TCW DW INCOME & GROWTH FUND, N-30D, 1998-03-31

TCW DW INCOME & GROWTH FUND
N-30D, 1998-03-31

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<PAGE>
TCW/DW INCOME AND GROWTH FUND TWO WORLD TRADE CENTER, NEW YORK, NEW YORK
10048
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998

DEAR SHAREHOLDER:

While 1997 was a superb year for the domestic financial markets, the calendar
year ended in turmoil as the Asian currency crisis caused considerable
consternation among U.S. investors. As a result, stock prices corrected in
October and market volatility increased. Despite the gyrations of the fourth
quarter, the U.S. stock market recorded its third straight year of greater than
20 percent returns. Bonds also joined the party, with both high-grade and
high-yield issues generating returns well in excess of their coupons. Within
this environment, convertibles performed well. These trends continued into
January.

PERFORMANCE

For the fiscal year ended January 31, 1998, TCW/DW Income and Growth Fund's
Class C shares posted a total return of 14.03 percent. During the same period,
the S&P 500 Index produced a total return of 26.84 percent, while the Lehman
Brothers Government/Corporate Bond Index (Lehman Index) and the Lipper Flexible
Income Funds Average (Lipper Average) returned 11.17 percent and 6.88 percent,
respectively. Since their inception on July 28, 1997, through January 31, 1998,
the Fund's Class A, B and D shares had total returns of 6.03 percent, 5.80
percent and 6.21 percent, respectively. Performance of the Fund's four share
classes varies because of differing charges and expenses.

The accompanying chart illustrates the performance of a $10,000 investment in
the Fund's Class C shares since inception through the fiscal year ended January
31, 1998, versus the performance of similar hypothetical investments in the S&P
500, the Lehman Index and the Lipper Average. TCW Funds Management, Inc. (TCW)
is the Fund's adviser.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED

CONVERTIBLE SECURITIES

The performance of the convertible portion of the Fund was well ahead of its
convertible benchmarks. Most of the incremental performance was generated during
the turbulent fourth quarter. While the convertible benchmarks declined between
1.4 percent and 2.8 percent, the Fund's decline was lower. This performance was
due in large part to the Fund's lower exposure to technology and energy. These
industries, which are heavily weighted in the convertible universe, were down
significantly.

During the year the convertible portion of the Fund benefited from holdings in a
diverse group of securities. The best-performing group was cable and
telecommunications. After three years of stagnation, the group performed
spectacularly. Holdings in TCI Pacific Communications, Inc. $5.00, U.S. West,
Inc. (Series D) $2.25, Cox Communications, Inc., Tele-Communication
International, Inc. and Houston Industries, Inc. $3.22 all performed well. In
addition to the excellent performance generated by cable stocks, several other
holdings added incremental performance as well. These included Sepracor, Inc. --
144A, SFX Broadcasting, Inc. (Series D) $3.25, American Bankers Insurance Group,
Inc. (Series B) $3.125, Omicom Group, Inc. -- 144A, Home Depot, Inc., Hexcel
Corp and Staples, Inc. -- 144A. In contrast to cable, the performance of
technology securities was mixed. Sales during the second and third quarters of
holdings in Altera, Analog Devices, SCI Systems, Inc. and Quantum Corp. were
made at substantial profits. In addition, the Fund realized small profits on new
issues from companies such as Level One Communication, Read Rite Corp., Apple
Computer, Inc. and Photronics, Inc. These profits, along with the good
performance of the Fund's holding in Cisco Systems, Inc., helped to offset the
poor performance of its technology holdings in Motorola, Inc., Xilinx, Inc. --
144A and Safeguard Scientifics, Inc. Other disappointing holdings included
positions in Thermo Instrument Systems, Inc., U.S. Filter Corp., Boeing Co. and
U.S. Office Products.

The new-issue market posted a record year for dollar volume in 1997. During the
year a total of 140 issues with a net value of $28 billion came to market. New
issuance exceeded redemptions and led to a small increase in the total size of
the U.S. convertible market, to approximately $137 billion. New-issue terms
varied considerably during the year. While many issues were priced attractively,
terms became aggressive during the middle of the year. The most dramatic change
was an increase in conversion premiums to a range of 30 percent to 70 percent.
In 1997, 22 issues with a market value of $7.4 billion were issued with high
conversion premiums. However, the Fund did not find many of these issues
attractive and participated in only a limited number of them. For the high-
<PAGE>
TCW/DW INCOME AND GROWTH FUND
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED

premium issues that the Fund did purchase, their high bond value combined with
an attractive stock price have the potential to lead to annualized mid-teen
returns on the upside, with very low downside risk.

Another positive trend is the continued shortening of maturities. The average
convertible issued during 1997 had a 6.8-year maturity and was issued at a 26.3
percent premium over bond value. With interest rates declining, these
short-maturity bonds are expected to provide substantial downside protection if
the underlying stocks decline.

HIGH-YIELD BONDS

Notwithstanding global market events, high-yield market technicals remained
extremely favorable during the fiscal year ended January 31, 1998. Cash inflows
into high-yield mutual funds remained strong. While high-yield mutual funds
continue to be an important source of demand in the high-yield market,
allocations from pension funds and insurance companies also increased in 1997.
This trend is expected to continue into 1998. On the supply side, the pace of
new-issue activity slowed, with $30.8 billion in transactions priced during the
fourth quarter of 1997. For the year, however, primary volume totaled $125.8
billion, easily surpassing the record $73.6 billion brought to market in 1996.
As has been the case in recent years, cable, media and telecommunications
sectors dominated the new-issue calendar, accounting for approximately 32.6
percent of new issuances in 1997. With the massive increase in new-issue volume
over the past several years, the size of the high-yield market has grown to more
than $450 billion, representing more than 1,500 different issuers.

During much of 1997, lower-rated, more volatile high-yield credits benefited
from strong technical conditions and a favorable economic backdrop. It has been
TCW's conviction for some time that the diminished-risk premiums in the middle
and lower tiers of the high-yield market do not adequately compensate investors
for the greater credit risk inherent in those issuers. Accordingly, TCW has
concentrated the majority of the Fund's high-yield component in BB and strong
B-rated cash-paying securities and has avoided reaching for yield in what has
been an environment with a historically tight spread.

The high-yield component had no defaults in 1997. While the incidence of
defaults in the high-yield market continues to be lower than historical issuance
patterns would suggest, the Moody's high-yield default rate was 2.84 percent in
1997 and the trailing 12-month default rate has been trending upward over the
last 10 months. TCW believes that the immense liquidity in the U.S. financial
system has been the primary driver behind the recent low levels of defaults.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
LETTER TO THE SHAREHOLDERS JANUARY 31, 1998, CONTINUED

Given the current low-default environment and the fact that high-yield bonds
currently yield an average of 275 to 375 basis points over comparable
Treasuries, the high-yield asset class remains attractive to fixed-income
investors. However, yield spreads in that class are narrow relative to
historical levels, and, given the recent volatility in the financial markets,
default avoidance due to superior credit selection will continue to be of
paramount importance to successful high-yield investing. The Fund's high-yield
component is managed with this in mind. As a result, TCW remains confident that
its disciplined approach to high-yield investing, with its emphasis on the upper
tier of the market, will provide steady results in what is likely to be an
increasingly challenging period for investors.

LOOKING AHEAD

While it is impossible to predict the outcome of the financial turmoil in Asia,
TCW believes that the short-term environment for U.S. equities has become
somewhat uncertain. During the next few months world equity markets are likely
to remain volatile. The U.S. equity market seems to have entered a period of
adjustment. While lower interest rates may mute the impact on stock prices of
lower earnings, TCW believes that a fourth year of equity returns above 20
percent is unlikely.

In the fixed-income markets, TCW anticipates that interest rates will continue
to fall in 1998. Supporting this view is TCW's belief that the Asian currency
crisis will lower worldwide GDP growth in 1998 and lead to lower prices for many
basic industrial goods and imported products. This should take some pressure off
inflation and lead to lower interest rates. Several prognosticators are now
forecasting that thirty-year U.S. Treasury rates will fall to 5 percent by
year-end 1998. While this may be optimistic, TCW projects that at least one cut
in the federal-funds rate is possible and that long-term yields could fall to a
range of 5.25 percent to 5.50 percent by the second half of 1998.

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

Very truly yours,

/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FUND PERFORMANCE JANUARY 31, 1998

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
Growth of $10,000 -- Class C
Shares
($ in Thousands)

Fund S&P 500 IX(4) Lehman(5) Lipper(6)
<S> <C> <C> <C> <C>
March-1993 $10,000 $10,000 $10,000 $10,000
January-1994 $ 11,506 $ 10,912 $ 10,769 $ 11,143
January-1995 $10,863 $10,969 $10,434 $10,638
January-1996 $13,092 $15,203 $12,283 $12,377
January-1997 $14,854 $19,207 $12,577 $13,062
January-1998 $16,938(3) $24,363 $13,982 $13,961
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
A, CLASS B, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS C
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS++
- ---------------------------------------------------------------------------------------------------
CLASS C SHARES* CLASS A SHARES**
- -------------------------------------------- ------------------------------------------------
PERIOD ENDED 1/31/98 PERIOD ENDED 1/31/98
- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 14.03%(1) 13.03%(2) From Inception (7/28/97) 6.03(1) 1.52(2)
From Inception (3/31/93) 11.51%(1) 11.51%(2)
</TABLE>

<TABLE>
<CAPTION>
CLASS B SHARES+ CLASS D SHARES#
- -------------------------------------------- ------------------------------------------------
PERIOD ENDED 1/31/98 PERIOD ENDED 1/31/98
- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
From Inception (7/28/97) 5.80%(1) 0.89 %(2) From Inception (7/28/97) 6.21(1)
</TABLE>

- ------------------------
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge (except Class D shares, which have no
sales charge). See the Fund's current prospectus for complete details on
fees and sales charges.
(3) Closing value assuming a complete redemption on January 31, 1998.
(4) The Standard and Poor's 500 Composite Stock Price Index (S&P 500) is a
broad-based index, the performance of which is based on the average
performance of 500 widely held common stocks. The Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
(5) The Lehman Brothers Government/Corporate Bond Index tracks the performance
of government and corporate obligations, including U.S. government agency
and U.S. Treasury securities and corporate and yankee bonds with maturities
of one to ten years. The performance of the Index does not include any
expenses, fees or charges. The Index is unmanaged and should not be
considered an investment.
(6) The Lipper Flexible Income Funds Average tracks the performance of funds
that emphasize income generation by investing at least 85% of their assets
in debt issues and preferred and convertible securities, as reported by
Lipper Analytical Services, Inc.
* The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of purchase.
** The maximum front-end sales charge for Class A shares is 4.25%.
+ The maximum contingent deferred sales charge (CDSC) for Class B shares is 5%.
The CDSC declines to 0% after six years.
# Class D shares have no sales charge.
++ For periods of less than one year, the Fund quotes its total return on a
non-annualized basis.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONVERTIBLE BONDS (35.6%)
ADVERTISING (1.0%)
$ 425 Omicom Group, Inc. - 144A*...................................................... 4.25% 01/03/07 $ 589,534
-----------
AEROSPACE (1.2%)
345 Hexcel Corp..................................................................... 7.00 08/01/03 569,343
100 Titan Corp...................................................................... 8.25 11/01/03 168,518
-----------
737,861
-----------
AUTO PARTS (0.6%)
345 Tower Automotive, Inc. - 144A*.................................................. 5.00 08/01/04 365,114
-----------
BUSINESS SERVICES (1.1%)
390 COREStaff, Inc.................................................................. 2.94 08/15/04 318,107
290 Personnel Group of America - 144A*.............................................. 5.75 07/01/04 345,622
-----------
663,729
-----------
COMMERCIAL SERVICES (4.2%)
775 Cendant Corp.................................................................... 4.75 03/01/03 1,031,835
155 CUC International, Inc.......................................................... 3.00 02/15/02 195,542
1,075 CUC International, Inc. - 144A*................................................. 3.00 02/15/02 1,356,177
-----------
2,583,554
-----------
DRUGS (1.4%)
810 Athena Neurosciences, Inc. - 144A*.............................................. 4.75 11/15/04 860,123
-----------
ELECTRONICS - INSTRUMENTATION (0.4%)
215 Thermo Instrument Systems, Inc.................................................. 4.00 01/15/05 219,771
-----------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS (1.2%)
725 Xilinx, Inc. - 144A*............................................................ 5.25 11/01/02 724,377
-----------
FINANCIAL SERVICES (1.1%)
335 Morgan Stanley Group, Inc.+ (exchangeable into Boeing Co. common stock)......... 0.00 09/30/00 365,545
260 Morgan Stanley Group, Inc.+ (exchangeable into Johnson & Johnson Co. common
stock)........................................................................ 2.00 03/29/02 314,506
-----------
680,051
-----------
HEALTHCARE (0.5%)
225 Sunrise Assisted Living, Inc. - 144A*........................................... 5.50 06/15/02 287,021
-----------
HEALTHCARE SERVICES (3.1%)
530 Alternative Living Services, Inc................................................ 5.25 12/15/02 617,450
375 Assisted Living Concepts, Inc................................................... 6.00 11/01/02 399,375
545 Omnicare, Inc. - 144A*.......................................................... 5.00 12/01/07 551,131
280 Quintiles Transportational Corp. - 144A*........................................ 4.25 05/31/00 319,998
-----------
1,887,954
-----------
HOTELS (0.5%)
330 Signature Resorts, Inc.......................................................... 5.75 01/15/07 335,983
-----------
INSURANCE (0.4%)
220 American International Group, Inc............................................... 2.25 07/30/04 227,700
-----------
LEISURE (0.1%)
65 Speedway Motorsports, Inc....................................................... 5.75 09/30/03 65,105
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MEDICAL SERVICES (0.6%)
$ 320 Occusystems, Inc................................................................ 6.00% 12/15/01 $ 396,160
-----------
OIL SERVICES (1.3%)
700 Baker Hughes, Inc............................................................... 0.00 05/05/08 565,048
260 Halter Marine Group, Inc. - 144A*............................................... 4.50 09/15/04 248,235
-----------
813,283
-----------
PAPER PRODUCTS (0.5%)
325 Metsa-Serla OY - 144A* (Finland)................................................ 4.375 10/15/02 304,688
-----------
PHARMACEUTICALS (1.4%)
530 Sandoz Capital BVI, Ltd. - 144A* (Switzerland).................................. 2.00 10/06/02 853,306
-----------
POLLUTION CONTROL (3.3%)
690 Thermo Electron Corp. - 144A*................................................... 4.25 01/01/03 794,901
1,145 U.S. Filter Corp................................................................ 4.50 12/15/01 1,242,691
-----------
2,037,592
-----------
REAL ESTATE INVESTMENT TRUST (0.8%)
210 LTC Properties, Inc............................................................. 8.50 01/01/01 274,355
200 LTC Properties, Inc............................................................. 8.25 07/01/01 234,782
-----------
509,137
-----------
RESTAURANTS (0.1%)
145 Einstein/Noah Bagel Corp. - 144A*............................................... 7.25 06/01/04 89,545
-----------
RETAIL (3.8%)
285 Charming Shoppes, Inc........................................................... 7.50 07/15/06 255,360
1,045 Costco Companies, Inc. - 144A*.................................................. 0.00 08/19/17 619,536
530 Home Depot, Inc................................................................. 3.25 10/01/01 737,919
565 Staples, Inc. - 144A*........................................................... 4.50 10/01/00 728,087
-----------
2,340,902
-----------
TECHNOLOGY (1.5%)
310 Adaptec, Inc. - 144A*........................................................... 4.75 02/01/04 265,224
595 Safeguard Scientifics, Inc. - 144A*............................................. 6.00 02/01/06 653,851
-----------
919,075
-----------
TELECOMMUNICATIONS (4.0%)
1,280 Motorola, Inc................................................................... 0.00 09/27/13 1,006,436
415 Premiere Technologies - 144A*................................................... 5.75 07/01/04 420,905
280 SmarTalk TeleServices, Inc. - 144A*............................................. 5.75 09/15/04 342,084
610 Tel-Save Holdings, Inc. - 144A*................................................. 5.00 12/15/04 669,475
-----------
2,438,900
-----------
TRANSPORTATION (0.4%)
250 Blue Bird Body Co. (Series B)................................................... 10.75 11/15/06 274,375
-----------
WASTE MANAGEMENT (1.1%)
635 USA Waste Services, Inc......................................................... 4.00 02/01/02 684,613
-----------

TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $19,520,391)...................................................................... 21,889,453
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE BONDS (39.1%)
AEROSPACE (0.2%)
$ 150 Wyman-Gordon Co................................................................. 8.00% 12/15/07 $ 152,625
-----------
AUTO PARTS (0.5%)
250 Hayes Wheels International, Inc. - 144A*........................................ 11.00 07/15/06 282,500
-----------
BANKS (1.3%)
75 Chevy Chase Savings Bank........................................................ 9.25 12/01/05 78,375
125 Chevy Chase Savings Bank, F.S.B................................................. 9.25 12/01/08 130,625
375 First Nationwide Escrow......................................................... 12.25 05/15/01 416,250
175 First Nationwide Escrow......................................................... 10.625 10/01/03 196,437
-----------
821,687
-----------
BROADCAST MEDIA (0.4%)
100 JCAC, Inc....................................................................... 10.125 06/15/06 110,500
125 Outdoor Communications, Inc..................................................... 9.25 08/15/07 130,937
-----------
241,437
-----------
BUILDING & CONSTRUCTION (0.5%)
50 D.R. Horton, Inc................................................................ 8.375 06/15/04 52,000
250 Johns Manville International Group.............................................. 10.875 12/15/04 278,437
-----------
330,437
-----------
BUILDING MATERIALS (1.3%)
200 American Standard Co............................................................ 7.375 02/01/08 199,500
500 K Hovnanian Enterprises......................................................... 11.25 04/15/02 522,500
100 MDC Holdings, Inc............................................................... 8.375 02/01/08 100,500
-----------
822,500
-----------
BUSINESS SERVICES (1.1%)
631 American Pad & Paper Co......................................................... 13.00 11/15/05 668,860
-----------
BUSINESS SERVICES - DISTRIBUTORS (1.2%)
150 Coinmach Corp. - 144A*.......................................................... 11.75 11/15/05 168,000
350 Iron Mountain, Inc.............................................................. 10.125 10/01/06 384,125
168 Pierce Leahy Corp............................................................... 11.125 07/15/06 192,150
-----------
744,275
-----------
CABLE & TELECOMMUNICATIONS (1.0%)
200 Adelphia Communications Corp. (Series B)........................................ 9.25 10/01/02 208,500
100 Adelphia Communications Corp. - 144A*........................................... 8.375 02/01/08 100,000
25 Cablevision Systems Corp........................................................ 9.875 05/15/06 27,562
50 Cablevision Systems Corp. (Series B)............................................ 8.125 08/15/09 52,625
60 Paging Network, Inc............................................................. 10.125 08/01/07 62,700
150 Paging Network, Inc............................................................. 10.00 10/15/08 156,562
-----------
607,949
-----------
CABLE/CELLULAR (0.2%)
100 Comcast Cellular Holdings, Inc. (Series B)...................................... 9.50 05/01/07 106,750
-----------
CHEMICALS (0.7%)
375 NL Industries, Inc.............................................................. 11.75 10/15/03 418,125
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMERCIAL SERVICES (1.4%)
$ 100 Intermedia Communications, Inc. - 144A*......................................... 8.875% 11/01/07 $ 105,750
150 Intermedia Communications, Inc.................................................. 8.50 01/15/08 155,250
150 MasTec, Inc. - 144A*............................................................ 7.75 02/01/08 150,375
400 NEXTLINK Communications, Inc.................................................... 9.625 10/01/07 424,000
-----------
835,375
-----------
COMMUNICATIONS EQUIPMENT (0.4%)
175 Globalstar L.P./Capital Corp.................................................... 11.25 06/15/04 177,625
50 Globalstar L.P./Capital Corp. - 144A*........................................... 10.75 11/01/04 49,000
-----------
226,625
-----------
CONSUMER - NONCYCLICAL (2.1%)
50 Amscan Holdings, Inc. - 144A*................................................... 9.875 12/15/07 52,375
190 Cott Corp. (Canada)............................................................. 9.375 07/01/05 198,550
175 Holmes Products Corp. - 144A*................................................... 9.875 11/15/07 181,125
475 International Home Foods, Inc................................................... 10.375 11/01/06 527,250
100 Revlon Consumer Products, Inc. - 144A*.......................................... 8.125 02/01/06 100,375
250 Revlon Consumer Products, Inc. - 144A*.......................................... 8.625 02/01/08 250,938
-----------
1,310,613
-----------
CONTAINERS (1.1%)
125 Graham Packaging Corp. - 144A*.................................................. 8.75 01/15/08 126,250
275 Plastic Containers, Inc. (Series B)............................................. 10.00 12/15/06 308,000
225 U.S. Can Corp................................................................... 10.125 10/15/06 236,250
-----------
670,500
-----------
ENERGY (1.5%)
250 Chesapeake Energy Corp.......................................................... 12.00 03/01/01 262,188
175 National Energy Group, Inc. (Series D) - 144A*.................................. 10.75 11/01/06 182,000
275 Transamerican Energy - 144A*.................................................... 11.50 06/15/02 280,500
100 Trico Marine Services, Inc. (Series B).......................................... 8.50 08/01/05 100,500
75 Trico Marine Services, Inc. (Series C) - 144A*.................................. 8.50 08/01/05 75,375
-----------
900,563
-----------
ENTERTAINMENT & LEISURE TIME (0.3%)
75 Livent, Inc. - 144A*............................................................ 9.375 10/15/04 76,875
100 Regal Cinemas, Inc. - 144A*..................................................... 8.50 10/01/07 102,000
-----------
178,875
-----------
ENTERTAINMENT/GAMING (1.1%)
125 Grand Casinos, Inc.............................................................. 10.125 12/01/03 135,938
500 Showboat, Inc................................................................... 9.25 05/01/08 540,000
-----------
675,938
-----------
FINANCE (0.2%)
100 Nationwide Credit, Inc. - 144A*................................................. 10.25 01/15/08 102,000
-----------
FINANCE - LEASING (0.8%)
190 Williams Scotsman, Inc. - 144A*................................................. 9.875 06/01/07 199,500
295 Xerox Credit Corp............................................................... 2.875 07/01/02 297,646
-----------
497,146
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FINANCIAL - MISCELLANEOUS (0.1%)
$ 65 North Atlantic Trading.......................................................... 11.00% 06/15/04 $ 67,600
-----------
FINANCIAL SERVICES (0.7%)
400 American Annuity Group, Inc..................................................... 11.125 02/01/03 412,716
-----------
FOOD SERVICES (0.5%)
135 Jitney-Jungle Stores of America, Inc............................................ 12.00 03/01/06 153,563
75 Jitney-Jungle Stores of America, Inc. - 144A*................................... 10.375 09/15/07 79,313
50 Quality Food Centers, Inc. (Series B)........................................... 8.70 03/15/07 56,000
-----------
288,876
-----------
FOREST PRODUCTS, PAPER & PACKING (0.7%)
125 Paperboard Industrial International, Inc. - 144A*............................... 8.375 09/15/07 129,375
175 Riverwood International Corp.................................................... 10.625 08/01/07 182,875
125 SD Warren Co. (Series B)........................................................ 12.00 12/15/04 139,531
-----------
451,781
-----------
HEALTH SERVICES (0.5%)
285 Integrated Health Services - 144A*.............................................. 9.50 09/15/07 302,100
-----------
HEALTHCARE (1.5%)
200 Alliance Imaging, Inc........................................................... 9.625 12/15/05 209,000
375 Dade International, Inc. (Series B)............................................. 11.125 05/01/06 416,250
150 Fisher Scientific International, Inc............................................ 9.00 02/01/08 153,938
150 Physician Sales & Service, Inc. - 144A*......................................... 8.50 10/01/07 155,250
-----------
934,438
-----------
HOME BUILDING (0.4%)
250 U.S. Home Corp.................................................................. 9.75 06/15/03 261,563
-----------
HOSPITAL MANAGEMENT & HEALTH MAINTENANCE
ORGANIZATIONS (0.3%)
200 Extendicare Health Services, Inc. - 144A*....................................... 9.35 12/15/07 209,000
-----------
INDUSTRIALS (0.5%)
265 Diamond Offshore Drilling, Inc.................................................. 3.75 02/15/07 334,202
-----------
LODGING (0.4%)
250 Signature Resorts, Inc. - 144A*................................................. 9.75 10/01/07 256,250
-----------
MANUFACTURING (3.3%)
335 Communications & Power Industries, Inc. (Series B).............................. 12.00 08/01/05 375,200
100 Desa International, Inc. - 144A*................................................ 9.875 12/15/07 104,250
50 Doskocil Manufacturing Co., Inc. - 144A*........................................ 10.125 09/15/07 52,500
50 Foamex L.P. - 144A*............................................................. 9.875 06/15/07 51,500
100 International Wire Group - 144A*................................................ 11.75 06/01/05 111,000
500 Jordan Telecom Products - 144A*................................................. 9.875 08/01/07 530,000
250 Packaged Ice, Inc............................................................... 9.75 02/01/05 253,125
225 Telex Communications, Inc. - 144A*.............................................. 10.50 05/01/07 230,625
100 United Defense Industrial, Inc. - 144A*......................................... 8.75 11/15/07 101,750
225 Viasystems, Inc. - 144A*........................................................ 9.75 06/01/07 236,250
-----------
2,046,200
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MEDIA (0.1%)
$ 50 Lamar Advertising Co............................................................ 9.625% 12/01/06 $ 54,625
-----------
MEDIA GROUP (3.9%)
125 Ackerly Communications, Inc. (Series B)......................................... 10.75 10/01/03 133,125
500 Adams Outdoor Advertising L.P................................................... 10.75 03/15/06 557,500
50 Chancellor Media Corp........................................................... 9.375 10/01/04 52,875
425 Chancellor Media Corp. - 144A*.................................................. 8.125 12/15/07 429,782
545 Garden State Newspapers, Inc.................................................... 12.00 07/01/04 616,531
575 Heritage Media Services, Inc.................................................... 11.00 06/15/02 598,719
25 Outdoor Systems, Inc............................................................ 8.875 06/15/07 26,375
-----------
2,414,907
-----------
METALS & MINING (0.2%)
150 Wheeling-Pittsburgh Corp. - 144A*............................................... 9.25 11/15/07 147,000
-----------
OIL - EXPLORATION & PRODUCTION (0.6%)
375 Magnum Hunter Resources - 144A*................................................. 10.00 06/01/07 384,375
-----------
PACKAGING & BOTTLING (0.1%)
50 Huntsman Packaging Corp. - 144A*................................................ 9.125 10/01/07 52,000
-----------
PAPER & FOREST PRODUCTS (1.3%)
435 Malette, Inc. (Canada).......................................................... 12.25 07/15/04 490,463
300 Stone Container Corp............................................................ 10.75 10/01/02 317,250
-----------
807,713
-----------
PUBLISHING (1.0%)
250 American Media Operations, Inc.................................................. 11.625 11/15/04 271,250
75 Primedia, Inc................................................................... 10.25 06/01/04 81,000
250 Von Hoffman Press, Inc. - 144A*................................................. 10.375 05/15/07 270,000
-----------
622,250
-----------
REAL ESTATE INVESTMENT TRUST (0.6%)
305 Trizec Finance Ltd. (Canada).................................................... 10.875 10/15/05 346,556
-----------
RESTAURANTS (0.2%)
100 Perkins Family Restaurants, L.P. - 144A*........................................ 10.125 12/15/07 105,000
-----------
RETAIL (2.4%)
100 Cole National Group, Inc. - 144A*............................................... 8.625 08/15/07 100,500
346 Guitar Center Management........................................................ 11.00 07/01/06 390,980
100 Leslie's Poolmart - 144A*....................................................... 10.375 07/15/04 104,000
600 Michaels Stores, Inc............................................................ 10.875 06/15/06 672,000
200 Zale Corp. - 144A*.............................................................. 8.50 10/01/07 204,000
-----------
1,471,480
-----------
TELECOMMUNICATIONS (0.5%)
250 STC Broadcasting, Inc........................................................... 11.00 03/15/07 277,500
-----------
TELEPHONES (0.5%)
250 Sprint Spectrum L.P............................................................. 11.00 08/15/06 287,500
-----------
TRANSPORTATION (1.1%)
75 Atlas Air, Inc.................................................................. 10.75 08/01/05 80,625
550 Moran Transportation Co......................................................... 11.75 07/15/04 610,500
-----------
691,125
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

TOTAL CORPORATE BONDS
(IDENTIFIED COST $23,102,687)...................................................................... 24,056,696
-----------
</TABLE>

<TABLE>
<CAPTION>
NUMBER OF
SHARES
- ---------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (12.6%)
BANKS (1.3%)
10,600 National Australia Bank, Ltd. $1.969 (Australia) (Units)++......................................... 302,757
15,400 WBK Trust (STRYPES) $3.35.......................................................................... 529,375
-----------
832,132
-----------
BROADCAST MEDIA (0.8%)
6,400 Evergreen Media Corp. $3.00 - 144A*................................................................ 475,200
-----------
BUSINESS SERVICES (0.4%)
6,600 Vanstar Financing Trust $3.375 - 144A*............................................................. 251,203
-----------
CABLE & TELECOMMUNICATIONS (3.3%)
17,700 Houston Industries, Inc. $3.22..................................................................... 1,044,300
3,100 TCI Pacific Communications, Inc. $5.00 (exchangeable into Tele-Communications (Class A) common
stock)........................................................................................... 500,845
7,200 U.S. West Inc. (Series D) $2.25.................................................................... 459,000
-----------
2,004,145
-----------
FINANCIAL (1.0%)
6,600 Morgan Stanley Group, Inc. $3.99+ (exchangeable into Cisco Systems Inc. common stock).............. 592,126
-----------
FINANCIAL SERVICES (1.4%)
1,500 American Bankers Insurance Group, Inc. (Series B) $3.125........................................... 170,250
12,400 Merrill Lynch & Co., Inc. $3.12 (STRYPES) (exchangeable into Cox Communications Inc. common
stock)........................................................................................... 392,150
8,100 Salomon, Inc. $7.625 (exchangeable into Financial Security Assurance Holdings, Ltd. common
stock)........................................................................................... 319,448
-----------
881,848
-----------
HOTELS (0.6%)
4,900 Host Marriott Financial Trust $3.375 - 144A*....................................................... 264,708
2,000 Host Marriott Financial Trust $3.375............................................................... 108,044
-----------
372,752
-----------
MEDICAL SERVICES (0.5%)
6,100 Laboratory Corp. of America (Series A) $4.25....................................................... 308,050
-----------
OIL & GAS PRODUCTS (0.5%)
4,200 Occidental Petroleum Corp. (Series A) $3.00 (exchangeable into Canadian Occidental Petroleum common
stock)........................................................................................... 325,500
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
OIL - INTEGRATED (0.5%)
5,300 Unocal Corp. $3.125................................................................................ $ 285,209
-----------
OIL SERVICES (0.6%)
8,000 EVI, Inc. $2.50 - 144A*............................................................................ 339,808
-----------
PACKAGING & BOTTLING (0.2%)
2,600 Crown Cork & Seal Co., Inc. $1.885................................................................. 120,412
-----------
PUBLISHING (0.5%)
6,000 Golden Books Financing Trust $4.375 - 144A*........................................................ 338,250
-----------
RESTAURANTS (0.5%)
5,900 Apple South, Inc. $3.50 - 144A*.................................................................... 295,000
-----------
RETAIL (0.5%)
5,600 Kmart Financing I $3.875........................................................................... 288,400
-----------

TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $6,543,330)....................................................................... 7,710,035
-----------
</TABLE>

<TABLE>
<CAPTION>
NUMBER OF EXPIRATION
WARRANTS DATE
- --------- ----------
<C> <S> <C> <C>
WARRANT (a)
ENTERTAINMENT/GAMING
4,685 Fitzgeralds Gaming Corp. - 144A*
(IDENTIFIED COST $21,083)........................................................... 12/19/98 9,370
-----------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
---------
<C> <S> <C> <C>
SHORT-TERM INVESTMENTS (12.2%)
U.S. GOVERNMENT AGENCY (b) (8.9%)
$ 5,500 Federal Farm Credit Bank 5.40% due 02/12/98
(AMORTIZED COST $5,490,925)......................................................... 5,490,925
-----------

REPURCHASE AGREEMENT (3.3%)
2,038 The Bank of New York 5.375% due 02/02/98
(dated 01/30/98; proceeds $2,038,026)
(IDENTIFIED COST $2,037,114) (c) ................................................... 2,037,114
-----------

TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $7,528,039)....................................................................... 7,528,039
-----------
</TABLE>

<TABLE>
<S> <C> <C>
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1998, CONTINUED

VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $56,715,530) (d).................................................................... 99.5 % $ 61,193,593

CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES....................................................... 0.5 304,726
------ ------------

NET ASSETS........................................................................................... 100.0 % $ 61,498,319
------ ------------
------ ------------
</TABLE>

- ---------------------

STRYPES Structured yield product exchangeable for stock.
* Resale is restricted to qualified institutional investors.
+ Issuer is an affiliate of the Fund's Manager, Dean Witter Services
Company Inc.
++ Consists of more than one class of securities traded together as a
unit; stocks with attached warrants.
(a) Non-income producing security.
(b) Security was purchased on a discount basis. The interest rate shown has
been adjusted to reflect a money market equivalent yield.
(c) Collateralized by $2,019,974 U.S. Treasury Note 6.75% due 05/31/99
valued at $2,077,856.
(d) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$5,017,178 and the aggregate gross unrealized depreciation is $539,115,
resulting in net unrealized appreciation of $4,478,063.

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

STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $56,715,530).............................. $61,193,593
Cash........................................................................................... 2,440
Receivable for:
Interest................................................................................... 732,483
Investments sold........................................................................... 214,637
Shares of beneficial interest sold......................................................... 133,629
Dividends.................................................................................. 22,405
Deferred organizational expenses............................................................... 6,434
Prepaid expenses and other assets.............................................................. 69,330
-----------
TOTAL ASSETS.............................................................................. 62,374,951
-----------
LIABILITIES:
Payable for:
Investments purchased...................................................................... 733,752
Plan of distribution fee................................................................... 39,176
Management fee............................................................................. 23,516
Investment advisory fee.................................................................... 15,677
Shares of beneficial interest repurchased.................................................. 2,979
Accrued expenses and other payables............................................................ 61,532
-----------
TOTAL LIABILITIES......................................................................... 876,632
-----------
NET ASSETS................................................................................ $61,498,319
-----------
-----------
COMPOSITION OF NET ASSETS:
Paid-in-capital................................................................................ 55,656,448
Net unrealized appreciation.................................................................... 4,478,063
Accumulated undistributed net investment income................................................ 272,740
Accumulated undistributed net realized gain.................................................... 1,091,068
-----------
NET ASSETS................................................................................ $61,498,319
-----------
-----------
CLASS A SHARES:
Net Assets..................................................................................... $27,856
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 2,401
NET ASSET VALUE PER SHARE................................................................. $11.60
-----------
-----------
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 4.44% OF NET
ASSET VALUE)............................................................................ $12.12
-----------
-----------
CLASS B SHARES:
Net Assets..................................................................................... $6,596,905
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 568,689
NET ASSET VALUE PER SHARE................................................................. $11.60
-----------
-----------
CLASS C SHARES:
Net Assets..................................................................................... $54,862,923
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 4,726,879
NET ASSET VALUE PER SHARE................................................................. $11.61
-----------
-----------
CLASS D SHARES:
Net Assets..................................................................................... $10,635
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 916
NET ASSET VALUE PER SHARE................................................................. $11.61
-----------
-----------
</TABLE>

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JANUARY 31, 1998*

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

INCOME
Interest........................................................................................ $3,703,196
Dividends....................................................................................... 479,318
----------

TOTAL INCOME............................................................................... 4,182,514
----------

EXPENSES
Plan of distribution fee (Class A shares)....................................................... 23
Plan of distribution fee (Class B shares)....................................................... 21,976
Plan of distribution fee (Class C shares)....................................................... 437,111
Management fee.................................................................................. 275,518
Investment advisory fee......................................................................... 183,678
Professional fees............................................................................... 60,242
Transfer agent fees and expenses................................................................ 58,786
Shareholder reports and notices................................................................. 47,076
Organizational expenses......................................................................... 39,801
Registration fees............................................................................... 35,768
Trustees' fees and expenses..................................................................... 32,904
Custodian fees.................................................................................. 20,884
Other........................................................................................... 15,526
----------

TOTAL EXPENSES............................................................................. 1,229,293
----------

NET INVESTMENT INCOME...................................................................... 2,953,221
----------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain............................................................................... 4,031,439
Net change in unrealized appreciation........................................................... 950,969
----------

NET GAIN................................................................................... 4,982,408
----------

NET INCREASE.................................................................................... $7,935,629
----------
----------
</TABLE>

- ---------------------

* Class A, Class B and Class D shares were issued by July 28, 1997.

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

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, JANUARY 31,
1998* 1997
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income........................................................... $2,953,221 $3,001,268
Net realized gain............................................................... 4,031,439 3,798,985
Net change in unrealized appreciation........................................... 950,969 475,436
-------------- --------------

NET INCREASE............................................................... 7,935,629 7,275,689
-------------- --------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares.............................................................. (582) --
Class B shares.............................................................. (144,769) --
Class C shares.............................................................. (2,979,361) (3,008,077)
Class D shares.............................................................. (290) --
Net realized gain
Class A shares.............................................................. (1,133) --
Class B shares.............................................................. (298,812) --
Class C shares.............................................................. (3,495,390) (2,721,147)
Class D shares.............................................................. (491) --
-------------- --------------

TOTAL DIVIDENDS AND DISTRIBUTIONS.......................................... (6,920,828) (5,729,224)
-------------- --------------
Net increase (decrease) from transactions in shares of beneficial interest...... (457,056) 1,763,514
-------------- --------------

NET INCREASE............................................................... 557,745 3,309,979

NET ASSETS:
Beginning of period............................................................. 60,940,574 57,630,595
-------------- --------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $272,740 AND $443,330,
RESPECTIVELY)............................................................... $61,498,319 $60,940,574
-------------- --------------
-------------- --------------
</TABLE>

- ---------------------

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

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998

1. ORGANIZATIONAL 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. On July 28, 1997, the Fund commenced offering three
additional classes of shares, with the then current shares, other than shares
which were acquired in exchange for shares of Funds for which Dean Witter
Services Company Inc. serves as Manager and TCW Funds Management, Inc. serves as
Adviser ("TCW/DW Funds") offered with a contingent deferred sales charge
("CDSC") and shares acquired through reinvestment of dividends and distributions
thereon, designated Class C shares. Shares held prior to July 28, 1997 which
were acquired in exchange for shares of a TCW/DW Fund sold with a CDSC,
including shares acquired through reinvestment of dividends and distributions
thereon, have been designated Class B shares.

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

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

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Trustees); (2) all other portfolio securities for which
over-the-counter market quotations are readily available are
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998, CONTINUED

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 TCW Funds Management, Inc. (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) certain portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service may utilize a
matrix system incorporating security quality, maturity and coupon as the
evaluation model parameters, and/or research and evaluations by its staff,
including review of broker-dealer market price quotations, if available, in
determining what it believes is the fair valuation of the securities valued by
such pricing service; (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. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. 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.

E. 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"
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998, CONTINUED

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.

F. 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
have 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 the 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, 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
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998, CONTINUED

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

Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Manager. The Fund has adopted a Plan of
Distribution (the "Plan") pursuant to Rule 12b-1 under the Act. The Plan
provides that the Fund will pay the Distributor a fee which is accrued daily and
paid monthly at the following annual rates: (i) Class A -- up to 0.25% of the
average daily net assets of Class A; (ii) Class B -- 0.75% of the average daily
net assets of Class B, and (iii) Class C -- up to 0.75% of the average daily net
assets of Class C. In the case of Class A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes, including the payment of commissions for sales of
these Classes and incentive compensation to, and expenses of, the account
executives of Dean Witter Reynolds Inc. ("DWR"), an affiliate of the Manager and
Distributor, and others who engage in or support distribution of the shares or
who service shareholder accounts, including overhead and telephone expenses;
printing and distribution of prospectuses and reports used in connection with
the offering of these shares to other than current shareholders; and the
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may utilize fees paid pursuant to the
Plan, in the case of Class B shares, to compensate DWR and other selected
broker-dealers for their opportunity costs in advancing such amounts, which
compensation would be in the form of a carrying charge on any unreimbursed
expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Trustees will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts, including
carrying charges, totaled $55,344, at January 31, 1998.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998, CONTINUED

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 0.75% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to account executives may be reimbursed in the subsequent
calendar year. For the period ended January 31, 1998, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.25% and
0.75%, respectively.

The Distributor has informed the Fund that for the period ended January 31,
1998, it received contingent deferred sales charges from certain redemptions of
the Fund's Class B shares and Class C shares of $7,489 and $356, respectively
and received $808 in front-end sales charges from sales of the Fund's Class A
shares. The respective shareholders pay such charges which are not an expense of
the Fund.

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, 1998 aggregated
$55,824,587 and $65,551,624, respectively. Included in the aforementioned are
purchases and sales of Morgan Stanley Group, Inc., an affiliate of the Manager
since May 31, 1997, of $55,188 and $607,506, respectively, as well as a net
realized gain of $64,691.

For the period May 31, 1997 through January 31, 1998, the Fund incurred
brokerage commissions of $1,283 with Morgan Stanley & Co., Inc., an affiliate of
the Manager since May 31, 1997, for portfolio transactions executed on behalf of
the Fund. At January 31, 1998, the Fund's payable for investments purchased
included unsettled trades with Morgan Stanley & Co., Inc. of $55,188. The Funds'
interest and dividend income included $7,250 and $27,770, respectively, for
income from Morgan Stanley Group, Inc. securities.

Dean Witter Trust FSB, an affiliate of the Manager and Distributor, is the
Fund's transfer agent. At January 31, 1998, the Fund had transfer agent fees and
expenses payable of approximately $760.
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1998, CONTINUED

6. SHARES OF BENEFICIAL INTEREST+

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, 1998 JANUARY 31, 1997
----------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- ------------ ------------
<S> <C> <C> <C> <C>
CLASS A SHARES*
Sold............................................................. 2,751 $ 33,065 -- --
Reinvestment of dividends and distributions...................... 142 1,614 -- --
Redeemed......................................................... (492) (5,989) -- --
------------ -------------- ------------ ------------
Net increase -- Class A.......................................... 2,401 28,690 -- --
------------ -------------- ------------ ------------
CLASS B SHARES*
Sold............................................................. 209,588 2,492,309 -- --
Reinvestment of dividends and distributions...................... 32,187 368,173 -- --
Redeemed......................................................... (89,344) (1,054,299) -- --
------------ -------------- ------------ ------------
Net increase -- Class B.......................................... 152,431 1,806,183 -- --
------------ -------------- ------------ ------------
CLASS C SHARES
Sold............................................................. 912,536 10,493,055 1,635,756 $ 18,613,081
Reinvestment of dividends and distributions...................... 485,664 5,548,520 431,286 4,808,760
Redeemed......................................................... (1,590,764) (18,344,299) (1,909,009) (21,658,327)
------------ -------------- ------------ ------------
Net increase (decrease) -- Class C............................... (192,564) (2,302,724) 158,033 1,763,514
------------ -------------- ------------ ------------
CLASS D SHARES*
Sold............................................................. 848 10,014 -- --
Reinvestment of dividends and distributions...................... 68 781 -- --
------------ -------------- ------------ ------------
Net increase -- Class D.......................................... 916 10,795 -- --
------------ -------------- ------------ ------------
Net increase (decrease) in Fund.................................. (36,816) $ (457,056) 158,033 $ 1,763,514
------------ -------------- ------------ ------------
------------ -------------- ------------ ------------
</TABLE>

- ---------------------
+ On July 28, 1997, 416,258, shares representing $4,916,004 were transferred to
Class B.

* For the period July 28, 1997 (issue date) through January 31, 1998.
<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,
1993*
FOR THE YEAR ENDED JANUARY 31, THROUGH
------------------------------------------------------- JANUARY 31,
1998**++ 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 11.42 $ 11.13 $ 9.77 $ 10.98 $ 10.00
---------- ---------- ---------- ---------- ------
Net investment income................... 0.57 0.60 0.59 0.59 0.45
Net realized and unrealized gain
(loss)................................. 0.96 0.84 1.37 (1.20) 1.02
---------- ---------- ---------- ---------- ------
Total from investment operations........ 1.53 1.44 1.96 (0.61) 1.47
---------- ---------- ---------- ---------- ------
Less dividends and distributions from:
Net investment income................ (0.60) (0.60) (0.60) (0.55) (0.39)
Net realized gain.................... (0.74) (0.55) -- (0.05) (0.10)
---------- ---------- ---------- ---------- ------
Total dividends and distributions....... (1.34) (1.15) (0.60) (0.60) (0.49)
---------- ---------- ---------- ---------- ------
Net asset value, end of period.......... $ 11.61 $ 11.42 $ 11.13 $ 9.77 $ 10.98
---------- ---------- ---------- ---------- ------
---------- ---------- ---------- ---------- ------
TOTAL INVESTMENT RETURN+................ 14.03% 13.46% 20.52% (5.59)% 15.06%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 2.01% 2.02% 2.21% 2.04% 1.57%(2)(3)
Net investment income................... 4.84% 5.19% 5.41% 5.83% 5.62%(2)(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands.............................. $54,863 $60,941 $57,631 $55,335 $64,370
Portfolio turnover rate................. 96% 102% 79% 88% 84%(1)
Average commission rate paid............ $0.0169 $0.0540 -- -- --
</TABLE>

- ---------------------

* Commencement of operations.
** Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date, other than shares which were acquired in
exchange for shares of Funds for which Dean Witter Services Company Inc
serves as Manager and TCW Fund's Management, Inc. serves as Adviser
("TCW/DW Funds") offered with a contingent deferred sales charge ("CDSC")
and shares acquired through reinvestment of dividends and distributions
thereon, have been designated Class C shares. Shares held prior to July 28,
1997 which were acquired in exchange for shares of a TCW/DW Fund sold with
a CDSC, including shares acquired through reinvestment of dividends and
distributions thereon, have been designated Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) If the Manager and Investment Adviser had not reimbursed all expenses and
waived the management fee, 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
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
JANUARY 31,
1998++
- ------------------------------------------------------------------------------
<S> <C>
CLASS A SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $ 11.81
------
Net investment income....................................... 0.31
Net realized and unrealized gain............................ 0.38
------
Total from investment operations............................ 0.69
------
Less dividends and distributions from:
Net investment income.................................... (0.33)
Net realized gain........................................ (0.57)
------
Total dividends and distributions........................... (0.90)
------
Net asset value, end of period.............................. $ 11.60
------
------
TOTAL INVESTMENT RETURN+.................................... 6.03%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.54%(2)
Net investment income....................................... 5.04%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $28
Portfolio turnover rate..................................... 96%
Average commission rate paid................................ $0.0169

CLASS B SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................ $ 11.81
------
Net investment income....................................... 0.28
Net realized and unrealized gain............................ 0.38
------
Total from investment operations............................ 0.66
------
Less dividends and distributions from:
Net investment income.................................... (0.30)
Net realized gain........................................ (0.57)
------
Total dividends and distributions........................... (0.87)
------
Net asset value, end of period.............................. $ 11.60
------
------
TOTAL INVESTMENT RETURN+.................................... 5.80%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 2.02%(2)
Net investment income....................................... 4.58%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $6,597
Portfolio turnover rate..................................... 96%
Average commission rate paid................................ $0.0169
</TABLE>

- ---------------------

* The date the shares were first issued. Class B participants who held shares
prior to July 28, 1997 should refer to the Financial Highlights of Class C
to obtain the historical per share and ratio information of their shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.

SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
JULY 28, 1997*
THROUGH
JANUARY 31,
1998++
- ------------------------------------------------------------------------------

<S> <C>
CLASS D SHARES

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period........................ $ 11.81
------

Net investment income....................................... 0.32

Net realized and unrealized gain............................ 0.39
------

Total from investment operations............................ 0.71
------

Less dividends and distributions from:
Net investment income.................................... (0.34)
Net realized gain........................................ (0.57)
------

Total dividends and distributions........................... (0.91)
------

Net asset value, end of period.............................. $ 11.61
------
------

TOTAL INVESTMENT RETURN+.................................... 6.21%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.27%(2)

Net investment income....................................... 5.33%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $11

Portfolio turnover rate..................................... 96%

Average commission rate paid................................ $0.0169
</TABLE>

- ---------------------

* The date the shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.

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, 1998, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at January 31, 1998 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
MARCH 13, 1998
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FEDERAL TAX NOTICE (UNAUDITED)

1998 FEDERAL TAX NOTICE

For the year ended January 31, 1998, the Fund paid to shareholders the following
per share amounts from long-term capital gains. These distributions are taxable
as 28% rate gains or 20% rate gains, as indicated below:

<TABLE>
<CAPTION>
PER SHARE
--------------------------
CLASS CLASS CLASS CLASS
A B C D
----- ----- ----- -----
<S> <C> <C> <C> <C>
Portion of long-term
capital gains taxable as:
28% rate gain.......... $0.16 $0.16 $0.22 $0.16
20% rate gain.......... 0.31 0.31 0.31 0.31
----- ----- ----- -----
Total long-term capital
gains.................... $0.47 $0.47 $0.53 $0.47
----- ----- ----- -----
----- ----- ----- -----
</TABLE>

For the year ended January 31, 1998, 11.01% of the income dividends qualified
for the dividends received deduction available to corporations.
<PAGE>

TRUSTEES

John C. Argue

Richard M. DeMartini

Charles A. Fiumefreddo

John R. Haire

Dr. Manuel H. Johnson

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

Barry Fink
Vice President, Secretary and
General Counsel

Robert M. Hanisee
Vice President

Kevin A. Hunter
Vice President

Mark L. Attanasio
Vice President

Melissa V. Weiler
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT

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

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036

MANAGER

Dean Witter Services Company Inc.

ADVISER

TCW Funds Management, Inc.

This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospectus of the Fund. This report is not authorized for distribution to
prospective investors in the Fund unless preceded or accompanied by an
effective prospectus.

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ANNUAL REPORT
JANUARY 31, 1998