TCW DW INCOME & GROWTH FUND, N-30D, 1996-03-26

TCW DW INCOME & GROWTH FUND
N-30D, 1996-03-26

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

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

The past year began with most investors pessimistic about the outlook for
the financial markets. After a difficult 1994, the prospect of continued Federal
Reserve Board tightening made the investment outlook seem bleak. However, as
frequently occurs, investors began to sense that the rise in interest rates had
run its course, and the stock market rallied. This signaled the start of one of
the best years on record for both the stock and bond markets and also created an
excellent environment for both convertible securities and high yield bonds as
well.

PERFORMANCE

For the fiscal year ended January 31, 1996, TCW/DW Income and Growth Fund
produced a total return of 20.52 percent, compared to 38.64 percent for the
Standard & Poor's 500 Composite Stock Price Index (S&P 500) and 17.72 percent
for the Lehman Brothers Government/Corporate Bond Index. Since its inception on
March 31, 1993, the Fund has provided an average annual total return of 9.97
percent versus 15.92 and 7.53 percent for the S&P 500 and the Lehman Brothers
Government/Corporate Bond Index, respectively.

The accompanying chart illustrates the performance of a $10,000 investment
in the Fund since inception through the fiscal year ended January 31, 1996,
versus the performance of a similar hypothetical investment in the issues
comprising the S&P 500 and the Lehman Brothers Government/Corporate Bond Index.

CONVERTIBLE SECURITIES

The new-issue convertible market provided investors with many attractive
investment opportunities during the fiscal year, with 63 new issues representing
a net value of $12.4 billion coming to market. The average size of new domestic
convertible issues was $174 million, with an average yield of approximately 5
percent, an average conversion premium of approximately 21 percent and average
call protection of approximately 3 years. While yields have declined along with
the overall level of interest rates, conversion premiums and call protection
generally remained steady during the fiscal year.

While new-issue activity remains steady, convertible redemptions have also
increased. For example, many of the issues that came to market in 1993 will see
their call protection expire during 1996 and will be redeemed. In 1995, total
redemptions totaled $14.8 billion. This exceeded new-issue activity and led to a
slight decline in the value of the convertible universe. Given the probability
of high redemptions in 1996, the Fund's investment adviser, TCW Funds
Management, Inc. (TCW), expects the overall domestic convertible universe to
continue to shrink somewhat in 1996.

HIGH YIELD BONDS

Although the high-yield sector posted a strong performance in 1995, it did
not keep pace with the rally in the U.S. Treasury market. This lag contributed
to a widening yield spread for high-yield bonds versus comparable U.S. Treasury
securities. According to TCW, throughout the year there was a direct correlation
between increased weightings of higher-credit-quality, more
interest-rate-sensitive, BB-rated securities and better portfolio performance.
The high-yield market continued to be supported by strength in the U.S. Treasury
and equity markets, as well as by strong positive cash flows into high-yield
mutual funds. For the fiscal year, new high-yield issuance totaled $44 billion,
the second-largest annual total ever recorded. The cable media and
telecommunications sectors dominated and accounted for approximately 40 percent
of new issuance.
<PAGE>
It is TCW's view that the favorable technical conditions that currently exist in
the high-yield market will persist in the months ahead. Market liquidity remains
strong, with cash positions held by high-yield mutual funds averaging eight
percent.

In 1996, the key to successful investing in the high-yield market will be
superior credit selection, according to TCW. Against a backdrop of increasing
defaults and decreasing correlation with interest rates, investors are likely to
be rewarded if they can avoid costly bankruptcies and capture the attractive
yield spread relative to U.S. Treasury securities.

OUTLOOK

The U.S. economy continued to grow at a moderate pace in the fourth quarter
although momentum is clearly slowing. In the adviser's view, the combination of
the government shutdown and poor weather conditions on the east coast will
further dampen growth in 1996's first quarter, perhaps even forcing it into
negative territory.

Clearly, after a disappointing Christmas, the consumer is retrenching.
Employment growth has slowed sharply during the last year and incomes remained
stagnant. Consumer debt, while not at prior peaks, is at high levels.
Furthermore, TCW believes that the baby boomers, faced with less job security,
paying for their children's educations and eventual retirement, will finally
choose to spend less. The adviser
believes this is a secular trend, which
should reduce consumption for many years
into the future.

Other areas of the economy are also
likely to slow relative to the pace of the
last 12 to 24 months. Capital investment,
which had been growing at a double-digit
pace, is likely to slow, possibly to a
range of five to ten percent growth,
according to TCW. Exports, should continue
to expand, with improving economic growth
in both Mexico and Japan, offset somewhat
by sluggish growth in Europe. The net
result of this environment should be real
gross domestic product growth of
approximately two percent for 1996.

The adviser believes that the
combination of slow economic growth,
competition from abroad, ongoing
productivity gains and a price conscious
consumer will restrain inflation in 1996.
The one risk to this forecast is an
increase in wage demands from workers
whose real wages have been stagnant for
years.

Despite the lack of a budget
agreement, TCW believes the central bank
may continue to ease, particularly given
the current state of the economy. This
should allow intermediate to long yields
to decline modestly and short-term rates
to fall more significantly.

With the economy continuing to
decelerate, the adviser believes corporate
profit comparisons will become more
difficult, particularly given the lack of
pricing power and intense competition.
There are likely to be more disappointing
earnings reports going forward, which will
create a headwind
<PAGE>
against further gains in the stock market. While TCW maintains a cautious
posture, the market will continue to benefit from declining interest rates and a
strong flow of funds. Therefore, stocks are expected to have a modest upside
from current levels, although the risks have increased significantly.

Finally, TCW believes that following last year's significant stock and bond
rallies, the markets are entering a more uncertain period. Returns are likely to
be lower and the risks have clearly risen. In this environment, the Fund remains
well diversified, with over 125 issues representing over 30 industries and only
one issue representing more than two percent of net assets.

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 JANUARY 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (38.7%)
AUTO PARTS (0.7%)
$ 440 Motor Wheel Corp. (Series B)............................................... 11.50% 03/01/00 $ 400,400
------------
BUSINESS SERVICES (1.9%)
320 Big Flower Press, Inc...................................................... 10.75 08/01/03 344,000
310 Jorgensen (Earle M.) Co.................................................... 10.75 03/01/00 295,275
450 Williamhouse-Regency - 144A*............................................... 13.00 11/15/05 479,250
------------
1,118,525
------------
CHEMICALS (0.7%)
375 NL Industries Inc.......................................................... 11.75 10/15/03 402,188
------------
CONSUMER PRODUCTS (0.7%)
435 La Petite Holdings Corp.................................................... 9.625 08/01/01 391,500
------------
ENERGY (1.3%)
640 Flores & Rucks, Inc........................................................ 13.50 12/01/04 729,600
------------
ENTERTAINMENT/GAMING (5.1%)
500 Aztar Corp................................................................. 11.00 10/01/02 510,000
750 Bally's Grand, Inc. (Series B)............................................. 10.375 12/15/03 780,000
640 Bally's Park Place Funding, Inc............................................ 9.25 03/15/04 654,400
845 Fitzgeralds Gaming Corp. (Units)++......................................... 13.00 12/31/02 794,300
165 Grand Casinos, Inc......................................................... 10.125 12/01/03 178,200
------------
2,916,900
------------
FINANCIAL SERVICES (0.8%)
400 American Annuity Group, Inc................................................ 11.125 02/01/03 432,000
------------
FOODS (1.4%)
340 American Rice, Inc......................................................... 13.00 07/31/02 319,600
500 Penn Traffic Co............................................................ 10.25 02/15/02 493,750
------------
813,350
------------
HOME BUILDING (0.6%)
350 U.S. Home Corp............................................................. 9.75 06/15/03 360,938
------------
HOSPITAL MANAGEMENT (1.3%)
665 OrNda HealthCorp........................................................... 12.25 05/15/02 733,162
------------
INDUSTRIALS (3.6%)
250 American Media Operations, Inc............................................. 11.625 11/15/04 256,875
260 Cott Corp. (Canada)........................................................ 9.375 07/01/05 263,250
500 Mobilemedia Communications, Inc............................................ 9.375 11/01/07 522,500
500 Rogers Communications, Inc................................................. 10.875 04/15/04 530,000
500 Showboat, Inc.............................................................. 9.25 05/01/08 505,000
------------
2,077,625
------------
<PAGE>
</TABLE>

TCW/DW Income and Growth Fund
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
MANUFACTURING (5.7%)
$ 335 Communications & Power Industries, Inc. (Series B)......................... 12.00% 08/01/05 $ 345,887
575 Newflo Corp................................................................ 13.25 11/15/02 595,125
500 Sweetheart Cup, Inc........................................................ 10.50 09/01/03 520,000
750 Talley Manufacturing & Technology Inc...................................... 10.75 10/15/03 757,500
600 Telex Communications Inc................................................... 12.00 07/15/04 627,000
407 Waters Technologies Corp. (Series B)....................................... 12.75 09/30/04 459,910
------------
3,305,422
------------
MEDIA GROUP (3.7%)
375 Ackerly Communications, Inc. (Series B).................................... 10.75 10/01/03 405,000
545 Garden State Newspapers, Inc............................................... 12.00 07/01/04 564,075
575 Heritage Media Services Inc................................................ 11.00 06/15/02 619,562
500 K-III Communications Corp.................................................. 10.625 05/01/02 533,750
------------
2,122,387
------------
MULTI-INDUSTRY (0.8%)
500 Valcor, Inc................................................................ 9.625 11/01/03 472,500
------------
PACKAGING & BOTTLING (0.7%)
375 Plastic Containers, Inc.................................................... 10.75 04/01/01 382,500
------------
PAPER & FOREST PRODUCTS (3.7%)
935 Malette, Inc. (Canada)..................................................... 12.25 07/15/04 1,037,850
500 Rainy River Forest Product (Canada)........................................ 10.75 10/15/01 550,000
550 Stone Container Corp....................................................... 10.75 10/01/02 564,438
------------
2,152,288
------------
REAL ESTATE INVESTMENT TRUST (0.7%)
415 Trizec Finance Ltd. (Canada)............................................... 10.875 10/15/05 431,600
------------
RETAIL (1.0%)
420 Cole National Group, Inc................................................... 11.25 10/01/01 423,150
160 Hills Stores Co............................................................ 10.25 09/30/03 152,400
------------
575,550
------------
TELECOMMUNICATIONS (1.4%)
730 Mobile Telecommunication Technologies Corp................................. 13.50 12/15/02 819,425
------------
TEXTILES - APPAREL MANUFACTURERS (0.5%)
205 Reeves Industries Inc...................................................... 11.00 07/15/02 182,450
150 Salant Corp................................................................ 10.50 12/31/98 125,250
------------
307,700
------------
TRANSPORTATION (1.5%)
550 Moran Transportation Co.................................................... 11.75 07/15/04 534,875
235 SFP Pipeline Holdings, Inc................................................. 11.16 08/15/10 310,200
------------
845,075
------------
UTILITIES (0.9%)
490 Texas-New Mexico Power Co.................................................. 10.75 09/15/03 524,300
------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $21,940,550).............................................. 22,314,935
------------
</TABLE>

<PAGE>
TCW/DW Income and Growth Fund
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
CONVERTIBLE BONDS (45.4%)
AUTO PARTS (0.9%)
$ 535 Magna International, Inc................................................... 5.00% 10/15/02 $ 537,311
------------
AUTOMOTIVE - REPLACEMENT PARTS (1.5%)
1,355 Exide Corp. - 144A*........................................................ 2.90 12/15/05 865,384
------------
BANKS - INTERNATIONAL (1.3%)
650 MBL International Finance (Bermuda)........................................ 3.00 11/30/02 727,701
------------
BIOTECHNOLOGY (0.6%)
305 Sepracor Inc. - 144A*...................................................... 7.00 12/01/02 350,180
------------
BROADCASTING (0.5%)
275 Scandinavian Broadcasting (Luxembourg)..................................... 7.25 08/01/05 293,562
------------
BUILDING MATERIALS (0.9%)
210 Cemex S.A. de C.V. - 144A* (Mexico)........................................ 4.25 11/01/97 186,900
340 TPI Polene Public Co. Ltd. - 144A* (Thailand).............................. 2.75 02/08/06 344,675
------------
531,575
------------
BUSINESS SERVICES (2.4%)
465 Danka Business Systems - 144A*............................................. 6.75 04/01/02 663,941
515 Omnicom Group, Inc. - 144A*................................................ 4.50 09/01/00 727,046
------------
1,390,987
------------
COMPUTER EQUIPMENT (1.8%)
300 EMC Corp................................................................... 4.25 01/01/01 334,722
250 Storage Technology Corp.................................................... 8.00 05/31/15 250,313
470 Unisys Corp................................................................ 8.25 08/01/00 464,125
------------
1,049,160
------------
COMPUTER SOFTWARE & SERVICES (1.6%)
125 Career Horizons, Inc. - 144A*.............................................. 7.00 11/01/02 160,000
130 First Financial Management Corp............................................ 5.00 12/15/99 222,447
595 Silicon Graphics, Inc. - 144A*............................................. 0.00 11/02/13 322,288
230 Telxon Corp. - 144A*....................................................... 5.75 01/01/03 225,460
------------
930,195
------------
CONGLOMERATES (0.5%)
300 Alfa S.A. de C.V. - 144A* (Mexico)......................................... 8.00 09/15/00 303,666
------------
CONSUMER SERVICES (0.6%)
340 Youth Services International, Inc. - 144A*................................. 7.00 02/01/06 343,825
------------
DRUGS & HEALTHCARE (0.7%)
630 Elan International Finance Ltd. (Ireland).................................. 0.00 10/16/12 395,955
------------
ELECTRONICS (3.0%)
630 General Instrument Corp.................................................... 5.00 06/15/00 671,668
935 Thermo Electron Corp....................................................... 4.25 01/01/03 1,069,406
------------
1,741,074
------------
<PAGE>
</TABLE>

TCW/DW Income and Growth Fund
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
ELECTRONICS - SEMICONDUCTORS/COMPONENTS (4.8%)
$ 260 Altera Corp. - 144A*....................................................... 5.75% 06/15/02 $ 373,467
475 Analog Devices............................................................. 3.50 12/01/00 505,367
1,210 National Semiconductor - 144A*............................................. 6.50 10/01/02 1,128,325
720 Xilinx Inc. - 144A*........................................................ 5.25 11/01/02 729,900
------------
2,737,059
------------
FINANCIAL (0.4%)
160 American Travellers Corp................................................... 6.50 10/01/05 222,389
------------
FOODS & BEVERAGES (0.6%)
120 Grand Metropolitan PLC (United Kingdom).................................... 6.50 01/31/00 136,800
180 Grand Metropolitan PLC - 144A* (United Kingdom)............................ 6.50 01/31/00 201,672
------------
338,472
------------
HEALTHCARE (1.7%)
230 American Medical Response, Inc. - 144A*.................................... 5.25 02/01/01 230,000
220 Assisted Living Concepts, Inc. - 144A*..................................... 7.00 07/31/05 268,400
215 Quantum Health Resources, Inc.............................................. 4.75 10/01/00 156,950
300 Tenet Healthcare Corp...................................................... 6.00 12/01/05 333,000
------------
988,350
------------
INDUSTRIALS (0.7%)
510 Convertible Trust - 144A*.................................................. 2.00 10/01/02 416,925
------------
INSURANCE (1.0%)
665 Mutual Risk Management - 144A*............................................. 0.00 10/30/15 268,061
600 USF&G Corp................................................................. 0.00 03/03/09 333,000
------------
601,061
------------
LEISURE (0.6%)
1,115 Coleman Worldwide Corp..................................................... 0.00 05/27/13 327,074
------------
MACHINERY (0.3%)
165 Thermo Optek Inc. - 144A*.................................................. 5.00 10/15/00 179,850
------------
MEDIA GROUP (2.5%)
700 Comcast Corp............................................................... 3.375 09/09/05 676,473
435 Comcast Corp............................................................... 1.125 04/15/07 223,359
125 Nelson (Thomas), Inc. - 144A*.............................................. 5.75 11/30/99 123,730
885 News America Holdings, Inc................................................. 0.00 03/11/13 410,861
------------
1,434,423
------------
MEDICAL SERVICES (1.2%)
365 Integrated Health Services, Inc............................................ 5.75 01/01/01 365,000
310 Integrated Health Services, Inc. - 144A*................................... 5.75 01/01/01 310,775
------------
675,775
------------
OIL & GAS PRODUCTS (0.7%)
345 Apache Corp. - 144A*....................................................... 6.00 01/15/02 381,442
------------
<PAGE>
</TABLE>

TCW/DW Income and Growth Fund
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- --------- --------- ------------
<C> <S> <C> <C> <C>
PAPER & FOREST PRODUCTS (0.5%)
$ 285 Sappi BVI Finance Ltd. - 144A* (South Africa).............................. 7.50% 08/01/02 $ 275,737
------------
PHARMACEUTICALS (0.6%)
390 Sandoz Capital BVI, Ltd. - 144A* (Switzerland)............................. 2.00 10/06/02 362,700
------------
POLLUTION CONTROL (2.8%)
290 Laidlaw Inc. - 144A* (Canada) (1).......................................... 6.00 01/15/99 350,900
350 U.S. Filter Corp........................................................... 5.00 10/15/00 457,625
370 U.S. Filter Corp. - 144A*.................................................. 6.00 09/15/05 427,350
450 WMX Technologies, Inc...................................................... 2.00 01/24/05 394,875
------------
1,630,750
------------
PUBLISHING (0.6%)
300 Scholastic Corp. - 144A*................................................... 5.00 08/15/05 340,701
------------
REAL ESTATE (0.6%)
300 HD Finance Cayman Ltd. - 144A* (Cayman Islands)............................ 6.75 06/01/00 344,250
------------
REAL ESTATE INVESTMENT TRUST (2.0%)
300 Camden Property Trust...................................................... 7.33 04/01/01 303,066
335 Liberty Property Trust..................................................... 8.00 07/01/01 358,869
330 LTC Properties, Inc........................................................ 8.50 01/01/01 359,700
125 LTC Properties, Inc........................................................ 7.75 01/01/02 125,625
------------
1,147,260
------------
RETAIL (3.1%)
245 Baby Superstore, Inc....................................................... 4.875 10/01/00 261,523
335 Federated Department Stores, Inc........................................... 5.00 10/01/03 334,280
480 Office Depot, Inc.......................................................... 0.00 11/01/08 270,960
925 Staples, Inc. - 144A*...................................................... 4.50 10/01/00 919,718
------------
1,786,481
------------
SCIENTIFIC INSTRUMENTS (0.1%)
35 Fisher Scientific International, Inc....................................... 4.75 03/01/03 38,150
------------
TELECOMMUNICATIONS (1.4%)
930 Motorola, Inc.............................................................. 0.00 09/27/13 690,525
310 U.S. Cellular Corp......................................................... 0.00 06/15/15 110,283
------------
800,808
------------
TRANSPORTATION (2.4%)
670 AMR Corp................................................................... 6.125 11/01/24 707,795
770 Delta Airlines, Inc........................................................ 3.23 06/15/03 696,165
------------
1,403,960
------------
WHOLESALE DISTRIBUTOR (0.5%)
255 Mercury Air Group.......................................................... 7.75 02/01/06 257,550
------------
TOTAL CONVERTIBLE BONDS (IDENTIFIED COST $24,467,188)............................................ 26,151,742
------------
<PAGE>
</TABLE>

TCW/DW Income and Growth Fund
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ---------
CONVERTIBLE PREFERRED STOCKS (12.6%)
<C> <S> <C> <C> <C>
AEROSPACE (0.5%)
18,700 Cooper Industries, Inc. $0.909............................................................... $ 289,850
------------
AUTO PARTS (0.6%)
5,550 Federal Mogul Corp. - 144A* $3.875........................................................... 330,225
------------
BROADCAST MEDIA (0.6%)
6,400 TCI Communications, Inc. (Series A) $2.125................................................... 320,800
------------
BUILDING MATERIALS (0.6%)
5,700 Owens-Corning Capital L.L.C. - 144A* $3.25................................................... 339,862
------------
COMPUTER SOFTWARE & SERVICES (2.1%)
15,300 General Motors Corp. (Series C) $3.25 (2).................................................... 1,195,312
------------
FINANCIAL (1.5%)
7,100 Advanta Corp. $3.19.......................................................................... 296,425
1,600 Allstate Corp. (The) $2.30 (3)............................................................... 71,000
8,700 St. Paul Capital L.L.C. $3.00................................................................ 511,125
------------
878,550
------------
FINANCIAL SERVICES (0.6%)
6,200 Merrill Lynch & Co., Inc. $3.12 (4).......................................................... 365,025
------------
FUNERAL SERVICES (0.8%)
6,200 SCI Finance L.L.C. (Series A) $3.125......................................................... 471,200
------------
OIL & GAS PRODUCTS (2.1%)
8,500 Enron Corp. $0.725........................................................................... 205,062
5,900 Occidental Petroleum Corp. - 144A* $3.875.................................................... 332,613
10,900 Occidental Petroleum Corp. (Series A) $3.00 (5).............................................. 662,175
------------
1,199,850
------------
PAPER PRODUCTS (0.5%)
6,500 International Paper Capital Trust - 144A* $2.625............................................. 312,813
------------
TELECOMMUNICATION EQUIPMENT (0.8%)
8,700 Corning Delaware, L.P. $3.00................................................................. 448,050
------------
TELECOMMUNICATIONS (0.8%)
8,400 MFS Communications Company, Inc. $2.68....................................................... 447,300
------------
WASTE MANAGEMENT (0.6%)
10,100 Browning-Ferris Industries, Inc. $2.583...................................................... 328,250
------------
WHOLESALE DISTRIBUTOR (0.5%)
4,000 Alco Standard Corp. $5.04.................................................................... 315,000
------------
TOTAL CONVERTIBLE PREFERRED STOCKS (IDENTIFIED COST $6,249,368).............................. 7,242,087
------------
</TABLE>

<PAGE>
TCW/DW Income and Growth Fund
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN COUPON MATURITY
THOUSANDS) RATE DATE VALUE
- ----------- ---------- --------- ------------
SHORT-TERM INVESTMENT (3.6%)
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT
$ 2,116 The Bank of New York (dated 01/31/96; proceeds $2,115,928; collateralized
by $2,851,646 U.S. Treasury Principal Strip due 05/15/01 valued at
$2,157,902) (Identified Cost $2,115,590)................................. 5.75% 02/01/96 $ 2,115,590
------------

TOTAL INVESTMENTS (IDENTIFIED COST $54,772,696) (A)........................ 100.3% 57,824,354

LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS............................. (0.3) (193,759)
----- ----------
NET ASSETS................................................................. 100.0% $57,630,595
----- ----------
----- ----------
<FN>
- ------------------
* RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY BONDS WITH ATTACHED WARRANTS.
(1) EXCHANGEABLE INTO ADT COMMON STOCK.
(2) EXCHANGEABLE INTO GENERAL MOTORS CORP. CLASS E COMMON STOCK.
(3) EXCHANGEABLE INTO PMI GROUP INC. COMMON STOCK.
(4) EXCHANGEABLE INTO MGIC INVESTMENT CORP. COMMON STOCK.
(5) EXCHANGEABLE INTO CANADIAN OCCIDENTAL PETROLEUM COMMON STOCK.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES IDENTIFIED
COST.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW Income and Growth Fund
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
JANUARY 31, 1996
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $54,772,696)............. $57,824,354
Cash........................................ 569,999
Receivable for:
Interest.................................. 868,937
Investments sold.......................... 571,892
Shares of beneficial interest sold........ 68,209
Dividends................................. 18,324
Deferred organizational expenses............ 86,151
Prepaid expenses............................ 28,000
----------
TOTAL ASSETS........................ 60,035,866
----------
LIABILITIES:
Payable for:
Investments purchased..................... 2,191,827
Shares of beneficial interest
repurchased............................. 68,328
Plan of distribution fee.................. 38,091
Management fee............................ 22,855
Investment advisory fee................... 15,236
Accrued expenses............................ 68,934
----------
TOTAL LIABILITIES................... 2,405,271
----------
NET ASSETS:
Paid-in-capital............................. 54,351,181
Net unrealized appreciation................. 3,051,658
Accumulated undistributed net investment
income.................................... 450,139
Accumulated net realized loss............... (222,383)
----------
NET ASSETS.......................... $57,630,595
----------
----------
NET ASSET VALUE PER SHARE, 5,177,668 shares
outstanding (unlimited shares authorized
of $.01 par value)........................
$11.13
----------
----------
</TABLE>

Statement of Operations
FOR THE YEAR ENDED JANUARY 31, 1996

<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Interest................................ $3,835,955
Dividends............................... 349,952
----------
TOTAL INCOME........................ 4,185,907
----------
EXPENSES
Plan of distribution fee................ 412,192
Management fee.......................... 247,315
Investment advisory fee................. 164,877
Professional fees....................... 90,175
Shareholder reports and notices......... 73,848
Transfer agent fees and expenses........ 56,542
Registration fees....................... 46,692
Trustees' fees and expenses............. 45,544
Organizational expenses................. 39,807
Custodian fees.......................... 19,578
Other................................... 15,934
----------
TOTAL EXPENSES...................... 1,212,504
----------
NET INVESTMENT INCOME............... 2,973,403
----------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain....................... 1,186,265
Net change in unrealized appreciation... 6,051,315
----------
NET GAIN............................ 7,237,580
----------
NET INCREASE........................ $10,210,983
----------
----------
</TABLE>

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

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, JANUARY 31,
1996 1995
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income....................................................... $ 2,973,403 $ 3,672,205
Net realized gain (loss).................................................... 1,186,265 (1,403,098)
Net change in unrealized appreciation/depreciation.......................... 6,051,315 (6,521,213)
--------------- ---------------
Net increase (decrease)................................................. 10,210,983 (4,252,106)
--------------- ---------------
Dividends and distributions from:
Net investment income....................................................... (3,087,769) (3,431,721)
Net realized gain........................................................... -- (330,646)
--------------- ---------------
Total................................................................... (3,087,769) (3,762,367)
--------------- ---------------
Net decrease from transactions in shares of beneficial interest............... (4,827,749) (1,019,966)
--------------- ---------------
Total increase (decrease)............................................... 2,295,465 (9,034,439)
NET ASSETS:
Beginning of period........................................................... 55,335,130 64,369,569
--------------- ---------------
END OF PERIOD (including undistributed net investment income of $450,139 and
$564,232, respectively)...................................................... $57,630,595 $55,335,130
--------------- ---------------
--------------- ---------------
</TABLE>

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

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's
investment objective is to generate high total return by providing a high level
of current income and the potential for capital appreciation. The Fund seeks to
achieve its objective by investing in bonds or preferred stock convertible into
common stock, other fixed income securities, common stocks and U.S. Government
securities. The Fund was organized as a Massachusetts business trust on November
23, 1992 and commenced operations on March 31, 1993.

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 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 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.

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

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
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., 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
$200,000 has been reimbursed. Such expenses have been deferred and are being
amortized 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 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 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.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

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.

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 year ended
January 31, 1996, 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 year ended January 31, 1996 aggregated $41,605,182 and
$46,771,195, respectively.

Dean Witter Trust Company, an affiliate of the Manager and Distributor, is
the Fund's transfer agent. At January 31, 1996, the Fund had transfer agent fees
and expenses payable of approximately $5,000.

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

<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JANUARY 31, 1996 JANUARY 31, 1995
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
Sold................................................... 1,236,686 $ 13,236,674 3,780,123 $ 39,576,992
Reinvestment of dividends and distributions............ 224,382 2,370,537 293,254 2,964,507
----------- -------------- ----------- --------------
1,461,068 15,607,211 4,073,377 42,541,499
Repurchased............................................ (1,948,190) (20,434,960) (4,268,571) (43,561,465)
----------- -------------- ----------- --------------
Net decrease........................................... (487,122) $ (4,827,749) (195,194) $ (1,019,966)
----------- -------------- ----------- --------------
----------- -------------- ----------- --------------
</TABLE>

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

7. FEDERAL INCOME TAX STATUS--At January 31, 1996, the Fund had a net capital
loss carryover of approximately $212,000 which will be available through January
31, 2003 to offset future capital gains to the extent provided by regulations.
During the year ended January 31, 1996, the Fund utilized approximately $769,000
of its net capital loss carryover.
<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
MARCH 31,
FOR THE YEAR FOR THE YEAR 1993*
ENDED ENDED THROUGH
JANUARY 31, JANUARY 31, JANUARY 31,
1996 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........................................... 0.59 0.59 0.45
Net realized and unrealized gain (loss)......................... 1.37 (1.20) 1.02
------- ------- -------
Total from investment operations................................ 1.96 (0.61) 1.47
------- ------- -------
Less dividends and distributions from:
Net investment income......................................... (0.60) (0.55) (0.39)
Net realized gain............................................. -- (0.05) (0.10)
------- ------- -------
Total dividends and distributions............................... (0.60) (0.60) (0.49)
------- ------- -------
Net asset value, end of period.................................. $ 11.13 $ 9.77 $ 10.98
------- ------- -------
------- ------- -------

TOTAL INVESTMENT RETURN......................................... 20.52% (5.59)% 15.06 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................................................ 2.21% 2.04% 1.57 %(2)(3)
Net investment income........................................... 5.41% 5.83% 5.62 %(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands......................... $ 57,631 $ 55,335 $ 64,370
Portfolio turnover rate......................................... 79% 88% 84 %(1)
</TABLE>

- --------------
* COMMENCEMENT OF OPERATIONS.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) IF THE FUND HAD BORNE ALL EXPENSES THAT WERE REIMBURSED 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>
TCW/DW INCOME AND GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of TCW/DW Income and Growth 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 TCW/DW Income and Growth Fund (the
"Fund") at January 31, 1996, 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 two years in the period
then ended and for the period March 31, 1993 (commencement of operations)
through January 31, 1994, 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 January 31, 1996 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
March 8, 1996

1996 FEDERAL TAX NOTICE (UNAUDITED)
During the year ended January 31, 1996, 11.78% of the income dividends
qualified for the dividends-received-deduction available to
corporations.
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
(This page has been left blank intentionally.)
<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

Robert M. Hanisee
Vice President

Kevin A. Hunter
Vice President

Mark L. Attanasio
Vice President

Melissa Weiler
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.

ADVISER

TCW Funds Management, Inc.

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]

ANNUAL REPORT
JANUARY 31, 1996

<PAGE>

TCW/DW INCOME AND GROWTH FUND

GROWTH OF $10,000

DATE TOTAL S&P LEHMAN GOVT/CORP
500 BOND INDEX
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1993 $10,000 $10,000 $10,000
- --------------------------------------------------------------------------------
January 31, 1994 $11,506 $10,912 $10,769
- --------------------------------------------------------------------------------
January 31, 1995 $10,863 $10,969 $10,434
- --------------------------------------------------------------------------------
January 31, 1996 $13,092 (2) $15,207 $12,283
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

AVERAGE ANNUAL TOTAL RETURN (FUND)
1 YEAR LIFE OF FUND
-------------------------------
-------------------------------
20.52 (1) 9.97 (1)
-------------------------------
-------------------------------

---------------------------------------------------
---------------------------------------------------
_____ Fund _____ Lehman (3) _____ S&P 500(4)
---------------------------------------------------
---------------------------------------------------

Past performance is not predictive of future returns.
_______________________________________________

(1) Figure shown assumes reinvestment of all distributions. There is no front-
end or contingent deferred sales charge.

(2) Closing value, assuming a complete redemption on January 31, 1996.

(3) 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.

(4) The Standard & 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.