TRAVELERS SERIES FUND INC.
on behalf of the
Smith Barney High Income Portfolio
Supplement dated July 23, 1998
to the Prospectus dated February 28, 1998
The following information supplements the information set
forth in the Prospectus under "Special Investment Techniques and
Risk Considerations."
Real Estate Investment Trusts
The Smith Barney High Income Portfolio may invest in real
estate investment trusts ("REITs"). REITs are entities which
either own properties or make construction or mortgage loans.
Equity trusts own real estate directly and the value of, and
income earned by, the trust depends upon the income of the
underlying properties and the rental income they earn.
Equity trusts may also include operating or finance
companies. Equity trusts can also realize capital gains by
selling properties that have appreciated in value. A
mortgage trust can make construction, development or long-
term mortgage loans, and are sensitive to the credit quality
of the borrower. Mortgage trusts derive their income from
interest payments. Hybrid trusts combine the characteristics
of both equity and mortgage trusts, generally by holding both
ownership interests and mortgage interests in real estate.
The value of securities issued by REITs are affected by tax
and regulatory requirements and by perceptions of management
skill. They are also subject to heavy cash flow dependency,
defaults by borrowers or tenants, self-liquidation, the
possibility of failing to qualify for tax-free status under
the Internal Revenue Code of 1986, as amended, and failing to
maintain exemption from the Investment Company Act of 1940,
as amended.
FD 01524
