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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE NICK DALMASO
TITLE ASSISTANT SECRETARY
[PRICE WATERHOUSE LLP LETTERHEAD]
January 29, 1998
To the Shareholders and Board of Trustees of
The Van Kampen American Capital Equity Income Fund
In planning and performing our audit of the financial statements of Van
Kampen American Capital Equity Income Fund (the "Fund") for the year ended
December 31, 1997, we considered its internal control, including control
activities for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs
of control activities. Generally, control activities that are relevant to an
audit pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those control activities include the
safeguarding of assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of any
specific internal control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts that would be
material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control, including control activities for safeguarding securities,
that we consider to be material weaknesses as defined above as of December
31, 1997.
This report is intended solely for the information and use of management and
the Board of Trustees of the Fund and the Securities and Exchange Commission.
PRICE WATERHOUSE LLP
NSAR ITEM 77C
Van Kampen American Capital Equity Income Fund
(a) A Special Meeting of Shareholders was held on May 28, 1997.
(b) The election of Trustees of Van Kampen American Capital Equity Income
Fund
(the "Fund") included:
J. Miles Branagan, Richard M. DeMartini, Linda Hutton Heagy,
R. Craig Kennedy, Jack E. Nelson, Jerome L. Robinson, Phillip B.
Rooney, Fernando Sisto and Wayne W. Whalen
(c) The following were voted on at the meeting:
1) Approval of New Investment Advisory Agreement in the event of
a change of control of the Adviser.
For 108,093,854 Against 1,724,366
4) For each AC Fund, to Ratify the Selection of Price Waterhouse
LLP Independent Public Accountants for its Current Fiscal Year.
For 109,254,330 Against 894,935
NSAR ITEM 77O
VKAC Equity Income Fund
10f-3 Transactions
<TABLE>
<CAPTION>
UNDERWRITING # UNDERWRITING PURCHASED FROM
<S> <C> <C>
1 Microsoft Corporation Goldman, Sachs
2 Microsoft Corporation Furman Selz
3 Microsoft Corporation Salomon Brothers
4 Microsoft Corporation Dillon Reed
5 Microsoft Corporation DLJ
6 BA Merchant Services Goldman, Sachs
7 Washington Mutual Inc. Merrill Lynch
8 Vail Resorts, Inc. Bear Stearns
9 Vail Resorts, Inc. Furman Selz
10 Nationwide Financial Services First Boston
11 Provident Companies, Inc. Salomon Brothers
12 Provident Companies, Inc. Fox-Pitt, Kelton
13 Provident Companies, Inc. Sanford C. Bernstein
14 Provident Companies, Inc. Wasserstein Perella
15 Hartford Life, Inc. Goldman Sachs
16 Electricidade de Portugal Goldman Sachs
17 Raytheon First Boston
18 Raytheon Merrill Lynch
19 MedPartners, Inc. Smith Barney
20 MedPartners, Inc. UBS Securities
21 First Union Corporation Goldman Sachs
22 First Union Corporation Santander Investments
Sec.
23 Nextlink Communications, Inc. Salomon Brothers
24 Rhone-Poulenc UBS Securities
25 Benckiser Goldman Sachs
26 Benckiser Merrill Lynch
27 Newell Financial Trust Goldman Sachs
<CAPTION>
AMOUNT OF SHARES % OF UNDERWRITING DATE OF PURCHASE
PURCHASED
<C> <C> <C>
66,000 0.602% 12/17/96
3,000 0.027% 12/17/96
4,000 0.037% 12/17/96
10,000 0.091% 12/17/96
2,000 0.018% 12/17/96
3,200 0.023% 12/18/97
32,700 0.224% 01/22/97
54,000 0.446% 02/03/97
1,000 0.008% 02/03/97
55,500 0.270% 03/05/97
36,100 0.610% 05/05/97
1,100 0.019% 05/05/97
10,000 0.169% 05/05/97
2,000 0.034% 05/05/97
44,100 0.192% 05/21/97
35, 100 0.043% 06/16/97
5,000,000 0.167% 08/07/97
5,000,000 0.167% 08/07/97
272,000 1.437% 09/15/97
5,000 0.026% 09/15/97
10,000 0.019% 09/18/97
33,600 0.064% 09/18/97
25,000 0.189% 09/26/97
234,000 0.936% 10/23/97
54,800 0.824% 11/24/97
61,200 0.920% 11/24/97
185,000 2.151% 12/08/97
</TABLE>
Other Firms participating in Underwriting:
Underwriting for #1, 2, 3, 4 & 5
Deutsche Morgan Grenfell
Goldman, Sachs & Co.
Salomon Brothers Inc.
Smith Barney Inc.
Alex, Brown & Sons Incorporated
Morgan Stanley & Co. Incorporated
Allen & Company Incorporated
BT Securities Corporation
Bear, Stearns & Co., Inc.
Cowen & Company
Dain Bosworth Incorporated
Dean Witter Reynolds Inc.
Dillon, Read & Co., Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Furman Selz LLC
Edward D. Jones & Co., L.P.
Montgomery Securities
PaineWebber Incorporated
Piper Jaffray Inc.
Prudential Securities Incorporated
Ragen MacKenzie Incorporated
Robertson, Stephens & Company LLC
SoundView Financial Group, Inc.
Underwriting for #6
Goldman, Sachs & Co.
Montgomery Securities
Salomon Brothers Inc.
Robert W. Baird & Co., Incorporated
Sanford C. Bernstein & Co., Inc.
Alex, Brown & Sons Incorporated
Chase Securities Inc.
Cowen & Company
Dain Bosworth Incorporated
Dean Witter Reynolds Inc.
Underwriting for #6 (con't)
A.G. Edwards & Sons, Inc.
Furman Selz LLC
Gerard Klauer Mattison & Co., LLC
Janney Montgomery Scott Inc.
Edward D. Jones & Co., L.P.
Legg Mason Wood Walker Incorporated
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Incorporated
Robertson, Stephens & Company LLC
Wasserstein Perella Securities, Inc.
Wheat First Butcher Singer
Underwriting for #7
Merrill Lynch & Co.
Friedman, Billings, Ramsey & Co., Inc.
Bear, Stearns & Co., Inc.
Alex, Brown & Sons Incorporated
Credit Suisse First Boston Corporation
Dean Witter Reynolds Inc.
A.G. Edwards & Sons, Inc.
Keefe, Bruyette & Woods, Inc.
Lehman Brothers Inc.
Montgomery Securities
J.P. Morgan Securities Inc.
Morgan Stanley & Co., Incorporated
Paine Webber Incorporated
Ragen MacKenzie Incorporated
Smith Barney Inc.
UBS Securities LLC
Wasserstein Perella Securities, Inc.
Sanford C. Bernstein & Co., Inc.
Dain Bosworth Incorporated
D.A. Davidson & Co.
Fox-Pitt, Kelton Inc.
Hoefer & Arnett Incorporated
Jenson Securities Co.
Legg Mason Wood Walker, Incorporated
Ormes Capital Markets, Inc.
Pacific Crest Securities
Underwriting for #7 (con't)
Piper Jaffray Inc.
Rodman & Renshaw, Inc.
Ryan, Beck & Co.
Sandler O'Neill & Partners L.P.
The Seidler Companies Incorporated
Southeast Research Partners, Inc.
Sutro & Co. Incorporated
Utendahl Capital Partners, L.P.
Underwriting for #8 & 9
Bear, Stearns & Co., Inc.
Furman Selz
Goldman, Sachs & Co.
Salomon Brothers Inc.
Schroder Wertheim & Co.
Smith Barney Inc.
Alex, Brown & Sons Incorporated
BT Securities Corporated
Cowen & Company
Dean Witter Reynolds Inc.
Dillon, Read & Co., Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Hambrecht & Quist LLC
Lazard Freres & Co. LLC
Lehman Brothers, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Montgomery Securities
Morgan Stanley & Co. Incorporated
Oppenheimer & Co., Inc.
Wasserstein Perella Securities, Inc.
Allen & Company Incorporated
Blaylock & Partners, L.P.
Brean Murray & Co., Inc.
Dain Bosworth Incorporated
Doft & Co., Inc.
Gerard Klauer Mattison & Co., LLC
Hanifen, Imhoff, Inc.
Janco Partners, Inc.
Underwriting for #8 & 9 (con't)
Jefferies & Company
Josephthal Lyon & Ross Incorporated
Ladenburg, Thalmann & Co. Inc.
Legg Mason Wood Walker, Incorporated
Ormes Capital Markets, Inc.
Piper Jaffray Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Sands Brothers & Co., Ltd.
Sutro & Co. Incorporated
Tucker Anthony Incorporated
Underwriting for #10
Credit Suisse First Boston
Morgan Stanley & Co., Incorporated
Merrill Lynch, Peirce, Fenner & Smith Incorporated
Bear, Stearns & Co., Inc.
Alex, Brown & Sons Incorporated
Dean Witter Reynolds, Inc.
Deutsche Morgan Grenfell Inc.
Dillon, Read & Co., Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Goldman, Sachs & Co.
Invemed Associates, Inc.
Lehman Brothers Inc.
J.P. Morgan Securities Inc.
Oppenheimer & Co., Inc.
Paine Webber Incorporated
Salomon Brothers Inc.
Schroder Wertheim & Co., Incorporated
Smith Barney Inc.
Wasserstein Perella Securities, Inc.
Conning & Company
Advest, Inc.
M.R. Beal & Company
Sanford C. Bernstein & Co., Inc.
Blaylock & Partners, L.P.
Dain Bosworth Incorporated
Underwriting for #10 (con't)
Doley Securities, Inc.
Dowling & Partners Securities, LLC
Everen Securities, Inc.
Fox-Pitt, Kelton Inc.
Furman Selz LLC
Janney Montgomery Scott Inc.
Ladenburg, Thalmann & Co. Inc.
WR Lazard, Laidlaw Inc.
McDonald & Company Securities, Inc.
Neuberger & Berman LLC
The Ohio Company
Ormes Capital Markets, Inc.
Paulsen Securities
Ragen MacKenzie Incorporated
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Sands, Brothers & Co., Ltd.
Stephens Inc.
Trilon International Inc.
Utendahl Capital Partners, L.P.
Underwriting for #11, 12, 13 & 14
Morgan Stanley & Co. Incorporated
Salomon Brothers Inc.
Advest, Inc.
Sanford C. Bernstein & Co., Inc.
J.C. Bradford & Co.
Donaldson, Lufkin, Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Fox-Pitt, Kelton Inc.
Moors & Cabot, Inc.
The Robinson-Humphrey Company, Inc.
Wasserstein Perella Securities, Inc.
Underwriting for #15
Goldman, Sachs & Co.
Dean Witter Reynolds, Inc.
Merrill Lynch & Co.
Morgan Stanley & Co., Incorporated
Smith Barney Inc.
J.C. Bradford & Co.
Credit Suisse First Boston Corporation
A.G. Edwards & Sons, Inc.
Interstate/Johnson Lane Corporation
Edward D. Jones & Co., L.P.
Legg Mason Wood Walker, Incorporated
Piper Jaffray Inc.
Principal Financial Securities, Inc.
Prudential Securities Incorporated
Sutro & Co., Incorporated
Wheat, First Securities, Inc.
Lehman Brothers Inc.
Paine Webber Incorporated
Conning & Company
Advest, Inc.
Sanford C. Bernstein & Co., Inc.
Dain Bosworth Incorporated
Dowling & Partners Securities, LLC
Fox-Pitt, Kelton Inc.
Janney Montgomery Scott Inc.
Neuberger & Berman LLC
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Stephens Inc.
Underwriting for #16
Goldman Sachs & Co.
ABN AMRO Chicago Corporation
Lehman Brothers, Inc.
Merrill Lynch & Co.
A.G. Edwards & Sons, Inc.
Morgan Stanley & Co., Incorporated
Underwriting for #16 (con't)
Prudential Securities Incorporated
Advest, Inc.
Dain Bosworth Incorporated
Edward D. Jones & Co., L.P.
McDonald & Company Securities, Inc.
Nesbitt Burns Securities Inc.
Stephens Inc.
Stifel, Nicolaus & Company, Incorporated
Sutro & Co. Incorporated
Underwriting for #17 & 18 Bear, Stearns & Co., Inc.
Credit Suisse First Boston Corporation
Morgan Stanley & Co., Incorporated
Goldman, Sachs & Co.
Merrill Lynch, Inc.
J.P. Morgan Securities Inc.
Chase Securities Inc.
Lehman Brothers Inc.
Salomon Brothers Inc.
ABN AMRO Chicago Corp.
BancAmerica Securities, Inc.
BT Securities Corp.
CIBC Wood Gundy Securities Corp.
Citicorp Securities, Inc.
Deutsche Morgan Grenfell Inc.
First Chicago Capital Markets, Inc.
SBC Warburg Inc.
Scotia Capital Markets Inc.
UBS Securities LLC
Blaylock & Partners, L.P.
Muriel Siebert & Co. Inc.
Underwriting for #19 & 20
Smith Barney Inc.
Credit Suisse First Boston Corp.
Merrill Lynch, Inc.
Montgomery Securities
Morgan Stanley & Co., Inc.
Piper Jaffray Inc.
ABN AMRO Chicago, Corp.
Bear, Stearns, & Co., Inc.
Sanford C. Bernstein & Co., Inc.
Cowen & Company
A.G. Edwards & Sons, Inc.
EVEREN Securities Inc.
Lehman Brothers Inc.
Needham & Company Inc.
The Robinson-Humphrey Company, Inc.
Rothschild Inc.
Salomon Brothers Inc.
Sterne, Agee & Leach, Inc.
UBS Securities, LLC
Vector Securities International Inc.
Wasserstein Perella Securities Inc.
Wessels, Arnold & Henderson, LLC
Underwriting for #21 & 22
Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
Santander Investment Securities Inc.
UBS Securities LLC
Wheat, First Securities, Inc.
Bear, Stearns & Co. Inc.
Sanford C. Bernstein & Co., Inc.
BT Alex. Brown Incorporated
Credit Suisse First Boston Corporation
A.G. Edwards & Sons, Inc.
Friedman, Billings, Ramsey & Co., Inc.
Interstate/Johnson Lane Corporation
Edward D. Jones & Co., L.P.
Legg Mason Wood Walker, Incorporated
Lehman Brothers Inc.
Underwriting for #21 & 22 (con't)
Merrill Lynch, Incorporated
Montgomery Securities
J.P. Morgan Securities Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
SBC Warburg Dillon Read Inc.
Scott & Stringfellow, Inc.
Smith Barney Inc.
Underwriting for #23
Salomon Brothers Inc.
Merrill Lynch Incorporated
Bear, Stearns & Co., Inc.
Lazard Freres & Co., LLC
BT Alex Brown Incorporated
Credit Suisse First Boston Corporation
Goldman, Sachs & Co.
Lehman Brothers Inc.
Montgomery Securities
Morgan Stanley & Co., Incorporated
Smith Barney Inc.
TD Securities Inc.
UBS Securities LLC
Dain Bosworth Incorporated
Everen Securities, Inc.
Furman Selz LLC
McDonald & Company Securities, Inc.
Morgan Keegan, & Company, Inc.
Sutro & Co. Incorporated
Wheat First Butcher Singer
George K. Baum & Company
Hanifen, Imhoff Inc.
Pennsylvania Merchant Group Ltd
Ragen MacKenzie Incorporated
Underwriting for #24
Morgan Stanley Dean Witter
Societe Generale
UBS Securities LLC
Credit Lyonnais Securities Inc.
Underwriting for #25 & 26
Morgan Stanley & Co., Inc.
Goldman, Sachs & Co.
Merrill Lynch, Inc.
Bear, Stearns & Co., Inc.
Credit Suisse First Boston Corp.
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Furman Selz LLC
J.P. Morgan Securities Inc.
Paine Webber Incorporated
Prudential Securities Inc.
Smith Barney, Inc.
Arnold and S. Bleichroeder, Inc.
Janney Montgomery Scott, Inc.
Edward D. Jones & Co., L.P.
McDonald & Company Securities, Inc.
Underwriting for #27
Goldman, Sachs & Co.
Morgan Stanley & Co., Inc.
Robert W. Baird & Co., Inc,
Bear, Stearns & Co., Inc.
Merrill Lynch, Inc.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> EQUITY INCOME CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 1,373,547,790<F1>
<INVESTMENTS-AT-VALUE> 1,619,049,510<F1>
<RECEIVABLES> 12,997,298<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 50,521<F1>
<TOTAL-ASSETS> 1,632,097,329<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 9,442,003<F1>
<TOTAL-LIABILITIES> 9,442,003<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 509,445,943
<SHARES-COMMON-STOCK> 88,104,227
<SHARES-COMMON-PRIOR> 69,989,006
<ACCUMULATED-NII-CURRENT> 2,065,924<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 16,191,940<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 245,432,645<F1>
<NET-ASSETS> 638,092,113
<DIVIDEND-INCOME> 19,877,040<F1>
<INTEREST-INCOME> 22,021,080<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (18,849,628)<F1>
<NET-INVESTMENT-INCOME> 23,048,492<F1>
<REALIZED-GAINS-CURRENT> 184,609,912<F1>
<APPREC-INCREASE-CURRENT> 85,825,819<F1>
<NET-CHANGE-FROM-OPS> 293,484,223<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (12,849,167)
<DISTRIBUTIONS-OF-GAINS> (71,711,304)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 27,114,265
<NUMBER-OF-SHARES-REDEEMED> (19,786,873)
<SHARES-REINVESTED> 10,787,829
<NET-CHANGE-IN-ASSETS> 166,336,244
<ACCUMULATED-NII-PRIOR> 969,617<F1>
<ACCUMULATED-GAINS-PRIOR> 18,003,144<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 5,338,993<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 18,849,628<F1>
<AVERAGE-NET-ASSETS> 565,886,511
<PER-SHARE-NAV-BEGIN> 6.740
<PER-SHARE-NII> 0.152
<PER-SHARE-GAIN-APPREC> 1.435
<PER-SHARE-DIVIDEND> (0.168)
<PER-SHARE-DISTRIBUTIONS> (0.917)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.242
<EXPENSE-RATIO> 0.86
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class
basis
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> EQUITY INCOME CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 1,373,547,790<F1>
<INVESTMENTS-AT-VALUE> 1,619,049,510<F1>
<RECEIVABLES> 12,997,298<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 50,521<F1>
<TOTAL-ASSETS> 1,632,097,329<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 9,442,003<F1>
<TOTAL-LIABILITIES> 9,442,003<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 784,786,712
<SHARES-COMMON-STOCK> 126,154,388
<SHARES-COMMON-PRIOR> 94,332,981
<ACCUMULATED-NII-CURRENT> 2,065,924<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 16,191,940<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 245,432,645<F1>
<NET-ASSETS> 908,715,054
<DIVIDEND-INCOME> 19,877,040<F1>
<INTEREST-INCOME> 22,021,080<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (18,849,628)<F1>
<NET-INVESTMENT-INCOME> 23,048,492<F1>
<REALIZED-GAINS-CURRENT> 184,609,912<F1>
<APPREC-INCREASE-CURRENT> 85,825,819<F1>
<NET-CHANGE-FROM-OPS> 293,484,223<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (12,509,687)
<DISTRIBUTIONS-OF-GAINS> (101,660,017)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 31,457,988
<NUMBER-OF-SHARES-REDEEMED> (14,197,582)
<SHARES-REINVESTED> 14,561,001
<NET-CHANGE-IN-ASSETS> 275,464,597
<ACCUMULATED-NII-PRIOR> 969,617<F1>
<ACCUMULATED-GAINS-PRIOR> 18,003,144<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 5,338,993<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 18,849,628<F1>
<AVERAGE-NET-ASSETS> 785,928,930
<PER-SHARE-NAV-BEGIN> 6.713
<PER-SHARE-NII> 0.100
<PER-SHARE-GAIN-APPREC> 1.423
<PER-SHARE-DIVIDEND> (0.116)
<PER-SHARE-DISTRIBUTIONS> (0.917)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.203
<EXPENSE-RATIO> 1.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class
basis.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> EQUITY INCOME CLASS C
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 1,373,547,790<F1>
<INVESTMENTS-AT-VALUE> 1,619,049,510<F1>
<RECEIVABLES> 12,997,298<F1>
<ASSETS-OTHER> 0<F1>
<OTHER-ITEMS-ASSETS> 50,521<F1>
<TOTAL-ASSETS> 1,632,097,329<F1>
<PAYABLE-FOR-SECURITIES> 0<F1>
<SENIOR-LONG-TERM-DEBT> 0<F1>
<OTHER-ITEMS-LIABILITIES> 9,442,003<F1>
<TOTAL-LIABILITIES> 9,442,003<F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 64,732,162
<SHARES-COMMON-STOCK> 10,528,677
<SHARES-COMMON-PRIOR> 8,217,499
<ACCUMULATED-NII-CURRENT> 2,065,924<F1>
<OVERDISTRIBUTION-NII> 0<F1>
<ACCUMULATED-NET-GAINS> 16,191,940<F1>
<OVERDISTRIBUTION-GAINS> 0<F1>
<ACCUM-APPREC-OR-DEPREC> 245,432,645<F1>
<NET-ASSETS> 75,848,159
<DIVIDEND-INCOME> 19,877,040<F1>
<INTEREST-INCOME> 22,021,080<F1>
<OTHER-INCOME> 0<F1>
<EXPENSES-NET> (18,849,628)<F1>
<NET-INVESTMENT-INCOME> 23,048,492<F1>
<REALIZED-GAINS-CURRENT> 184,609,912<F1>
<APPREC-INCREASE-CURRENT> 85,825,819<F1>
<NET-CHANGE-FROM-OPS> 293,484,223<F1>
<EQUALIZATION> 0<F1>
<DISTRIBUTIONS-OF-INCOME> (1,059,323)
<DISTRIBUTIONS-OF-GAINS> (8,569,893)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,426,455
<NUMBER-OF-SHARES-REDEEMED> (2,216,230)
<SHARES-REINVESTED> 1,100,953
<NET-CHANGE-IN-ASSETS> 20,684,670
<ACCUMULATED-NII-PRIOR> 969,617<F1>
<ACCUMULATED-GAINS-PRIOR> 18,003,144<F1>
<OVERDISTRIB-NII-PRIOR> 0<F1>
<OVERDIST-NET-GAINS-PRIOR> 0<F1>
<GROSS-ADVISORY-FEES> 5,338,993<F1>
<INTEREST-EXPENSE> 0<F1>
<GROSS-EXPENSE> 18,849,628<F1>
<AVERAGE-NET-ASSETS> 66,770,065
<PER-SHARE-NAV-BEGIN> 6.713
<PER-SHARE-NII> 0.100
<PER-SHARE-GAIN-APPREC> 1.424
<PER-SHARE-DIVIDEND> (0.116)
<PER-SHARE-DISTRIBUTIONS> (0.917)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.204
<EXPENSE-RATIO> 1.64
<AVG-DEBT-OUTSTANDING> 0<F1>
<AVG-DEBT-PER-SHARE> 0<F1>
<FN>
<F1>This item relates to the Fund on a composite basis and not on a class
basis.
</FN>
</TABLE>
