<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000893783
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007 C020100 THE GABELLI ABC FUND, INC.
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010 B000002 8-32480
010 C010002 COLUMBUS
<PAGE> PAGE 2
010 C020002 OH
010 C030002 43219
011 A000001 GABELLI & COMPANY, INC.
011 B000001 8-21373
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011 C030001 10580
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020 B000002 13-6176976
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020 B000005 13-5674085
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020 B000006 13-1955436
<PAGE> PAGE 3
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020 A000007 BEAR STEARNS & CO. INC.
020 B000007 13-3299429
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020 A000008 NEEDHAM AND COMPANY, INC.
020 B000008 13-3255839
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022 B000005 91-1374280
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022 B000007 95-2622900
022 C000007 1099
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022 B000008 94-2524501
022 C000008 1090
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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SIGNATURE TROY STATCZAR
TITLE MANAGER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000893783
<NAME> GABELLI INVESTOR FUNDS, INC.
<SERIES>
<NUMBER> 00
<NAME> THE GABELLI ABC FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 37039223
<INVESTMENTS-AT-VALUE> 36934596
<RECEIVABLES> 2508513
<ASSETS-OTHER> 33624
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39476733
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 118595
<TOTAL-LIABILITIES> 118595
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 39483567
<SHARES-COMMON-STOCK> 4105158
<SHARES-COMMON-PRIOR> 3442361
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 20802
<ACCUM-APPREC-OR-DEPREC> (104627)
<NET-ASSETS> 39358138
<DIVIDEND-INCOME> 344728
<INTEREST-INCOME> 960708
<OTHER-INCOME> 0
<EXPENSES-NET> 818788
<NET-INVESTMENT-INCOME> 486648
<REALIZED-GAINS-CURRENT> 3415128
<APPREC-INCREASE-CURRENT> (1144585)
<NET-CHANGE-FROM-OPS> 2757191
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 489413
<DISTRIBUTIONS-OF-GAINS> 3432595
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6122609
<NUMBER-OF-SHARES-REDEEMED> 5773794
<SHARES-REINVESTED> 313982
<NET-CHANGE-IN-ASSETS> 4130131
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3669
<OVERDISTRIB-NII-PRIOR> 5775
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 488100
<INTEREST-EXPENSE> 2868
<GROSS-EXPENSE> 822669
<AVERAGE-NET-ASSETS> 48821232
<PER-SHARE-NAV-BEGIN> 10.23
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> 0.90
<PER-SHARE-DIVIDEND> 0.22
<PER-SHARE-DISTRIBUTIONS> 1.54
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.59
<EXPENSE-RATIO> 1.69
<AVG-DEBT-OUTSTANDING> 0
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</TABLE>
THE GABELLI ABC FUND
Section 10f-3 Transactions
The following securities were purchased
pursuant to Rule 10f-3
And all requirements of the Affiliated
Underwriting Procedures
Of the Fund. A folder documenting such
compliance for each
Transaction is available for inspection
by Board Members.
Trade
Date Issue
12/9/98 Infinity Broadcsting Corp.
Shares Price Amount
2,000 $20.50 $41,000
% of Issue
Spread Spread Fund's for all
Amount % % of issue Gabelli Funds
0.82 4.0% 0.001% 0.22%
Broker
Merrill Lynch & Co.
Issues Within
90 Days Reason
3 (1),(2)
The purchases listed above meet the following
requirements of 10f-3
...Part of an issue registered under the
Securities Act of 1933.
...Purchased at not more than the offering price.
...Offered pursuant to a firm commitment underwriting.
...The issuer has been in continuous operation for at
least 3 years.
All other requirements are presented in the table above.
Reason Key:
(1) Does not exceed 125% of the mean offering spread of 3
Comparable issues underwritten in the last 90 days.
(2) Does not exceed 110% of the underwriting spread of 3
Comparable issues underwritten in the last 90 days.
Note: If 3 comparable issues are not available within 90
days,
A one year window is used.
Underwriters of Infinity Broadcasting Corporation
U.S. Underwriters Number of Shares
Merrill Lynch, Pierce, Fenner & Smith
Incorporated 28,560,027
BT Alex. Brown Incorporated 14,280,000
Goldman, Sachs & Co. 14,280,000
Allen & Company Incorporated 3,570,000
Credit Suisse First Boston Corporation 3,570,000
Donaldson, Lufkin & Jenrette Securities
Corporation 7,140,000
Lehman Brothers Inc. 7,140,000
Morgan Stanley & Co. Incorporated 7,140,000
NationsBanc Montgomery Securities LLC 3,570,000
Salomon Smith Barney Inc. 7,140,000
Bear, Stearns & Co. Inc. 2,082,500
Deutsche Bank Securities Inc. 2,082,500
ING Baring Furman Selz LLC 2,082,500
Lazard Freres & Co. LLC 2,082,500
PaineWebber Incorporated 2,082,500
Sanford C. Bernstein & Co., Inc. 2,082,500
Schroder & Co. Inc. 2,082,500
SG Cowen Securities Corporation 2,082,500
ABN AMRO Incorporated 595,000
BancBoston Robertson Stephens Inc. 595,000
Chase Securities Inc. 595,000
J.P. Morgan Securities Inc. 595,000
Wasserstein Perella Securities, Inc. 595,000
A.G. Edwards & Sons, Inc. 171,469
Barrington Research Associates, Inc. 171,469
Blaylock & Partners, L.P. 171,469
J.C. Bradford & Co. 171,469
Doley Securities, Inc. 171,469
Fahnestock & Co. Inc. 171,469
Gabelli & Company, Inc. 171,469
Gerard Klauer Mattison & Co., Inc. 171,469
Guzman & Company 171,469
Legg Mason Wood Walker, Incorporated 171,469
May Davis Group 60,000
Morgan Keegan & Company, Inc. 171,469
Pryor, McClendon, Counts & Co., Inc. 171,469
Raymond James & Associates 171,469
Sanders Morris Mundy Inc. 171,469
Sands Brothers & Co., Ltd. 171,469
Utendahl Capital Partners, L.P. 171,469
Wheat First Securities, Inc. 171,469
Total 119,000,000
Board of Directors
The Gabelli Investor Funds, Inc.
(consisting of The Gabelli ABC Fund)
In planning and performing our audit of the
financial statements of The Gabelli Investor Funds,
Inc. for the year ended December 31, 1998, we
considered its internal control structure, including
procedures 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 the internal control structure.
The management of The Gabelli Investor Funds, Inc. is
responsible for establishing and maintaining an
internal control structure. In fulfilling this
responsibility, estimates and judgments by management
are required to assess the expected benefits and
related costs of internal control structure policies
and procedures. Two of the objectives of an
internal control structure are to provide management
with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized
use or disposition and that transactions are executed in
accordance with management's authorization and recorded
properly to permit preparation of financial statements
in conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not
be detected. Also, projection of any evaluation of the
structure 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 the internal control structure would
not necessarily disclose all matters in the internal
control structure 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 the
specific internal control structure elements 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 the internal control structure, including
procedures for safeguarding securities, that we consider
to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information
and use of management and the Securities and Exchange
Commission.
Grant Thornton
New York, New York
February 19, 1999
