TCW DW INCOME & GROWTH FUND, N-30D, 1995-09-28

TCW DW INCOME & GROWTH FUND
N-30D, 1995-09-28

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<PAGE>
TCW/DW INCOME AND GROWTH FUND
Two World Trade Center
New York, New York 10048

DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------

The first half of 1995 was an excellent period for the financial markets,
with falling interest rates and strong corporate earnings leading to
significantly higher bond and stock prices. In this environment both convertible
securities and high-yield bonds, TCW/DW Income and Growth Fund's dual areas of
investment, performed well.

For the six-month period ended July 31, 1995, the Fund registered a total
return of 14.11 percent. During the same period, the Standard & Poor's Composite
Stock Price Index (S&P 500) produced a total return of 21.07 percent, while the
Lehman Brothers Government/Corporate Bond Index posted a total return of 9.27
percent. Since its inception on March 31, 1993, the Fund has provided an average
annual total return of 9.64 percent, versus 12.93 percent and 5.78 percent for
the S&P 500 and Lehman Brothers Government/ Corporate Bond Index, respectively.
The Fund paid shareholders regular quarterly dividends totaling $0.30 per share
during the period under review.

Overall, the Fund's unique strategy and asset mix has enabled it to achieve
its investment objectives: a high level of current and the potential for capital
appreciation, as well as provide a yield that is competitive with that of the
bond market in general (as of July 31, 1995, the Fund's SEC yield and
distribution rate were 5.64 percent and 5.54 percent, respectively).

On July 31, 1995, the Fund had net assets totaling approximately $54.7
million. The Fund's holdings in both the convertible and high-yield segments are
thoroughly diversified by sector, industry and company. The portfolio currently
includes over 120 holdings spread over 30 industries, with only two issues
representing over 2 percent of the Fund's total net assets.

CONVERTIBLE SECURITIES

Convertibles, which comprised approximately 58 percent of the portfolio on
July 31, 1995 performed well during the first half of 1995, as the advantageous
investment climate enabled this sector of the fixed-income market to capture
approximately three-fourths of the S&P 500's upside. In fact, through the end of
July, the convertible market posted its best six-month return in four years,
with the Goldman Sachs Convertible 100 Index producing a total return of 19.36
percent.

The recent robust increase in convertible prices has not diminished the
overall market's attractiveness. This is because the convertible market's
overall undervaluation was so marked. The Fund's investment manager, TCW Funds
Management, Inc. (TCW) believes convertibles still represent good value. As a
result, the Fund has been very active in the new-issue market, where the terms
have generally been most attractive.

Convertible new issuance has continued at a steady pace. Since the Fund's
last report to shareholders (dated January 31, 1995) 28 issues with a total net
value of approximately $5.5 billion have come to market. According to TCW,
convertible terms remain quite favorable when compared to those of the issues
which were brought to market during 1994. While current yields and conversion
premiums are similar relative to last year, investors in new issues are getting
slightly more call protection. The most notable change is the average maturity
on new-issue convertible bonds, which continues to decline, improving the
defensive nature of these securities.
<PAGE>
HIGH YIELD BONDS

High-yield bonds, which represented approximately 39 percent of the
portfolio on July 31, 1995, were positively impacted by the steep decline in
interest rates and improving credit quality of many companies. During the last
six months, bond prices have increased as interest rates have declined. In fact,
interest rates have declined quite significantly, with rates on 3-, 5-, 10- and
30-year bonds falling anywhere from 126 to 192 basis points (1.26 to 1.92
percentage points). Although high-yield price performance failed to keep pace
with the explosive U.S. Treasury market rally, the significant declines in
interest rates boosted the value of high-yield bonds.

Over the last six months, high-yield investors remained focused on the
impact a slowing economy would have on the fundamental credit quality of the
companies that issue bonds. During this period, BB-rated issues -- the most
interest-rate-sensitive subsector of the below-investment-grade universe --
outperformed the overall high-yield market. As of July 31, 1995, the high-yield
portfolio had approximately 18 percent of its net assets invested in BB-rated
issues.

Improved credit quality, declining interest rates and healthy demand fueled
new high-yield bond issuance during the first half of 1995, when more than $19
billion came to market. According to TCW, current technical market factors such
as trading volume and bond pricing are quite favorable, and suggests that the
pace of new-issue activity is likely to remain strong in the months ahead.

OUTLOOK

Going forward, TCW believes that the convertible and high-yield sectors will
continue to represent attractive alternatives relative to common stocks and
high-quality bonds. The Fund's portfolio management team is enthusiastic about
the long-term prospects for both sectors of the portfolio, and will continue to
search for attractive securities to purchase in each area.

We appreciate your support of TCW/DW Income and Growth Fund and look forward
to continuing to serve your financial needs.

Very truly yours,

[LOGO]
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (39.0%)
AUTO PARTS (0.7%)
$ 425 Motor Wheel Corp. (Series B)............................................... 11.50% 03/01/00 $ 374,000
------------
BUSINESS SERVICES (1.9%)
550 Big Flower Press, Inc...................................................... 10.75 08/01/03 550,000
500 Jorgensen (Earle M.) Co.................................................... 10.75 03/01/00 487,500
------------
1,037,500
------------
CHEMICALS (0.7%)
375 NL Industries Inc.......................................................... 11.75 10/15/03 403,125
------------
CONSUMER PRODUCTS (1.3%)
435 La Petite Holdings Corp.................................................... 9.625 08/01/01 369,750
250 Revlon Consumer Products Corp.............................................. 9.50 06/01/99 250,000
130 Revlon Consumer Products Corp. (Series B).................................. 9.375 04/01/01 128,212
------------
747,962
------------
ENERGY (2.7%)
335 Energy Ventures, Inc....................................................... 10.25 03/15/04 341,700
640 Flores & Rucks, Inc........................................................ 13.50 12/01/04 720,000
380 TransTexas Gas Corp........................................................ 11.50 06/15/02 394,250
------------
1,455,950
------------
ENTERTAINMENT (1.0%)
500 AMC Entertainment Inc...................................................... 11.875 08/01/00 545,625
------------
ENTERTAINMENT/GAMING (3.4%)
500 Aztar Corp................................................................. 11.00 10/01/02 500,000
750 Bally's Grand, Inc. (Series B)............................................. 10.375 12/15/03 742,500
640 Bally's Park Place Funding, Inc............................................ 9.25 03/15/04 612,800
------------
1,855,300
------------
FINANCIAL SERVICES (0.8%)
400 American Annuity Group, Inc................................................ 11.125 02/01/03 418,000
------------
HOSPITAL MANAGEMENT (0.5%)
250 OrNda HealthCorp........................................................... 12.25 05/15/02 275,000
------------
INDUSTRIALS (0.5%)
260 Cott Corp. (Canada)........................................................ 9.375 07/01/05 262,600
------------
MANUFACTURING (6.0%)
390 MVE Inc. (Units)++......................................................... 12.50 02/15/02 413,400
575 Newflo Corp................................................................ 13.25 11/15/02 580,750
500 Sweetheart Cup............................................................. 10.50 09/01/03 487,500
630 Talley Manufacturing & Technology Inc...................................... 10.75 10/15/03 630,787
600 Telex Communications Inc................................................... 12.00 07/15/04 618,000
515 Waters Corp. (Series B).................................................... 12.75 09/30/04 547,188
------------
3,277,625
------------
MEDIA GROUP (3.2%)
375 Ackerly Communications, Inc. (Series B).................................... 10.75 10/01/03 393,750
545 Garden State Newspapers, Inc............................................... 12.00 07/01/04 545,000
250 Heritage Media Services Inc................................................ 11.00 06/15/02 269,063
500 K-III Communications Corp.................................................. 10.625 05/01/02 532,500
------------
1,740,313
------------
<PAGE>
</TABLE>

TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
METALS & MINING (0.3%)
$ 185 Weirton Steel Corp. - 144A*................................................ 10.75% 06/01/05 $ 175,750
------------
MULTI-INDUSTRY (1.3%)
250 Bell & Howell Co........................................................... 10.75 10/01/02 269,375
500 Valcor, Inc................................................................ 9.625 11/01/03 452,500
------------
721,875
------------
PACKAGING & BOTTLING (0.7%)
375 Plastic Containers, Inc.................................................... 10.75 04/01/01 390,000
------------
PAPER & FOREST PRODUCTS (2.5%)
685 Malette, Inc. (Canada)..................................................... 12.25 07/15/04 760,350
550 Stone Container Corp....................................................... 10.75 10/01/02 584,375
------------
1,344,725
------------
RESTAURANTS (2.0%)
690 Family Restaurants, Inc.................................................... 9.75 02/01/02 407,100
360 Flagstar Corp.............................................................. 10.75 09/15/01 340,200
380 Flagstar Corp.............................................................. 10.875 12/01/02 355,300
------------
1,102,600
------------
RETAIL (2.0%)
550 Brylane L.P. (Series B).................................................... 10.00 09/01/03 511,500
600 Cole National Group, Inc................................................... 11.25 10/01/01 583,500
------------
1,095,000
------------
RETAIL - DEPARTMENT STORES (0.9%)
540 Hills Stores Co............................................................ 10.25 09/30/03 513,000
------------
SUPERMARKETS (0.3%)
198 Homeland Stores, Inc. (Series B)........................................... 11.75 03/01/99 148,500
------------
TELECOMMUNICATIONS (1.5%)
730 Mobile Telecommunication Technologies Corp................................. 13.50 12/15/02 799,350
------------
TEXTILES - APPAREL MANUFACTURERS (2.4%)
500 Ithaca Industries, Inc..................................................... 11.125 12/15/02 475,000
400 Reeves Industries Inc...................................................... 11.00 07/15/02 420,000
500 Salant Corp................................................................ 10.50 12/31/98 400,000
------------
1,295,000
------------
TRANSPORTATION (1.4%)
550 Moran Transportation Co.................................................... 11.75 07/15/04 500,500
235 SFP Pipeline Holdings, Inc................................................. 11.16+ 08/15/10 291,400
------------
791,900
------------
UTILITIES (1.0%)
490 Texas-New Mexico Power Co.................................................. 10.75 09/15/03 519,400
------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $21,850,445).............................................. 21,290,100
------------
</TABLE>

<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
CONVERTIBLE BONDS (44.0%)
BROADCASTING (0.5%)
$ 275 Scandinavian Broadcasting (Luxembourg)..................................... 7.25% 08/01/05 $ 288,750
------------
BUILDING MATERIALS (0.3%)
210 Cemex S.A. - 144A* (Mexico)................................................ 4.25 11/01/97 170,100
------------
BUSINESS SERVICES (2.8%)
565 Danka Business Systems - 144A*............................................. 6.75 04/01/02 672,350
290 McKesson Corp. (1)......................................................... 4.50 03/01/04 258,100
515 Omnicom Group, Inc. - 144A*................................................ 4.50 09/01/00 583,727
------------
1,514,177
------------
COMPUTER EQUIPMENT (2.8%)
310 3Com Corp. - 144A*......................................................... 10.25 11/01/01 426,482
335 EMC Corp................................................................... 4.25 01/01/01 427,962
250 Storage Technology Corp.................................................... 8.00 05/31/15 248,437
420 Unisys Corp................................................................ 8.25 08/01/00 431,550
------------
1,534,431
------------
COMPUTER SOFTWARE & SERVICES (2.8%)
890 First Financial Management Corp............................................ 5.00 12/15/99 1,239,895
195 Sterling Software, Inc..................................................... 5.75 02/01/03 286,668
------------
1,526,563
------------
CONGLOMERATES (0.6%)
320 Renong Berhad - 144A* (Malaysia)........................................... 2.00 07/15/05 322,800
------------
DRUGS & HEALTHCARE (0.6%)
705 Elan International Finance Ltd. (Ireland).................................. 0.00 10/16/12 333,994
------------
ELECTRONICS (0.4%)
405 Audiovox Corp. - 144A*..................................................... 6.25 03/15/01 253,251
------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS (1.6%)
395 Altera Corp. - 144A*....................................................... 5.75 06/15/02 497,206
290 Integrated Device Technology............................................... 5.50 06/01/02 364,559
------------
861,765
------------
FOODS & BEVERAGES (0.5%)
280 Grand Metropolitan PLC - 144A* (United Kingdom)............................ 6.50 01/31/00 297,178
------------
HOTELS (0.7%)
280 Hospitality Franchise Systems, Inc......................................... 4.50 10/01/99 369,597
------------
INSURANCE (2.1%)
250 Aegon N.V. (Netherlands)................................................... 4.75 11/01/04 325,162
285 Chubb Capital Corp......................................................... 6.00 05/15/98 298,894
925 USF&G Corp................................................................. 0.00 03/03/09 513,375
------------
1,137,431
------------
LEISURE (0.7%)
1,335 Coleman Worldwide Corp..................................................... 0.00 05/27/13 403,837
------------
<PAGE>
</TABLE>

TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
MACHINERY - DIVERSIFIED (0.6%)
$ 300 Cooper Industries, Inc..................................................... 7.05% 01/01/15 $ 306,000
------------
MEDIA GROUP (4.0%)
700 Comcast Corp............................................................... 3.375 09/09/05 689,500
245 Nelson (Thomas), Inc. - 144A*.............................................. 5.75 11/30/99 311,407
1,445 News America Holdings, Inc................................................. 0.00 03/11/13 711,663
460 Time Warner, Inc........................................................... 8.75 01/10/15 479,550
------------
2,192,120
------------
MEDICAL SERVICES (2.7%)
535 Healthsouth Rehabilitation Corp............................................ 5.00 04/01/01 623,596
275 Integrated Health Services, Inc............................................ 5.75 01/01/01 314,188
310 Integrated Health Services, Inc.- 144A*.................................... 5.75 01/01/01 351,664
220 Theratx Inc. - 144A*....................................................... 8.00 02/01/02 211,310
------------
1,500,758
------------
METALS (0.7%)
355 Allegheny Ludlum Corp...................................................... 5.875 03/15/02 392,126
------------
OIL & GAS PRODUCTS (2.1%)
345 Apache Corp................................................................ 6.00 01/15/02 384,461
255 Pennzoil Co. (2)........................................................... 6.50 01/15/03 310,131
495 Pennzoil Co. (2)........................................................... 4.75 10/01/03 474,393
------------
1,168,985
------------
PAPER & FOREST PRODUCTS (1.4%)
325 Riverwood International Corp............................................... 6.75 09/15/03 455,809
285 Sappi BVI Finance Ltd. - 144A* (South Africa).............................. 7.50 08/01/02 295,688
------------
751,497
------------
POLLUTION CONTROL (5.8%)
600 Laidlaw Inc. - 144A* (Canada) (3).......................................... 6.00 01/15/99 676,020
870 Thermo Electron Corp....................................................... 5.00 04/15/01 1,241,925
300 Thermo Process Systems Inc................................................. 6.50 08/04/97 348,000
350 U.S. Filter Corp........................................................... 5.00 10/15/00 396,375
550 WMX Technologies, Inc...................................................... 2.00 01/24/05 495,000
------------
3,157,320
------------
REAL ESTATE (0.6%)
300 HD Finance Cayman Ltd. - 144A* (Cayman Islands)............................ 6.75 06/01/00 303,750
------------
REAL ESTATE INVESTMENT TRUST (1.7%)
300 Camden Property Trust...................................................... 7.33 04/01/01 293,754
285 Capstone Capital Corp...................................................... 10.50 04/01/02 313,722
335 Liberty Property Trust..................................................... 8.00 07/01/01 334,581
------------
942,057
------------
RESTAURANTS (0.7%)
1,465 Boston Chicken Inc......................................................... 0.00 06/01/15 358,925
------------
<PAGE>
</TABLE>

<TABLE>
<CAPTION>
NUMBER OF
SHARES
- -----------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (14.3%)
AUTO PARTS (0.5%)
4,550 Federal Mogul Corp. - 144A* $3.875........................................................... 285,799
------------
BUILDING MATERIALS (0.6%)
5,700 Owens-Corning Capital LLC $3.25.............................................................. 306,734
------------
COMPUTER SOFTWARE & SERVICES (2.3%)
14,900 General Motors Corp. (Series C) $3.25 (4).................................................... 938,700
4,700 Houghton Mifflin Co. $4.08 (5)............................................................... 319,600
------------
1,258,300
------------
FINANCIAL (1.0%)
1,600 Allstate Corp. (The) $2.30 (6)............................................................... 68,000
8,700 St. Paul Capital LLC $3.00................................................................... 456,750
------------
524,750
------------
FINANCIAL SERVICES (1.1%)
6,400 First USA, Inc. $1.992....................................................................... 261,600
6,600 Merrill Lynch & Co., Inc. $3.12 (7).......................................................... 332,475
------------
594,075
------------
FUNERAL SERVICES (0.7%)
6,200 SCI Finance LLC (Series A) $3.125............................................................ 406,875
------------
INSURANCE (0.6%)
5,900 American General Delaware (Series A) $3.00................................................... 320,075
------------
MEDICAL SERVICES (0.4%)
8,300 FHP International Corp. (Series A) $1.25..................................................... 212,687
------------
<PAGE>
</TABLE>

TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------
<C> <S> <C>
MISCELLANEOUS (0.6%)
23,600 Westinghouse Electric Corp. (Series C) - 144A* $1.30......................................... $ 327,450
------------
OIL & GAS PRODUCTS (2.6%)
9,600 Occidental Petroleum Corp. (Series A) $3.00 (8).............................................. 596,400
9,300 Occidental Petroleum Corp. - 144A* $3.875.................................................... 521,386
7,400 Parker & Parsley Capital LLC (Cayman Islands) - 144A* $3.12.................................. 322,825
------------
1,440,611
------------
PAPER PRODUCTS (0.7%)
7,500 International Paper Capital Trust - 144A* $2.625............................................. 361,875
------------
REAL ESTATE INVESTMENT TRUST (0.3%)
7,800 Security Capital Pacific (Series A) $1.75.................................................... 175,500
------------
TELECOMMUNICATIONS (0.5%)
6,900 MFS Communications Company, Inc. $2.68....................................................... 261,338
------------
TELECOMMUNICATIONS EQUIPMENT (0.8%)
9,000 Corning Delaware, L.P. $3.00................................................................. 455,625
------------
WASTE MANAGEMENT (0.8%)
12,000 Browning-Ferris Industries, Inc. $2.583...................................................... 462,000
------------
WHOLESALE DISTRIBUTOR (0.8%)
5,100 Alco Standard Corp. $5.04.................................................................... 413,100
------------
TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $7,344,778).............................. 7,806,794
------------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE
- ----------- --------- ---------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENT (0.9%)
REPURCHASE AGREEMENT
$ 515 The Bank of New York (dated 07/31/95; proceeds $514,600; collateralized by
$517,901 Federal Mortgage Acceptance Corp. 8.50% due 02/01/08 valued at
$534,840) (Identified Cost $514,517).................................... 5.8125% 08/01/95 514,517
------------
TOTAL INVESTMENTS (IDENTIFIED COST $50,948,144) (A)........................ 98.2% 53,665,956
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............................. 1.8 990,184
----- ----------
NET ASSETS................................................................. 100.0% $54,656,140
----- ----------
----- ----------
<FN>
- ------------------
* RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
+ VARIABLE RATE. RATE SHOWN IS THE RATE IN EFFECT AT JULY 31, 1995.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY BONDS WITH ATTACHED WARRANTS.
(1) EXCHANGEABLE INTO ARMOR ALL PRODUCTS CORP. COMMON STOCK.
(2) EXCHANGEABLE INTO CHEVRON CORP. COMMON STOCK.
(3) EXCHANGEABLE INTO ADT COMMON STOCK.
(4) EXCHANGEABLE INTO GENERAL MOTORS CORP. CLASS E COMMON STOCK.
(5) EXCHANGEABLE INTO INSO CORP. COMMON STOCK.
(6) EXCHANGEABLE INTO PMI GROUP INC. COMMON STOCK.
(7) EXCHANGEABLE INTO MGIC INVESTMENT CORP. COMMON STOCK.
(8) EXCHANGEABLE INTO CANADIAN OCCIDENTAL PETROLEUM COMMON STOCK.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $50,964,748; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $4,074,458 AND THE GROSS
UNREALIZED DEPRECIATION IS $1,373,250, RESULTING IN NET UNREALIZED
APPRECIATION OF $2,701,208.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
JULY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $50,948,144)............. $53,665,956
Cash........................................ 534,600
Receivable for:
Interest.................................. 904,549
Investments sold.......................... 234,053
Shares of beneficial interest sold........ 54,012
Dividends................................. 15,692
Deferred organizational expenses............ 106,218
Prepaid expenses............................ 50,803
----------
TOTAL ASSETS........................ 55,565,883
----------
LIABILITIES:
Payable for:
Investments purchased..................... 727,788
Shares of beneficial interest
repurchased............................. 41,805
Plan of distribution fee.................. 34,510
Management fee............................ 20,706
Investment advisory fee................... 13,804
Accrued expenses............................ 71,130
----------
TOTAL LIABILITIES................... 909,743
----------
NET ASSETS:
Paid-in-capital............................. 52,917,589
Net unrealized appreciation................. 2,717,812
Accumulated undistributed net investment
income.................................... 525,587
Accumulated net realized loss............... (1,504,848)
----------
NET ASSETS.......................... $54,656,140
----------
----------
NET ASSET VALUE PER SHARE, 5,047,964 shares
outstanding (unlimited shares authorized
of $.01 par value)........................
$10.83
----------
----------
</TABLE>

Statement of Operations
FOR THE SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)

<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Interest................................. $1,977,253
Dividends................................ 158,956
---------
TOTAL INCOME......................... 2,136,209
---------
EXPENSES
Plan of distribution fee................. 201,491
Management fee........................... 120,894
Investment advisory fee.................. 80,596
Shareholder reports and notices.......... 48,332
Professional fees........................ 43,815
Transfer agent fees and expenses......... 32,114
Trustees' fees and expenses.............. 26,717
Organizational expenses.................. 19,740
Registration fees........................ 19,208
Custodian fees........................... 9,264
Other.................................... 8,884
---------
TOTAL EXPENSES....................... 611,055
---------
NET INVESTMENT INCOME.............. 1,525,154
---------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss........................ (96,308)
Net change in unrealized depreciation.... 5,717,469
---------
NET GAIN............................. 5,621,161
---------
NET INCREASE....................... $7,146,315
---------
---------
</TABLE>

Statement of Changes in Net Assets
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
------------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................... $ 1,525,154 $ 3,672,205
Net realized loss....................................................... (96,308) (1,403,098)
Net change in unrealized appreciation/depreciation...................... 5,717,469 (6,521,213)
------------------- ---------------
Net increase (decrease)............................................. 7,146,315 (4,252,106)
------------------- ---------------
Dividends and distributions to shareholders from:
Net investment income................................................... (1,563,691) (3,431,721)
Net realized gain....................................................... -- (330,646)
------------------- ---------------
Total............................................................... (1,563,691) (3,762,367)
------------------- ---------------
Net decrease from transactions in shares of beneficial interest........... (6,261,614) (1,019,966)
------------------- ---------------
Total decrease...................................................... (678,990) (9,034,439)
NET ASSETS:
Beginning of period....................................................... 55,335,130 64,369,569
------------------- ---------------
END OF PERIOD (including undistributed net investment income of $525,587
and $564,232, respectively).............................................. $54,656,140 $55,335,130
------------------- ---------------
------------------- ---------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

1. ORGANIZATION AND ACCOUNTING POLICIES--TCW/DW Income and Growth 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
was organized as a Massachusetts business trust on November 23, 1992 and
commenced operations on March 31, 1993.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS--(1) an equity security listed or traded on the
New York or American 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 by the Adviser); (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 the Adviser 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) portfolio securities may be valued by an
outside pricing service approved by the Trustees. The pricing service
utilizes a matrix system incorporating security quality, maturity and coupon
as the evaluation model parameters, and/or research and evaluation 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 on securities purchased are accreted over the life of the
respective securities. Dividend income is recorded on the ex-dividend date.
Interest income is accrued daily.

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 ex-dividend 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 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
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.

E. ORGANIZATIONAL EXPENSES--Dean Witter InterCapital Inc. ("InterCapital"),
an affiliate of Dean Witter Services Company Inc. (the "Manager"), paid the
organizational expenses of the Fund in the amount of approximately $206,000
of which the Fund reimbursed InterCapital for the maximum amount of
$200,000. Such expenses have been deferred and are being amortized by the
Fund on the straight line method over a period not to exceed five years from
the commencement of operations.

2. MANAGEMENT AGREEMENT--Pursuant to a Management Agreement, the Fund pays its
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 0.45% to the portion of daily net assets not exceeding
$500 million and 0.42% to the portion of the daily net assets exceeding $500
million.

Under the terms of the Management Agreement, the 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 Manager. The Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.

3. INVESTMENT ADVISORY AGREEMENT--Pursuant to an Investment Advisory Agreement
with TCW Funds Management, Inc. (the "Adviser"), the Fund pays the Adviser an
advisory fee, accrued daily and payable monthly, by applying the following
annual rates to the net assets of the Fund determined as of the close of each
business day: 0.30% to the portion of daily net assets not exceeding $500
million and 0.28% to the portion of the daily net assets exceeding $500 million.

Under the terms of the Investment Advisory Agreement, the Fund has retained
the Adviser to invest the Fund's assets, including placing orders for the
purchase and sale of portfolio securities. The Adviser obtains and evaluates
such information and advice relating to the economy, securities markets, and
specific securities as it considers necessary or useful to continuously manage
the assets of the Fund in a manner consistent with its investment objective. In
addition, the Adviser pays the salaries of all personnel, including officers of
the Fund, who are employees of the Adviser.

4. PLAN OF DISTRIBUTION--Dean Witter Distributors Inc. (the "Distributor"), an
affiliate of the Manager, is the distributor of the Fund's shares and, in
accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under
the Act, finances certain expenses in connection therewith.

Under the Plan, the Distributor bears the expense of all promotional and
distribution related activities on behalf of the Fund, except for expenses that
the Trustees determine to reimburse, as described below. The following
activities and services may be provided by the Distributor, Dean Witter Reynolds
Inc. ("DWR"), an affiliate of the Distributor and Manager, its affiliates and
any other selected broker-dealers under the Plan: (1) compensation to, and
expenses of, DWR's account executives and others, including overhead and
telephone expenses; (2) sales incentives and bonuses to sales representatives
and to marketing personnel in connection with promoting sales of the Fund's
shares; (3) expenses incurred in connection with promoting sales of the Fund's
shares; (4) preparing and distributing sales literature; and (5) providing
advertising and promotional activities, including direct mail solicitation and
television, radio, newspaper, magazine and other media advertisements.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------

The Fund is authorized to reimburse the Distributor for specific expenses
the Distributor incurs or plans to incur in promoting the distribution of the
Fund's shares. The amount of each monthly reimbursement payment may in no event
exceed an amount equal to a payment at the annual rate of 0.75% of the Fund's
average daily net assets during the month. Expenses incurred by the Distributor
pursuant to the Plan in any fiscal year will not be reimbursed by the Fund
through payments accrued in any subsequent fiscal year. For the six months ended
July 31, 1995, the distribution fee was accrued at the annual rate of 0.75%.

5. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES--The cost of
purchases and proceeds from sales of portfolio securities, excluding short-term
investments, for the six months ended July 31, 1995 aggregated $16,275,618 and
$22,281,079, respectively.

Dean Witter Trust Company, an affiliate of the Manager and Distributor, is
the Fund's transfer agent. At July 31, 1995, the Fund had transfer agent fees
and expenses payable of approximately $8,000.

6. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest
were as follows:

<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE YEAR ENDED
ENDED JULY 31, 1995 JANUARY 31, 1995
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold................................................... 451,304 $ 4,652,556 3,780,123 $ 39,576,992
Reinvestment of dividends and distributions............ 116,349 1,195,699 293,254 2,964,507
----------- -------------- ----------- --------------
567,653 5,848,255 4,073,377 42,541,499
Repurchased............................................ (1,184,479) (12,109,869) (4,268,571) (43,561,465)
----------- -------------- ----------- --------------
Net decrease........................................... (616,826) $ (6,261,614) (195,194) $ (1,019,966)
----------- -------------- ----------- --------------
----------- -------------- ----------- --------------
</TABLE>

7. FEDERAL INCOME TAX STATUS--At January 31, 1995, the Fund had a net capital
loss carryover of approximately $981,000 which will be available through January
31, 2003 to offset future capital gains to the extent provided by regulations.
Capital losses incurred after October 31 ("post-October" losses) within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. The Fund incurred and will elect to defer net capital losses of
approximately $411,000 during fiscal 1995. At January 31, 1995, the Fund had
temporary book/tax differences primarily attributable to post-October losses.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX MARCH 31,
MONTHS ENDED FOR THE YEAR 1993*
JULY 31, ENDED THROUGH
1995 JANUARY 31, JANUARY 31,
(UNAUDITED) 1995 1994
------------ -------------- --------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period............................... $ 9.77 $ 10.98 $ 10.00
------------ ------- -------
Net investment income.............................................. 0.30 0.59 0.45
Net realized and unrealized gain (loss)............................ 1.06 (1.20) 1.02
------------ ------- -------
Total from investment operations................................... 1.36 (0.61) 1.47
------------ ------- -------
Less dividends and distributions from:
Net investment income............................................ (0.30) (0.55) (0.39)
Net realized gain................................................ -- (0.05) (0.10)
------------ ------- -------
Total dividends and distributions.............................. (0.30) (0.60) (0.49)
------------ ------- -------
Net asset value, end of period..................................... $ 10.83 $ 9.77 $ 10.98
------------ ------- -------
------------ ------- -------

TOTAL INVESTMENT RETURN............................................ 14.11%(1) (5.59)% 15.06%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................................................... 2.27%(2) 2.04% 1.57%(2)(3)
Net investment income.............................................. 5.68%(2) 5.83% 5.62%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)........................... $ 54,656 $ 55,335 $ 64,370
Portfolio turnover rate............................................ 31%(1) 88% 84%(1)
</TABLE>

- --------------
* COMMENCEMENT OF OPERATIONS.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) IF THE FUND HAD BORNE ALL EXPENSES THAT WERE ASSUMED OR WAIVED BY THE
MANAGER AND INVESTMENT ADVISER, THE ABOVE ANNUALIZED EXPENSE AND NET
INVESTMENT INCOME RATIOS WOULD HAVE BEEN 2.00% AND 5.18%, RESPECTIVELY.

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>

TRUSTEES

John C. Argue
Richard M. DeMartini
Charles A. Fiumefreddo
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Thomas E. Larkin, Jr.
Michael E. Nugent
John L. Schroeder
Marc I. Stern

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Thomas E. Larkin, Jr.
President

Sheldon Curtis
Vice President, Secretary and General Counsel

Howard S. Marks
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT

Dean Witter Trust Company
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

MANAGER

Dean Witter Services Company Inc.

ADVISOR

TCW Funds Management, Inc.

The financial statements included herein have been taken from the records of the
Trust without examination by the independent accountants and accordingly they do
not express an opinion thereon.

This report is submitted for the general information of shareholders of the
Trust. For more detailed information about the Trust, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospectus of the Trust.

This report is not authorized for distribution to prospective investors in the
Trust unless preceded or accompanied by an effective prospectus.

TCW/DW

INCOME AND GROWTH FUND

[Graphic]

SEMIANNUAL REPORT
JULY 31, 1995