTARY

THE ECONOMY: A RECOVERY

      Economic growth was quite good in the third quarter. Federal Reserve Board
("Fed")  Chairman Alan Greenspan is confident the economy is still on a moderate
growth path. Investors aren't so sure. On balance, economic data has been mixed.
Consumer spending has remained buoyant.  Housing starts, existing home sales and
auto sales are still quite healthy.  Retail sales have held up well, despite the
drag from rising unemployment and the toxic impact of the wealth effect.

      Why is the economy  treading  water?  The business sector is acting like a
deer caught in headlights. A dearth of capital spending continues to drag on the
economy and uncertainty  regarding Iraq is also probably  having an impact.  Oil
hovering  over $30 a barrel is taking its toll on all. We saw  impressive  Gross
Domestic  Product ("GDP") growth in the first half as companies began rebuilding
inventories depleted during the recession and in the aftermath of 9/11. Then the
re-stocking  of shelves was put on hold as  corporate  managers  devoted much of
their time, energy and resources making sure their companies' books were in good
order and/or shoring up balance sheets. As these tasks are completed,  we should
see the inventory  rebuilding  cycle resume and the economy make more meaningful
progress,  though the West Coast dock lock-out  will mute results.  As corporate
managers  gain  confidence  that the recovery is for real,  we should also see a
modest  up-tick in capital  spending  take some of the  economic  burden off the
American  consumer's broad shoulders.  However, in order for the world economies
to gain traction oil would need to be plentiful and priced below $25 per barrel.

                                        3


      Higher energy prices are essentially a tax on virtually every business and
consumer.  At around $30 per  barrel,  oil appears to be  discounting  a serious
disruption  in supply  resulting  from a potential war in Iraq,  and,  closer to
home, a threatened  strike by Mexican oil workers.  It is  impossible to predict
what will happen in the coming months.  However,  should the supply lines remain
open,  we believe  oil prices will come down from  current  levels and no longer
pose a serious threat to a global economic recovery.  Longer term, the U.S. must
consume less and find alternative ways to power our ubiquitous automobile.

      The corporate  earnings picture remains cloudy. In our second quarter 2002
letter to shareholders, we opined that given steady economic progress, increased
productivity,   cost  cutting,  financial  re-engineering,   a  decline  in  the
"everything including the kitchen sink" write-offs taken in 2001 and a weakening
dollar,  the result would be a favorable impact on 2002 earnings.  We went on to
say that  although  stocks did not yet look cheap,  rising  earnings  would make
valuations appear more reasonable.  Second half 2002 earnings growth will likely
provide help to battered stocks.  It appears that the earnings  recovery is good
but not as vigorous as assumed. Equity valuations, however, have come down. Once
the  economy  gains  traction,  we  believe  the  aforementioned   factors  will
contribute to more substantial  earnings growth in 2003 and provide a foundation
for equity returns over the balance of this decade.

THE STOCK MARKET: WHERE IS THE BOTTOM?

      When and where will the stock market  bottom out? We wish we knew. At this
juncture, stock prices appear to be discounting most if not all of the bad news.
In July and again in September, we witnessed the kind of near panic selling that
usually  foreshadows market bottoms. We believe the old adage that "bull markets
climb a wall of worry," and it is apparent that  investors  have plenty to worry
about. We also echo our observation  that the two ingredients for a stock market
recovery  -- low  interest  rates and a better  earnings  environment  -- are in
place.

SOME PERSPECTIVE

      We have  experienced one of the deepest and most prolonged bear markets in
history.  At the  end of the  quarter,  the S&P  500  Index  was off 47% and the
technology-heavy  Nasdaq  Composite  Index  was down 77% from  their  respective
highs.  The S&P 500 Index appears headed for the third straight year of negative
returns, the first time this has happened since 1939-41. The causes of this bear
market  are  obvious.  Grossly  inflated  equity  valuations  ran head on into a
rapidly  decelerating  economy.  The tragic events of 9/11 and massive frauds at
Enron, Adelphia and WorldCom (among others) further damaged investor psychology.
The excessive  exuberance Fed Chairman  Greenspan warned about in 1996 has given
way to despair.  Investors  who couldn't pay too much for Internet  start-ups in
the fourth  quarter of 1999 and early 2000 are now  shunning  well  established,
financially strong companies with dominant positions in their industries. Market
cheerleaders  forecasting a doubling of the Dow Jones Industrial Average by 2005
have been  replaced  by  doomsayers  predicting  an  extended  period of flat to
negative equity returns.

      We have  experienced  such periods,  most recently from 1966 through 1981,
during  which the  annualized  return for the Dow Jones  Industrial  Average was
negative (minus 0.6%).  Indeed,  in the late 1970s,  BUSINESSWEEK  heralded "the
death of  equities"  in one of its  weekly  issues.  But,  that time  period was
characterized  by  high  inflation,  economic  contraction  and  rising  prices,
creating a new economic  term,  stagflation.  Inflation,  as  represented by the
Consumer Price Index,  averaged nearly 7% a year. At its peak, inflation reached
the mid-teens. Long-term interest rates made

                                        4


it to the high-teens.  In addition, that period also included the final years of
the disastrous Vietnam War, a tripling of oil prices imposed by the Organization
of Petroleum  Exporting  Countries ("OPEC") following the 1973 Arab/Israeli War,
the Watergate Scandal and President Richard Nixon's resignation. Despite today's
economic and  political  uncertainties,  it is difficult to imagine this kind of
catastrophic  market backdrop  developing during the next decade. But, since our
economic  underpinnings are fragile, the risk of an external event could cause a
total  collapse in investor  confidence.  Should this occur,  we would find even
more bargains.

      What do we expect from equity  markets over the next five years?  Based on
an economic model with 3.5% Gross World Product  ("GWP") growth (3% in the U.S.)
and  3%  inflation,   we  expect  after-tax   corporate   earnings  to  grow  by
approximately  6%  annually.  In  addition,  now that  investors  recognize  the
benefits of dividends,  we could see  dividends  grow by as much as 2% annually.
Multiples  are  unlikely  to expand.  Under  this  scenario,  ownership  of U.S.
equities  should return close to 8% annually -- hardly  inspiring by Roaring 90s
standards  and below the long-term  average,  but still a  significantly  better
return than can be expected from most other asset classes.

      Of course,  through diligent  fundamental  research focused on identifying
high quality  companies trading at attractive  valuations  relative to the "real
world" economic value of assets and/or earnings growth prospects,  we plan to do
better than the market.

PUTTING HUMPTY DUMPTY BACK TOGETHER

      When past market bubbles burst,  lots of debris washed ashore.  This time,
the bubble was bigger  and the  debris  was more  hideous  and more  widespread.
Accountants,  analysts and  investment  bankers (among others) lost their checks
and balances and did not act as safety nets and buffers.

      We are in a camp that believes that securities analysts do a terrific job.
Beginning in May of 1975, a payment  mechanism for research was removed with the
collapse  of fixed  price  commissions.  The  conflicts  in the late  1990s  are
directly traceable to "May Day." Where next? When we joined Wall Street in 1967,
research that was performed on a brokerage firm's investment  banking client was
identified as such. To get back there is an easy fix. Regulation Fair Disclosure
("FD") already put analysts back on the fundamental research track.

      Accountants  should not perform  services beyond audit  functions,  except
where the fee is small relative to the audit engagement.

      Perhaps we need to revisit the  Glass-Steagall  Act. The safeguards put in
place by that Act were there for a reason.

      All in all, we believe  that most  corporate  managers we see come to work
every day to grow the intrinsic value of their  enterprise and work hard to have
the public stock track the underlying value of the business.

      Our job remains the same -- to ferret out those  companies that Mr. Market
puts on the bargain counter.

                                        5

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--------------------------------------------------------------------------------

                                WHAT IS RESEARCH?

     ----------------------------------------------------------------------
                                 CONGRATULATIONS

                                     TO THE

                                2002 ALL AMERICAN

                             INSTITUTIONAL INVESTOR

                                  RESEARCH TEAM

                        THE FIRM WHERE RESEARCH IS KING.

           GABELLI & COMPANY, INC., ONE CORPORATE CENTER, RYE, NY 10580
             914-921-5130 o FAX 914-921-5098 o RESEARCH@GABELLI.COM

      [EPS/PMV GRAPHIC OMITTED]
        TRIANGLE
          EPS
          PMV
       MANAGEMENT
       CASH FLOW
        RESEARCH
     ----------------------------------------------------------------------

     ----------------------------------------------------------------------
                              Research (ri' surch)

     Careful or Diligent Research

     Studious inquiry or examination, esp: investigation or experimentation
     aimed at the  discovery  or  interpretation  of  facts,  revisions  of
     accepted  theories  or laws  in the light of new facts,  or  practical
     application of such new or revised theories or laws.

                     INDEPENDENT RESEARCH FOR OVER 25 YEARS

           GABELLI & COMPANY, INC., ONE CORPORATE CENTER, RYE, NY 10580
             914-921-5130 o FAX 914-921-5098 o RESEARCH@GABELLI.COM

      [EPS/PMV GRAPHIC OMITTED]
        TRIANGLE
          EPS
          PMV
       MANAGEMENT
       CASH FLOW
        RESEARCH
     ----------------------------------------------------------------------

     ----------------------------------------------------------------------
                                SECURITY ANALYSIS

     OBJECTIVES:

     1) Seek to present  the  important  facts  regarding  a publicly  held
     corporate stock or bond issue in a manner most informing and useful to
     an actual or potential owner.

     2) Seek to reach a  dependable  conclusion  based  upon the  facts and
     applicable  standard  as to the safety and  attractiveness  of a given
     security at the current market price or at some assured price.

        SECURITY ANALYSIS PRINCIPLES AND TECHNIQUE, GRAHAM, DODD, COTTLE.

                     INDEPENDENT RESEARCH FOR OVER 25 YEARS

           GABELLI & COMPANY, INC., ONE CORPORATE CENTER, RYE, NY 10580
             914-921-5130 o FAX 914-921-5098 o RESEARCH@GABELLI.COM

      [EPS/PMV GRAPHIC OMITTED]
        TRIANGLE
          EPS
          PMV
       MANAGEMENT
       CASH FLOW
        RESEARCH
     ----------------------------------------------------------------------

     ----------------------------------------------------------------------
     SECURITY ANALYST

     o Deals with the past, present and future

     o Describes the business

     o Sets forth strong and weak points

     o Estimates future earnings power

     o Makes elaborate comparisons

     o Finally, expresses an opinion

                     INDEPENDENT RESEARCH FOR OVER 25 YEARS

           GABELLI & COMPANY, INC., ONE CORPORATE CENTER, RYE, NY 10580
             914-921-5130 o FAX 914-921-5098 o RESEARCH@GABELLI.COM

      [EPS/PMV GRAPHIC OMITTED]
        TRIANGLE
          EPS
          PMV
       MANAGEMENT
       CASH FLOW
        RESEARCH
     ----------------------------------------------------------------------

                          GABELLI ASSET MANAGEMENT INC.
--------------------------------------------------------------------------------

                                        6

INVESTMENT SCORECARD

      We had a few  winners  in an  awful  market.  Positions  in  the  consumer
products  sector  such as J.M.  Smucker,  Givaudan  and  Gallaher  Group  posted
respectable gains. Publishing companies Meredith Corp., PRIMEDIA and McGraw-Hill
also  buoyed  performance.   Telecommunications  stocks,  the  worst  performing
industry  sector  in recent  years,  rebounded  with  wireless  operator  Nextel
Communications and AT&T making our top-ten performance list.

      There was no particular  industry  theme to our laggards  list.  Amusement
park operator Six Flags, telecom equipment manufacturers Lucent Technologies and
Corning, cable television provider  UnitedGlobalCom and industrial  manufacturer
Flowserve were among our biggest portfolio disappointments.

LET'S TALK STOCKS

      The  following  are stock  specifics  on  selected  holdings of our Trust.
Favorable  earnings  prospects do not  necessarily  translate  into higher stock
prices,  but they do express a positive  trend that we believe will develop over
time.

AUTONATION INC. (AN - $11.52 - NYSE) is the largest  automotive  retailer in the
U.S.,  with  over $20  billion  in annual  sales  generated  from 280  locations
covering nearly 400 franchises.  In addition to retailing new and used vehicles,
the company sells vehicle finance and insurance products from third parties such
as GMAC, and provides parts and repair services  covered by factory  warranties.
The company aims to use its enormous size to spread  overhead and interest costs
over many locations to generate margins in excess of industry averages.

BERKSHIRE HATHAWAY INC. (BRK'A - $73,900 - NYSE) is Warren Buffett.  The company
has interests in insurance (notably GEICO and General Re), publishing, aviation,
retailing and manufacturing.  Its investment portfolio includes over $28 billion
of  marketable   equity   securities.   Berkshire  has  grown  rapidly   through
acquisitions over the past 15 years, including Kirby vacuum cleaners; World Book
encyclopedias;  H. H. Brown, Dexter and Justin footwear; Executive Jet aviation;
Dairy Queen  restaurants  and snack treats;  Johns Manville  building  products;
Benjamin Moore paints;  Shaw Industries  carpets;  MiTek steel connectors;  XTRA
transportation leasing; GEICO insurance; and General Re reinsurance.  GEICO, the
sixth  largest  auto  insurer in the U.S.,  contributes  17% of  revenues  while
General Re, the fourth largest reinsurer globally, contributes 23% of revenues.

CENTURYTEL INC. (CTL - $22.43 - NYSE), based in Monroe, Louisiana, is the eighth
largest local telephone  company in the U.S., with over 2.5 million access lines
in the South and  Midwest  including  recently  closed  acquisitions  of 676,000
access  lines from  Verizon for $2.16  billion.  Through  acquisitions,  CTL has
created  clusters of rural  telephone and cellular  companies  within  commuting
distance of metropolitan areas in states including  Wisconsin,  Michigan,  Ohio,
Louisiana and Arkansas.  In July 2001, the company  received an unsolicited  bid
from Alltel Corp.  (AT - $40.13 - NYSE) to acquire  CenturyTel for $43 per share
in cash and Alltel stock.  CenturyTel  management has rejected  Alltel's initial
offer. CenturyTel recently completed a sale of its wireless operations to Alltel
Corp. for $1.6 billion in cash. The sale of the wireless  business to Alltel and
acquisition  of lines from  Verizon has  repositioned  CenturyTel  as a premiere
pure-play rural local exchange carrier with over 2.5 million access lines.

CH ENERGY GROUP INC. (CHG - $46.93 - NYSE) is the last small electric utility in
New York  State,  now that RGS Energy has been  acquired  by Energy  East (EAS -
$19.81 - NYSE).  CH Energy serves the territory  directly north of New York City
that is mainly rural and suburban.  There are several  potential buyers for whom
CH Energy  would be a good fit,  including  Consolidated  Edison  (ED - $40.22 -
NYSE), Energy East, KeySpan (KSE - $33.50 - NYSE),

                                       7

National Grid (NGG - $35.60 - NYSE) or Public  Service  Enterprise  Group (PEG -
$30.50 - NYSE).  The buyer could  create  significant  savings by  rationalizing
outside  plant  operations  and  eliminating  all  of  the  corporate,  finance,
regulatory  and public company  overhead,  for the benefit of  shareholders  and
customers.  Although it is tough to predict when a deal might  happen,  we would
point out that National Grid  completed its takeover of Niagara  Mohawk  several
months ago and Grid has typically  waited less than a year between  takeovers in
the U.S.  where it has already  bought three  utilities.  Con Edison  meanwhile,
having done a terrific  job in the  aftermath  of September 11 and with a strong
balance sheet and premium stock price valuation, might be ready to make an offer
for CH Energy.

CRANE CO. (CR - $19.76 - NYSE) is a diversified  industrial company that focuses
on proprietary  engineered  products in aerospace,  fiberboard  panels,  vending
machines,  pumps and valves, and industrial controls.  CEO Eric Fast is focusing
on  improving  operations  by  leveraging  the  firm's  intellectual  capital by
creating a culture where  different  business groups share  experience,  improve
customer  focus and improve  operational  performance.  The company has a strong
balance sheet,  with a 29% net debt to capital ratio,  and generates  about $100
million  of free cash flow a year.  Crane has $1 billion  available  to spend on
acquisitions  of which  half  comes  from free cash flow and the other half from
debt.  Acquisitions  will focus on  strengthening  the existing  businesses  and
enhancing earnings growth.

FLOWSERVE  CORP.  (FLS - $10.00 - NYSE) is a manufacturer  of engineered  pumps,
control valves and mechanical seals for the petroleum,  chemical,  power,  water
and  other   general   industries.   After   integrating   the   operations   of
Ingersoll-Dresser  Pump,  Flowserve  purchased  the flow control  business  from
Invensys.  Invensys  Flow Control (IFC) is a  manufacturer  of valves and valves
automation  products,  with $500  million of  revenues.  The  transaction  gives
Flowserve a better balance of end markets, greater geographical reach, economies
of scale and plant  consolidation  opportunities.  Already  the  second  largest
global  pump  company,  IFC makes  Flowserve  the second  largest  global  valve
company.  The  critical  mass should  allow the company to gain market  share as
customers  are  reducing  their  suppliers  and  moving  to one  stop  shopping.
Consistent with the company's acquisition strategy,  the transaction is expected
to be accretive in the first year of ownership.

IRISH LIFE & PERMANENT PLC (IPM.I - $11.36 - DUBLIN STOCK EXCHANGE) is the third
largest  financial  institution in Ireland.  The company offers a broad array of
financial products to consumers in Ireland.  Expansion into overseas markets has
been reversed,  making Irish Life & Permanent a pure play on the exciting growth
prospects for the Irish economy.

KELLOGG  CO. (K - $33.25 - NYSE),  a producer of cereal and  convenience  foods,
completed  its  largest  acquisition  in company  history in March 2001 with the
purchase of Keebler Foods Company.  Keebler is the number two cookie and cracker
producer in the United States. Along with Keebler's top brands, Kellogg acquired
their direct store door (DSD) delivery  system,  which is now being utilized for
its own snack brands. This year Kellogg is focused on the integration of Keebler
and has placed a renewed  emphasis  on  profitable  sales  growth and cash flow.
Kellogg's  other  food  brands  include  Special  K, Rice  Krispies,  Pop-Tarts,
Nutri-Grain, Eggo, Cheez-It, Carr's, Morningstar Farms, Famous Amos and Kashi.

SCRIPPS (E.W.) CO. (SSP - $69.30 - NYSE), headquartered in Cincinnati,  Ohio, is
a  diversified  media  company  with  operations  throughout  the United  States
combining  traditional and new media. The company is the tenth largest newspaper
publisher in the U.S. with 21 daily  newspapers.  Scripps also has 10 television
stations,  reaching  one in every ten homes in  America.  Additionally,  Scripps
Networks includes four national cable networks:  Home & Garden Television,  Food
Network,  Do It  Yourself,  and Fine  Living.  Lastly,  the company has a global
licensing and syndication  business which  syndicates more than 150 comic strips
and editorial  features,  including  PEANUTS and DILBERT.  Scripps is focused on
growing and strengthening its cable television business.

                                       8

STARWOOD  HOTELS & RESORTS  WORLDWIDE  INC.  (HOT - $22.30 - NYSE) is one of the
world's largest hotel and leisure  companies with 745 hotels,  225,208 rooms and
14 timeshare  resorts in its system.  The company's brands primarily  compete in
the  upper-upscale  segment of the lodging  industry and include St. Regis,  The
Luxury Collection, Sheraton, Westin, W and Four Points by Sheraton.

7.25% TAX ADVANTAGED CUMULATIVE PREFERRED STOCK - DIVIDENDS

      The Trust's 7.25% Tax Advantaged  Cumulative  Preferred  Stock paid a cash
distribution on September 26, 2002 of $0.453125 per share. For the twelve months
ended September 30, 2002,  Preferred Stock shareholders  received  distributions
totaling  $1.8125,  the annual dividend rate per share of Preferred  Stock.  The
next  distribution is scheduled for December 2002. The Preferred  Shares will be
callable at any time at the  liquidation  value of $25.00 per share plus accrued
dividends  following the expiration of the five-year call  protection on June 9,
2003.

7.20% TAX ADVANTAGED SERIES B CUMULATIVE PREFERRED STOCK - DIVIDENDS

      The Trust's 7.20% Tax Advantaged Series B Cumulative  Preferred Stock paid
a cash  distribution  on  September  26,  2002 of $0.45 per share.  The Series B
Preferred  Shares  were issued on June 20, 2001 at $25.00 per share and will pay
distributions  quarterly at an annual dividend rate of $1.80 per share. The next
distribution is scheduled for December 2002.

SERIES C AUCTION RATE CUMULATIVE PREFERRED STOCK

      On June 27, 2002, the Trust  successfully  completed its offering of 5,200
Shares of Series C Auction Rate Cumulative Preferred Stock at $25,000 per share.
The dividend rates for the Series C Preferred  Shares ranged from 1.80% to 1.95%
during the third quarter. Dividend rates for the Preferred Shares are cumulative
at a rate that may be reset every seven days based on the results of an auction.
The Preferred Shares do not trade on an exchange.

WWW.GABELLI.COM

      Please visit us on the  Internet.  Our homepage at  http://www.gabelli.com
contains  information  about Gabelli Asset  Management  Inc., the Gabelli Mutual
Funds, IRAs, 401(k)s,  quarterly reports, closing prices and other current news.
You can send us e-mail at closedend@gabelli.com.

      In  our  efforts  to  bring  our   shareholders   more  timely   portfolio
information,  Gabelli Fund's portfolio  managers  regularly  participate in chat
sessions at www.gabelli.com as reflected below.



                       WHO                             WHEN
                       ---                             ----
                                                 
      Special Chats:   Mario J. Gabelli                First Monday of each month
                       Howard Ward                     First Tuesday of each month


      In addition,  every Wednesday will feature a different  portfolio manager.
The upcoming Wednesday chat schedule is as follows:



                       NOVEMBER                        DECEMBER                        JANUARY
                       --------                        --------                        -------
                                                                              
      1st Wednesday    Charles Minter & Martin Weiner  Charles Minter & Martin Weiner  Ivan Arteaga
      2nd Wednesday    Caesar Bryan                    Walter Walsh & Laura Linehan    Charles Minter & Martin Weiner
      3rd Wednesday    Walter Walsh & Laura Linehan    Hart Woodson                    Walter Walsh & Laura Linehan
      4th Wednesday    Barbara Marcin                                                  Barbara Marcin


                                        9

      All chat sessions start at 4:15 PM (Eastern Time). Please arrive early, as
participation is limited.

      You may sign up for our e-mail alerts at www.gabelli.com and receive early
notice of chat  sessions,  closing  mutual  fund  prices,  news events and media
sightings.

IN CONCLUSION

      The great irony is that investors' appetite for stocks is always strongest
near market tops and weakest  near market  bottoms.  It is important to remember
that like bull markets, bear markets always end, usually when least expected. We
do not know when the market will bottom.  However, we believe low interest rates
and  increasingly  attractive  equity  valuations point to more fertile days for
firms that have focused research efforts.

      The goal of every  portfolio  manager  and every  analyst  is to find well
managed,  growing  companies  that are selling at a discount to their  intrinsic
value,  particularly where a catalyst is in place. We have long argued that in a
world of rapid  change,  Mr. Market will provide us with many  opportunities  to
load up our portfolios with these "stock picks." The events of the third quarter
will again prove a fertile  ground for the type of analysis that Graham and Dodd
heralded in the 1930s.

                                  Sincerely,

                              /S/ MARIO J. GABELLI
                                  MARIO J. GABELLI, CFA

                                  Portfolio Manager and Chief Investment Officer

November 1, 2002

--------------------------------------------------------------------------------
                                SELECTED HOLDINGS
                               SEPTEMBER 30, 2002
                               ------------------
AutoNation Inc.                         Flowserve Corp.
Berkshire Hathaway Inc.                 Irish Life & Permanent plc
CenturyTel Inc.                         Kellogg Co.
CH Energy Group Inc.                    Scripps (E.W.) Co.
Crane Co.                               Starwood Hotels & Resorts Worldwide Inc.
--------------------------------------------------------------------------------

NOTE: The views expressed in this report reflect those of the portfolio managers
only through the end of the period stated in this report.  The  managers'  views
are subject to change at any time based on market and other conditions.

                                       10

                          THE GABELLI EQUITY TRUST INC.
                                PORTFOLIO CHANGES
                        QUARTER ENDED SEPTEMBER 30, 2002
                                   (UNAUDITED)

                                                          OWNERSHIP AT
                                                          SEPTEMBER 30,
                                              SHARES         2002
                                             ---------    ------------
NET PURCHASES
COMMON STOCKS
ATX Communications Inc. (a) ............        40,540         40,540
Aventis SA .............................         3,000         15,000
BAE Systems plc ........................        25,000        125,000
Boots Co. plc ..........................        15,000         75,000
BorgWarner Inc. ........................         1,000         37,802
Cablevision Systems Corp., Cl. A (b) ...     1,016,443      1,551,443
Cadbury Schweppes plc, ADR .............         4,200         15,000
Campbell Soup Co. ......................        10,000         80,000
Carlsberg AS, Cl. B ....................        11,000         11,000
ConocoPhillips (c) .....................        98,217         98,217
Denny's Corp. ..........................        62,463         62,463
Denny's Corp., warrants,
   expires 01/07/05 ....................        10,108         10,108
Disney (Walt) Co. ......................        40,000        260,000
DPL Inc. ...............................         5,000         20,000
Duke Energy Corp. ......................       580,000        580,000
El Paso Corp. ..........................        40,000        120,000
EMI Group plc ..........................       110,000        110,000
Energy East Corp. ......................        10,000         30,000
Exxon Mobile Corp. .....................        40,000         40,000
Fast Retailing Co. Ltd. ................        10,000         10,000
FleetBoston Financial Corp. ............        50,000         50,000
Gas Natural SDG SA .....................         5,000         30,000
Gemstar-TV Guide International Inc. ....       100,000        240,432
Gray Television Inc. ...................        25,000         25,000
Gray Television Inc., Cl. A ............        28,000         28,000
Hershey Foods Corp. ....................        15,000         15,000
Honeywell International Inc. ...........        20,000        400,000
Ito-Yokado Co. Ltd. ....................         8,000          8,000
Mellon Financial Corp. .................        15,000        100,000
Midland Co. (d) ........................        99,700        199,400
Nestle SA ..............................         1,000          1,000
Nikko Cordial Corp. ....................        21,000        207,500
NTL Inc., rights (e) ...................           298            298
Qwest Communications
   International Inc. ..................       500,000        700,000
Royal Dutch Petroleum Co. ..............         7,500          7,500
SBC Communications Inc. ................        20,000        225,000
Six Flags Inc. .........................       125,000        225,000
TELUS Corp., Non-Voting ................         4,250          4,250
Terumo Corp. ...........................        20,000         20,000
Texas Instruments Inc. .................        90,000        200,000
Tyco International Ltd. ................        20,000         55,000
Vivendi Universal SA ...................         5,000         40,900
Vivendi Universal SA, ADR ..............        80,000        310,000
Wrigley (Wm.) Jr. Co. ..................        27,000        177,000
Wyeth ..................................        17,000         55,000
Xcel Energy Inc. .......................        60,000         60,000

                                                          OWNERSHIP AT
                                                          SEPTEMBER 30,
                                              SHARES         2002
                                             ---------    ------------
PREFERRED STOCKS
Citizens Communications Co.,
   5.000% Cv. Pfd. .....................         1,000         21,000
Hercules Trust I, 9.420% Pfd. ..........       251,800        273,500

                                             PRINCIPAL
                                              AMOUNT
CORPORATE BONDS                              ---------
Charter Communications Inc.,
   Cv., 4.750%, 06/01/06 ...............   $   400,000     $1,300,000

                                              SHARES
NETSALES                                     ---------
COMMON STOCKS
Acterna Corp. ..........................        (8,000)        60,000
Adelphia Communications Corp.,
   Cl. A ...............................       (20,000)       100,000
Advantica Restaurant Group Inc. ........       (10,108)            --
Advantica Restaurant Group Inc.,
   warrants, expires 01/07/05 ..........       (62,463)            --
Allegiance Telecom Inc. ................        (3,000)         6,000
Cheung Kong Life Science
   International Inc., rights ..........        (3,000)            --
Compagnie Financiere Richemont AG,
   Cl. A ...............................       (10,000)       100,000
Conoco Inc. (c) ........................      (210,000)            --
CoreComm Ltd. (a) ......................    (1,577,000)            --
CRH plc ................................       (20,000)        92,500
Energizer Holdings Inc. (f) ............      (345,001)            --
Ferro Corp. ............................       (10,000)       330,000
France Telecom SA, ADR .................        (3,000)        24,000
Gray Communications Systems Inc. .......       (28,000)            --
Gray Communications Systems Inc.,
   Cl. B ...............................       (25,000)            --
HBOS plc ...............................       (66,000)            --
Leap Wireless International Inc. .......       (17,100)       142,900
Midas Inc. .............................        (5,000)       105,000
mm02 plc, ADR ..........................       (15,200)       125,600
Muenchener Rueckversicherungs-
   Gesellschaft AG .....................        (5,000)            --
Nortek Inc. ............................        (2,200)       137,800
Novartis AG ............................        (5,000)        41,000
Prudential plc .........................       (50,000)            --
Rainbow Media Group, Cl. A (b) .........      (560,000)            --
Rohm and Haas Co. ......................        (5,000)        15,000
Superior Industries International Inc. .        (1,000)        24,000
Swiss Re ...............................        (4,200)            --
Syratech Corp. .........................       (10,425)            --
TELUS Corp., Non-Voting, ADR ...........        (4,250)        27,500
THK Co. Ltd. ...........................       (33,000)            --
Viacom Inc., Cl. A .....................       (10,000)       840,000
Winn-Dixie Stores Inc. .................       (15,000)        25,000


                                       11

                          THE GABELLI EQUITY TRUST INC.
                          PORTFOLIO CHANGES (CONTINUED)
                        QUARTER ENDED SEPTEMBER 30, 2002
                                   (UNAUDITED)

                                                          OWNERSHIP AT
                                             PRINCIPAL    SEPTEMBER 30,
                                              AMOUNT         2002
                                             ---------    ------------
CORPORATE BONDS
Standard Motor Products Inc.,
   Sub. Deb. Cv., 6.750%,
   07/15/09 ............................    $ (100,000)    $1,400,000

---------------
(a) Merger - 0.0257  shares  of ATX  Communications  Inc.  for  every 1 share of
    CoreComm Ltd.
(b) Merger - 1.1909 shares of Cablevision Systems Corp., Cl. A for every 1 share
    of Rainbow Media Group, Cl. A
(c) Merger - 0.4677 shares of ConocoPhillips for every 1 share of Conoco Inc.
(d) 2 for 1 stock split
(e) Spinoff - 0.0149 shares of NTL Inc., rights for every 1 share of NTL Inc.
(f) Tender Offer at $29.00 per share

                                       12

                          THE GABELLI EQUITY TRUST INC.
                            PORTFOLIO OF INVESTMENTS
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               COMMON STOCKS -- 84.2%
               FINANCIAL SERVICES -- 7.7%
      90,000   Allstate Corp. ..............................    $    3,199,500
     550,000   American Express Co. ........................        17,149,000
      36,400   Argonaut Group Inc. .........................           627,900
      90,000   Banco Santander Central Hispano
                 SA, ADR ...................................           466,200
     110,000   Bank of Ireland .............................         1,070,769
      80,000   Bank of New York Co. Inc. ...................         2,299,200
      85,000   Bank One Corp. ..............................         3,179,000
     282,000   Bankgesellschaft Berlin AG+ .................           501,636
         260   Berkshire Hathaway Inc., Cl. A+ .............        19,214,000
       5,000   Block (H&R) Inc. ............................           210,050
     190,000   Commerzbank AG, ADR .........................         1,248,661
     160,000   Deutsche Bank AG, ADR .......................         7,267,200
      20,000   Dun and Bradstreet Corp.+ ...................           672,200
      50,000   FleetBoston Financial Corp. .................         1,016,500
      25,000   Hibernia Corp., Cl. A .......................           499,750
      20,000   Invik & Co. AB, Cl. B .......................           314,911
     100,000   Irish Life & Permanent plc, Dublin ..........         1,136,487
      60,000   John Hancock Financial Services Inc. ........         1,668,000
      50,000   JP Morgan Chase & Co. .......................           949,500
      64,000   Leucadia National Corp. .....................         2,176,000
     100,000   Mellon Financial Corp. ......................         2,593,000
     199,400   Midland Co. .................................         3,355,902
      30,000   Moody's Corp. ...............................         1,455,000
     207,500   Nikko Cordial Corp. .........................           986,877
     185,000   Phoenix Companies Inc. ......................         2,519,700
       2,500   Prudential Financial Inc.+ ..................            71,400
      60,000   RAS SpA .....................................           705,017
      60,000   Riggs National Corp. ........................           857,400
      50,000   Schwab (Charles) Corp. ......................           435,000
      80,000   State Street Corp. ..........................         3,091,200
      30,000   Stilwell Financial Inc. .....................           362,100
      20,000   SunTrust Banks Inc. .........................         1,229,600
     100,000   T. Rowe Price Group Inc. ....................         2,496,000
       7,000   Travelers Property Casualty Corp.,
                 Cl. A+ ....................................            92,400
      58,500   Unitrin Inc. ................................         1,795,950
     130,000   Wachovia Corp. ..............................         4,249,700
      55,100   Waddell & Reed Financial Inc., Cl. A ........           973,066
                                                                --------------
                                                                    92,135,776
                                                                --------------
               TELECOMMUNICATIONS -- 7.6%
       8,132   Aliant Inc. .................................           152,415
       6,000   Allegiance Telecom Inc.+ ....................             4,980
      30,000   ALLTEL Corp. ................................         1,203,900
   1,500,000   AT&T Corp. ..................................        18,015,000
      40,540   ATX Communications Inc.+ ....................            15,000
       3,333   Avaya Inc.+ .................................             4,766
     320,000   BCE Inc. ....................................         5,664,000
      33,400   Brasil Telecom Participacoes SA, ADR ........           741,814
     850,000   Broadwing Inc.+ .............................         1,683,000

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
   1,775,000   BT Group plc ................................    $    4,591,863
      34,000   BT Group plc, ADR ...........................           878,560
   3,338,192   Cable & Wireless Jamaica Ltd. ...............            86,087
     173,000   Cable & Wireless plc, ADR ...................           934,200
     130,000   CenturyTel Inc. .............................         2,915,900
     100,000   Citizens Communications Co.+ ................           678,000
     255,466   Commonwealth Telephone
                 Enterprises Inc.+ .........................         8,882,553
      20,000   Commonwealth Telephone
                 Enterprises Inc., Cl. B+ ..................           695,800
      45,000   Compania de Telecomunicaciones de
                 Chile SA, ADR .............................           393,300
     240,278   Deutsche Telekom AG, ADR ....................         1,987,099
     200,000   Embratel Participacoes SA, ADR+ .............           120,000
      24,000   France Telecom SA, ADR ......................           167,520
         230   Japan Telecom Holdings Co. Ltd. .............           572,449
     100,000   KPN NV+ .....................................           518,831
     700,000   Qwest Communications
                 International Inc.+ .......................         1,596,000
     110,000   RCN Corp.+ ..................................            56,100
       9,655   Rogers Communications Inc., Cl. B+ ..........            60,868
     110,345   Rogers Communications Inc.,
                 Cl. B, ADR+ ...............................           692,967
     225,000   SBC Communications Inc. .....................         4,522,500
     350,000   Sprint Corp. - FON Group ....................         3,192,000
     186,554   Tele Norte Leste Participacoes
                 SA, ADR ...................................           988,736
      40,000   Telecom Argentina Stet France
                 Telecom SA, ADR+ ..........................            32,800
     400,040   Telecom Italia SpA ..........................         2,850,397
     123,000   Telecom Italia SpA, ADR .....................         8,776,050
     135,000   Telecom Italia SpA, RNC .....................           671,071
     265,139   Telefonica SA, ADR+ .........................         5,923,205
      16,912   Telefonica SA, BDR+ .........................           121,262
      36,000   Telefonos de Mexico SA, Cl. L, ADR ..........         1,013,400
      12,750   TELUS Corp. .................................            94,366
      52,500   TELUS Corp., ADR ............................           388,565
       4,250   TELUS Corp., Non-Voting .....................            28,937
      27,500   TELUS Corp., Non-Voting, ADR ................           187,238
     340,000   Verizon Communications Inc. .................         9,329,600
     120,000   WorldCom Inc. - MCI Group ...................            19,200
                                                                --------------
                                                                    91,452,299
                                                                --------------
               FOOD AND BEVERAGE -- 7.5%
      15,000   Cadbury Schweppes plc, ADR ..................           400,050
      80,000   Campbell Soup Co. ...........................         1,766,400
      11,000   Carlsberg AS, Cl. B .........................           570,815
      30,000   Coca-Cola Co. ...............................         1,438,800
      50,000   Coca-Cola Enterprises Inc. ..................         1,062,000
      20,000   Coca-Cola Hellenic Bottling Co. SA ..........           291,336
     100,000   Corn Products International Inc. ............         2,875,000
      10,108   Denny's Corp.+ ..............................             7,682
     100,000   Diageo plc ..................................         1,240,799


                                       13

                          THE GABELLI EQUITY TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               COMMON STOCKS (CONTINUED)
               FOOD AND BEVERAGE (CONTINUED)
     224,000   Diageo plc, ADR .............................    $   11,179,840
      20,000   Dreyer's Grand Ice Cream Inc. ...............         1,397,200
      41,600   Flowers Foods Inc.+ .........................           945,568
      90,000   General Mills Inc. ..........................         3,997,800
     440,000   Grupo Bimbo SA de CV, Ser. A ................           653,796
      20,000   Hain Celestial Group Inc.+ ..................           293,000
     114,000   Heinz (H.J.) Co. ............................         3,804,180
      15,000   Hershey Foods Corp. .........................           930,750
      30,000   Interbrew SA ................................           710,947
     350,000   Kellogg Co. .................................        11,637,500
      75,000   Kerry Group plc, Cl. A ......................           964,214
      60,500   LVMH Moet Hennessy Louis
                 Vuitton, ADR ..............................           441,650
      41,300   Mondavi (Robert) Corp., Cl. A+ ..............         1,257,998
       1,000   Nestle SA ...................................           218,569
     150,000   Parmalat Finanziaria SpA ....................           410,618
     600,595   PepsiAmericas Inc. ..........................         8,528,449
     500,000   PepsiCo Inc. ................................        18,475,000
       7,000   Pernod-Ricard SA ............................           629,515
      60,000   Ralcorp Holdings Inc.+ ......................         1,276,200
      20,000   Sara Lee Corp. ..............................           365,800
       2,000   Smucker (J.M.) Co. ..........................            73,400
     103,854   Tootsie Roll Industries Inc. ................         3,086,541
     177,000   Wrigley (Wm.) Jr. Co. .......................         8,759,730
                                                                --------------
                                                                    89,691,147
                                                                --------------
               ENERGY AND UTILITIES -- 6.5%
      52,000   AES Corp.+ ..................................           130,520
      70,000   AGL Resources Inc. ..........................         1,546,300
      37,400   Apache Corp. ................................         2,223,430
     120,000   BP plc ......................................           802,038
     248,800   BP plc, ADR .................................         9,927,120
     150,000   Burlington Resources Inc. ...................         5,754,000
     115,000   CH Energy Group Inc. ........................         5,396,950
      20,000   Cinergy Corp. ...............................           628,600
      98,217   ConocoPhillips ..............................         4,541,554
      10,000   Constellation Energy Group Inc. .............           247,900
       2,500   Dominion Resources Inc. .....................           126,825
      20,000   DPL Inc. ....................................           329,000
     100,000   DQE Inc. ....................................         1,500,000
      30,366   DTE Energy Co. ..............................         1,235,896
     580,000   Duke Energy Corp. ...........................        11,339,000
     120,000   El Paso Corp. ...............................           992,400
     400,000   El Paso Electric Co.+ .......................         4,752,000
      30,000   Energy East Corp. ...........................           594,300
      40,000   Exxon Mobil Corp. ...........................         1,276,000
       9,400   FPL Group Inc. ..............................           505,720
      30,000   Gas Natural SDG SA ..........................           508,454
     280,000   Halliburton Co. .............................         3,614,800
      38,632   Kerr-McGee Corp. ............................         1,678,174
      90,000   Mirant Corp.+ ...............................           198,900
     100,000   NiSource Inc.+ ..............................           181,000

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
     250,000   Northeast Utilities .........................    $    4,225,000
     358,200   Pennzoil-Quaker State Co. ...................         7,869,654
     100,000   Progress Energy Inc., CVO+ ..................            21,000
       7,500   Royal Dutch Petroleum Co. ...................           301,275
      10,400   SJW Corp. ...................................           811,200
      14,000   Southwest Gas Corp. .........................           311,500
       7,907   Total Fina Elf SA ...........................         1,040,837
     260,000   Westar Energy Inc. ..........................         2,615,600
      60,000   Xcel Energy Inc. ............................           558,600
                                                                --------------
                                                                    77,785,547
                                                                --------------
               ENTERTAINMENT -- 6.0%
     620,000   AOL Time Warner Inc.+ .......................         7,254,000
     160,000   Canal Plus, ADR .............................           132,192
     260,000   Disney (Walt) Co. ...........................         3,936,400
     110,000   EMI Group plc ...............................           294,080
     100,000   EMI Group plc, ADR ..........................           534,680
     120,000   Fox Entertainment Group Inc., Cl. A+ ........         2,643,600
      50,000   GC Companies Inc.+ ..........................            14,750
     240,432   Gemstar-TV Guide International Inc.+ ........           605,889
      24,000   Liberty Livewire Corp., Cl. A+ ..............            37,680
   1,840,000   Liberty Media Corp., Cl. A+ .................        13,211,200
     300,000   Metro-Goldwyn-Mayer Inc.+ ...................         3,585,000
     160,000   Publishing & Broadcasting Ltd. ..............           681,572
      15,000   Regal Entertainment Group, Cl. A+ ...........           267,000
     225,000   Six Flags Inc.+ .............................           792,000
     840,000   Viacom Inc., Cl. A+ .........................        34,062,000
      40,900   Vivendi Universal SA ........................           458,760
     310,000   Vivendi Universal SA, ADR ...................         3,530,900
                                                                --------------
                                                                    72,041,703
                                                                --------------
               PUBLISHING -- 5.1%
      20,000   Dow Jones & Co. Inc. ........................           768,200
     196,000   Independent News & Media plc,
                 Dublin ....................................           261,491
      15,900   Knight-Ridder Inc. ..........................           896,919
       5,000   McClatchy Co., Cl. A ........................           304,750
     105,000   McGraw-Hill Companies Inc. ..................         6,428,100
     400,000   Media General Inc., Cl. A ...................        20,340,000
     125,000   Meredith Corp. ..............................         5,381,250
     115,000   New York Times Co., Cl. A ...................         5,226,750
     120,000   News Corp. Ltd. .............................           573,120
      11,016   News Corp. Ltd., ADR ........................           212,058
     400,000   Penton Media Inc.+ ..........................            96,000
     350,000   PRIMEDIA Inc.+ ..............................           486,500
      33,000   Pulitzer Inc. ...............................         1,374,450
     140,000   Reader's Digest Association Inc., Cl. B .....         2,592,800
     400,000   SCMP Group Ltd. .............................           173,087
      70,000   Scripps (E.W.) Co., Cl. A ...................         4,851,000
      91,842   Seat-Pagine Gialle SpA+ .....................            53,278
      75,000   Thomas Nelson Inc.+ .........................           660,000
     250,000   Tribune Co. .................................        10,452,500
                                                                --------------
                                                                    61,132,253
                                                                --------------

                                       14

                          THE GABELLI EQUITY TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               COMMON STOCKS (CONTINUED)
               DIVERSIFIED INDUSTRIAL -- 5.0%
     220,000   Acuity Brands Inc. ..........................    $    2,697,200
     195,000   Ampco-Pittsburgh Corp. ......................         1,912,950
     120,000   Cooper Industries Ltd., Cl. A ...............         3,642,000
     270,000   Crane Co. ...................................         5,335,200
     110,000   GATX Corp. ..................................         2,178,000
     200,000   GenTek Inc. .................................            16,000
     260,000   Greif Bros. Corp., Cl. A ....................         6,370,000
       3,400   Greif Bros. Corp., Cl. B ....................            91,375
     400,000   Honeywell International Inc. ................         8,664,000
     120,000   ITT Industries Inc. .........................         7,479,600
     400,600   Lamson & Sessions Co.+ ......................         1,382,070
      34,500   National Service Industries Inc. ............           209,070
      83,715   Park-Ohio Holdings Corp.+ ...................           334,860
     213,800   Sensient Technologies Corp. .................         4,517,594
      10,000   Smiths Group plc ............................           100,805
       6,000   Sulzer AG+ ..................................           773,815
     100,000   Thomas Industries Inc. ......................         2,480,000
      50,000   Trinity Industries Inc. .....................           823,000
     170,000   TRW Inc. ....................................         9,953,500
      55,000   Tyco International Ltd. .....................           775,500
                                                                --------------
                                                                    59,736,539
                                                                --------------
               EQUIPMENT AND SUPPLIES -- 4.9%
     120,000   AMETEK Inc. .................................         3,494,400
       2,000   Amphenol Corp., Cl. A+ ......................            62,000
      10,000   Caterpillar Inc. ............................           372,200
      95,000   CIRCOR International Inc. ...................         1,273,000
     320,000   Deere & Co. .................................        14,544,000
     216,000   Donaldson Co. Inc. ..........................         7,415,280
     135,000   Flowserve Corp.+ ............................         1,350,000
      13,000   Franklin Electric Co. Inc. ..................           555,750
     100,000   Gerber Scientific Inc.+ .....................           385,000
      75,000   GrafTech International Ltd.+ ................           543,750
     211,300   IDEX Corp. ..................................         6,032,615
      20,000   Ingersoll-Rand Co., Cl. A ...................           688,800
      60,000   Lufkin Industries Inc. ......................         1,476,000
       1,000   Manitowoc Co. Inc. ..........................            27,350
     425,000   Navistar International Corp.+ ...............         9,214,000
      28,000   Olympus Optical Co. Ltd. ....................           410,087
      30,000   PACCAR Inc. .................................         1,013,700
     170,000   SPS Technologies Inc.+ ......................         4,238,100
      60,000   Sybron Dental Specialties Inc.+ .............           839,400
      20,000   Terumo Corp. ................................           295,712
     250,000   Watts Industries Inc., Cl. A ................         4,100,000
     100,000   Weir Group plc ..............................           318,456
                                                                --------------
                                                                    58,649,600
                                                                --------------
               CONSUMER PRODUCTS  -- 4.0%
      70,000   Altadis SA ..................................         1,563,411
      43,000   Christian Dior SA ...........................         1,229,798
      10,000   Church & Dwight Co. Inc. ....................           331,500
     100,000   Compagnie Financiere Richemont AG,
                 Cl. A .....................................    $    1,483,146

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
      50,000   Department 56 Inc.+ .........................           522,500
      90,000   Fortune Brands Inc. .........................         4,256,100
     250,000   Gallaher Group plc, ADR .....................         9,575,000
     300,000   Gillette Co. ................................         8,880,000
       2,000   Givaudan SA .................................           895,996
      60,000   Harley-Davidson Inc. ........................         2,787,000
      15,000   Matsushita Electric Industrial
               Co. Ltd., ADR ...............................           155,550
     100,000   Mattel Inc. .................................         1,801,000
      30,000   Maytag Corp. ................................           695,400
      50,000   National Presto Industries Inc. .............         1,444,000
       9,500   Nintendo Co. Ltd. ...........................         1,106,538
      20,000   Philip Morris Companies Inc. ................           776,000
     100,000   Procter & Gamble Co. ........................         8,938,000
      32,000   Shimano Inc. ................................           479,711
      15,000   Swatch Group AG, Cl. B ......................         1,119,996
                                                                --------------
                                                                    48,040,646
                                                                --------------
               WIRELESS COMMUNICATIONS -- 3.4%
      95,000   America Movil SA de CV, Cl. L, ADR ..........         1,147,600
     550,170   AT&T Wireless Services Inc.+ ................         2,266,700
     142,900   Leap Wireless International Inc.+ ...........            32,867
   1,775,000   mm02 plc+ ...................................         1,116,562
     125,600   mm02 plc, ADR+ ..............................           777,464
     240,000   Nextel Communications Inc., Cl. A+ ..........         1,812,000
       1,000   NTT DoCoMo Inc. .............................         1,708,559
     250,000   Rogers Wireless Communications Inc.,
                 Cl. B+ ....................................         1,365,000
     230,000   Sprint Corp. - PCS Group+ ...................           450,800
      16,700   Tele Celular Sul Participacoes SA, ADR ......           110,220
      55,666   Tele Centro Oeste Celular
                 Participacoes SA, ADR .....................           129,145
       3,340   Tele Leste Celular Participacoes SA,
                 ADR .......................................            16,533
       8,350   Tele Nordeste Celular Participacoes
                 SA, ADR ...................................           106,880
       3,340   Tele Norte Celular Participacoes
                 SA, ADR+ ..................................            12,291
   1,400,000   Telecom Italia Mobile SpA ...................         5,451,185
       8,350   Telemig Celular Participacoes SA, ADR .......           111,807
     450,000   Telephone & Data Systems Inc. ...............        22,702,500
      66,800   Telesp Celular Participacoes SA, ADR+ .......           120,908
     453,888   Vodafone Group plc ..........................           581,743
     100,000   Vodafone Group plc, ADR .....................         1,283,000
                                                                --------------
                                                                    41,303,764
                                                                --------------
               AUTOMOTIVE: PARTS AND ACCESSORIES -- 3.2%
      20,000   ArvinMeritor Inc. ...........................           374,000
      37,802   BorgWarner Inc. .............................         1,876,491
     100,000   CLARCOR Inc. ................................         3,070,000
     320,061   Dana Corp. ..................................         4,186,398
      65,000   Delphi Corp. ................................           555,750

                                       15

                          THE GABELLI EQUITY TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               COMMON STOCKS (CONTINUED)
               AUTOMOTIVE: PARTS AND ACCESSORIES (CONTINUED)
     260,000   GenCorp Inc. ................................    $    2,615,600
     210,000   Genuine Parts Co. ...........................         6,434,400
     114,000   Johnson Controls Inc. .......................         8,757,480
     105,000   Midas Inc.+ .................................           525,000
     335,000   Modine Manufacturing Co. ....................         6,371,700
      20,000   O'Reilly Automotive Inc.+ ...................           572,400
      70,800   Scheib (Earl) Inc.+ .........................           194,700
     163,000   Standard Motor Products Inc. ................         1,762,030
      24,000   Superior Industries International Inc. ......         1,129,920
     105,000   TransPro Inc.+ ..............................           514,500
                                                                --------------
                                                                    38,940,369
                                                                --------------
               HEALTH CARE -- 2.6%
      20,000   Abbott Laboratories .........................           808,000
      60,000   Amgen Inc.+ .................................         2,502,000
      40,000   Apogent Technologies Inc.+ ..................           746,400
      10,000   AstraZeneca plc, London .....................           303,202
      35,146   AstraZeneca plc, Stockholm ..................         1,046,139
      15,000   Aventis SA ..................................           785,658
      26,000   Biogen Inc.+ ................................           761,020
     110,000   Bristol-Myers Squibb Co. ....................         2,618,000
      23,000   Centerpulse AG+ .............................         3,465,877
      75,036   GlaxoSmithKline plc .........................         1,451,441
       4,000   GlaxoSmithKline plc, ADR ....................           153,720
      56,011   Invitrogen Corp.+ ...........................         1,908,295
      40,000   Merck & Co. Inc. ............................         1,828,400
      41,000   Novartis AG .................................         1,621,109
     108,000   Novartis AG, Registered .....................         4,290,840
      65,000   Pfizer Inc. .................................         1,886,300
      17,900   Roche Holding AG ............................         1,210,773
      20,000   Sanofi-Synthelabo SA ........................         1,127,593
      10,000   Schering-Plough Corp. .......................           213,200
      14,000   Takeda Chemical Industries Ltd. .............           564,646
      55,000   Wyeth .......................................         1,749,000
                                                                --------------
                                                                    31,041,613
                                                                --------------
               HOTELS AND GAMING -- 2.3%
     110,000   Aztar Corp.+ ................................         1,453,100
      90,000   Boca Resorts Inc., Cl. A+ ...................           918,000
     240,000   Gaylord Entertainment Co.+ ..................         4,540,800
      30,000   Greek Organization of Football
                 Prognostics ...............................           286,988
       8,000   GTECH Holdings Corp.+ .......................           198,560
   2,460,000   Hilton Group plc ............................         6,189,844
     650,000   Hilton Hotels Corp. .........................         7,397,000
      60,000   MGM Mirage+ .................................         2,238,000
     430,000   Park Place Entertainment Corp.+ .............         3,418,500
      50,000   Starwood Hotels & Resorts
                 Worldwide Inc. ............................         1,115,000
                                                                --------------
                                                                    27,755,792
                                                                --------------



               RETAIL -- 2.0%
     200,000   Albertson's Inc. ............................    $    4,832,000
     300,000   AutoNation Inc.+ ............................         3,456,000
      75,000   Boots Co. plc ...............................           623,348
      10,000   Coldwater Creek Inc.+ .......................           131,800
      16,000   Delhaize Le Lion SA, ADR ....................           259,040
      10,000   Fast Retailing Co. Ltd. .....................           257,927
      33,000   Gucci Group NV, ADR .........................         2,785,530
       8,000   Ito-Yokado Co. Ltd. .........................           314,112
     100,000   Lillian Vernon Corp. ........................           549,000
      90,000   Neiman Marcus Group Inc., Cl. A+ ............         2,362,500
     320,000   Neiman Marcus Group Inc., Cl. B+ ............         7,840,000
       7,750   Tod's SpA ...................................           193,388
      25,000   Winn-Dixie Stores Inc. ......................           328,000
                                                                --------------
                                                                    23,932,645
                                                                --------------
               AEROSPACE -- 1.8%
     125,000   BAE Systems plc .............................           377,430
     115,000   Boeing Co. ..................................         3,924,950
     100,000   Lockheed Martin Corp. .......................         6,467,000
      91,000   Northrop Grumman Corp. ......................        11,287,640
                                                                --------------
                                                                    22,057,020
                                                                --------------
               CONSUMER SERVICES -- 1.6%
      40,000   Loewen Group Inc.+ ..........................             1,200
     505,000   Rollins Inc. ................................         9,797,000
     490,000   USA Interactive Inc.+ .......................         9,496,200
                                                                --------------
                                                                    19,294,400
                                                                --------------
               REAL ESTATE -- 1.6%
     450,000   Catellus Development Corp.+ .................         8,302,500
      75,000   Cheung Kong (Holdings) Ltd. .................           473,104
      44,000   Florida East Coast Industries Inc., Cl. A ...         1,038,400
      58,451   Florida East Coast Industries Inc., Cl. B ...         1,282,999
      55,000   Griffin Land & Nurseries Inc.+ ..............           737,000
       4,753   HomeFed Corp.+ ..............................             4,706
     253,000   St. Joe Co. .................................         6,982,800
                                                                --------------
                                                                    18,821,509
                                                                --------------
               CABLE -- 1.5%
     100,000   Adelphia Communications Corp.,
                 Cl. A+ ....................................            12,500
   1,551,443   Cablevision Systems Corp., Cl. A+ ...........        14,056,074
      30,000   Charter Communications Inc., Cl. A+ .........            55,800
      40,000   Comcast Corp., Cl. A+ .......................           853,200
      85,000   Comcast Corp., Cl. A, Special+ ..............         1,773,100
      20,000   NTL Inc.+ ...................................               260
      20,000   Shaw Communications Inc., Cl. B .............           164,290
      80,000   Shaw Communications Inc., Cl. B,
                 Non-Voting ................................           665,600
     370,000   UnitedGlobalCom Inc., Cl. A+ ................           606,800
                                                                --------------
                                                                    18,187,624
                                                                --------------

                                       16

                          THE GABELLI EQUITY TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               COMMON STOCKS (CONTINUED)
               AVIATION: PARTS AND SERVICES -- 1.4%
     101,320   Curtiss-Wright Corp., Cl. B .................    $    5,952,550
      90,000   Fairchild Corp., Cl. A+ .....................           467,100
      60,000   Precision Castparts Corp. ...................         1,300,800
      84,500   Sequa Corp., Cl. A+ .........................         4,402,450
      78,000   Sequa Corp., Cl. B+ .........................         4,485,000
                                                                --------------
                                                                    16,607,900
                                                                --------------
               BROADCASTING -- 1.4%
      15,015   Clear Channel Communications Inc.+ ..........           521,771
      16,666   Corus Entertainment Inc., Cl. B+ ............           199,523
      25,000   Gray Television Inc. ........................           273,750
      28,000   Gray Television Inc., Cl. A .................           376,600
     195,000   Grupo Televisa SA, ADR+ .....................         4,970,550
     200,000   Liberty Corp. ...............................         7,160,000
       5,000   LIN TV Corp., Cl. A+ ........................           123,750
       4,000   Nippon Broadcasting System Inc. .............           118,285
      40,375   NRJ Group ...................................           570,578
     131,000   Paxson Communications Corp.+ ................           288,200
      14,700   RTL Group, Brussels .........................           377,709
       3,000   RTL Group, New York .........................            81,234
     100,000   Television Broadcasts Ltd. ..................           307,710
     110,000   Young Broadcasting Inc., Cl. A+ .............           953,700
                                                                --------------
                                                                    16,323,360
                                                                --------------
               AGRICULTURE -- 1.1%
   1,050,000   Archer-Daniels-Midland Co. ..................        13,135,500
       5,000   Delta & Pine Land Co. .......................            93,700
                                                                --------------
                                                                    13,229,200
                                                                --------------
               SPECIALTY CHEMICALS -- 1.0%
       5,400   Ciba Specialty Chemicals, ADR (b) ...........           177,930
      10,000   du Pont de Nemours (E.I.) and Co. ...........           360,700
     330,000   Ferro Corp. .................................         7,623,000
      40,000   Fuller (H.B.) Co. ...........................         1,064,000
     120,000   Hercules Inc.+ ..............................         1,105,200
      15,000   IVAX Corp.+ .................................           184,050
     210,000   Omnova Solutions Inc.+ ......................           963,900
      15,000   Rohm and Haas Co. ...........................           465,000
      11,697   Syngenta AG, ADR ............................           126,328
                                                                --------------
                                                                    12,070,108
                                                                --------------
               ELECTRONICS -- 0.9%
     134,393   Agere Systems Inc., Cl. B+ ..................           133,049
       3,000   Hitachi Ltd., ADR ...........................           148,680
      16,000   Molex Inc., Cl. A ...........................           335,984
       7,500   NEC Corp., ADR ..............................            35,625
       6,000   Rohm Co. Ltd. ...............................           704,287
      38,800   Royal Philips Electronics NV, ADR ...........           563,764
      47,000   Sony Corp., ADR .............................         1,931,700
     200,000   Texas Instruments Inc. ......................         2,954,000
     250,000   Thomas & Betts Corp.+ .......................         3,522,500
       8,400   Tokyo Electron Ltd. .........................           321,538
                                                                --------------
                                                                    10,651,127
                                                                --------------

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               ENVIRONMENTAL SERVICES -- 0.7%
      65,000   Republic Services Inc.+ .....................    $    1,222,000
     300,000   Waste Management Inc. .......................         6,996,000
                                                                --------------
                                                                     8,218,000
                                                                --------------
               BUILDING AND CONSTRUCTION -- 0.7%
      92,500   CRH plc .....................................         1,037,539
      32,222   Huttig Building Products Inc.+ ..............           109,232
      15,000   Martin Marietta Materials Inc. ..............           488,550
     137,800   Nortek Inc.+ ................................         5,962,606
       5,000   Nortek Inc., Special Common+ (a) ............           216,350
                                                                --------------
                                                                     7,814,277
                                                                --------------
               AUTOMOTIVE -- 0.6%
      20,000   Ford Motor Co. ..............................           196,000
     167,942   General Motors Corp. ........................         6,532,944
                                                                --------------
                                                                     6,728,944
                                                                --------------
               BUSINESS SERVICES -- 0.5%
      60,000   ANC Rental Corp.+ ...........................             6,000
     180,000   Cendant Corp.+ ..............................         1,936,800
       1,000   CheckFree Corp.+ ............................            11,380
      98,000   Landauer Inc. ...............................         3,248,700
      70,000   Nashua Corp.+ ...............................           485,800
       7,000   Secom Co. Ltd. ..............................           280,023
     250,000   Securicor plc ...............................           397,087
       3,500   SYNAVANT Inc.+ ..............................             2,835
                                                                --------------
                                                                     6,368,625
                                                                --------------
               METALS AND MINING -- 0.4%
      72,500   Harmony Gold Mining Co. Ltd. ................         1,148,727
      15,000   Harmony Gold Mining Co. Ltd., ADR ...........           234,750
     125,000   Newmont Mining Corp. ........................         3,438,750
      50,000   Placer Dome Inc. ............................           456,500
                                                                --------------
                                                                     5,278,727
                                                                --------------
               PAPER AND FOREST PRODUCTS -- 0.4%
     100,000   MeadWestvaco Corp. ..........................         1,921,000
     170,000   Pactiv Corp.+ ...............................         2,796,500
      10,000   Rayonier Inc. ...............................           419,100
                                                                --------------
                                                                     5,136,600
                                                                --------------
               COMMUNICATIONS EQUIPMENT -- 0.3%
      60,000   Acterna Corp.+ ..............................            24,000
     290,000   Allen Telecom Inc.+ .........................         1,548,600
     510,000   Corning Inc.+ ...............................           816,000
     130,000   Lucent Technologies Inc.+ ...................            98,800
     110,000   Motorola Inc. ...............................         1,119,800
     100,000   Nortel Networks Corp.+ ......................            54,000
      44,000   Scientific-Atlanta Inc. .....................           550,440
                                                                --------------
                                                                     4,211,640
                                                                --------------

                                       17

                          THE GABELLI EQUITY TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               COMMON STOCKS (CONTINUED)
               CLOSED END FUNDS -- 0.2%
      59,000   Central European Equity Fund Inc. ...........    $      737,500
      18,592   France Growth Fund Inc.+ ....................            98,352
      54,150   Italy Fund Inc. .............................           305,947
      68,000   New Germany Fund Inc.+ ......................           218,960
      70,000   Pimco RCM Europe Fund Inc. ..................           411,600
      40,000   Royce Value Trust Inc. ......................           503,600
                                                                --------------
                                                                     2,275,959
                                                                --------------
               SATELLITE -- 0.1%
     180,323   General Motors Corp., Cl. H+ ................         1,649,955
      34,000   Liberty Satellite & Technology Inc.,
               Cl. A+ ......................................            76,500
     190,000   Loral Space & Communications Ltd.+ ..........            51,300
                                                                --------------
                                                                     1,777,755
                                                                --------------
               COMPUTER SOFTWARE AND SERVICES -- 0.1%
      20,000   Capcom Co. Ltd. .............................           456,711
      10,000   Computer Associates International Inc. ......            96,000
     160,000   EMC Corp.+ ..................................           731,200
      30,000   Genuity Inc., Cl. A+ ........................             8,400
                                                                --------------
                                                                     1,292,311
                                                                --------------
               TRANSPORTATION -- 0.1%
     100,000   AMR Corp.+ ..................................           418,000
      20,000   Grupo TMM SA de CV, Cl. A, ADR+ .............           122,200
       7,500   Kansas City Southern+ .......................            93,000
      29,273   Tsakos Energy Navigation Ltd.+ ..............           319,076
                                                                --------------
                                                                       952,276
                                                                --------------
               COMPUTER HARDWARE -- 0.0%
      26,000   Hewlett-Packard Co. .........................           303,420
      10,000   Xerox Corp.+ ................................            49,500
                                                                --------------
                                                                       352,920
                                                                --------------
               TOTAL COMMON STOCKS .........................     1,011,289,975
                                                                --------------
               PREFERRED STOCKS -- 2.2%
               PUBLISHING -- 1.1%
     770,499   News Corp. Ltd., Pfd., ADR ..................        12,790,281
                                                                --------------
               SPECIALTY CHEMICALS -- 0.5%
     273,500   Hercules Trust I,
                 9.420% Pfd.                                         5,757,175
                                                                  ------------
               TELECOMMUNICATIONS -- 0.3%
      60,000   Allen Telecom Inc.,
                 7.750% Cv. Pfd., Ser. D ...................         2,460,000
      31,000   Broadwing Inc.,
                 6.750% Cv. Pfd., Ser. B ...................           350,300
      21,000   Citizens Communications Co.,
                 5.000% Cv. Pfd. ...........................           686,910
         500   Lucent Technologies Capital Trust I,
                 7.750% Cv. Pfd.+ (b) ......................           112,500
                                                                  ------------
                                                                     3,609,710
                                                                  ------------

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
               AEROSPACE -- 0.2%
      14,021   Northrop Grumman Corp.,
                 7.000% Cv. Pfd., Ser. B ...................    $    2,005,003
                                                                --------------
               BROADCASTING -- 0.1%
          90   Gray Television Inc.,
                 8.000% Cv. Pfd., Ser. C (b) ...............           900,000
     100,000   ProSieben Sat.1 Media AG, Pfd. ..............           637,421
                                                                --------------
                                                                     1,537,421
                                                                --------------
               AVIATION: PARTS AND SERVICES -- 0.0%
       3,000   Sequa Corp., $5.00 Cv. Pfd. .................           256,800
                                                                --------------
               WIRELESS COMMUNICATIONS -- 0.0%
  10,760,547   Telesp Celular Participacoes SA, Pfd.+ ......             7,440
                                                                --------------
               TOTAL PREFERRED STOCKS ......................        25,963,830
                                                                --------------
 PRINCIPAL
  AMOUNT
  ------
               CORPORATE BONDS -- 0.5%
               ELECTRONICS -- 0.2%
 $ 3,500,000   Agere Systems Inc., Sub. Deb. Cv.,
                 6.500%, 12/15/09 ..........................         1,925,000
                                                                --------------
               AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.1%
   1,400,000   Standard Motor Products Inc.,
                 Sub. Deb. Cv.,
                 6.750%, 07/15/09 ..........................         1,078,000
                                                                --------------
               AVIATION: PARTS AND SERVICES -- 0.1%
     933,000   Kaman Corp., Sub. Deb. Cv.,
                 6.000%, 03/15/12 ..........................           856,028
                                                                --------------
               CABLE -- 0.1%
   1,300,000   Charter Communications Inc., Cv.,
                 4.750%, 06/01/06 ..........................           563,875
                                                                --------------
               ENERGY AND UTILITIES -- 0.0%
   1,000,000   Mirant Corp., Sub. Deb. Cv.,
                 2.500%, 06/15/21 ..........................           441,250
                                                                --------------
               WIRELESS COMMUNICATIONS -- 0.0%
     500,000   Nextel Communications Inc.,
                 9.500%, 02/01/11 ..........................           376,250
                                                                --------------
               HOTELS AND GAMING -- 0.0%
     400,000   Hilton Hotels Corp., Sub. Deb. Cv.,
                 5.000%, 05/15/06 ..........................           368,000
                                                                --------------
               CONSUMER PRODUCTS -- 0.0%
   1,000,000   Pillowtex Corp., Sub. Deb.,
                 6.000%, 03/15/12+ (e) .....................                 0
                                                                --------------
               TOTAL CORPORATE BONDS .......................         5,608,403
                                                                --------------

                                       18

                          THE GABELLI EQUITY TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                         SEPTEMBER 30, 2002 (UNAUDITED)

                                                                    MARKET
   SHARES                                                            VALUE
   ------                                                           ------
                 RIGHTS -- 0.0%
                 CABLE -- 0.0%
         298     NTL Inc.+ .................................    $            0
                                                                --------------
                 WARRANTS -- 0.0%
                 FOOD AND BEVERAGE -- 0.0%
      62,463     Denny's Corp., expires 01/07/05+ ..........             1,031
                                                                --------------
                 METALS AND MINING -- 0.0%
       5,000     Harmony Gold Mining Co. Ltd., ADR,
                   expires 06/29/03+ .......................            57,450
                                                                --------------
                 TOTAL WARRANTS ............................            58,481
                                                                --------------
 PRINCIPAL
  AMOUNT
  ------
                 U.S. GOVERNMENT OBLIGATIONS -- 4.1%
$ 50,000,000     U.S. Treasury Bills,
                   1.645%++, 10/24/02 ......................        49,947,451
                                                                --------------
                 REPURCHASE AGREEMENTS -- 10.6%
 100,000,000     Agreement with ABN AMRO,
                   1.850%, dated 09/30/02, due
                   10/01/02, proceeds at maturity,
                   $100,000,000 (c) ........................       100,000,000
  27,467,000     Agreement with State Street Bank and
                   Trust Co., 1.800%, dated 09/30/02,
                   due 10/01/02, proceeds at maturity,
                   $27,467,000 (c) .........................        27,467,000
                                                                --------------
                 TOTAL REPURCHASE
                   AGREEMENTS ..............................       127,467,000
                                                                --------------

   TOTAL INVESTMENTS -- 101.6%
     (Cost $1,193,141,051) .................................    $1,220,335,140

   OTHER ASSETS, LIABILITIES
     AND LIQUIDATION VALUE OF
     CUMULATIVE PREFERRED STOCK -- (37.4)% .................      (448,884,260)
                                                                --------------
   NET ASSETS -- COMMON STOCK -- 64.2%
     (133,308,858 common shares outstanding) ...............       771,450,880
                                                                --------------
   NET ASSETS -- PREFERRED STOCK -- 35.8%
     (11,973,100 preferred shares outstanding) .............       429,197,500
                                                                --------------
   TOTAL NET ASSETS -- 100.0% ..............................    $1,200,648,380
                                                                ==============
   NET ASSET VALUE PER COMMON SHARE
     (771,450,880 / 133,308,858 shares outstanding) ........             $5.79
                                                                         =====

  PRINCIPAL                                        SETTLEMENT   NET UNREALIZED
   AMOUNT                                             DATE       APRECIATION
  --------                                         ----------   --------------
                 FORWARD FOREIGN EXCHANGE CONTRACTS -- 0.0%
 $ 7,790,000(d)  Deliver Hong Kong Dollars
                   in exchange for
                   USD 2,627,026 ..............     08/01/03              $863
                                                                          ====

  NOTIONAL                                                        UNREALIZED
   AMOUNT                                                        DEPRECIATION
  --------                                                       ------------
               INTEREST RATE SWAP AGREEMENT -- (0.7)%
 130,000,000     Receive floating rate from Citibank, NA
                   based on the 1-month LIBOR and pay
                   a fixed rate equal to 4.494%
                   Terminates 07/01/07 .....................    $   (8,490,559)
                                                                ==============
-----------------
             For Federal tax purposes:
             Aggregate cost ................................    $1,193,141,051
                                                                ==============
             Gross unrealized appreciation .................    $  251,792,242
             Gross unrealized depreciation .................      (224,597,290)
                                                                --------------
             Net unrealized appreciation ...................    $   27,194,952
                                                                ==============
-----------------
(a)   Security  fair  valued  under  procedures  established  by  the  Board  of
      Directors.
(b)   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.  At
      September 30, 2002, the market value of Rule 144A  securities  amounted to
      $1,190,430 or 0.1% of total net assets.
(c)   Collateralized  by U.S.  Treasury Notes,  7.50% to 8.50%,  due 02/15/20 to
      11/15/24, market value $128,026,139.
(d)   Principal amount denoted in Hong Kong Dollars.
(e)   Bond in default.
+     Non-income producing security.
++    Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
BDR - Brazilian Depository Receipt.
CVO - Contingent Value Obligation.
RNC - Non-Convertible Savings Shares.
USD - U.S. Dollars.

                                         % OF
                                        MARKET            MARKET
                                         VALUE            VALUE
                                        ------       --------------
       GEOGRAPHIC DIVERSIFICATION
       United States ..............     85.17%       $1,039,302,143
       Europe .....................     10.66           130,130,097
       Asia/Pacific Rim ...........      2.21            26,994,148
       Latin America ..............      1.01            12,349,807
       Canada .....................      0.83            10,175,468
       South Africa ...............      0.12             1,383,477
                                       ------        --------------
       Total Investments ..........    100.0%        $1,220,335,140
                                       ======        ==============

                                       19


                         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  EquiServe  Trust  Company  ("EquiServe")  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 EquiServe
                                 P.O. Box 43011
                            Providence, RI 02940-3011

     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  EquiServe  at 1 (800)
336-6983.

     SHAREHOLDERS  WISHING TO LIQUIDATE REINVESTED SHARES held at EquiServe must
do so in  writing  or by  telephone.  Please  submit  your  request to the above
mentioned  address  or  telephone  number.  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 participating institutions 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,  EquiServe will buy Common Stock in the open
market,  or on the New York Stock Exchange or elsewhere,  for the  participants'
accounts, except that EquiServe 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 the then current 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 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 EquiServe 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.

     Participants  in the Voluntary Cash Purchase Plan have the option of making
additional  cash payments to EquiServe  for  investments  in the Equity  Trust's
shares at the then current  market price.  Shareholders  may send an amount from
$250 to $10,000.  EquiServe will use these funds to purchase  shares in the open
market on or about the 1st and 15th of each  month.  EquiServe  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  EquiServe,  P.O.  Box 43011,  Providence,
RI02940-3011  such that EquiServe  receives such payments  approximately 10 days
before the  investment  date.  Funds not  received at least five days before the
investment  date shall be held for investment in the following  month. A payment
may be withdrawn  without  charge if notice is received by EquiServe 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.

                                       20

                             DIRECTORS AND OFFICERS

                          THE GABELLI EQUITY TRUST INC.

                    ONE CORPORATE CENTER, RYE, NY 10580-1422

DIRECTORS

Mario J. Gabelli, CFA
  CHAIRMAN & CHIEF INVESTMENT OFFICER,
  GABELLI ASSET MANAGEMENT INC.

Dr. Thomas E. Bratter
  PRESIDENT, JOHN DEWEY ACADEMY

Anthony J. Colavita
  ATTORNEY-AT-LAW,
  ANTHONY J. COLAVITA, P.C.

James P. Conn
  FORMER MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER,
  FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.

Frank J. Fahrenkopf, Jr.
  PRESIDENT AND CHIEF EXECUTIVE OFFICER,
  AMERICAN GAMING ASSOCIATION

Arthur V. Ferrara
  FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER,
  GUARDIAN LIFE INSURANCE COMPANY OF AMERICA

Karl Otto Pohl
  FORMER PRESIDENT, DEUTSCHE BUNDESBANK

Anthony R. Pustorino
  CERTIFIED PUBLIC ACCOUNTANT,
  PROFESSOR EMERITUS, PACE UNIVERSITY

Salvatore J. Zizza
  CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.

OFFICERS

Mario J. Gabelli, CFA
  PRESIDENT & CHIEF INVESTMENT OFFICER

Bruce N. Alpert
  VICE PRESIDENT & TREASURER

Carter W. Austin
  VICE PRESIDENT

James E. McKee
  SECRETARY

INVESTMENT ADVISER

Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422

CUSTODIAN

Boston Safe Deposit and Trust Company

COUNSEL

Willkie Farr & Gallagher

TRANSFER AGENT AND REGISTRAR

EquiServe Trust Company

STOCK EXCHANGE LISTING

                                7.25%        7.20%
                 COMMON       PREFERRED    PREFERRED
                 ------       ---------    ---------
NYSE-
Symbol:           GAB          GAB Pr       GAB PrB
Shares
Outstanding:   133,308,858    5,367,900    6,600,000

The Net Asset Value  appears in the  Publicly  Traded  Funds  column,  under the
heading  "General  Equity Funds," in Sunday's The New York Times and in 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.

------------------------------------------------------------
For general information about the Gabelli Funds,
call 1-800-GABELLI (1-800-422-3554), fax us at
914-921-5118, visit Gabelli Funds' Internet
homepage at: HTTP://WWW.GABELLI.COM
or e-mail us at: closedend@gabelli.com
------------------------------------------------------------

--------------------------------------------------------------------------------
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 common  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.  The Equity Trust may also,  from time to time,  purchase  shares of its
Cumulative  Preferred  Stock in the open market when the shares are trading at a
discount to the Liquidation Value of $25.00.
--------------------------------------------------------------------------------


THE GABELLI EQUITY TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
HTTP://WWW.GABELLI.COM

                                                            THIRD QUARTER REPORT
                                                              SEPTEMBER 30, 2002

                                                                     GBFCM 09/02