[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
   [NUMBER] 3
   [NAME] INCOME RETURN ACCOUNT PORTFOLIO, CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   6-MOS
[FISCAL-YEAR-END]                          DEC-31-1997
[PERIOD-END]                               JUN-30-1997
[INVESTMENTS-AT-COST]                        1,066,000
[INVESTMENTS-AT-VALUE]                       1,066,000
[RECEIVABLES]                                      174
[ASSETS-OTHER]                                 882,001
[OTHER-ITEMS-ASSETS]                             6,784
[TOTAL-ASSETS]                               1,954,959
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                              0
[OTHER-ITEMS-LIABILITIES]                       43,600
[TOTAL-LIABILITIES]                             43,600
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                     2,608,073
[SHARES-COMMON-STOCK]                                0
[SHARES-COMMON-PRIOR]                           67,116
[ACCUMULATED-NII-CURRENT]                       65,311
[OVERDISTRIBUTION-NII]                               0
[ACCUMULATED-NET-GAINS]                      (762,025)
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                             0
[NET-ASSETS]                                 1,911,359
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                              266,862
[OTHER-INCOME]                                       0
[EXPENSES-NET]                                  40,040
[NET-INVESTMENT-INCOME]                        226,822
[REALIZED-GAINS-CURRENT]                         3,227
[APPREC-INCREASE-CURRENT]                     (32,568)
[NET-CHANGE-FROM-OPS]                          197,481
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                            0
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                              0
[NUMBER-OF-SHARES-REDEEMED]                     68,385
[SHARES-REINVESTED]                              1,269
[NET-CHANGE-IN-ASSETS]                    (15,762,477)
[ACCUMULATED-NII-PRIOR]                              0
[ACCUMULATED-GAINS-PRIOR]                    (765,253)
[OVERDISTRIB-NII-PRIOR]                        (2,576)
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                           22,000
[INTEREST-EXPENSE]                                   0
[GROSS-EXPENSE]                                 60,200
[AVERAGE-NET-ASSETS]                                 0
[PER-SHARE-NAV-BEGIN]                                0
[PER-SHARE-NII]                                      0
[PER-SHARE-GAIN-APPREC]                              0
[PER-SHARE-DIVIDEND]                                 0
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                                  0
[EXPENSE-RATIO]                                      0
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>