WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
MSDW DIVERSIFIED INCOME TRUST - CLASS C
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-2000
<PERIOD-END> OCT-31-2000
<INVESTMENTS-AT-COST> 795,895,736
<INVESTMENTS-AT-VALUE> 574,039,693
<RECEIVABLES> 18,351,998
<ASSETS-OTHER> 49,889
<OTHER-ITEMS-ASSETS> 10,911,721
<TOTAL-ASSETS> 603,353,301
<PAYABLE-FOR-SECURITIES> (6,338,571)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (2,397,717)
<TOTAL-LIABILITIES> (8,736,288)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 868,179,632
<SHARES-COMMON-STOCK> 2,054,667
<SHARES-COMMON-PRIOR> 2,387,310
<ACCUMULATED-NII-CURRENT> (3,126,277)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (47,889,920)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (222,546,422)
<NET-ASSETS> 14,312,911
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 75,346,208
<OTHER-INCOME> 0
<EXPENSES-NET> (10,197,620)
<NET-INVESTMENT-INCOME> 65,148,588
<REALIZED-GAINS-CURRENT> (30,585,523)
<APPREC-INCREASE-CURRENT> (84,332,489)
<NET-CHANGE-FROM-OPS> (49,769,424)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,259,557)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (114,168)
<NUMBER-OF-SHARES-SOLD> 1,559,481
<NUMBER-OF-SHARES-REDEEMED> (1,984,780)
<SHARES-REINVESTED> 92,656
<NET-CHANGE-IN-ASSETS> (307,260,639)
<ACCUMULATED-NII-PRIOR> (2,194,141)
<ACCUMULATED-GAINS-PRIOR> (24,430,603)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (2,991,996)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (10,197,620)
<AVERAGE-NET-ASSETS> 16,708,530
<PER-SHARE-NAV-BEGIN> 8.15
<PER-SHARE-NII> 0.67
<PER-SHARE-GAIN-APPREC> (1.22)
<PER-SHARE-DIVIDEND> (0.58)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> (0.05)
<PER-SHARE-NAV-END> 6.97
<EXPENSE-RATIO> 1.38
</TABLE>