Report to 31 March 2001

Deutsche Equity Income Trust PLC
9 April 2001


Investment trusts
the easy way to invest on the stock market
                               
                                      
                            REPORT TO 31 MARCH 2001
                                       
                                       
                                       
MARKET BACKGROUND

The  UK  Equity  market as measured by the FT-SE All-Share  fell  by  9.1%  in
capital terms in the three months to 31 March.  Our net asset value per  share
fell by 4.3% and the share price by 7.2% over the same period.

Conditions continued to favour income funds as the lower yielding sectors such
as   Software,  I.T.  hardware  and  Telecoms  fell  sharply,  continuing  the
correction  that  started  last year.  By contrast 'defensive'  areas  of  the
market  rose in value as investors sought security of earnings.  Sectors  such
as  Mining,  Oil  and  Gas,  General Retailers and Real  Estate  all  produced
positive returns in a weak equity market.

Our  purchases  included both higher yielding shares such  as  HSBC  Holdings,
Lloyds  TSB  and  CGNU  and  some growth stocks such as  GlaxoSmithKline,  BG,
Reuters  and Carphone Warehouse.  We also took advantage of further  falls  in
the share prices of technology stocks to add to positions in Marconi and Cable
&  Wireless, although the latter proved to be rather premature as the  company
disappointed with a surprise profit warning.


OUTLOOK

We  continue to believe that the market should respond positively  to  falling
interest  rates and continued low inflation.  However, profit forecasts  still
appear  to be too optimistic and corporate news flow is likely to remain  poor
for the next few months.





NET ASSET VALUE                      31/03/01   31/12/00
                                       256.1p     270.8p

MID-MARKET SHARE PRICE               31/03/01   31/12/00
Ordinary Shares                       245.0p     264.0p
Dividend Yield (%)                      3.3        3.2

LARGEST  HOLDINGS  (market value £62.9 million  equal  to 61.7% of total
portfolio)
                                               
                                                  % of
31/03/01                             £'000's   portfolio
                                                    
GlaxoSmithKline                       8,709       8.5
BP Amoco                              6,361       6.2
HSBC Holdings                         4,357       4.3
Vodafone Group                        3,827       3.7
AstraZeneca                           3,121       3.1
Shell Transport & Trading             2,864       2.8
Royal Bank of Scotland                2,834       2.8
Cookson Group                         2,260       2.2
CGNU                                  2,329       2.3
Smiths Group                          2,193       2.1
Allied Domecq                         2,099       2.1
EMAP                                  1,916       1.9
Lloyds TSB                            1,794       1.8
Barclays                              1,719       1.7
Carlton Communications                1,714       1.7
BG Group                              1,666       1.6
Britannic                             1,635       1.6
Morgan Crucible                       1,623       1.6
Diageo                                1,583       1.5
Whitbread                             1,494       1.5
Centrica                              1,436       1.4
British Telecom                       1,433       1.4
Reuters Group                         1,371       1.3
Powergen                              1,298       1.3
Bunzl                                 1,280       1.3
                                                         
FINANCIAL CALENDAR                                       
Company Half-year end                                           31 March 2001

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  and  low  cost ISA contact Mark Pope on 020-7545-0520,  e-mail  address:
[e-mail].   Further  details  of  the  Deutsche  Equity  Income  Trust
including  the latest annual and interim 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.