Report to July 2001

Deutsche Equity Income Trust PLC
10 August 2001


Deutsche Equity Income Trust

Investment trusts
the easy way to invest on the stock market
                                      
                       REPORT FOR THE MONTH OF JULY 2001
                                       
MARKET BACKGROUND

The UK equity market as measured by the FT-SE All-Share index fell by 2.4%  in
capital terms over the month.  Our net asset value per share fell by 1.5%, but
the  share price fell by 8.1% over the same period as the shares moved from  a
1.3% premium to a 5.5% discount to net asset value.

Conditions  were generally less favourable for income funds as the  FT-SE  350
Value  index  underperformed the FT-SE 350 Growth index  by  0.5%  in  capital
terms.   However,  the performance by sector was varied, with some  'cyclical'
areas  such as Forestry & Paper and Automobiles performing well but  the  'new
economy'  sectors  of  IT  Hardware  and  Software  performing  poorly.    The
Electronic  & Electrical Equipment sector also fell sharply due to  a  profits
warning from Invensys.

Our  purchases  included topping up existing holdings with attractive  yields,
such  as  National  Grid and Lonmin, and buying new holdings  in  some  growth
stocks,  such  as  Schroders and Man Group.  Holdings were sold  in  Inchcape,
Northern  Foods, Innogy and Rentokil, and significantly reduced in both  Rexam
and Scottish Power.

OUTLOOK

Despite  attempts by the monetary authorities to stimulate the global  economy
by  further  cuts in interest rates, the immediate outlook for corporate  news
flow continues to be poor.  However, we continue to believe that the UK equity
market  should  ultimately respond positively to falling  interest  rates  and
continued low inflation.



NET ASSET VALUE                      31/07/01   30/06/01
                                       257.7p     261.6p

MID-MARKET SHARE PRICE               31/07/01    30/06/01
Ordinary Shares                       243.5p     265.0p
Dividend Yield (%)                      3.0        2.8

LARGEST  HOLDINGS  (market value £65.7 million  equal  to 63.9% of total
portfolio)
                                               
                                                  % of
                                     £'000's   portfolio
GlaxoSmithKline                       9,690       9.4
BP Amoco                              6,377       6.2
HSBC Holdings                         4,195       4.1
Shell Transport & Trading             3,812       3.7
AstraZeneca                           3,192       3.1
Royal Bank of Scotland                3,170       3.1
British Telecom                       3,114       3.0
Vodafone Group                        3,043       3.0
Lloyds TSB                            2,884       2.8
Legal & General                       2,578       2.5
CGNU                                  2,378       2.3
Cookson Group                         1,996       2.0
EMAP                                  1,961       1.9
BG Group                              1,658       1.6
Bunzl                                 1,615       1.6
Diageo                                1,614       1.6
Centrica                              1,608       1.6
Carlton Communications                1,591       1.5
Lonmin                                1,355       1.3
Powergen                              1,342       1.3
Barclays                              1,324       1.3
United Utilities                      1,316       1.3
Bank of Scotland                      1,313       1.3
3i Group                              1,287       1.2
BAE Systems                           1,286       1.2
                                                         


For further information, contact Graham Ashby at Deutsche Asset Management on
020-7545-6000.

For additional copies, changes of address or details of our Private Investors'
Plan,  low  cost ISA and Dividend Reinvestment Scheme (a recently  established
scheme through which shareholders, who hold their shares on the Company's main
register,  can  use their dividends to purchase further shares)  contact  Mark
Pope on 020-7545-0520, e-mail  address: [e-mail].   Further details of
Deutsche Equity  Income Trust including the latest annual, interim and monthly
reports   can  be found  on  the  Deutsche Asset Management website located at
www.deam-uk.com/uk/invest/.

Issued by Deutsche Equity Income Trust PLC and approved by Deutsche Investment
Trust  Managers  Limited,  regulated by the Investment  Management  Regulatory
Organisation  and  manager  of Deutsche Equity Income  Trust  PLC.   Investors
should  be  aware that past performance is not necessarily a guide  to  future
returns,  values can fall as well as rise and investors may not get  back  the
amount they invested.