[ARTICLE] 6
[CIK] 0000091157
[NAME] SMITH BARNEY FUNDS, INC.
[SERIES]
   [NUMBER] 3
   [NAME] INCOME RETURN ACCOUNT PORTFOLIO CLASS Y
<TABLE>
<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]                           39
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                              1
[NUMBER-OF-SHARES-REDEEMED]                     35,888
[SHARES-REINVESTED]                              3,887
[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]                               745
[PER-SHARE-NAV-BEGIN]                             9.60
[PER-SHARE-NII]                                   0.45
[PER-SHARE-GAIN-APPREC]                              0
[PER-SHARE-DIVIDEND]                              0.50
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               9.48
[EXPENSE-RATIO]                                   1.08
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>