[ARTICLE] 6
[CIK] 0000355747
[NAME] SMITH BARNEY INVESTMENT FUNDS INC.
[SERIES]
   [NUMBER] 2
   [NAME] SMITH BARNEY GOVERNMENT SECURITIES CLASS Y
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   YEAR
[FISCAL-YEAR-END]                          DEC-31-1996
[PERIOD-END]                               DEC-31-1996
[INVESTMENTS-AT-COST]                      733,486,991
[INVESTMENTS-AT-VALUE]                     732,039,260
[RECEIVABLES]                                6,809,285
[ASSETS-OTHER]                                       0
[OTHER-ITEMS-ASSETS]                                 0
[TOTAL-ASSETS]                             738,848,545
[PAYABLE-FOR-SECURITIES]                             0
[SENIOR-LONG-TERM-DEBT]                    186,176,630
[OTHER-ITEMS-LIABILITIES]                    1,105,257
[TOTAL-LIABILITIES]                        187,281,887
[SENIOR-EQUITY]                                      0
[PAID-IN-CAPITAL-COMMON]                   770,961,009
[SHARES-COMMON-STOCK]                        4,245,386
[SHARES-COMMON-PRIOR]                                0
[ACCUMULATED-NII-CURRENT]                   34,087,304
[OVERDISTRIBUTION-NII]                       2,360,729 
[ACCUMULATED-NET-GAINS]                      2,608,882
[OVERDISTRIBUTION-GAINS]                             0
[ACCUM-APPREC-OR-DEPREC]                  (27,047,512)
[NET-ASSETS]                               551,566,658
[DIVIDEND-INCOME]                                    0
[INTEREST-INCOME]                           44,682,561
[OTHER-INCOME]                                       0
[EXPENSES-NET]                              10,595,257
[NET-INVESTMENT-INCOME]                     34,087,304
[REALIZED-GAINS-CURRENT]                     2,068,882
[APPREC-INCREASE-CURRENT]                 (27,047,512)
[NET-CHANGE-FROM-OPS]                        9,108,674
[EQUALIZATION]                                       0
[DISTRIBUTIONS-OF-INCOME]                    1,250,453 
[DISTRIBUTIONS-OF-GAINS]                             0
[DISTRIBUTIONS-OTHER]                                0
[NUMBER-OF-SHARES-SOLD]                     39,250,388
[NUMBER-OF-SHARES-REDEEMED]                          0
[SHARES-REINVESTED]                                  0
[NET-CHANGE-IN-ASSETS]                       9,108,674
[ACCUMULATED-NII-PRIOR]                     42,959,653
[ACCUMULATED-GAINS-PRIOR]                   12,784,089
[OVERDISTRIB-NII-PRIOR]                        945,370 
[OVERDIST-NET-GAINS-PRIOR]                           0
[GROSS-ADVISORY-FEES]                        2,287,647
[INTEREST-EXPENSE]                           2,633,226
[GROSS-EXPENSE]                              9,628,104
[AVERAGE-NET-ASSETS]                        17,619,840
[PER-SHARE-NAV-BEGIN]                             9.71
[PER-SHARE-NII]                                   0.55
[PER-SHARE-GAIN-APPREC]                         (0.35)
[PER-SHARE-DIVIDEND]                              0.57
[PER-SHARE-DISTRIBUTIONS]                            0
[RETURNS-OF-CAPITAL]                                 0
[PER-SHARE-NAV-END]                               9.34
[EXPENSE-RATIO]                                   0.44
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0
</TABLE>