WITTER DEAN AMERICAN VALUE FUND
N-30D, 1995-08-30
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<PAGE>
DEAN WITTER AMERICAN VALUE FUND  TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
                                 10048
LETTER TO THE SHAREHOLDERS

DEAR SHAREHOLDER:

The factors that adversely affected the financial markets for the first two
quarters of 1994 -- an overheated economy, rising interest rates and inflation
- -- reversed themselves and helped both the stock and bond markets move higher.
Evidence of a slowing U.S. economy without either a recession or a peaking of
inflation, combined with an easing move by the Federal Reserve Board, has sent
the markets to new highs. Moreover, in contrast with last year, the stock market
advance was very broad, with all industries and all capitalization sectors
(large, medium and small companies) participating.

Led by technology and financial stocks, the U.S. equity market scaled new
heights during the first six months of 1995, increasing an impressive 20.42
percent, as measured by the Dow Jones Industrial Average (the Standard & Poor's
500 Composite Stock Price Index and NASDAQ Composite Index increased 20.20 and
24.14 percent, respectively). Clearly, the bulls had much to celebrate: the
expectation of slower U.S. growth (without a recession), the ongoing containment
of inflation, continued corporate profit increases, a proposed balanced budget
bill, slower growth overseas, a strengthening U.S. dollar and the conviction
that the Federal Reserve Board's work may be done for this cycle.

Near-term, the market could easily pull up for a breather as both individuals
and institutions rush to take some profits. Still, barring seriously negative
news on the economic front or in the bond market, the foundation for a continued
strong domestic equity market remains in place as the housing sector responds to
lower interest rates, business fixed-investment remains vigorous and the U.S.
trade deficit shrinks.

PERFORMANCE REVIEW

For the six-month period ended June 30, 1995, Dean Witter American Value Fund
posted a total return of 20.14 percent, outpacing the average growth fund which,
according to Lipper Analytical Services, Inc., provided a total return of 17.47
percent. For the same period, the
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
LETTER TO THE SHAREHOLDERS, CONTINUED

Standard & Poor's Composite Index of 500 Stocks (S&P 500) returned of 20.20
percent. The Fund ranked #130 out of 583 growth funds (top 22 percent),
according to Lipper.

The Fund's longer-term performance relative to its Lipper peer group continues
to be impressive, with a one-year ranking in the top 28 percent (#143 out of 514
growth funds), a five-year ranking in the top 11 percent (#25 out of 229) and a
ten-year ranking in the top 17 percent (#25 out of 145). On average, the Fund
returned 25.65 percent, 15.60 percent and 14.92 percent for the trailing one,
five and ten years ended June 30, 1995. (All Lipper rankings are based on total
return and do not include sales charges. If shares were sold and sales charges
were deducted, the Fund's one-, five-and ten-year average annual total returns
would be 20.65 percent, 15.38 percent and 14.92 percent, respectively.) The
Fund's long-term performance compares quite favorably to that of the S&P 500,
which posted one-, five- and ten-year average annual total returns of 26.03
percent, 12.07 percent, and 14.65 percent, respectively. Unlike the Fund, the
S&P 500 is an unmanaged index and is not subject to fees and expenses.

THE MARKETPLACE

In the first half of 1995 the Federal Reserve Board's restrictive monetary
policy of 1994 began to have a noticeable effect on the U.S. economy. In fact,
the economy slowed far quicker and more broadly than many analysts expected,
leading the central bank to modestly lower the federal-funds rate -- the rate
banks charge each other for overnight loans -- on July 6, 1995. As the market
became less concerned over the likelihood of additional interest rate increases,
equities continued to rise and a broad-based rally unfolded. Market leadership
shifted from the economically sensitive industries, which had been most dominant
in 1994, to growth sectors that can continue to post 15 percent earnings
increases, notwithstanding a slowdown in overall corporate profits to 10 percent
or less.

In the fourth quarter of 1994, the Fund began to rotate out of its positions in
economically sensitive or cyclical stocks and into growth-oriented industries.
This rotation was initiated in response to a flattening yield curve which
suggested that investors were beginning to perceive that the Federal Reserve
Board's tight monetary policy had begun to cool the economy's heated pace. (By a
"flattening" yield curve, we mean that the difference between yields on short-
and long-term bonds is slight.) This rotation into the growth sector also was
attributable to the relative earnings advantage this group should enjoy compared
to the overall market as the economy slows. With corporate profits rising about
20 percent in 1994 and many cyclical stocks selling at moderate
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
LETTER TO THE SHAREHOLDERS, CONTINUED

valuations, growth stocks did not appear attractive. This year, however, general
corporate earnings should rise only about 10 percent, with the better relative
earnings registered by growth stocks. This is likely to result in higher
price/earnings ratios for these stocks.

THE PORTFOLIO

As of June 30, 1995, the Fund was invested in four principal sectors: technology
(computer software, semiconductors, semiconductor capital equipment);
interest-rate sensitive (banks, insurance, miscellaneous financial); services
(media, entertainment, lodging, consumer/business services); and health care
(drugs, medical supplies). The Portfolio also maintained some commitments in
select cyclical groups (aluminum, paper, agriculture) which had attractive
supply/demand characteristics and significant sales abroad. At the end of the
period under review, the Fund's five largest holdings were Applied Materials,
Texas Instruments, Micron Technology, Tellabs and Intel Corp.

SECOND HALF 1995 OUTLOOK

For the second half of 1995, we look for the economy to continue expanding.
However, we do believe that growth will be at a much more moderate pace. While
the second quarter could represent the weakest gross domestic product growth of
the year, any economic rebound may be modest. There are several factors
supporting this opinion: (1) a demographic drag resulting from slowing
population growth and the concurrent aging of the population base; (2) current
high consumer debt levels, which will have a limiting impact on consumer
spending; (3) high manufacturer inventory levels, which may not be fully worked
off until the fourth quarter; (4) the beginning of a worldwide economic slowdown
which could weaken U.S. exports; and (5) slow monetary growth designed to keep
inflation under control, but which could also lead to reduced economic growth.

Given this economic backdrop, interest rates should remain benign and trend down
over the next few years to levels not seen since the 1960s. Real interest rates
- -- current rates minus inflation -- could fall to the five to six percent level.
There are short- and longer-term influences for this potential development. On a
short term basis, any budget reduction bill signed into law could cause the
economy to contract by one percent, forcing the Federal Reserve Board to lower
interest rates considerably. From an intermediate- to longer-term perspective,
little growth in the U.S. population base, wage increases roughly in line with
or below the rate of inflation, continued high productivity and low core
inflation all bode well for higher bond prices and lower interest rates.

This should allow overall price/earnings ratios to move higher, especially for
those companies that are able to exhibit sustained, attractive earnings growth
of 15 percent or more. Such companies will
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
LETTER TO THE SHAREHOLDERS, CONTINUED

look very attractive in a slow-growth environment. Moreover, growth stocks have
the attraction of consistency in their attractive yearly earnings, while other
companies may be unable to post significant earnings gains in the face of a
braking economy. Market leadership should be increasingly centered on
growth-oriented equities in areas such as technology, recreation, export-related
and/or health care-oriented. Higher price/earnings ratios should result, as
investors become willing to pay more for the increasingly fewer companies that
can continue to register attractive earnings growth.

LOOKING AHEAD

Over the next several years, we see a sustainable worldwide recovery fueled by
freer trade and the widespread adoption of capitalism. Global economic growth
could reach three percent, with the greatest growth occurring in the developing
economies. It is noteworthy that because of less efficient production means,
developing countries currently consume one-third more raw materials or
commodities, such as copper or steel. Given this reality, our investment themes
for a global recovery include a focus on infrastructure opportunities in such
sectors as raw materials, machinery, technology and telecommunications. The U.S.
enters this era in a superb competitive position.

We appreciate your support of Dean Witter American Value Fund and look forward
to continuing to serve your investment needs and objectives.

Very truly yours,

                [SIGNATURE]

CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
 NUMBER OF
   SHARES                                              VALUE
- ------------------------------------------------------------------
<C>           <S>                                <C>

              COMMON STOCKS (94.2%)
              BANKS (4.6%)
    500,000   Bank of Boston Corp..............  $      18,750,000
    300,000   Citicorp.........................         17,362,500
    150,000   First Chicago Corp...............          8,981,250
    200,000   First Interstate Bancorp*........         16,050,000
    130,000   Wells Fargo & Co.................         23,432,500
                                                 -----------------
                                                        84,576,250
                                                 -----------------
              BASIC CYCLICALS (3.1%)
    400,000   Aluminum Co. of America..........         20,050,000
    280,000   Du Pont (E.I.) de Nemours & Co.,
              Inc..............................         19,250,000
    200,000   Monsanto Co......................         18,025,000
                                                 -----------------
                                                        57,325,000
                                                 -----------------
              BIOTECHNOLOGY (1.1%)
    250,000   Amgen Inc.*......................         20,062,500
                                                 -----------------
              CABLE/CELLULAR (4.0%)
    350,000   DSC Communications Corp.*........         16,275,000
  1,000,000   Ericsson (L.M.) Telephone Co.
              (ADR) (Sweden)...................         20,000,000
    175,000   General Instrument Corp.*........          6,715,625
    316,500   Glenayre Technologies, Inc.*.....         16,141,500
    210,000   Motorola, Inc....................         14,096,250
                                                 -----------------
                                                        73,228,375
                                                 -----------------
              CAPITAL GOODS (4.8%)
    350,000   AlliedSignal, Inc................         15,575,000
    400,000   Boeing Company...................         25,050,000
    250,000   Lockheed Corp....................         15,781,250
    350,000   Loral Corp.......................         18,112,500
    100,000   Sunstrand Corp...................          5,975,000
    100,000   United Technologies Corp.........          7,812,500
                                                 -----------------
                                                        88,306,250
                                                 -----------------
              COMPUTER EQUIPMENT (1.1%)
    500,000   Seagate Technology, Inc.*........         19,625,000
                                                 -----------------
              COMPUTER SOFTWARE (7.4%)
    135,000   Baan Company NV (Netherlands)*...          4,151,250
    230,000   Computer Associates
              International, Inc...............         15,582,500
    900,000   Informix Corp.*..................         22,725,000
    100,000   Intuit, Inc.*....................          7,600,000
    205,000   Microsoft Corp.*.................         18,526,875
    300,000   Oracle Systems Corp.*............         11,550,000

<CAPTION>
 NUMBER OF
   SHARES                                              VALUE
- ------------------------------------------------------------------
<C>           <S>                                <C>
    300,000   Parametric Technology Corp.*.....  $      14,850,000
    300,000   Peoplesoft, Inc.*................         16,125,000
      7,500   Spyglass, Inc.*..................            213,750
    750,000   Symantec Corp.*..................         21,562,500
    104,000   Tivoli Systems Inc.*.............          3,302,000
                                                 -----------------
                                                       136,188,875
                                                 -----------------
              CONSUMER BUSINESS SERVICES (4.3%)
      6,000   CBT Group PLC (ADR) (Ireland)*...            253,500
    324,600   Computer Sciences Corp.*.........         18,461,625
    175,000   First Data Corp..................          9,953,125
    240,000   First Financial Management
              Corp.............................         20,520,000
    385,500   General Motors (Class E).........         16,769,250
    266,700   General Motors Corp..............         12,501,562
     19,000   U.S. Order, Inc.*................            270,750
                                                 -----------------
                                                        78,729,812
                                                 -----------------
              DRUGS (1.8%)
    250,000   American Home Products Corp......         19,343,750
    160,000   Pfizer, Inc......................         14,780,000
                                                 -----------------
                                                        34,123,750
                                                 -----------------
              ELECTRONICS - SEMICONDUCTORS (8.1%)
    230,000   Advanced Micro Devices, Inc......          8,366,250
    150,000   Cypress Semiconductor Corp.*.....          6,075,000
    100,000   Integrated Device Technology,
              Inc.*............................          4,612,500
    480,000   Intel Corp.......................         30,360,000
    400,000   LSI Logic Corp.*.................         15,650,000
    600,000   Micron Technology, Inc...........         32,925,000
    600,000   National Semiconductor Corp.*....         16,650,000
    250,000   Texas Instruments Inc............         33,468,750
                                                 -----------------
                                                       148,107,500
                                                 -----------------
              ELECTRONICS - SPECIALTY (2.5%)
    320,000   Altera Corp.*....................         13,840,000
    319,000   Maxim Integrated Products
              Inc.*............................         16,189,250
    160,000   Xilinx, Inc.*....................         15,000,000
                                                 -----------------
                                                        45,029,250
                                                 -----------------
              ENTERTAINMENT (4.1%)
    390,000   C U C International, Inc.*.......         16,380,000
     50,000   Hollywood Entertainment Corp.*...          2,250,000
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS JUNE 30, 1995 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
 NUMBER OF
   SHARES                                              VALUE
- ------------------------------------------------------------------
<C>           <S>                                <C>
    175,000   Polygram NV (ADR)
              (Netherlands)....................  $      10,346,875
    669,000   Sierra On-Line, Inc.*............         16,725,000
    330,000   Viacom, Inc.*....................         15,303,750
    250,000   Walt Disney Co...................         13,906,250
                                                 -----------------
                                                        74,911,875
                                                 -----------------
              ENTERTAINMENT/GAMING (0.1%)
     56,000   Primadonna Resorts, Inc.*........          1,344,000
                                                 -----------------
              FINANCIAL - MISCELLANEOUS (10.4%)
    400,000   Ahmanson (H.F.) & Co.............          8,800,000
    250,000   American Express Co..............          8,781,250
    250,000   American International Group,
              Inc..............................         28,500,000
    100,000   Capital One Financial Corp.......          1,950,000
    450,000   Countrywide Credit Industries,
              Inc..............................          9,450,000
    250,000   Federal Home Loan Mortgage
              Corp.............................         17,187,500
    200,000   Federal National Mortgage
              Association......................         18,875,000
    258,100   Golden West Financial Corp.......         12,162,963
    500,000   Great Western Financial Corp.....         10,312,500
    500,000   Green Tree Financial Corp........         22,187,500
    250,000   MBNA Corp........................          8,437,500
    500,000   Merrill Lynch & Co., Inc.........         26,250,000
    300,000   MGIC Investment Corp.............         14,062,500
    146,400   Schwab (Charles) Corp............          6,350,100
                                                 -----------------
                                                       193,306,813
                                                 -----------------
              FOODS & BEVERAGES (2.8%)
    230,000   C P C International Inc..........         14,202,500
    225,000   Coca Cola Co.....................         14,343,750
    240,000   International Flavors &
              Fragrances Inc...................         11,940,000
    250,000   PepsiCo Inc......................         11,406,250
                                                 -----------------
                                                        51,892,500
                                                 -----------------
              HEALTHCARE PRODUCTS & SERVICES (2.8%)
    192,000   Amerisource Health Corp.*........          4,368,000
    175,000   Coram Healthcare Corp.*..........          2,471,875
    350,000   HBO & Co.........................         19,075,000
    218,000   Healthsouth Corp.*...............          3,787,750
    136,000   Living Centers of America,
              Inc.*............................          3,689,000
    200,000   Medaphis Corp.*..................          4,250,000
    350,000   Shared Medical Systems Corp......         14,043,750
                                                 -----------------
                                                        51,685,375
                                                 -----------------

<CAPTION>
 NUMBER OF
   SHARES                                              VALUE
- ------------------------------------------------------------------
<C>           <S>                                <C>
              HOTELS/MOTELS (3.1%)
    100,000   ITT Corp.........................  $      11,750,000
    586,312   La Quinta Inns, Inc..............         15,830,424
    550,000   Marriot International Inc........         19,731,250
    245,000   Promus Companies, Inc.*..........          9,555,000
                                                 -----------------
                                                        56,866,674
                                                 -----------------
              HOUSEHOLD PRODUCTS (3.1%)
    125,000   Black & Decker Corp..............          3,859,375
    300,000   Gillette Co......................         13,387,500
    186,000   Procter & Gamble Co..............         13,368,750
    350,000   Scott Paper Co...................         17,325,000
     75,000   Unilever NV (ADR)
              (Netherlands)....................          9,759,375
                                                 -----------------
                                                        57,700,000
                                                 -----------------
              INSURANCE (4.0%)
    190,000   Aetna Life & Casualty Co.........         11,946,250
    600,000   American General Corp............         20,250,000
    129,000   CIGNA Corp.......................         10,013,625
     50,000   Reliastar Financial Corp.........          1,912,500
    225,000   Sunamerica Inc...................         11,475,000
    400,000   Travelers, Inc...................         17,500,000
                                                 -----------------
                                                        73,097,375
                                                 -----------------
              MEDIA GROUP (4.2%)
    210,000   America Online, Inc.*............          9,135,000
    150,000   Capital Cities/ABC, Inc..........         16,200,000
    230,435   CBS Inc..........................         15,439,145
    100,000   Clear Channel Communications,
              Inc.*............................          6,437,500
    550,000   Infinity Broadcasting Corp.*.....         18,356,250
    500,000   News Corp. Ltd. (ADR)
              (Australia)......................         11,312,500
                                                 -----------------
                                                        76,880,395
                                                 -----------------
              MEDICAL PRODUCTS & SUPPLIES (3.5%)
    410,000   Abbott Laboratories..............         16,605,000
    200,000   IDEXX Laboratories, Inc.*........          5,200,000
    100,000   InStent, Inc.*...................          1,425,000
    250,000   Johnson & Johnson................         16,906,250
    250,000   Medtronic Inc....................         19,281,250
    100,000   St. Jude Medical, Inc.*..........          5,000,000
                                                 -----------------
                                                        64,417,500
                                                 -----------------
              POLLUTION CONTROL (1.1%)
    500,000   Browning-Ferris Industries,
              Inc..............................         18,062,500
     90,000   US Filter Corp.*.................          1,710,000
                                                 -----------------
                                                        19,772,500
                                                 -----------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
PORTFOLIO OF INVESTMENTS JUNE 30, 1995 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
 NUMBER OF
   SHARES                                              VALUE
- ------------------------------------------------------------------
<C>           <S>                                <C>
              RESTAURANTS (0.8%)
    398,000   McDonald's Corp..................  $      15,571,750
                                                 -----------------
              RETAIL (0.7%)
    500,000   Federated Department Stores,
              Inc.*............................         12,875,000
                                                 -----------------
              SEMICONDUCTOR CAPITAL EQUIPMENT (3.9%)
    500,000   Applied Materials, Inc.*.........         43,125,536
     10,000   ArcSys, Inc.*....................            340,000
    250,000   KLA Instruments Corp.*...........         19,312,500
    265,000   Ultratech Stepper, Inc.*.........          9,208,750
                                                 -----------------
                                                        71,986,786
                                                 -----------------
              SEMICONDUCTORS (0.1%)
     40,000   Tower Semiconductor Ltd.
              (Israel)*........................          1,160,000
                                                 -----------------
              TELECOMMUNICATIONS (5.7%)
    135,000   ADC Telecommunications, Inc.*....          4,792,500
    250,000   Ascend Communications, Inc.*.....         12,625,000
    500,000   Cisco Systems, Inc.*.............         25,250,000
    650,000   Tellabs, Inc.*...................         31,200,000
    300,000   ThreeCom Corp.*..................         20,062,500
     95,000   U.S. Robotics Corp.*.............         10,307,500
                                                 -----------------
                                                       104,237,500
                                                 -----------------
              TOBACCO (1.0%)
    250,000   Philip Morris Companies, Inc.....         18,593,750
                                                 -----------------
              TOTAL COMMON STOCKS
              (IDENTIFIED COST
              $1,471,523,057)..................      1,731,602,355
                                                 -----------------

              PREFERRED STOCKS (2.5%)
              COMMUNICATIONS - EQUIPMENT & SOFTWARE (1.4%)
    440,000   Nokia Corp. (Conv.) (ADR)
              (Finland)........................         26,235,000
                                                 -----------------
              COMPUTER SOFTWARE (1.1%)
     16,000   Sap AG (Germany).................         20,180,963
                                                 -----------------

              TOTAL PREFERRED STOCKS
              (IDENTIFIED COST $26,338,674)....         46,415,963
                                                 -----------------
</TABLE>

<TABLE>
<CAPTION>
 PRINCIPAL
 AMOUNT IN
 THOUSANDS                                             VALUE
- ------------------------------------------------------------------
<C>           <S>                                <C>

              SHORT-TERM INVESTMENTS (3.5%)
              U.S. GOVERNMENT AGENCY (a) (2.1%)
 $   38,000   Federal Home Loan Banks 6.10% due
              07/03/95 (Amortized Cost
              $37,987,122).....................  $      37,987,122
                                                 -----------------

              REPURCHASE AGREEMENT (1.4%)
     26,034   The Bank of New York 6.00% due
              07/03/95 (dated 6/30/95; proceeds
              $26,047,498 collateralized by
              $25,815,946 U.S. Treasury Note
              6.625% due 03/31/97 valued at
              $26,555,171) (Identified Cost
              $26,034,481).....................         26,034,481
                                                 -----------------

              TOTAL SHORT-TERM INVESTMENTS
              (IDENTIFIED COST $64,021,603)....         64,021,603
                                                 -----------------

TOTAL INVESTMENTS
(IDENTIFIED COST
$1,561,883,334) (B)........      100.2%  1,842,039,921

LIABILITIES IN EXCESS OF
CASH AND OTHER ASSETS......       (0.2)     (4,594,012)
                                 -----   -------------

NET ASSETS.................      100.0%  $1,837,445,909
                                 -----   -------------
                                 -----   -------------

<FN>
- ---------------------
</TABLE>

<TABLE>
<C>  <S>
ADR  American Depositary Receipt.
 *   Non-income producing security.
(a)  Security was purchased on a discount basis. The interest rate shown has
     been adjusted to reflect a money market equivalent yield.
(b)  The aggregate cost for federal income tax purposes is $1,576,551,006; the
     aggregate gross unrealized appreciation is $281,009,442 and the aggregate
     gross unrealized depreciation is $15,520,527, resulting in net unrealized
     appreciation of $265,488,915.
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)

<TABLE>
<S>                                                           <C>
ASSETS:
Investments in securities, at value
  (identified cost $1,561,883,334)..........................  $1,842,039,921
Cash........................................................         15,993
Receivable for:
    Investments sold........................................     34,997,596
    Shares of beneficial interest sold......................      3,580,144
    Dividends...............................................      1,168,620
    Interest................................................         13,017
Prepaid expenses and other assets...........................         94,926
                                                              -------------

     TOTAL ASSETS...........................................  1,881,910,217
                                                              -------------

LIABILITIES:
Payable for:
    Investments purchased...................................     40,453,192
    Shares of beneficial interest repurchased...............      1,482,000
    Plan of distribution fee................................      1,448,510
    Investment management fee...............................        756,548
    Dividends to shareholders...............................          2,284
Accrued expenses and other payables.........................        321,774
                                                              -------------

     TOTAL LIABILITIES......................................     44,464,308
                                                              -------------

NET ASSETS:
Paid-in-capital.............................................  1,548,004,742
Net unrealized appreciation.................................    280,156,588
Accumulated undistributed net investment income.............      1,619,743
Accumulated undistributed net realized gain.................      7,664,836
                                                              -------------

     NET ASSETS.............................................  $1,837,445,909
                                                              -------------
                                                              -------------

NET ASSET VALUE PER SHARE,
  72,119,993 SHARES OUTSTANDING (UNLIMITED SHARES AUTHORIZED
  OF $.01 PAR VALUE)........................................
                                                                     $25.48
                                                              -------------
                                                              -------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

<TABLE>
<S>                                                           <C>
NET INVESTMENT INCOME:

INCOME
Dividends (net of $115,053 foreign withholding tax).........  $  8,974,683
Interest....................................................     6,225,784
                                                              ------------

     TOTAL INCOME...........................................    15,200,467
                                                              ------------

EXPENSES
Plan of distribution fee....................................     7,966,163
Investment management fee...................................     4,175,419
Transfer agent fees and expenses............................     1,103,052
Custodian fees..............................................       143,030
Shareholder reports and notices.............................        78,501
Registration fees...........................................        44,012
Professional fees...........................................        21,770
Trustees' fees and expenses.................................        15,996
Other.......................................................        21,382
                                                              ------------

     TOTAL EXPENSES.........................................    13,569,325
                                                              ------------

     NET INVESTMENT INCOME..................................     1,631,142
                                                              ------------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain...........................................    74,601,658
Net change in unrealized appreciation.......................   228,022,977
                                                              ------------

     NET GAIN...............................................   302,624,635
                                                              ------------

NET INCREASE................................................  $304,255,777
                                                              ------------
                                                              ------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
                                                              FOR THE SIX MONTHS
                                                                    ENDED            FOR THE YEAR
                                                                JUNE 30, 1995            ENDED
                                                                 (UNAUDITED)       DECEMBER 31, 1994
- ----------------------------------------------------------------------------------------------------
<S>                                                           <C>                  <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income.......................................    $    1,631,142      $        182,792
Net realized gain (loss)....................................        74,601,658           (58,679,520)
Net change in unrealized appreciation.......................       228,022,977           (43,049,173)
                                                              ------------------   -----------------

     NET INCREASE (DECREASE)................................       304,255,777          (101,545,901)
                                                              ------------------   -----------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.......................................          (193,859)           --
Net realized gain...........................................         --                  (21,279,873)
                                                              ------------------   -----------------

     TOTAL..................................................          (193,859)          (21,279,873)
                                                              ------------------   -----------------
Net increase from transactions in shares of beneficial
  interest..................................................        43,429,927           394,801,479
                                                              ------------------   -----------------

     TOTAL INCREASE.........................................       347,491,845           271,975,705

NET ASSETS:
Beginning of period.........................................     1,489,954,064         1,217,978,359
                                                              ------------------   -----------------

     END OF PERIOD
    (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
    $1,619,743 AND $182,460, RESPECTIVELY)..................    $1,837,445,909      $  1,489,954,064
                                                              ------------------   -----------------
                                                              ------------------   -----------------
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS JUNE 30,1995 (UNAUDITED)

1. ORGANIZATION AND ACCOUNTING POLICIES

Dean Witter American Value Fund (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a diversified, open-end
management investment company. The Fund was incorporated in Maryland in 1979,
reorganized as a Massachusetts business trust on April 30, 1987 and commenced
operations on March 27, 1980.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York or American Stock Exchange is valued at its latest sale price on that
exchange prior to the time when assets are valued; if there were no sales that
day, the security is valued at the latest bid price; (2) all other portfolio
securities for which over-the-counter market quotations are readily available
are valued at the latest available bid price prior to the time of valuation; (3)
when market quotations are not readily available, including circumstances under
which it is determined by the Investment Manager that sale or bid prices are not
reflective of a security's market value, portfolio securities are valued at
their fair value as determined in good faith under procedures established by and
under the general supervision of the Trustees (valuation of debt securities for
which market quotations are not readily available may be based upon current
market prices of securities which are comparable in coupon, rating and maturity
or an appropriate matrix utilizing similar factors); and (4) short-term debt
securities having a maturity date of more than sixty days at time of purchase
are valued on a mark-to-market basis until sixty days prior to maturity and
thereafter at amortized cost based on their value on the 61st day. Short-term
debt securities having a maturity date of sixty days or less at the time of
purchase are valued at amortized cost.

B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily and includes amortization of discounts of certain short-term securities.

C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.

D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS JUNE 30,1995 (UNAUDITED) CONTINUED

regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.

2. INVESTMENT MANAGEMENT AGREEMENT

Pursuant to an Investment Management Agreement with Dean Witter InterCapital
Inc. (the "Investment Manager"), the Fund pays its Investment Manager a
management fee, accrued daily and payable monthly, by applying the following
annual rates to the net assets of the Fund determined at the close of each
business day: 0.625% to the portion of daily net assets not exceeding $250
million and 0.50% to the portion of daily net assets exceeding $250 million.

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.

3. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager. The Fund has adopted a
Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act pursuant
to which the Fund pays the Distributor compensation, accrued daily and payable
monthly, at an annual rate of 1.0% of the lesser of: (a) the average daily
aggregate gross sales of the Fund's shares since the implementation of the Plan
on April 30, 1984 (not including reinvestment of dividend or capital gain
distributions) less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's implementation of the Plan upon which a
contingent deferred sales charge has been imposed or upon which such charge has
been waived; or (b) the Fund's average daily net assets attributable to shares
issued, net of related shares redeemed since implementation of the Plan. Amounts
paid under the Plan are paid to the Distributor to
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS JUNE 30,1995 (UNAUDITED) CONTINUED

compensate it for the services provided and the expenses borne by it and others
in the distribution of the Fund's shares, including the payment of commissions
for sales of the Fund's shares and incentive compensation to, and expenses of,
the account executives of Dean Witter Reynolds Inc. ("DWR"), an affiliate of the
Investment Manager and Distributor, and other employees or selected
broker-dealers who engage in or support distribution of the Fund's shares or who
service shareholder accounts, including overhead and telephone expenses,
printing and distribution of prospectuses and reports used in connection with
the offering of the Fund's shares to other than current shareholders and
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may be compensated under the Plan for
its opportunity costs in advancing such amounts which compensation would be in
the form of a carrying charge on any unreimbursed expenses incurred by the
Distributor.

Provided that the Plan continues in effect, any cumulative expenses incurred but
not yet recovered, may be recovered through future distribution fees from the
Fund and contingent deferred sales charges from the Fund's shareholders.

The Distributor has informed the Fund that for the six months ended June 30,
1995, it received approximately $2,019,000 in contingent deferred sales charges
from certain redemptions of the Fund's shares. The Fund's shareholders pay such
charges which are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended June 30, 1995 aggregated
$1,901,246,755 and $1,693,161,828, respectively. Included in the aforementioned
are sales of U.S. Government securities of $165,805,463.

For the six months ended June 30, 1995, the Fund incurred $473,835 in brokerage
commissions with DWR for portfolio transactions executed on behalf of the Fund.
At June 30, 1995, the Fund's receivable for investments sold and payable for
investments purchased included unsettled trades with DWR of $85,897 and
$11,119,627, respectively.

Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At June 30, 1995, the Fund had
transfer agent fees and expenses payable of approximately $196,000.

The Fund adopted an unfunded noncontributory defined benefit pension plan
covering all independent Trustees of the Fund who will have served as
independent Trustees for at least five years at the time of retirement. Benefits
under this plan are based on years of service and compensation during
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS JUNE 30,1995 (UNAUDITED) CONTINUED

the last five years of service. Aggregate pension costs for the six months ended
June 30, 1995 included in Trustees' fees and expenses in the Statement of
Operations amounted to $5,951. At June 30, 1995, the Fund had an accrued pension
liability of $16,318 which is included in accrued expenses in the Statement of
Assets and Liabilities.

5. SHARES OF BENEFICIAL INTEREST

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
                                                                     FOR THE SIX MONTHS ENDED         FOR THE YEAR ENDED
                                                                          JUNE 30, 1995               DECEMBER 31, 1994
                                                                   ----------------------------   --------------------------
                                                                     SHARES          AMOUNT         SHARES         AMOUNT
                                                                   -----------   --------------   -----------   ------------
<S>                                                                <C>           <C>              <C>           <C>
Sold.............................................................   10,719,370   $  245,270,221    31,171,952   $693,824,171
Reinvestment of dividends and distributions......................        7,023          181,116       988,724     20,179,867
                                                                   -----------   --------------   -----------   ------------
                                                                    10,726,393      245,451,337    32,160,676    714,004,038
Repurchased......................................................   (8,859,458)    (202,021,410)  (14,645,353)  (319,202,559)
                                                                   -----------   --------------   -----------   ------------
Net increase.....................................................    1,866,935   $   43,429,927    17,515,323   $394,801,479
                                                                   -----------   --------------   -----------   ------------
                                                                   -----------   --------------   -----------   ------------
</TABLE>

6. FEDERAL INCOME TAX STATUS

At December 31, 1994, the Fund had a net capital loss carryover of approximately
$34,379,000 which will be available through December 31, 2002 to offset future
capital gains to the extend provided by regulations. Capital losses incurred
after October 31 ("post-October losses") within the taxable year are deemed to
arise on the first business day of the Fund's next taxable year. The Fund
incurred and will elect to defer net capital losses of approximately $17,891,000
during fiscal 1994. As of December 31, 1994, the Fund had temporary book/tax
differences primarily attributable to post-October loss deferrals and capital
loss deferrals on wash sales.
<PAGE>
DEAN WITTER AMERICAN VALUE FUND
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:

<TABLE>
<CAPTION>
                                     FOR THE
                                    SIX MONTHS
                                    ENDED JUNE             FOR THE YEAR ENDED DECEMBER 31
                                     30, 1995   -----------------------------------------------------
                                    (UNAUDITED)   1994       1993       1992       1991       1990
- -----------------------------------------------------------------------------------------------------

<S>                                 <C>         <C>        <C>        <C>        <C>        <C>
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of
 period............................ $   21.21   $  23.10   $  20.93   $  20.66   $  14.39   $   14.81
                                    ----------  ---------  ---------  ---------  ---------  ---------

Net investment income (loss).......      0.02      --         (0.09)      0.03       0.05        0.24
Net realized and unrealized gain
 (loss)............................      4.25      (1.57)      3.94       0.71       7.90       (0.38)
                                    ----------  ---------  ---------  ---------  ---------  ---------

Total from investment operations...      4.27      (1.57)      3.85       0.74       7.95       (0.14)
                                    ----------  ---------  ---------  ---------  ---------  ---------

Less dividends and distributions
 from:
   Net investment income...........    --          --         (0.01)     (0.03)     (0.03)      (0.28)
   Net realized gain...............    --          (0.32)     (1.67)     (0.44)     (1.65)     --
                                    ----------  ---------  ---------  ---------  ---------  ---------

Total dividends and
 distributions.....................      0.00      (0.32)     (1.68)     (0.47)     (1.68)      (0.28)
                                    ----------  ---------  ---------  ---------  ---------  ---------

Net asset value, end of period..... $   25.48   $  21.21   $  23.10   $  20.93   $  20.66   $   14.39
                                    ----------  ---------  ---------  ---------  ---------  ---------
                                    ----------  ---------  ---------  ---------  ---------  ---------

TOTAL INVESTMENT RETURN+...........     20.14%(1)    (6.75)%    18.70%     3.84%    56.26%      (0.90)%

RATIOS TO AVERAGE NET ASSETS:
Expenses...........................      1.69%(2)     1.71%     1.61%     1.72%      1.58%       1.70%

Net investment income..............      0.20%(2)     0.01%    (0.59)%     0.18%     0.29%       1.67%

SUPPLEMENTAL DATA:
Net assets, end of period, in
 thousands......................... $1,837,446  $1,489,954 $1,217,978  $458,561   $226,982    $89,165

Portfolio turnover rate............       110%(1)      295%      276%      305%       264%        234%
<FN>

- ---------------------
 +   Does not reflect the deduction of sales charge.
(1)  Not annualized.
(2)  Annualized.
</TABLE>

                       SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>

TRUSTEES
Jack F. Bennett
Michael Bozic
Charles A. Fiumefreddo                                       DEAN WITTER
Edwin J. Garn                                                 AMERICAN
John R. Haire                                                VALUE FUND
Dr. Manuel H. Johnson
Paul Kolton
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and General Counsel
Anita Kolleeny
Vice President
Thomas F. Caloia
Treasurer

TRANSFER AGENT
Dean Witter Trust Company
Harborside Finanical Center -- Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS                                      [GRAPHIC]
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048



The financial statements included herein have been
taken from the records of the Fund without examination
by the independent accountants and accordingly they do
not express an opinion thereon.

This report is submitted for the general information
of shareholders of the Fund. For more detailed
information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please
see the prospectus of the Fund.

This report is not authorized for distribution to            SEMIANNUAL REPORT
prospective investors in the Fund unless preceded or         JUNE 30, 1995
accompanied by an effective prospectus.




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