WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000091157
<NAME> SMITH BARNEY FUNDS, INC.
<SERIES>
   <NUMBER> 3
   <NAME> INCOME RETURN ACCOUNT PORTFOLIO CLASS C
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                       15,979,741
<INVESTMENTS-AT-VALUE>                      16,012,309
<RECEIVABLES>                                4,272,125
<ASSETS-OTHER>                                  56,853
<OTHER-ITEMS-ASSETS>                           988,450
<TOTAL-ASSETS>                              21,329,737
<PAYABLE-FOR-SECURITIES>                     3,633,167
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       22,734
<TOTAL-LIABILITIES>                          3,655,901
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                           2,577
<ACCUMULATED-NET-GAINS>                      (765,225)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                            33
<NET-ASSETS>                                17,674,836
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            1,391,081
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 288,320
<NET-INVESTMENT-INCOME>                      1,102,761
<REALIZED-GAINS-CURRENT>                        71,998
<APPREC-INCREASE-CURRENT>                       32,568
<NET-CHANGE-FROM-OPS>                          945,817
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          107
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         54,931
<NUMBER-OF-SHARES-REDEEMED>                    104,148
<SHARES-REINVESTED>                              7,212
<NET-CHANGE-IN-ASSETS>                      17,673,836
<ACCUMULATED-NII-PRIOR>                      1,513,388
<ACCUMULATED-GAINS-PRIOR>                      102,837
<OVERDISTRIB-NII-PRIOR>                         17,808
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              107
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    107
<AVERAGE-NET-ASSETS>                             2,210
<PER-SHARE-NAV-BEGIN>                             9.60
<PER-SHARE-NII>                                   0.41
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                              0.49
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               9.48
<EXPENSE-RATIO>                                   1.53
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>