DEAN WITTER STRATEGIST FUND, N-30D, 1997-10-01

DEAN WITTER STRATEGIST FUND
N-30D, 1997-10-01

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<PAGE>
DEAN WITTER STRATEGIST FUND TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS JULY 31, 1997

DEAR SHAREHOLDER:

During this fiscal year, on July 28, 1997, the Fund began offering four classes
of shares: A, B, C and D, each with its own sales charge and distribution fee
structure. Most fund shares held prior to July 28 were designated Class B
shares. A revised prospectus, which includes complete details regarding the
Fund's conversion to multiple classes of shares, was mailed to shareholders in
mid-summer.

Dean Witter Strategist Fund's Class B shares posted a total return of 29.73
percent for the fiscal year ended July 31, 1997. This compares favorably with
the performance of the Fund's peer group as represented by the Lipper Flexible
Portfolio Funds Index, which returned 29.05 percent. Over the same period, the
Standard & Poor's 500 Composite Index (S&P 500) returned 52.08 percent and the
Lehman Brothers Government/Corporate Bond Index returned 10.79 percent. This
year marks eight full fiscal years for the Fund, and eight full fiscal years of
positive total returns for our shareholders.

The accompanying chart illustrates the growth of a $10,000 investment in Class B
shares of the Fund since inception (October 1988) through the fiscal year ended
July 31, 1997, versus similar hypothetical investments in the S&P 500 Index, the
Lehman Brothers Government/ Corporate Bond Index and the Lipper Flexible
Portfolio Funds Index.

INVESTMENT ANALYSIS

During the fiscal year, both the stock and the bond markets performed well. The
continuation of a multiyear period of economic growth, low inflation, improving
corporate profitability and stable monetary policy provided the markets with a
positive backdrop for record returns.

Energy, agricultural commodities and labor costs experienced price shocks that
unsettled the markets for short periods. However, corrections continued to
provide buying opportunities as pricing pressures in many service-related
sectors offset these price spikes. While we reacted cautiously by raising cash
in response to these spikes, we were eager to reinvest when the scares proved to
be quite temporary.
<PAGE>
DEAN WITTER STRATEGIST FUND
LETTER TO THE SHAREHOLDERS JULY 31, 1997, CONTINUED

All in all, our decision to stay overweighted in long-dated financial assets
throughout the year benefited our shareholders. The table below summarizes the
asset allocation changes made in Dean Witter Strategist Fund's portfolio during
the fiscal year:

<TABLE>
<CAPTION>
EQUITY FIXED-INCOME
EXPOSURE EXPOSURE CASH
------ ---------- -----
<S> <C> <C> <C>
July 31, 1996........................... 50% 40% 10%
April 28, 1997.......................... 50% 20% 30%
May 19, 1997............................ 60% 20% 20%
June 26, 1997........................... 65% 20% 15%
</TABLE>

LOOKING AHEAD

As we enter 1998, Dean Witter Strategist Fund is allocated to reflect our
positive stance toward the equity markets and our more cautious view of bonds.
With 70 percent of our assets invested in stocks, we believe that corporate
earnings growth, especially in a few specific industry sectors, will continue to
provide double-digit returns. Our equity portfolio, while well diversified, with
more than 80 holdings, is highly concentrated in industries we feel will provide
above-average earnings growth and profit potential. These include technology
(mainframe and workstation manufacturers, disk drive and software suppliers),
financial services (insurance, banking, savings and loans), energy (domestic and
international oil companies) and retailers (apparel and specialty stores as well
as department store chains). We expect each of these sectors to either continue
their impressive pattern of powerful earnings reports (technology and
financials) or to begin a turnaround from depressed earnings levels (energy and
retailers).

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
Growth of $10,000-Class B
($ in Thousands)
Average Annual Total Return
(Fund)
Life of
1 Year 5 Years Fund
<S> <C> <C> <C> <C>
29.73%(1) 13.33%(1) 14.26%(1)
24.73%(2) 13.09%(2) 14.26%(2)
Fund S&P 500(4) Lehman(5) Lipper(6)
October 1988 $10,000 $10,000 $10,000 $10,000
July 1989 $12,376 $12,736 $11,061 $11,405
July 1990 $13,267 $13,558 $11,750 $11,957
July 1991 $15,346 $15,290 $12,952 $13,550
July 1992 $17,169 $17,243 $14,978 $15,311
July 1993 $18,472 $18,745 $16,630 $16,902
July 1994 $19,125 $19,712 $16,608 $17,458
July 1995 $22,195 $24,844 $18,291 $20,337
July 1996 $24,741 $28,946 $19,262 $22,129
July 1997 $32,097(3) $44,023 $21,340 $28,557
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS.

(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.

(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable contingent deferred sales charge (CDSC) (1 year-5%, 5
years-2%, since inception-0%). See the Fund's current prospectus for
complete details on fees and sales charges.

(3) Closing value assuming a complete redemption on July 31, 1997.

(4) The Standard and Poor's 500 Composite Stock Price Index (S&P 500) is a
broad-based index, the performance of which is based on the average
performance of 500 widely held common stocks. The performance of the Index
does not include any expenses, fees or charges. The Index is unmanaged and
should not be considered an investment.

(5) The Lehman Brothers Government/Corporate Bond Index tracks the performance
of government and corporate obligations, including U.S. government agency
and U.S. treasury securities and corporate and yankee bonds, with maturities
of one to ten years. The performance of the Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.

(6) The Lipper Flexible Portfolio Funds Index is an equally-weighted performance
index of the largest qualifying funds (based on net assets) in the Lipper
Flexible Portfolio Funds objective. The Index, which is adjusted for capital
gains distributions and income dividends, is unmanaged and should not be
considered an investment. There are currently 30 funds represented in this
index.
<PAGE>
DEAN WITTER STRATEGIST FUND
LETTER TO THE SHAREHOLDERS JULY 31, 1997, CONTINUED

Our underweighting in bonds, at only a 20 percent allocation, reflects our
concern that the Federal Reserve Board may feel compelled to raise rates in the
second half of 1997, thus keeping a lid on bond prices for the balance of the
year. Longer term, we would view any drop in long bonds' prices as a buying
opportunity and would likely use a portion of our 10 percent cash reserve to
purchase issues along the yield curve. Currently, the bond portfolio is
comprised of 15 government-issued securities and 35 corporate bonds, with a wide
variety of yields and maturities. All carry investment-grade ratings, as
mandated by our prospectus.

We appreciate your continued support and interest in Dean Witter Strategist Fund
and look forward to serving your investment needs in the future.

Sincerely,

/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
DEAN WITTER STRATEGIST FUND
RESULTS OF SPECIAL MEETING (UNAUDITED)

On May 21, 1997, a special meeting of shareholders of Dean Witter Strategist
Fund was held for the purpose of voting on four separate matters, the results of
which are as follows:

1) APPROVAL OF A NEW INVESTMENT MANAGEMENT AGREEMENT BETWEEN THE FUND AND DEAN
WITTER INTERCAPITAL INC., IN CONNECTION WITH THE MERGER OF MORGAN STANLEY
GROUP INC. WITH DEAN WITTER, DISCOVER & CO.:

<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ------------------------------ -------------
<S> <C>
For........................... 45,693,154
Against....................... 1,048,662
Abstain....................... 5,301,936
</TABLE>

2) ELECTION OF TRUSTEES:

<TABLE>
<S> <C>
Michael Bozic
For........................... 48,083,122
Withheld...................... 3,960,630
Charles A. Fiumefreddo
For........................... 48,150,310
Withheld...................... 3,893,442
Edwin J. Garn
For........................... 48,169,641
Withheld...................... 3,874,111
John R. Haire
For........................... 48,073,337
Withheld...................... 3,970,415
Wayne E. Hedien
For........................... 48,165,238
Withheld...................... 3,878,514
Dr. Manuel H. Johnson
For........................... 48,190,670
Withheld...................... 3,853,082
Michael E. Nugent
For........................... 48,219,453
Withheld...................... 3,824,299
Philip J. Purcell
For........................... 48,216,267
Withheld...................... 3,827,485
John L. Schroeder
For........................... 48,159,768
Withheld...................... 3,883,984
</TABLE>

3) APPROVAL OF A NEW INVESTMENT POLICY WITH RESPECT TO INVESTMENTS IN CERTAIN
OTHER INVESTMENT COMPANIES:

<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ------------------------------ -------------
<S> <C>
For........................... 42,529,103
Against....................... 3,210,911
Abstain....................... 6,303,738
</TABLE>

4) RATIFICATION OF THE SELECTION OF PRICE WATERHOUSE LLP AS THE FUND'S
INDEPENDENT ACCOUNTANTS:

<TABLE>
<CAPTION>
VOTE NO. OF SHARES
- ------------------------------ -------------
<S> <C>
For........................... 46,978,407
Against....................... 562,673
Abstain....................... 4,502,672
</TABLE>
<PAGE>
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (69.1%)
AEROSPACE & DEFENSE (4.4%)
270,000 General Motors Corp. (Class
H).......................... $ 16,318,125
194,000 Honeywell, Inc................ 14,489,375
180,000 Litton Industries, Inc.*...... 9,348,750
140,000 Lockheed Martin Corp.......... 14,910,000
200,000 Thiokol Corp.................. 14,862,500
-----------------
69,928,750
-----------------
AIRLINES (0.6%)
250,000 Continental Airlines, Inc.
(Class B)*.................. 9,312,500
-----------------
ALUMINUM (0.8%)
150,000 Aluminum Co. of America....... 13,275,000
-----------------
AUTOMOTIVE (1.3%)
300,000 Chrysler Corp................. 11,137,500
250,000 Ford Motor Co................. 10,218,750
-----------------
21,356,250
-----------------
BANKS - MONEY CENTER (1.9%)
150,000 Chase Manhattan Corp.......... 17,034,375
102,000 Citicorp...................... 13,846,500
-----------------
30,880,875
-----------------
BANKS - REGIONAL (3.0%)
220,000 NationsBank Corp.............. 15,661,250
240,000 Washington Mutual, Inc........ 16,560,000
58,000 Wells Fargo & Co.............. 15,946,375
-----------------
48,167,625
-----------------
BEVERAGES - SOFT DRINKS (0.8%)
327,800 PepsiCo, Inc.................. 12,558,837
-----------------
BROKERAGE (1.2%)
266,666 Travelers Group, Inc.......... 19,183,285
-----------------
CABLE/CELLULAR (0.7%)
500,000 U.S. West Media Group*........ 11,031,250
-----------------
CHEMICALS (2.1%)
220,000 Du Pont (E.I.) de Nemours &
Co., Inc.................... 14,726,250
220,000 Monsanto Co................... 10,958,750
150,000 Praxair, Inc.................. 8,268,750
-----------------
33,953,750
-----------------
COMMUNICATIONS - EQUIPMENT & SOFTWARE (2.6%)
97,964 Ascent Entertainment, Inc.*... 1,175,568
180,000 Cisco Systems, Inc.*.......... 14,298,750

<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
405,000 Comsat Corp................... $ 9,441,562
270,000 Tellabs, Inc.*................ 16,149,375
-----------------
41,065,255
-----------------
COMMUNICATIONS EQUIPMENT (0.5%)
100,000 Lucent Technologies, Inc...... 8,493,750
-----------------
COMPUTER SOFTWARE (1.9%)
110,000 Microsoft Corp.*.............. 15,544,375
270,000 Oracle Corp.*................. 14,664,375
-----------------
30,208,750
-----------------
COMPUTERS (2.0%)
200,000 Dell Computer Corp.*.......... 17,100,000
400,000 Gateway 2000, Inc.*........... 15,275,000
-----------------
32,375,000
-----------------
COMPUTERS - PERIPHERAL EQUIPMENT (0.9%)
353,600 Seagate Technology, Inc.*..... 14,519,700
-----------------
COMPUTERS - SYSTEMS (1.9%)
329,250 Diebold, Inc.................. 16,544,812
300,000 Sun Microsystems, Inc.*....... 13,706,250
-----------------
30,251,062
-----------------
CONSUMER PRODUCTS (1.2%)
253,400 Colgate-Palmolive Co.......... 19,195,050
-----------------
ELECTRICAL EQUIPMENT (2.1%)
258,000 Emerson Electric Co........... 15,222,000
258,000 General Electric Co........... 18,108,375
-----------------
33,330,375
-----------------
ENTERTAINMENT/GAMING (0.2%)
100,000 Circus Circus Enterprises,
Inc.*....................... 2,506,250
-----------------
FINANCIAL SERVICES (1.9%)
200,000 American Express Co........... 16,750,000
290,000 Fannie Mae.................... 13,720,625
-----------------
30,470,625
-----------------
FOODS (2.1%)
176,000 Campbell Soup Co.............. 9,130,000
150,000 General Mills, Inc............ 10,368,750
150,000 Kellogg Co.................... 13,781,250
-----------------
33,280,000
-----------------
FOREST PRODUCTS, PAPER & PACKING (1.9%)
210,000 Bowater Inc................... 10,998,750
300,000 Champion International
Corp........................ 18,600,000
-----------------
29,598,750
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
HEALTHCARE - HMOS (0.9%)
600,000 Humana, Inc.*................. $ 14,625,000
-----------------
HEAVY DUTY TRUCKS & PARTS (0.3%)
270,000 Navistar International
Corp.*...................... 5,568,750
-----------------
HOUSEHOLD APPLIANCES (0.6%)
320,000 Maytag Corp................... 9,340,000
-----------------
INSURANCE (4.2%)
200,000 Ace, Ltd...................... 16,400,000
142,500 American International Group,
Inc......................... 15,176,250
200,000 Chubb Corp.................... 14,100,000
350,000 Equitable Companies, Inc...... 13,781,250
150,000 Vesta Insurance Group, Inc.... 7,987,500
-----------------
67,445,000
-----------------
INTERNET (0.5%)
120,000 America Online, Inc.*......... 8,100,000
-----------------
LEISURE (0.7%)
135,000 Walt Disney Co................ 10,909,687
-----------------
MEDICAL PRODUCTS & SUPPLIES (0.4%)
99,000 Baxter International,
Inc......................... 5,723,438
-----------------
OIL INTEGRATED - DOMESTIC (1.9%)
260,000 Amerada Hess Corp............. 15,291,250
212,000 Atlantic Richfield Co......... 15,860,250
-----------------
31,151,500
-----------------
OIL INTEGRATED - INTERNATIONAL (3.8%)
190,000 Chevron Corp.................. 15,033,750
240,000 Exxon Corp.................... 15,420,000
198,000 Mobil Corp.................... 15,147,000
130,000 Texaco, Inc................... 15,088,125
-----------------
60,688,875
-----------------
PHARMACEUTICALS (3.8%)
160,000 Abbott Laboratories........... 10,470,000
128,400 American Home Products
Corp........................ 10,584,975
194,744 Johnson & Johnson............. 12,134,986
151,000 Lilly (Eli) & Co.............. 17,063,000
102,200 Merck & Co., Inc.............. 10,622,413
-----------------
60,875,374
-----------------

<CAPTION>
NUMBER OF
SHARES VALUE
- -----------------------------------------------------------------
<C> <S> <C>
RETAIL - DEPARTMENT STORES (1.4%)
1,000,000 Kmart Corp.*.................. $ 11,875,000
176,000 May Department Stores Co...... 9,834,000
-----------------
21,709,000
-----------------
RETAIL - SPECIALTY (5.1%)
450,000 Bed Bath & Beyond, Inc.*...... 14,850,000
350,000 Costco Companies Inc.*........ 13,256,250
216,000 Home Depot, Inc............... 10,773,000
265,000 Payless ShoeSource, Inc.*..... 16,297,500
1,500,000 Pier 1 Imports, Inc........... 26,437,500
-----------------
81,614,250
-----------------
RETAIL - SPECIALTY APPAREL (0.9%)
310,000 Gap, Inc. (The)............... 13,775,625
-----------------
SAVINGS & LOAN ASSOCIATIONS (0.9%)
170,000 Golden West Financial Corp.... 14,301,250
-----------------
SEMICONDUCTOR EQUIPMENT (2.3%)
200,000 Altera Corp.*................. 12,050,000
100,000 KLA-Tencor Corp.*............. 6,050,000
410,000 Teradyne, Inc.*............... 19,167,500
-----------------
37,267,500
-----------------
SEMICONDUCTORS (2.3%)
475,000 Cypress Semiconductor
Corp.*...................... 7,273,438
160,000 Intel Corp.................... 14,680,000
300,000 Micron Technology, Inc........ 14,606,250
-----------------
36,559,688
-----------------
SHOES (0.5%)
130,000 Nike, Inc. (Class B).......... 8,100,625
-----------------
STEEL (0.7%)
180,000 Nucor Corp.................... 11,171,250
-----------------
TOBACCO (1.1%)
390,000 Philip Morris Companies,
Inc......................... 17,598,750
-----------------
TRUCKERS (0.8%)
500,000 Yellow Corp.*................. 13,437,500
-----------------

TOTAL COMMON STOCKS
(IDENTIFIED COST
$740,508,406)................. 1,104,905,751
-----------------
</TABLE>

BANKS (1.5%)
6,800 Bankers Trust Co. (Series A) -
144A** 8.09% due 12/01/26... 6,961,500
5,000 Capital One Bank 5.95% due
02/15/01.................... 4,890,000
6,000 Mercantile Bancorporation,
Inc. 7.30% due 06/15/07..... 6,215,340
6,000 Republic New York Corp. 7.20%
due 07/15/97................ 6,059,100
-----------------
24,125,940
-----------------
BROKERAGE (1.1%)
6,000 Bear Stearns Co., Inc. 6.50%
due 08/01/02................ 6,023,700
6,000 Lehman Brothers Holdings, Inc.
(Series E) 6.50% due
07/18/00.................... 6,033,060
5,000 Salomon, Inc. 6.65% due
07/15/01.................... 5,037,500
-----------------
17,094,260
-----------------

CABLE & TELECOMMUNICATIONS (1.5%)
5,000 Comcast Cable
Communications - 144A**
8.875% due 05/01/17......... 5,810,200
5,000 Continental Cablevision, Inc.
9.50% due 08/01/13.......... 5,825,550
7,000 TCI Communications, Inc. 8.75%
due 08/01/15................ 7,775,180
5,000 Time Warner Pass-thru - 144A**
6.10% due 12/30/01.......... 4,900,000
-----------------
24,310,930
-----------------

COMMUNICATIONS - EQUIPMENT & SOFTWARE (0.3%)
5,000 MFS Communications, Inc.
8.875% due 01/15/06......... 3,984,714
-----------------

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

FINANCIAL SERVICES (4.4%)
$ 5,000 Advanta Corp.
6.384% due 08/07/98......... $ 4,992,950
3,500 Advanta Corp.
7.28% due 07/30/01.......... 3,514,280
5,000 Arkwright CSN Trust - 144A**
9.625% due 08/15/26......... 5,881,250
6,800 Central Fidelity Capital I
-144A** 6.75%+ due
04/15/27.................... 6,976,868
6,900 Centura Capital Trust I -
144A** 8.845% due
06/01/27.................... 7,460,625
5,000 Compass Trust I Series A 8.23%
due 01/15/27................ 5,270,500
4,000 Hutchison Whampoa - 144A**
(Cayman Islands) 7.50% due
08/01/27.................... 4,070,000
6,900 Money Store, Inc. (The) 8.375%
due 04/15/04................ 7,279,293
5,000 North Fork Capital Trust I
8.70% due 12/15/26.......... 5,256,250
7,500 Provident Capital Trust I
8.60% due 12/01/26.......... 7,856,250
5,000 Riggs Capital Trust II -
144A** 8.875% due
03/15/27.................... 5,278,800
7,000 Sakura Capital Funding -
144A** (Cayman Islands)
7.32%+ due
08/29/49.................... 7,052,500
-----------------
70,889,566
-----------------
INSURANCE (0.8%)
5,800 Terra Nova Holdings (United
Kingdom) 10.75% due
07/01/05.................... 6,506,440
5,900 Vesta Capital Trust I - 144A**
8.525% due 01/15/27......... 6,386,750
-----------------
12,893,190
-----------------
MACHINERY & MACHINE TOOLS (0.2%)
3,000 Joy Technologies Inc. 10.25%
due 09/01/03................ 3,267,570
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997, CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
METALS & MINING (0.4%)
$ 6,900 Placer Dome, Inc. (Canada)
8.50% due 12/31/45.......... $ 7,089,750
-----------------
OIL & GAS PRODUCTS (0.3%)
5,000 Mitchell Energy & Development
Corp. 6.75% due 02/15/04.... 4,971,000
-----------------
PROPERTY (0.4%)
6,000 Guangdong Enterprises - 144A**
(Hong Kong) 8.875% due
05/22/07.................... 6,324,240
-----------------
RETAIL (0.7%)
6,000 Heilig Myers Co.
7.60% due 08/01/07.......... 5,992,020
5,000 ShopKo Stores, Inc. 9.00% due
11/15/04.................... 5,617,650
-----------------
11,609,670
-----------------
TELECOMMUNICATIONS (0.8%)
5,000 British Telecom Finance
(United Kingdom) 9.625% due
02/15/19.................... 5,443,400
6,900 Total Access Communication -
144A** (Thailand) 8.375% due
11/04/06.................... 6,848,250
-----------------
12,291,650
-----------------

TOTAL CORPORATE BONDS
(IDENTIFIED COST
$202,989,974)................. 210,007,890
-----------------

U.S. GOVERNMENT & AGENCY OBLIGATIONS (7.0%)
10,000 Federal Home Loan Banks 6.805%
due 03/26/02................ 10,017,200
310 Federal Home Loan Mortgage
Corp. 8.50% due 07/01/02.... 318,419
148 Federal Home Loan Mortgage
Corp. 9.00% due 08/01/02.... 151,556

<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
$ 8,400 U.S. Treasury Bond 6.50% due
11/15/26.................... $ 8,588,664
7,000 U.S. Treasury Note 5.125% due
02/28/98.................... 6,983,550
28,000 U.S. Treasury Note 5.25% due
12/31/97.................... 27,978,440
1,900 U.S. Treasury Note 5.625% due
11/30/00.................... 1,889,531
3,900 U.S. Treasury Note 5.875% due
11/30/01.................... 3,898,284
5,000 U.S. Treasury Note 6.00% due
08/15/99.................... 5,025,250
5,000 U.S. Treasury Note 6.375% due
05/15/99.................... 5,055,600
12,050 U.S. Treasury Note 6.50% due
04/30/99.................... 12,210,626
4,900 U.S. Treasury Note 6.50% due
05/15/05.................... 5,044,403
5,000 U.S. Treasury Note 6.75% due
04/30/00.................... 5,120,950
11,900 U.S. Treasury Note 6.875% due
08/31/99.................... 12,163,704
7,000 U.S. Treasury Note 7.50% due
11/15/01.................... 7,423,640
-----------------

TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS
(IDENTIFIED COST
$111,151,858)................. 111,869,817
-----------------

SHORT-TERM INVESTMENTS (10.0%)
U.S. GOVERNMENT AGENCIES (a) (10.0%)
109,800 Federal Home Loan Mortgage
Corp. 5.38% - 5.75% due
08/01/97 - 08/13/97......... 109,736,967
50,000 Student Loan Marketing Assoc.
5.44% due 08/18/97.......... 49,871,555
-----------------

TOTAL U.S. GOVERNMENT AGENCIES
(AMORTIZED COST
$159,608,522)................. 159,608,522
-----------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1997, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- -----------------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT (0.0%)
$ 127 The Bank of New York 5.75% due
08/01/97 (dated 07/31/97;
proceeds $127,134) (b)
(IDENTIFIED COST
$127,114)................... $ 127,114
-----------------

TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST
$159,735,636)................. 159,735,636
-----------------

TOTAL INVESTMENTS
(IDENTIFIED COST
$1,214,385,874) (c)........ 99.2% 1,586,519,094

OTHER ASSETS IN EXCESS OF
LIABILITIES................ 0.8 12,492,053
----- -------------

NET ASSETS................. 100.0% $1,599,011,147
----- -------------
----- -------------

<FN>
- ---------------------
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
+ Floating rate security. Coupon rate shown is the rate in effect at July
31, 1997.
(a) Securities were purchased on discount basis. The interest rates shown have
been adjusted to reflect a money market equivalent yield.
(b) Collateralized by $103,000 U.S. Treasury Bill 0.00% due 08/07/97 valued at
$102,902, $905 U.S. Treasury Note 7.125% due 09/30/99 valued at $952 and
$25,255 U.S. Treasury Note 6.25% due 05/31/00 valued at $25,802.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $375,011,084 and the
aggregate gross unrealized depreciation is $2,877,864, resulting in net
unrealized appreciation of $372,133,220.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value $ 1,586,519,094
(identified cost $1,214,385,874)..........................
Receivable for:
Investments sold........................................ 23,853,037
Interest................................................ 5,125,607
Shares of beneficial interest sold...................... 2,503,666
Dividends............................................... 829,667
Prepaid expenses and other assets........................... 35,452
---------------
TOTAL ASSETS........................................... 1,618,866,523
---------------
LIABILITIES:
Payable for:
Investments purchased................................... 16,522,123
Plan of distribution fee................................ 1,136,872
Shares of beneficial interest repurchased............... 1,249,005
Investment management fee............................... 720,945
Accrued expenses and other payables......................... 226,431
---------------
TOTAL LIABILITIES...................................... 19,855,376
---------------
NET ASSETS............................................. $ 1,599,011,147
---------------
---------------
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................. 1,195,287,263
Net unrealized appreciation................................. 372,133,220
Accumulated undistributed net investment income............. 7,448,690
Accumulated undistributed net realized gain................. 24,141,974
---------------
NET ASSETS............................................. $ 1,599,011,147
---------------
---------------
CLASS A SHARES:
Net Assets.................................................. $78,527
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 4,187
NET ASSET VALUE PER SHARE.............................. $18.75
---------------
---------------
MAXIMUM OFFERING PRICE PER SHARE
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)..... $19.79
---------------
---------------
CLASS B SHARES:
Net Assets.................................................. $1,540,879,742
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 82,168,617
NET ASSET VALUE PER SHARE.............................. $18.75
---------------
---------------
CLASS C SHARES:
Net Assets.................................................. $114,448
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 6,103
NET ASSET VALUE PER SHARE.............................. $18.75
---------------
---------------
CLASS D SHARES:
Net Assets.................................................. $57,938,430
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)... 3,089,332
NET ASSET VALUE PER SHARE.............................. $18.75
---------------
---------------
</TABLE>

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

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1997*

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

INCOME
Interest.................................................... $ 43,456,090
Dividends................................................... 10,407,080
---------------

TOTAL INCOME........................................... 53,863,170
---------------

EXPENSES
Plan of distribution fee (Class B shares)................... 12,491,604
Investment management fee................................... 7,751,652
Transfer agent fees......................................... 1,192,422
Shareholder reports and notices............................. 95,767
Custodian fees.............................................. 79,398
Registration fees........................................... 76,436
Professional fees........................................... 62,619
Trustees' fees and expenses................................. 14,922
Other....................................................... 20,165
---------------

TOTAL EXPENSES......................................... 21,784,985
---------------

NET INVESTMENT INCOME.................................. 32,078,185
---------------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain........................................... 52,266,640
Net change in unrealized appreciation....................... 285,799,377
---------------

NET GAIN............................................... 338,066,017
---------------

NET INCREASE................................................ $ 370,144,202
---------------
---------------
</TABLE>

- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.

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

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JULY 31, 1997* JULY 31, 1996
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income....................................... $ 32,078,185 $ 21,424,282
Net realized gain........................................... 52,266,640 97,968,604
Net change in unrealized appreciation....................... 285,799,377 (3,107,509)
---------------- ----------------

NET INCREASE........................................... 370,144,202 116,285,377
---------------- ----------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class B shares.......................................... (28,975,735) (21,021,721)
Net realized gain
Class B shares.......................................... (109,339,056) (70,591,947)
---------------- ----------------

TOTAL DIVIDENDS AND DISTRIBUTIONS...................... (138,314,791) (91,613,668)
---------------- ----------------
Net increase from transactions in shares of beneficial
interest.................................................. 107,876,963 357,037,738
---------------- ----------------

TOTAL INCREASE......................................... 339,706,374 381,709,447

NET ASSETS:
Beginning of period......................................... 1,259,304,773 877,595,326
---------------- ----------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF
$7,448,690 AND $4,346,240, RESPECTIVELY)................ $1,599,011,147 $1,259,304,773
---------------- ----------------
---------------- ----------------
</TABLE>

- ---------------------
* Class A, Class C and Class D shares were issued July 28, 1997.

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997

1. ORGANIZATION AND ACCOUNTING POLICIES

Dean Witter Strategist Fund (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a non-diversified, open-end
management investment company. The Fund's investment objective is to maximize
the total return of its investments. The Fund seeks to achieve its objective by
actively allocating its assets among major asset categories of equity and
fixed-income securities and money market instruments. The Fund was organized as
a Massachusetts business trust on August 5, 1988 and commenced operations on
October 31, 1988. On July 28, 1997, the Fund commenced offering three additional
classes of shares, with the then current shares, other than shares which were
purchased prior to November 8, 1989 (and with respect to such shares, certain
shares acquired through reinvestment of dividends and capital gains
distributions (collectively the "Old Shares")) and shares held by certain
employee benefit plans established by Dean Witter Reynolds Inc. and its
affiliate, SPS Transaction Services, Inc., designated as Class B shares. The Old
Shares and shares held by those employee benefit plans prior to July 28, 1997
have been designated Class D shares.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase, some Class
A shares, and most Class B shares and Class C shares are subject to a contingent
deferred sales charge imposed on shares redeemed within one year, six years and
one year, respectively. Class D shares are not subject to a sales charge.
Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American or other domestic or foreign 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 (in
cases where securities are traded on more than one exchange; the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Trustees); (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 Dean Witter
<PAGE>
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997, CONTINUED

InterCapital, Inc. (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); (4) certain of the Fund's
portfolio securities may be valued by an outside pricing service approved by the
Trustees. The pricing service may utilize a matrix system incorporating security
quality, maturity and coupon as the evaluation model parameters, and/or research
and evaluations by its staff, including review of broker-dealer market price
quotations, if available, in determining what it believes is the fair valuation
of the portfolio securities valued by such pricing service; and (5) 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.
Discounts are accreted over the life of the respective securities. Dividend
income and other distributions are recorded on the ex-dividend date. Interest
income is accrued daily.

Investment income, expenses (other than distribution fees), and realized and
unrealized gains and losses are allocated to each class of shares based upon the
relative net asset value on the date the income is earned or expenses and
realized and unrealized gains and losses are incurred. Distribution fees are
charged directly to the respective class.

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 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
<PAGE>
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997, CONTINUED

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 the Fund pays the 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: 0.60% to the portion of daily net assets not exceeding $500
million; 0.55% to the portion of daily net assets exceeding $500 million but not
exceeding $1 billion; 0.50% to the portion of daily net assets exceeding $1
billion but not exceeding $1.5 billion; and 0.475% to the portion of daily net
assets exceeding $1.5 billion.

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. The plan
provides that the Fund will pay the Distributor a fee which is accrued daily and
paid monthly at the following annual rates: (i) Class A -- 0.25% of the average
daily net assets of Class A; (ii) Class B -- 1.0% of the lesser of: (a) the
average daily aggregate gross sales of the Class B shares since the
implementation of the Plan on November 8, 1989 (not including reinvestment of
dividend or capital gain distributions) less the average daily aggregate net
asset value of the Class B shares redeemed since the Fund's implementation of
the Plan upon which a contingent deferred sales charge has been imposed or
waived; or (b) the average daily net assets of Class B; and (iii) Class C --
1.0% of the average daily net assets of Class C. In the case of Class A shares,
amounts paid under the Plan are paid to the Distributor for services provided.
In the case of Class B and Class C shares, amounts paid under the Plan are paid
to the Distributor for services
<PAGE>
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997, CONTINUED

provided and the expenses borne by it and others in the distribution of the
shares of these Classes, including the payment of commissions for sales of these
Classes 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 others who engage in or support distribution of the 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 these shares to other than current shareholders; and
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may utilize fees paid pursuant to the
Plan, in the case of Class B shares, to compensate DWR and other selected
broker-dealers for their opportunity costs in advancing such amounts, which
compensation would be in the form of a carrying charge on any unreimbursed
expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Trustees will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts, including
carrying charges, totaled $37,067,710 at July 31, 1997.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to account executives may be reimbursed in the subsequent
calendar year. For the period ended July 31, 1997, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.25% and
1.0%, respectively.

The Distributor has informed the Fund that for the year ended July 31, 1997, it
received contingent deferred sales charges from certain redemptions of the
Fund's Class B shares of approximately $1,683,000. The shareholders pay such
charges which are not an expense of the Fund.
<PAGE>
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997, CONTINUED

4. SHARES OF BENEFICIAL INTEREST+

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JULY 31, 1997 JULY 31, 1996
---------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES*
Sold................................................... 4,187 $ 77,553 -- --
----------- -------------- ----------- ------------
CLASS B SHARES
Sold................................................... 21,462,833 362,673,259 15,621,003 $252,119,338
Reinvestment of dividends and distributions............ 7,689,886 125,001,968 5,419,616 83,797,500
Shares issued in connection with the acquisition of
Dean Witter Managed Assets Trust...................... -- -- 20,952,000 322,593,266
Redeemed............................................... (22,487,425) (380,152,637) (18,698,191) (301,472,366)
----------- -------------- ----------- ------------
Net increase -- Class B................................ 6,665,294 107,522,590 23,294,428 357,037,738
----------- -------------- ----------- ------------

CLASS C SHARES*
Sold................................................... 6,103 112,493 -- --
----------- -------------- ----------- ------------

CLASS D SHARES*
Sold................................................... 10,440 195,743 -- --
Redeemed............................................... (1,699) (31,416) -- --
----------- -------------- ----------- ------------
Net increase -- Class D................................ 8,741 164,327 -- --
----------- -------------- ----------- ------------
Net increase in Fund................................... 6,684,325 $ 107,876,963 23,294,428 $357,037,738
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>

- ---------------------
+ On July 28, 1997, 3,080,591 shares representing $56,682,871 were
transferred to class D.
* For the period July 28, 1997 (issue date) through July 31, 1997.

5. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the year ended July 31, 1997 aggregated
$1,953,824,446 and $2,016,351,077, respectively. Included in the aforementioned
are purchases and sales of U.S. Government securities of $290,565,797 and
$498,666,902, respectively.

For the same period, the Fund incurred brokerage commissions with DWR of
$37,367, for portfolio transactions executed on behalf of the Fund.

For the period May 31, 1997 through July 31, 1997, the Fund incurred brokerage
commissions with Morgan Stanley & Co. Inc., an affiliate of the Investment
Manager since May 31, 1997, of $1,005, for portfolio transactions executed on
behalf of the Fund.
<PAGE>
DEAN WITTER STRATEGIST FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1997, CONTINUED

Dean Witter Trust Company, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At July 31, 1997, the Fund had
transfer agent fees and expenses payable of approximately $9,000.

The Fund has 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 the last five years
of service. Aggregate pension costs for the year ended July 31, 1997 included in
Trustees' fees and expenses in the Statement of Operations amounted to $1,735.
At July 31, 1997, the Fund had an accrued pension liability of $87,050 which is
included in accrued expenses in the Statement of Assets and Liabilities.

6. FEDERAL INCOME TAX STATUS

As of July 31, 1997, the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales.
<PAGE>
DEAN WITTER STRATEGIST FUND
FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
FOR THE PERIOD
OCTOBER 31,
FOR THE YEAR ENDED JULY 31 1988*
----------------------------------------------------------------------------- THROUGH
1997** 1996 1995 1994 1993 1992 1991 1990 JULY 31, 1989
- --------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS B SHARES

PER SHARE OPERATING PERFORMANCE:

Net asset value,
beginning of period..... $ 16.02 $ 15.87 $ 14.43 $ 14.59 $ 14.39 $ 13.09 $ 11.65 $ 11.37 $ 9.45
------- ------- ------- ------- ------- ------- ------- ------- ------

Net investment income.... 0.39 0.30 0.34 0.30 0.26 0.27 0.27 0.23 0.38

Net realized and
unrealized gain......... 4.10 1.43 1.86 0.22 0.81 1.27 1.50 0.55 1.84
------- ------- ------- ------- ------- ------- ------- ------- ------

Total from investment
operations.............. 4.49 1.73 2.20 0.52 1.07 1.54 1.77 0.78 2.22
------- ------- ------- ------- ------- ------- ------- ------- ------

Less dividends and
distributions from:
Net investment
income................ (0.36) (0.32) (0.29) (0.26) (0.31) (0.24) (0.26) (0.29) (0.30)
Net realized gain..... (1.40) (1.26) (0.47) (0.42) (0.56) -- (0.07) (0.21) --
------- ------- ------- ------- ------- ------- ------- ------- ------

Total dividends and
distributions........... (1.76) (1.58) (0.76) (0.68) (0.87) (0.24) (0.33) (0.50) (0.30)
------- ------- ------- ------- ------- ------- ------- ------- ------

Net asset value, end of
period.................. $ 18.75 $ 16.02 $ 15.87 $ 14.43 $ 14.59 $ 14.39 $ 13.09 $ 11.65 $ 11.37
------- ------- ------- ------- ------- ------- ------- ------- ------
------- ------- ------- ------- ------- ------- ------- ------- ------

TOTAL INVESTMENT
RETURN+.................. 29.73% 11.47% 16.05% 3.53% 7.59% 11.88% 15.67% 7.21% 23.76%(1)

RATIOS TO AVERAGE NET
ASSETS:
Expenses................. 1.56% 1.58% 1.63% 1.62% 1.62% 1.63% 1.59% 1.53% 0.97%(2)(3)

Net investment income.... 2.29% 1.88% 2.35% 2.03% 1.90% 2.19% 2.37% 2.39% 6.00%(2)(3)

SUPPLEMENTAL DATA:
Net assets, end of
period, in millions..... $ 1,541 $ 1,259 $ 878 $ 806 $ 783 $ 441 $ 238 $ 196 $ 48

Portfolio turnover
rate.................... 158% 174% 179% 90% 98% 79% 140% 101% 70%(1)

Average commission rate
paid.................... $0.0595 $0.0597 -- -- -- -- -- -- --
<FN>

- ---------------------
* Commencement of operations.
** Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date, other than shares which were purchased
prior to November 8, 1989 (and with respect to such shares, certain shares
acquired through reinvestment of dividends and capital gains distributions
(collectively the "Old Shares")) and shares held by certain employee
benefit plans established by Dean Witter Reynolds Inc., and its affiliate,
SPS Transaction Services, Inc., have been designated Class B shares. The
Old Shares and shares held by those employee benefit plans prior to July
28, 1997 have been designated Class D shares.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) If the Fund had borne all its expenses that were assumed or waived by the
Investment Manager, the above annualized expense and net investment income
ratios would have been 1.48% and 5.48%, respectively.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
JULY 31, 1997
- ----------------------------------------------------------------------------------------
<S> <C>
CLASS A SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 18.40
------
Net investment income................................................. 0.01
Net realized and unrealized gain...................................... 0.34
------
Total from investment operations...................................... 0.35
------
Net asset value, end of period........................................ $ 18.75
------
------
TOTAL INVESTMENT RETURN+.............................................. 1.90%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.92%(2)
Net investment income................................................. 5.06%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $ 79
Portfolio turnover rate............................................... 158%
Average commission rate paid.......................................... $ 0.0595
</TABLE>

<TABLE>
<S> <C>
CLASS C SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 18.40
------
Net investment income................................................. 0.01
Net realized and unrealized gain...................................... 0.34
------
Total from investment operations...................................... 0.35
------
Net asset value, end of period........................................ $ 18.75
------
------
TOTAL INVESTMENT RETURN+.............................................. 1.90%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.67%(2)
Net investment income................................................. 4.38%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $ 114
Portfolio turnover rate............................................... 158%
Average commission rate paid.......................................... $ 0.0595
<FN>

- ---------------------
* The date shares were first issued.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
JULY 31, 1997
- ----------------------------------------------------------------------------------------

<S> <C>
CLASS D SHARES

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period.................................. $ 18.40
------

Net investment income................................................. 0.01

Net realized and unrealized gain...................................... 0.34
------

Total from investment operations...................................... 0.35
------

Net asset value, end of period........................................ $ 18.75
------
------

TOTAL INVESTMENT RETURN+.............................................. 1.90%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.67%(2)

Net investment income................................................. 5.40%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $ 57,938

Portfolio turnover rate............................................... 158%

Average commission rate paid.......................................... $ 0.0595
<FN>

- ---------------------
* The date shares were first issued. Shareholders who held shares of the Fund
prior to July 28, 1997 (the date the Fund converted to a multiple class
share structure) should refer to the Financial Highlights of Class B to
obtain the historical per share data and ratio information of their shares.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
DEAN WITTER STRATEGIST FUND
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES
OF DEAN WITTER STRATEGIST FUND

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Dean Witter Strategist Fund (the
"Fund") at July 31, 1997, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then ended
and the financial highlights for each of the periods presented, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at July 31, 1997 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.

PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
SEPTEMBER 12, 1997

1997 FEDERAL TAX NOTICE (UNAUDITED)

During the year ended July 31, 1997, the Fund paid to its
shareholders $1.17 per share from long-term capital gains. For
such period 25.03% of the income dividend qualified for the
dividends received deduction available to corporations.
<PAGE>

TRUSTEES DEAN WITTER
STRATEGIST FUND
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Barry Fink
Vice President, Secretary and General Counsel

Mark A. Bavoso
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT [PHOTO]

Dean Witter Trust FSB
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS

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

ANNUAL REPORT
JULY 31, 1997

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 prospective investors in
the Fund unless preceded or accompanied by an effective prospectus.