The Gabelli Asset Fund Annual Report — December 31, 2018 (Y)our Portfolio Management Team Mario J. Gabelli, CFA Christopher J. Marangi Kevin V. Dreyer Jeffrey J. Jonas, CFA Chief Investment Officer Co-Chief Investment Officer Co-Chief Investment Officer Portfolio Manager BA, Williams College BSE, University of BS, Boston College MBA, Columbia Pennsylvania Business School MBA, Columbia To Our Shareholders, Business School For the year ended December 31, 2018, the net asset value (NAV) per class AAA Share of The Gabelli Asset Fund decreased 7.7% compared with a decrease of 4.4% for the Standard & Poor’s (S&P) 500 Index. Other classes of shares are available. See page 3 for the performance information for all classes. Enclosed are the financial statements, including the schedule of investments, as of December 31, 2018. Performance Discussion (Unaudited) The Fund’s investment objective is to provide growth of capital. The Fund’s secondary goal is to provide current income. The Fund’s investment strategy is to primarily invest in common and preferred stocks. The Fund focuses on companies which appear underpriced relative to their private market value (PMV). PMV is the value the Fund’s investment adviser, Gabelli Funds, LLC, believes informed investors would be willing to pay for a company. Under normal market conditions, the Fund invests at least 80% of its assets in stocks that are listed on a recognized securities exchange or similar market. The portfolio managers will invest in companies that, in the public market, are selling at a significant discount to the portfolio managers’ assessment of their PMV. The portfolio managers consider factors such as price, earnings expectations, earnings and price histories, balance sheet characteristics, and perceived management skills. The portfolio managers also consider changes in economic and political outlooks as well as individual corporate developments. Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports in paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to [email protected]. January 2018 saw the stock market continue its nearly uninterrupted climb, but volatility finally returned with a sharp decline in February and continued choppiness in March, leading to major averages posting their first quarterly declines since 2015. Economic fundamentals continued to be largely positive – synchronous global growth, low unemployment, corporate profits boosted by tax reform and lower personal taxes for many Americans – but a new set of worries came to the fore for investors already uneasy about stretched valuations: trade wars, regulatory risks in the technology sector, and the U.S. Federal Reserve’s gradual liquidity reduction and rising interest rate policy. During the second quarter of 2018, markets recouped first quarter losses to finish the first half of the year modestly higher. Economic indicators, including the lowest unemployment rate since 2000, remained favorable. The Federal Reserve’s program of interest rate normalization was back on track after two hikes earlier in the year. The market appeared to handle the strong trade rhetoric from the Trump administration. Markets continued to charge ahead in the third quarter, with the S&P 500 again setting record highs in late September. Financial and economic data continued to support the rally: U.S. second quarter GDP growth registered 4.2%, the unemployment rate fell to a 49 year low at 3.7% in September, and corporate profits soared, with growth of over 16%. During the fourth quarter of 2018, the stock market suffered a major pullback, with the S&P 500 Index down over 13% on a total return basis. That weak showing pushed the S&P 500 down for the full year after a very strong showing in 2017, leading to a negative impact on the Fund. The top contributor to the Fund’s performance in 2018 was Twenty-First Century Fox (3.5% of net assets as of December 31, 2018), a diversified media company with operations in cable network television, television broadcasting, and filmed entertainment. The stock benefited from a bidding war between Disney and Comcast over its cable, international, and entertainment assets. Madison Square Garden Co. (MSG) (1.7%) also aided in the performance of the portfolio. The stock increased in the second quarter when it was announced that the company is exploring a spinoff to create a separate public company for its sports teams. Kikkoman Corp. (1.1%), a Japanese food manufacturer whose main products and services include soy sauce and food seasoning flavoring, saw growth in its soy sauce and domestic soy milk segments, which drove margin expansion and lifted profit growth. One of our weaker performing stocks during the year was Dish Network (0.4%), which provides service to approximately 13.3 million pay TV subscribers. The company continues to be impacted by increased competition from over the top content video offerings. General Mills (0.7%) was also a detractor to performance. Higher transportation costs affected third quarter margins. Furthermore, in April, Blue Buffalo was acquired, bringing General Mills into the pet food business for the cost of nearly 25 times their adjusted EBITDA in 2017. Navistar International Corp. (0.5%) manufactures trucks, buses, and defense vehicles, as well as diesel engines and parts for the commercial trucking industry. With a surplus in trucks and a shortage of drivers, truck orders and Navistar stock price fell in 2018. Thank you for your investment in The Gabelli Asset Fund. We appreciate your confidence and trust. 2 Comparative Results Average Annual Returns through December 31, 2018 (a) (Unaudited) Since Inception 1 Year 5 Year 10 Year 15 Year (3/3/86) Class AAA (GABAX) ................................... (7.69)% 4.09% 11.62% 7.89% 11.33% S&P500Index........................................ (4.38) 8.49 13.12 7.77 10.07(d) DowJonesIndustrialAverage............................. (3.50) 9.65 13.11 8.17 11.13(d) NasdaqCompositeIndex................................ (2.80) 11.05 16.85 9.56 9.85(d) Class A (GATAX) ..................................... (7.69) 4.09 11.62 7.89 11.33 With sales charge (b) ................................... (13.00) 2.87 10.96 7.47 11.12 Class C (GATCX) ..................................... (8.38) 3.31 10.79 7.09 10.95 Withcontingentdeferredsalescharge(c)..................... (9.30) 3.31 10.79 7.09 10.95 Class I (GABIX)....................................... (7.46) 4.35 11.90 8.09 11.42 In the current prospectuses dated April 30, 2018, the expense ratios for Class AAA, A, C, and I are 1.35%, 1.35%, 2.10%, and 1.10%, respectively. See page 15 for the expense ratios for the year ended December 31, 2018. Class AAA and Class I Shares do not have a sales charge. The maximum sales charge for Class A Shares and Class C Shares is 5.75% and 1.00%, respectively. (a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Returns would have been lower had Gabelli Funds, LLC (the Adviser) not reimbursed certain expenses of the Fund for periods prior to December 31, 1988. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. The Dow Jones Industrial Average and the Nasdaq Composite Index are unmanaged indicators of stock market performance. Dividends are considered reinvested, except for the Nasdaq Composite Index. You cannot invest directly in an index. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of Class A Shares and Class C Shares on December 31, 2003 and Class I Shares on January 11, 2008. The actual performance of the Class A Shares and Class C Shares would have been lower due to the additional fees and expenses associated with these classes of shares. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. (b) Performance results include the effect of the maximum 5.75% sales charge at the beginning of the period. (c) Assuming payment of the 1% maximum contingent deferred sales charge imposed on redemptions made within one year of purchase. (d) S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite Index since inception performance results are as of February 28, 1986.