SMITH BARNEY INVESTMENT FUNDS INC.
on behalf of
SMITH BARNEY SPECIAL EQUITIES FUND
(the "Fund")
Supplement dated February 2, 1998
to
Prospectus dated April 30, 1997
The Fund seeks to achieve its investment objective of long-term
capital appreciation by investing in equity securities of growth
companies, generally not within the Standard and Poor's 500 Composite
Stock Price Index. Consistent with this objective and policy, the Board
of Directors has approved a proposal by the Fund's Investment Adviser to
expand the companies evaluated for investment by the Fund to include
small capitalization companies representative of the broad benchmarks
against which the Fund's performance is frequently judged. The
Investment Adviser believes that having the flexibility to invest in
companies representative of the broader market, in addition to those
selected for their superior appreciation potential, will aid the Fund in
achieving more consistent relative performance and seeking to reduce
volatility.
In addition to its fundamental analysis of companies to identify
those with superior appreciation potential, the Fund's Investment
Adviser will utilize an actively managed quantitative investment
strategy to isolate securities that are believed to have a high
probability of outperforming their respective industry/sector peer
groups. The portfolio manager is supported by investment professionals,
including a team that is quantitatively oriented.
FD 01392 2/98
u:legal\funds\sliv\misc\speqstr1.doc
