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Heritage Growth & Income Trust · N-30D · For 9/30/96

Filed On 12/10/96 · SEC File 811-04767 · Accession Number 950144-96-8964

  As Of               Filer                 Filing     On/For/As Docs:Pgs              Issuer               Agent

12/10/96  Heritage Growth & Income Trust    N-30D       9/30/96    1:20                                     950144

Annual or Semi-Annual Report Mailed to Shareholders · Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Heritage Income-Growth Trust - Annual Report          20    130K 

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                                                               November 11, 1996

Dear Fellow Shareholders:                                                       

I am pleased to provide you with the annual report for Heritage       
Income-Growth Trust (the "Fund") for the fiscal year ended September 30, 1996.  
For this period, the "A" shares and "C" shares of your Fund delivered total     
returns of 22.26% and 21.37%, respectively.* These returns compare favorably to 
the 20.34% return of the Standard & Poor's 500 Composite Stock Price Index ("S&P
500") over the same period.                                                     

In our most recent semiannual report, we pointed out that it should be
considered unusual for your Fund to outperform a broad stock market index such  
as the S&P 500 during a period of extremely positive market returns. Your Fund  
is designed to participate in the upside of long-term investments in equities   
while reducing short-term volatility through the use of various income-oriented 
strategies for investing in the stock market. In other words, we try to offer a 
smoother ride for our investors. Over our most recent fiscal year, we were able 
to outperform the S&P 500 by generally realizing a higher percentage of stock   
market gains on up days than our share of the market losses on down days. In the
performance charts that follow we compare our performance to the S&P 500 as well
as the Value Line Index and the Lipper Analytical Services, Inc., averages for  
equity income mutual funds. From its inception in December 1986 through February
1990, your Fund invested primarily in convertible securities. Since February    
1990, your Fund has been managed as an equity income fund.                      

    In the letter that follows, Lou Kirschbaum, the portfolio manager for your
Fund since February 1990, discusses some of the significant strategies that     
materially affected your Fund's performance over the past year. Mr. Kirschbaum  
is a senior vice president of Eagle Asset Management, Inc. ("Eagle"), your      
Fund's investment subadviser. In September, Michael Chren, who had been         
assisting Mr. Kirschbaum in managing your Fund, assumed other duties at Eagle.  
Mr. Chren was replaced on the portfolio management team for your Fund by David  
Blount, who is a vice president of Eagle and has worked closely with Mr.        
Kirschbaum for several years in servicing other accounts.                       

    If there are ever any ways in which you believe we could serve you better,
please call us at 800-709-3863. On behalf of all of us at Heritage, thank you   
for your continuing investment in Heritage Income-Growth Trust.                 
              Sincerely,

                       /s/ STEPHEN G. HILL
                   Stephen G. Hill
             President
---------------                                                                 

* Calculated without the imposition of front-end or contingent deferred sales   
charges.                                                                        

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                                                               November 11, 1996

Dear Fellow Shareholders:                                                       

   The financial markets have been turbulent for many of the past 12 months,
but the course has generally been up. Corrections have been frequent in number  
but shallow and short-lived, despite the backup in long-term interest rates that
began early in 1996. There has been relatively little consistency in the groups 
of stocks that have led the market higher, which has created a good backdrop for
effective stock selection.                                                      

     Your Fund has performed well in this environment, compared both to its peer
group and the market in general. The important contributors to performance over 
the past year were a diverse lot, ranging from large capitalization growth      
stocks (Abbot Labs, Pfizer, and Associates First) to smaller capitalization     
issues, through which we participate via income-producing convertible securities
(US Diagnostic Labs, Callon Petroleum, Prime Hospitality, for example).         
Financial services stocks, most notably regional banks, were among the more     
consistent performers in the Fund's portfolio last year.                        

    Real estate investment trusts -- REITs, for short -- were a good source of
both income and capital appreciation in the latest fiscal year. This group      
represents the largest single industry exposure in the Fund's portfolio. REITs  
have not only produced good returns, they have also provided an important buffer
on the market's down days, since they tend to hold up better than the average   
stock in declining markets.                                                     

    In last year's letter, I supported my sanguine view of the market with the
expectation that economic growth would be moderate (it was), inflation would be 
mild (ditto), interest rates would remain low, and corporate profits in general 
would continue to rise. I was half-right on interest rates: short-term rates    
remained low, while long-term rates gyrated higher than I expected. It was the  
latter that was mostly responsible for the market's volatility, especially in   
the first six months of calendar 1996.                                          

 Looking into 1997, the economic picture appears quite similar to a year
ago. On this basis alone, I would conclude that next year ought to be a good one
for stocks. I'll qualify my opinion, though, with the observation that          
developments on the political front might outweigh fundamental economic issues  
for a while. This is often the case the first year following a Presidential     
election. Political developments aside, I believe the stock market should       
produce further gains in the year to come, and I will attempt to take maximum   
advantage of the opportunities available, within the context of your Fund's     
stated policies.                                                                

As always, I appreciate your continued confidence and support.        

              Sincerely,

                      /s/ LOU KIRSCHBAUM
                  Lou Kirschbaum
                         Senior Vice President
                                Eagle Asset Management, Inc.

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CHART 

                                                                · Download Table


                _____     - -       . . . .   
                HIGT      S&P 500   Value Line
                                              
               9525       10000     10000     
               9525       9845      9877      
               10177      11948     11727     
"1987"         9941       12548     11758     
               10171      13376     12232     
               8322       10362     8748      
               9001       10953     9987      
"1988"         9566       11680     10508     
               9828       11718     10274     
               10018      12080     10186     
               10544      12935     10759     
"1989"         11257      14076     11376     
               11675      15584     12050     
               11377      15906     11329     
               10715      15428     10676     
"1990"         10994      16397     10768     
               9758       14143     8306      
               10123      15412     8580      
               11498      17651     10398     
"1991"         11717      17610     10260     
               12560      18553     10602     
               13555      20108     10915     
               13503      19600     11262     
"1992"         13588      19973     10784     
               14246      20602     10807     
               15142      21638     11674     
               15741      22584     12258     
"1993"         15771      22693     12182     
               16588      23279     12598     
               16826      23819     12927     
               16399      22916     12470     
"1994"         16390      23012     12034     
               16887      24135     12604     
               16677      24130     12150     
               17754      26481     12784     
"1995"         18707      29007     13619     
               20192      31313     14491     
               21327      33198     14492     
               22822      34981     15101     
"1991"         24019      36551     15508     
               24687      37684     15597     


CHART 

                                                                · Download Table


                ____            - - - -         - . .           . . . .   
                HIGT            S&P 500         Lipper          Value Line

                                                                          
"Feb 90"        10000           10000           10000           10000     
                10145           10397           10184           10274     
                10409           11050           10461           10362     
"1990"          9239            9531            9259            7994      
                9585            10386           9893            8257      
                10886           11895           11023           10007     
                11094           11868           11095           9873      
"1991"          11893           12503           11814           10202     
                12835           13551           12488           10504     
                12785           13209           12466           10838     
                12866           13460           12745           10378     
"1992"          13489           13884           13102           10400     
                14337           14582           13688           11235     
                14904           15219           14524           11797     
                14933           15293           14713           11723     
"1993"          15706           15688           15362           12124     
                15931           16052           15567           12441     
                15528           15443           14984           12000     
                15518           15508           14988           11581     
"1994"          15989           16265           15573           12129     
                15791           16262           15174           11693     
                16811           17846           16295           12303     
                17712           19548           17373           13106     
"1995"          19118           21102           18630           13945     
                20193           22373           19690           13946     
                21608           23574           20582           14532     
                22742           24632           21165           14925     
"1996"          23375           25396           21728           15010     


THE VALUE INDEX DOES NOT INCLUDE REINVESTMENT OF DIVIDENDS.                     
*ANNUAL RETURNS FOR HIGT ARE CALCULATED IN CONFORMANCE WITH ITEM 22 OF FORM   
N-1A, WHICH ASSUMES THE MAXIMUM SALES LOAD OF 4.75% AND REINVESTMENT OF     
DIVIDENDS.                                                                  
**RETURN FOR HIGT CLASS "A" SHARES DOES NOT REFLECT THE IMPOSITION OF FRONT-END 
SALES LOAD.                                                                 

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CHART 

                                                                · Download Table

                ____            - - - -         - . .           . . . .   
                HIGT            S&P 500         Lipper          Value Line

                                                                          
4/30/95         10000           10000           10000           10000     
6/30/95         10500           10954           10661           10653     
9/30/95         11318           11825           11433           11335     
12/31/95        11944           12537           12083           11336     
3/31/96         12746           13210           12631           11812     
6/30/96         13399           13803           12988           12131     
9/30/96         13736           14231           13334           12200     

THE VALUE LINE INDEX DOES NOT INCLUDE REINVESTMENT OF DIVIDENDS.                
*ANNUAL TOTAL RETURNS FOR HIGT CLASS "C" SHARES ARE CALCULATED IN CONFORMANCE   
WITH ITEM 22 OF FORM N-1A, WHICH ASSUMES THE REINVESTMENT OF DIVIDENDS AND A  
CONTINGENT DEFERRED SALES LOAD (CDSL) OF 1% ON REDEMPTIONS MADE WITHIN 12     
MONTHS OF PURCHASE.                                                           

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--------------------------------------------------------------------------------
HERITAGE INCOME-GROWTH TRUST
INVESTMENT PORTFOLIO
SEPTEMBER 30, 1996
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

                                                                                                          MARKET   
          SHARES                                                                                           VALUE   
                                                                                                        -----------
                                                                                                                   
COMMON STOCKS--55.3%(A)                                                                                            
------------------------                                                                                           
   ADVERTISING/COMMUNICATIONS--1.9%                                                                                
   ------------------------------                                                                                  
           20,000   Omnicom Group, Inc................................................................. $   935,000
                                                                                                        -----------
   AUTO/TRUCK MANUFACTURERS--0.6%                                                                                  
   -----------------------------                                                                                   
            9,796   Ford Motor Company.................................................................     306,125
                                                                                                        -----------
   BANKING--5.8%                                                                                                   
   -------------                                                                                                   
            2,000   BankAmerica Corporation............................................................     164,250
            4,000   Bankers Trust New York Corporation(c)..............................................     314,500
            4,000   Chase Manhattan Corporation(c).....................................................     320,500
           12,000   GreenPoint Financial Corporation...................................................     457,500
            6,000   Jefferson-Pilot Corporation, ACES, 7.25%...........................................     505,500
            6,000   Mellon Bank Corporation............................................................     355,500
            6,000   National City Corporation(c).......................................................     252,750
            2,000   NationsBank Corporation(c).........................................................     173,750
            6,000   Norwest Corporation(c).............................................................     245,250
                                                                                                        -----------
                                                                                                          2,789,500
                                                                                                        -----------
   CONGLOMERATES/DIVERSIFIED--2.1%                                                                                 
   ----------------------------                                                                                    
           15,000   Chemed Corporation.................................................................     570,000
            7,000   Harsco Corporation.................................................................     441,000
                                                                                                        -----------
                                                                                                          1,011,000
                                                                                                        -----------
   DATA PROCESSING--2.5%                                                                                           
   --------------------                                                                                            
            8,000   Automatic Data Processing, Inc.....................................................     349,000
           14,078   Electronic Data Systems Corporation(c).............................................     864,037
                                                                                                        -----------
                                                                                                          1,213,037
                                                                                                        -----------
   ELECTRONICS/ELECTRIC--1.9%                                                                                      
   -----------------------                                                                                         
           10,000   General Electric Company...........................................................     910,000
                                                                                                        -----------
   FINANCE--4.2%                                                                                                   
   ------------                                                                                                    
           10,000   American Express Company(c)........................................................     462,500
           18,000   Associates First Capital Corporation...............................................     738,000
           10,000   Federal National Mortgage Association..............................................     348,750
           10,204   Travelers Group, Inc.(c)...........................................................     501,272
                                                                                                        -----------
                                                                                                          2,050,522
                                                                                                        -----------
   HEALTH CARE CENTERS--0.3%                                                                                       
   -----------------------                                                                                         
           10,000   U.S. Diagnostic, Inc.*.............................................................     127,500
                                                                                                        -----------
   HOTELS/MOTELS/INNS--0.8%                                                                                        
   -----------------------                                                                                         
            7,500   Marriott International, Inc........................................................     413,437
                                                                                                        -----------
   HOUSEHOLD PRODUCTS--0.8%                                                                                        
   -----------------------                                                                                         
            4,000   Procter & Gamble Company(c)........................................................     390,000
                                                                                                        -----------
   INSURANCE--1.0%                                                                                                 
   --------------                                                                                                  
            5,000   Marsh & McLennan Companies, Inc....................................................     485,625
                                                                                                        -----------
   LAND DEVELOPMENT/REAL ESTATE--0.5%                                                                              
   ---------------------------------                                                                               
            9,411   The Rouse Company..................................................................     244,685
                                                                                                        -----------
   LEISURE/AMUSEMENT--0.4%                                                                                         
   -----------------------                                                                                         
            2,500   Eastman Kodak Company(c)...........................................................     196,250
                                                                                                        -----------

The accompanying notes are an integral part of the financial statements.

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--------------------------------------------------------------------------------
HERITAGE INCOME-GROWTH TRUST
INVESTMENT PORTFOLIO
SEPTEMBER 30, 1996
(CONTINUED) 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

                                                                                                       MARKET   
       SHARES                                                                                           VALUE   
                                                                                                     -----------
                                                                                                                
MACHINERY--0.6%                                                                                                 
---------------                                                                                                 
        10,000   Lincoln Electric Company, Class "A"................................................ $   282,500
                                                                                                     -----------
OFFICE EQUIPMENT--1.4%                                                                                          
--------------------                                                                                            
        24,000   Wallace Computer Services, Inc.(c).................................................     678,000
                                                                                                     -----------
OIL & GAS--3.7%                                                                                                 
--------------                                                                                                  
         6,000   Amoco Corporation..................................................................     423,000
         5,000   Exxon Corporation..................................................................     416,250
         3,000   Mobil Corporation..................................................................     347,250
         5,000   Petroleum Geo-Services, ADR*(c)....................................................     136,250
         6,000   Schlumberger, Ltd..................................................................     507,000
                                                                                                     -----------
                                                                                                       1,829,750
                                                                                                     -----------
PHARMACEUTICAL--5.1%                                                                                            
-------------------                                                                                             
         7,500   Abbott Laboratories................................................................     369,375
         6,000   Merck & Company, Inc.(c)...........................................................     422,250
         6,500   Pfizer, Inc........................................................................     514,313
         5,000   Schering-Plough Corporation........................................................     307,500
         6,000   SmithKline Beecham, PLC, ADR(c)....................................................     365,250
         8,000   Warner-Lambert Company(c)..........................................................     528,000
                                                                                                     -----------
                                                                                                       2,506,688
                                                                                                     -----------
POLLUTION CONTROL--1.2%                                                                                         
---------------------                                                                                           
        13,950   Thermo Electron Corporation*(c)....................................................     564,975
                                                                                                     -----------
PUBLISHING--2.1%                                                                                                
---------------                                                                                                 
         8,000   McGraw-Hill Companies, Inc.........................................................     341,000
        10,000   Reuters Holdings, PLC, ADR(c)......................................................     692,500
                                                                                                     -----------
                                                                                                       1,033,500
                                                                                                     -----------
REAL ESTATE INVESTMENT TRUST--8.0%                                                                              
-------------------------------                                                                                 
        16,000   Alexander Haagen Properties, Inc...................................................     224,000
        12,000   Allied Capital Commercial Corporation..............................................     262,500
        10,000   Bay Apartment Communities, Inc.....................................................     285,000
        12,000   Cali Realty Corporation............................................................     325,500
        10,000   Duke Realty Investments, Inc.......................................................     326,250
        12,000   Health Care Property Investors, Inc................................................     391,500
        10,000   Manufactured Home Communities, Inc.................................................     192,500
        23,958   Security Capital Industrial Trust..................................................     437,234
        10,000   Sovran Self Storage, Inc...........................................................     262,500
        10,000   Starwood Lodging Trust.............................................................     418,750
        12,500   Storage Trust Realty...............................................................     271,875
        18,200   Sun Communities, Inc...............................................................     518,700
                                                                                                     -----------
                                                                                                       3,916,309
                                                                                                     -----------
RETAIL STORES--0.9%                                                                                             
-----------------                                                                                               
        25,000   Intimate Brands, Inc.(c)...........................................................     456,250
                                                                                                     -----------
STEEL/IRON--0.7%                                                                                                
---------------                                                                                                 
        10,000   Carpenter Technology Corporation...................................................     350,000
                                                                                                     -----------
TELECOMMUNICATIONS--2.5%                                                                                        
-----------------------                                                                                         
        16,000   ALLTEL Corporation.................................................................     446,000
        15,000   Frontier Corporation...............................................................     399,375
        10,000   GTE Corporation....................................................................     385,000
                                                                                                     -----------
                                                                                                       1,230,375
                                                                                                     -----------

The accompanying notes are an integral part of the financial statements.

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--------------------------------------------------------------------------------
HERITAGE INCOME-GROWTH TRUST
INVESTMENT PORTFOLIO
SEPTEMBER 30, 1996
(CONTINUED) 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

                                                                                                          MARKET   
          SHARES                                                                                           VALUE   
                                                                                                        -----------
                                                                                                                   
   TOBACCO--0.9%                                                                                                   
   -------------                                                                                                   
            5,000   Philip Morris Companies, Inc.(c)................................................... $   448,750
                                                                                                        -----------
   UTILITIES-ELECTRIC--2.8%                                                                                        
   --------------------                                                                                            
           10,000   FPL Group, Inc.....................................................................     432,500
           25,000   MidAmerican Energy Company.........................................................     396,875
           15,000   NIPSCO Industries, Inc.............................................................     536,250
                                                                                                        -----------
                                                                                                          1,365,625
                                                                                                        -----------
   UTILITIES-GAS--1.9%                                                                                             
   -----------------                                                                                               
           25,000   UGI Corporation....................................................................     587,500
           10,000   Wicor, Inc.........................................................................     363,750
                                                                                                        -----------
                                                                                                            951,250
                                                                                                        -----------
   UTILITIES-WATER--0.7%                                                                                           
   -------------------                                                                                             
           16,000   American Water Works Company, Inc..................................................     346,000
                                                                                                        -----------
Total common stocks (cost $20,594,390).................................................................  27,032,653
                                                                                                        -----------
CONVERTIBLE PREFERRED STOCKS--13.2%(A)                                                                             
----------------------------------                                                                                 
   BROADCASTING--0.8%                                                                                              
   -----------------                                                                                               
           40,000   Triathlon Broadcasting Company, Series "A", 9.0%...................................     410,000
                                                                                                        -----------
   FILMED ENTERTAINMENT--0.9%                                                                                      
   ------------------------                                                                                        
           15,000   AMC Entertainment, Inc., Series "B", $1.75.........................................     450,000
                                                                                                        -----------
   FOOD SERVING--1.1%                                                                                              
   -----------------                                                                                               
           10,000   Wendy's Financing, Series "A", 5.0%................................................     515,000
                                                                                                        -----------
   GLASS/PRODUCTS--1.8%                                                                                            
   -------------------                                                                                             
           10,000   Corning, Inc. Series "M", 6.0%, MIPS...............................................     565,000
            6,000   Owens Corning, 6.5%, MIPS..........................................................     312,000
                                                                                                        -----------
                                                                                                            877,000
                                                                                                        -----------
   MANUFACTURING/DISTRIBUTIONS--0.6%                                                                               
   -------------------------------                                                                                 
           13,000   Cooper Industries, Inc., 6.0%, DECS................................................     266,500
                                                                                                        -----------
   MINING/DIVERSIFIED--1.1%                                                                                        
   ----------------------                                                                                          
           20,000   Freeport-McMoran Copper & Gold Mine, Inc., Series "A", 7.0%........................     555,000
                                                                                                        -----------
   OIL & GAS--1.3%                                                                                                 
   --------------                                                                                                  
           10,000   Callon Petroleum Company, $2.125...................................................     340,000
            8,000   Noble Drilling Corporation, $1.50..................................................     293,000
                                                                                                        -----------
                                                                                                            633,000
                                                                                                        -----------
   PUBLISHING--0.6%                                                                                                
   ---------------                                                                                                 
            5,000   Golden Books Financial Trust, 8.75%................................................     281,250
                                                                                                        -----------
   REAL ESTATE INVESTMENT TRUST--0.5%                                                                              
   -------------------------------                                                                                 
           10,000   Felcor Suite Hotels, Inc., Series "A", $1.95.......................................     260,000
                                                                                                        -----------
   RETAIL STORES--0.8%                                                                                             
   -----------------                                                                                               
            8,000   Kmart Financing Corporation, 7.75%.................................................     391,000
                                                                                                        -----------
   SERVICES--2.3%                                                                                                  
   ------------                                                                                                    
           11,100   Service Corporation International, Series "A", $3.125..............................   1,137,750
                                                                                                        -----------
   UTILITIES-GAS--1.4%                                                                                             
   -----------------                                                                                               
            8,200   Williams Companies, Inc., $3.50....................................................     672,400
                                                                                                        -----------
Total convertible preferred stock (cost $5,844,283)....................................................   6,448,900
                                                                                                        -----------

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST
INVESTMENT PORTFOLIO
SEPTEMBER 30, 1996
(CONTINUED) 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

         PRINCIPAL                                                                             MATURITY    MARKET   
          AMOUNT                                                                                 DATE       VALUE   
                                                                                               --------  -----------
                                                                                                                    
CONVERTIBLE BONDS--18.0%(A)                                                                                         
-------------------------                                                                                           
   AIR TRANSPORT--1.0%                                                                                              
   -----------------                                                                                                
        $500,000   Air Wisconsin Services, 7.75%.............................................. 06/15/10  $   473,225
                                                                                                         -----------
   AUTO PARTS/EQUIPMENT--1.1%                                                                                       
   -------------------------                                                                                        
         500,000   Magna International, Inc., 5.0%............................................ 10/15/02      533,995
                                                                                                         -----------
   BANKING--1.1%                                                                                                    
   -------------                                                                                                    
         500,000   BankAtlantic Bancorp, Inc., 6.75%.......................................... 07/01/06      531,250
                                                                                                         -----------
   CONGLOMERATES/DIVERSIFIED--1.2%                                                                                  
   ----------------------------                                                                                     
         500,000   Thermo Electron Corporation, 4.25%......................................... 01/01/03      606,585
                                                                                                         -----------
   DATA PROCESSING--1.6%                                                                                            
   --------------------                                                                                             
         400,000   First Financial Management Corporation, 5.0%............................... 12/15/99      769,280
                                                                                                         -----------
   ELECTRONICS/ELECTRIC--0.7%                                                                                       
   -----------------------                                                                                          
         350,000   Richey Electronics, Inc., 7.0%............................................. 03/01/06      325,500
                                                                                                         -----------
   FOOD SERVING--0.3%                                                                                               
   -----------------                                                                                                
         200,000   TPI Enterprises, Inc., 8.25%............................................... 07/15/02      170,000
                                                                                                         -----------
   HEALTH CARE CENTERS--2.6%                                                                                        
   -----------------------                                                                                          
         350,000   Complete Management, Inc., 8.0%............................................ 08/15/03      423,500
         300,000   Healthsource, Inc., 5.0%................................................... 03/01/03      236,103
         300,000   Tenet Healthcare Corporation, 6.0%......................................... 12/01/05      318,006
         200,000   U.S. Diagnostic, Inc., 9.0%................................................ 03/31/03      317,250
                                                                                                         -----------
                                                                                                           1,294,859
                                                                                                         -----------
   LAND DEVELOPMENT/REAL ESTATE--0.4%                                                                               
   ---------------------------------                                                                                
         200,000   The Rouse Company, 5.75%................................................... 07/23/02      202,000
                                                                                                         -----------
   MANUFACTURING/DISTRIBUTIONS--1.3%                                                                                
   -------------------------------                                                                                  
         300,000   Cooper Industries, Inc. 7.05%.............................................. 01/01/15      329,196
         300,000   Thermo Terratech, Inc., 4.625%............................................. 05/01/03      288,000
                                                                                                         -----------
                                                                                                             617,196
                                                                                                         -----------
   METAL--0.4%                                                                                                      
   -----------                                                                                                      
         250,000   Phoenix Shannon, PLC, 9.5%................................................. 11/01/00      192,813
                                                                                                         -----------
   OFFICE EQUIPMENT--0.6%                                                                                           
   --------------------                                                                                             
         300,000   U.S. Office Products Company, 5.5%......................................... 05/15/03      282,000
                                                                                                         -----------
   OIL & GAS--0.7%                                                                                                  
   ---------------                                                                                                  
         250,000   Pride Petro Services, 6.25%................................................ 02/15/06      330,000
                                                                                                         -----------
   PHARMACEUTICAL--1.1%                                                                                             
   ---------------------                                                                                            
         200,000   ICN Pharmaceuticals, Inc., 8.5%............................................ 11/15/99      223,372
         300,000   NABI, Inc., 6.50%.......................................................... 02/01/03      323,055
                                                                                                         -----------
                                                                                                             546,427
                                                                                                         -----------
   REAL ESTATE INVESTMENT TRUST--1.5%                                                                               
   ---------------------------------                                                                                
         250,000   Alexander Haagen Properties, Inc., 7.5%.................................... 01/15/01      227,812
         300,000   Developers Diversified Realty Corporation, 7.0%............................ 08/15/99      301,500
         200,000   LTC Properties, Inc., 7.75%................................................ 01/01/02      198,000
                                                                                                         -----------
                                                                                                             727,313
                                                                                                         -----------

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST
INVESTMENT PORTFOLIO
SEPTEMBER 30, 1996
(CONTINUED) 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

         PRINCIPAL                                                                              MATURITY    MARKET   
          AMOUNT                                                                                  DATE       VALUE   
   RETAIL STORES--1.8%                                                                          --------  -----------
   ------------------                                                                                                
                                                                                                                     
        $100,000   Home Depot, Inc., 3.25%....................................................  10/01/01  $   101,624
         750,000   Pier 1 Imports, Inc., 5.75%................................................  10/01/03      806,250
                                                                                                          -----------
                                                                                                              907,874
                                                                                                          -----------
   TELECOMMUNICATIONS--0.6%                                                                                          
   -------------------------                                                                                         
         250,000   MIDCOM Communications, Inc., 8.25%.........................................  08/15/03      285,860
                                                                                                          -----------
Total convertible bonds (cost $8,146,437).....................................................              8,796,177
                                                                                                          -----------
Total investment portfolio excluding repurchase agreement and covered call options written                           
(cost $34,585,110)............................................................................             42,277,730
                                                                                                          -----------
REPURCHASE AGREEMENT--14.8%(A)                                                                                       
-----------------------------                                                                                        
Repurchase Agreement with State Street Bank and Trust Company, dated September 30, 1996, @                           
5.35%, to be repurchased at $7,221,073 on October 1, 1996, collateralized by $7,236,775 United                       
States Treasury Notes, 5.375%, due November 30, 1997, (market value $7,368,277 including                             
interest) (cost $7,220,000)...................................................................              7,220,000
                                                                                                          -----------
TOTAL INVESTMENT PORTFOLIO (COST $41,805,110)(B), 101.3%(A)...................................            $49,497,730
                                                                                                          -----------

                                                        · Enlarge/Download Table

         SHARES                                                                                        
                                                                                                       
COVERED CALL OPTIONS WRITTEN--(0.6%)(A)                                                                
------------------------------------                                                                   
                 American Express Company                                                              
         5,000   January 1997 @ 45*........................................................... (17,500)
                 Bankers Trust New York Corporation                                                    
         2,000   January 1997 @ 75*........................................................... (12,750)
                 Chase Manhattan Corporation                                                           
         2,000   December 1996 @ 75*.......................................................... (14,500)
                 Eastman Kodak Company                                                                 
         1,500   October 1996 @ 80*...........................................................  (1,875)
                 Electronic Data Systems Corporation                                                   
         6,000   December 1996 @ 55*.......................................................... (45,000)
                 Intimate Brands, Inc.                                                                 
         4,000   January 1997 @ 22.5*.........................................................  (1,750)
         4,000   October 1996 @ 20*...........................................................    (750)
         4,000   October 1996 @ 22.5*.........................................................    (500)
                 Merck & Company, Inc.                                                                 
         3,000   October 1996 @ 70*...........................................................  (4,500)
                 National City Corporation                                                             
         3,000   January 1997 @ 35*........................................................... (22,500)
                 NationsBank Corporation                                                               
         2,000   November 1996 @ 90*..........................................................  (3,125)
                 Norwest Corporation                                                                   
         3,000   January 1997 @ 35*........................................................... (20,250)
                 Petroleum Geo-Services, ADR                                                           
         3,000   November 1996 @ 35*..........................................................    (938)
                 Philip Morris Cos., Inc.                                                              
         2,500   December 1996 @ 95*..........................................................  (5,625)
                 Procter & Gamble Company                                                              
         3,000   October 1996 @ 90*........................................................... (22,875)
                 Reuters Holdings, PLC, ADR                                                            
         3,000   November 1996 @ 70*..........................................................  (6,375)
         3,000   October 1996 @ 70*...........................................................  (3,375)
         2,000   October 1996 @ 75*...........................................................    (500)
                 SmithKline Beecham, PLC, ADR                                                          
         4,000   November 1996 @ 55*.......................................................... (28,000)

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST
INVESTMENT PORTFOLIO
SEPTEMBER 30, 1996
(CONTINUED) 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

                                                                                                 MARKET    
         SHARES                                                                                   VALUE    
                                                                                               ----------- 
                                                                                                           
                 Thermo Electron Corporation                                                               
         7,000   December 1996 @ 40*.......................................................... $   (17,062)
                 Travelers Group Inc.                                                                      
         2,500   December 1996 @ 45*..........................................................     (13,438)
         2,500   December 1996 @ 47.5*........................................................      (9,375)
                 Wallace Computer Services, Inc.                                                           
         8,000   December 1996 @ 30*..........................................................      (8,500)
                 Warner-Lambert Company                                                                    
         4,000   October 1996 @ 55*...........................................................     (45,500)
                                                                                               ----------- 
TOTAL COVERED OPTIONS WRITTEN (PREMIUMS RECEIVED $227,669)....................................    (306,563)
                                                                                               ----------- 
OTHER ASSETS AND LIABILITIES (0.7%)(A)........................................................    (289,432)
                                                                                               ----------- 
NET ASSETS 100.0%............................................................................. $48,901,735 
                                                                                                ========== 

---------------                                                                 

* Non-income producing security.                                          
(a) Percentages indicated are based on net assets.                            
(b) The aggregate identified cost for federal income tax purposes is the same.
Market value includes net unrealized appreciation of $7,692,620, which
   consists of aggregate gross unrealized appreciation for all securities in
  which there is an excess of market value over tax cost of $8,015,877 and
   aggregate gross unrealized depreciation for all securities in which there
is an excess of tax cost over market value of $323,257.               
(c) A portion of these shares were held by the custodian in connection with   
covered call options written.                                         
ACES -- Adjustable Convertible Extendable Securities                            
ADR -- American Depository Receipt                                              
DECS -- Debt Exchangeable for Common Stock                                      
MIPS -- Monthly Income Preferred Stock                                          

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST
STATEMENT OF ASSETS AND LIABILITIES 
SEPTEMBER 30, 1996
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table
                                                                                                                  
Assets                                                                                                            
-----                                                                                                             
Investments, at market value (identified cost $34,585,110) (Note 1)......................             $42,277,730 
Repurchase agreement (identified cost $7,220,000) (Note 1)...............................               7,220,000 
Cash.....................................................................................                   2,352 
Receivables:                                                                                                      
  Investments sold.......................................................................                 607,542 
  Fund shares sold.......................................................................                 761,241 
  Dividends and interest.................................................................                 199,511 
Deferred state registration expenses (Note 1)............................................                   8,262 
Prepaid insurance........................................................................                   2,329 
                                                                                                      ----------- 
        Total assets.....................................................................              51,078,967 
Liabilities                                                                                                       
--------                                                                                                          
Payables (Note 4):                                                                                                
  Investments purchased.................................................................. $1,593,740              
  Fund shares redeemed...................................................................    165,397              
  Accrued management fee.................................................................     28,683              
  Accrued distribution fee...............................................................     12,463              
  Other accrued expenses.................................................................     70,386              
Covered call options written, at market value (premiums received $227,669) (Notes 1 and                           
  3).....................................................................................    306,563              
                                                                                          ----------              
        Total liabilities................................................................               2,177,232 
                                                                                                      ----------- 
Net assets, at market value..............................................................             $48,901,735 
                                                                                                       ========== 
Net Assets                                                                                                        
---------                                                                                                         
Net assets consist of:                                                                                            
  Paid-in capital (Note 1)...............................................................             $36,311,197 
  Undistributed net investment income (Note 1)...........................................                 253,608 
  Accumulated net realized gain (Note 1).................................................               4,049,335 
  Accumulated net realized gain on covered call options written..........................                 673,869 
  Net unrealized appreciation on investments.............................................               7,692,620 
  Net unrealized depreciation on covered call options written............................                 (78,894)
                                                                                                      ----------- 
Net assets, at market value..............................................................             $48,901,735 
                                                                                                       ========== 
Class A Shares                                                                                                    
-------------                                                                                                     
Net asset value and redemption price per share ($43,060,237 divided by 2,935,332 shares                           
  of beneficial interest outstanding, no par value) (Notes 1 and 2)......................                  $14.67 
                                                                                                            ===== 
Maximum offering price per share (100/95.25 of $14.67)...................................                  $15.40 
                                                                                                            ===== 
Class C Shares                                                                                                    
------------                                                                                                      
Net asset value, offering price and redemption price per share ($5,841,498 divided by                             
  400,895 shares of beneficial interest outstanding, no par value) (Notes 1 and 2).......                  $14.57 
                                                                                                            ===== 

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST
STATEMENT OF OPERATIONS 
FOR THE YEAR ENDED SEPTEMBER 30, 1996 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table
                                                                                                                  
Investment Income                                                                                                 
Income:                                                                                                           
  Dividends.................................................................................           $1,008,562 
  Interest..................................................................................              628,893 
                                                                                                       ---------- 
        Total income........................................................................            1,637,455 
Expenses (Notes 1 and 4):                                                                                         
  Management fee............................................................................ $293,974             
  Distribution fee (Class A Shares).........................................................   94,590             
  Distribution fee (Class C Shares).........................................................   13,604             
  Professional fees.........................................................................   54,902             
  Custodian/Fund accounting fees............................................................   48,617             
  Amortization of state registration expenses...............................................   27,207             
  Shareholder servicing fees................................................................   25,867             
  Reports to shareholders...................................................................   24,238             
  Trustees' fees and expenses...............................................................    6,647             
  Insurance.................................................................................    5,522             
  Other.....................................................................................    6,022             
                                                                                             --------             
        Total expenses......................................................................              601,190 
                                                                                                       ---------- 
Net investment income.......................................................................            1,036,265 
                                                                                                       ---------- 
Realized and Unrealized Gain on Investments                                                                       
Net realized gain from investment transactions..............................................            4,940,798 
Net realized gain from covered call options written (Note 1)................................              130,417 
Net increase in unrealized appreciation of investments during the year......................            1,783,184 
Net decrease in unrealized appreciation of covered call options written during the year.....              (83,183)
                                                                                                       ---------- 
        Net gain on investments.............................................................            6,771,216 
                                                                                                       ---------- 
        Net increase in net assets resulting from operations................................           $7,807,481 
                                                                                                        ========= 

--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 
--------------------------------------------------------------------------------

                                                        · Enlarge/Download Table

                                                                                       FOR THE YEARS ENDED           
                                                                            -----------------------------------------
                                                                            SEPTEMBER 30, 1996     SEPTEMBER 30, 1995
                                                                            ------------------     ------------------
                                                                                                                     
Increase (decrease) in net assets:                                                                                   
Operations:                                                                                                          
  Net investment income....................................................    $  1,036,265           $    964,709   
  Net realized gain from investment transactions...........................       4,940,798                411,468   
  Net realized gain from covered call options written......................         130,417                 38,733   
  Net increase in unrealized appreciation of investments and covered call                                            
    options written during the year........................................       1,700,001              4,404,647   
                                                                            ------------------     ------------------
  Net increase in net assets resulting from operations.....................       7,807,481              5,819,557   
Dividends and distributions to shareholders from:                                                                    
  Net investment income, Class A Shares ($.35 and $.34 per share,                                                    
    respectively)..........................................................        (966,884)            (1,157,068)  
  Net investment income, Class C Shares ($.29 and $.16 per share,                                                    
    respectively)..........................................................         (20,249)                (1,164)  
  Net realized gains, Class A Shares ($.25 and $.49 per share,                                                       
    respectively)..........................................................        (676,674)            (1,189,190)  
  Net realized gains, Class C Shares ($.25 per share)......................          (8,701)                    --   
Increase (decrease) in net assets from Fund share transactions (Note 2)....       8,144,784             (1,459,209)  
                                                                            ------------------     ------------------
Increase in net assets.....................................................      14,279,757              2,012,926   
Net assets, beginning of year..............................................      34,621,978             32,609,052   
                                                                            ------------------     ------------------
Net assets, end of year (including undistributed net investment income of                                            
  $253,608 and $193,122, respectively).....................................    $ 48,901,735           $ 34,621,978   
                                                                            =================      ================= 

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST

FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

The following table includes selected data for a share outstanding      
throughout each period and other performance information derived from the       
financial statements.                                                           

                                                        · Enlarge/Download Table

                                                                                                           CLASS C SHARES    
                                                                                                          FOR THE PERIODS    
                                                                         CLASS A SHARES                   ENDED SEPTEMBER    
                                                               FOR THE YEARS ENDED SEPTEMBER 30,                30,          
                                                         ----------------------------------------------   ----------------   
                                                          1996      1995      1994      1993      1992     1996     1995+    
                                                         ------    ------    ------    ------    ------   ------    ------   
                                                                                                                             
NET ASSET VALUE, BEGINNING OF THE PERIOD................ $12.56    $11.33    $12.28    $10.81    $ 9.87   $12.51    $11.21   
                                                         ------    ------    ------    ------    ------   ------    ------   
INCOME FROM INVESTMENT OPERATIONS:                                                                                           
  Net investment income(a)..............................   0.36      0.27      0.30      0.39      0.28     0.26      0.18   
  Net realized and unrealized gain                                                                                           
    (loss) on investments...............................   2.35      1.79     (0.09)     1.44      1.02     2.34      1.28   
                                                         ------    ------    ------    ------    ------   ------    ------   
  Total from Investment                                                                                                      
    Operations..........................................   2.71      2.06      0.21      1.83      1.30     2.60      1.46   
                                                         ------    ------    ------    ------    ------   ------    ------   
LESS DISTRIBUTIONS:                                                                                                          
  Dividends from net investment income..................  (0.35)    (0.34)    (0.24)    (0.36)    (0.36)   (0.29)    (0.16)  
  Distributions from net realized gain on investments...  (0.25)    (0.49)    (0.92)       --        --    (0.25)       --   
                                                         ------    ------    ------    ------    ------   ------    ------   
  Total Distributions...................................  (0.60)    (0.83)    (1.16)    (0.36)    (0.36)   (0.54)    (0.16)  
                                                         ------    ------    ------    ------    ------   ------    ------   
NET ASSET VALUE, END OF THE PERIOD...................... $14.67    $12.56    $11.33    $12.28    $10.81   $14.57    $12.51   
                                                         ======    ======    ======    ======    ======   ======    ======   
TOTAL RETURN (%)(D).....................................  22.26     19.57      1.80     16.44     13.42    21.37     13.18(c)
RATIOS (%)/SUPPLEMENTAL DATA:                                                                                                
  Operating expenses, net, to average daily net                                                                              
    assets(a)...........................................   1.51      1.64      1.64      1.72      1.75     2.13      2.40(b)
  Net investment income to average daily net assets.....   2.66      4.63      2.62      2.67      2.77     2.05      4.61(b)
  Portfolio turnover rate...............................     75        42        99       130        71       75        42   
  Average commission rate on portfolio transactions..... $.0595        --        --        --        --   $.0595        --   
  Net assets, end of the period ($ millions)............     43        34        33        34        27        6       0.2   

---------------                                                                 

 + For the period April 3, 1995 (commencement of Class C Shares) to August 31,
1995.                                                                   
(a) Excludes management fees waived by the Manager in the amount of less than   
    $.01 per Class A Share, for the year ended September 30, 1992. The operating
    expense ratio including such items would be 1.75% per Class A Share, for the
year ended September 30, 1992. The year 1993 includes previously waived 
management fees paid to the Manager of less than $.01 per share.        
(b) Annualized.                                                                 
(c) Not annualized.                                                             
(d) Does not reflect the imposition of a sales charge.                          

The accompanying notes are an integral part of the financial statements.

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HERITAGE INCOME-GROWTH TRUST
NOTES TO FINANCIAL STATEMENTS 
--------------------------------------------------------------------------------
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES.  Heritage Income-Growth Trust (the     
        "Fund") is organized as a Massachusetts business trust and is registered
       under the Investment Company Act of 1940, as amended, as a diversified,
       open-end management investment company. The Fund's investment objective
        is long-term total return by seeking, with approximately equal emphasis,
        current income and capital appreciation. The Fund currently issues Class
        A and Class C Shares. Class A Shares are sold subject to a maximum sales
       charge of 4.75% of the amount invested payable at the time of purchase.
     Class C Shares, which were offered to shareholders beginning April 3,
     1995, are sold subject to a contingent deferred sales charge of 1% of
the lower of net asset value or purchase price payable upon any 
        redemptions within one year after purchase. The preparation of financial
      statements in accordance with generally accepted accounting principles
     requires management to make estimates and assumptions that affect the
        reported amounts and disclosures. Actual results could differ from those
estimates. The following is a summary of significant accounting 
policies:                                                       

   Security Valuation: The Fund values investment securities at market
       value based on the last quoted sales price as reported by the principal
  securities exchange on which the security is traded. If no sale is
       reported, market value is based on the last bid and in the absence of a
      market quote, securities are valued using such methods as the Board of
        Trustees believe would reflect fair market value. Short term investments
   having a maturity of 60 days or less are valued at cost, which when
 combined with accrued interest included in interest receivable or
discount earned, approximates market.                           

 Repurchase Agreements: The Fund enters into repurchase agreements
 whereby the Fund, through its custodian, receives delivery of the
        underlying securities, the market value of which at the time of purchase
       is required to be an amount equal to at least 100% of the resale price.

Federal Income Taxes: The Fund's policy is to comply with the   
        requirements of the Internal Revenue Code of 1986, as amended, which are
applicable to regulated investment companies and to distribute  
substantially all of its taxable income to its shareholders.    
     Accordingly, no provision has been made for federal income and excise
taxes.                                                          

        Distribution of Income and Gains: Distributions of net investment income
   are made quarterly. Net realized gains from investment transactions
during any particular year in excess of available capital loss  
       carryforwards, which, if not distributed, would be taxable to the Fund,
     will be distributed to shareholders in the following fiscal year. The
     Fund uses the identified cost method for determining realized gain or
       loss on investments for both financial and federal income tax reporting
purposes.                                                       

        State Registration Expenses: State registration fees are amortized based
   either on the time period covered by the registration or as related
shares are sold, whichever is appropriate for each state.       

 Option Accounting Principles: When the Fund writes a covered call
       option, an amount equal to the premium received by the Fund is included
       in the Fund's Statement of Assets and Liabilities as an asset and as an
 equivalent liability. The amount of the liability is subsequently
  marked-to-market to reflect the current market value of the option
 written. The current market value of a written option is the last
        offering price on the principal exchange on which such option is traded.
      The Fund receives a premium on the sale of an option, but gives up the
opportunity to profit from any increase in stock value above the
     exercise price of the option. If an option which the Fund has written
    either expires on its stipulated expiration date, or the Fund enters
      into a closing purchase transaction, the Fund realizes a gain (or loss
 if the cost of a closing purchase transaction exceeds the premium
        received when the option was sold) without regard to any unrealized gain
     or loss on the underlying security, and the liability related to such
      option is extinguished. If a call option which the Fund has written is
        exercised, the Fund realizes a capital gain or loss from the sale of the
     underlying security, and the proceeds from such sale are increased by
the premium originally received.                                

  Capital Accounts: Distributions from net investment income and net
   realized gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting
       principles. To the extent these "book/tax" differences are permanent in
nature (i.e., that they result from other than timing of        
      recognition -- "temporary"), such accounts are reclassified within the
      capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.                    

    Other: Investment security transactions are accounted for on a trade
      date plus one basis. Dividend income and distributions to shareholders
        are recorded on the ex-dividend date. Interest income is recorded on the
     accrual basis. All original issue discounts are accreted for both tax
       and financial reporting purposes. Expenses of the Fund are allocated to
        each class of shares based upon their relative percentage of current net
      assets. Expenses that are directly attributable to a specific class of
shares, such as distribution fees, are allocated to that class. 

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HERITAGE INCOME-GROWTH TRUST
NOTES TO FINANCIAL STATEMENTS 
(CONTINUED) 
--------------------------------------------------------------------------------

Note 2: FUND SHARES.  At September 30, 1996, there was an unlimited number of   
shares of beneficial interest of no par value authorized.       

Transactions in Class A Shares of the Fund during the years ended 
September 30, 1996 and 1995, were as follows:                     

                                                        · Enlarge/Download Table

                                                                           FOR THE YEARS ENDED                  
                                                          ----------------------------------------------------- 
                                                             SEPTEMBER 30, 1996          SEPTEMBER 30, 1995     
                                                          ------------------------    ------------------------- 
                     CLASS A SHARES                        SHARES        AMOUNT         SHARES        AMOUNT    
--------------------------------------------------------  ---------    -----------    ----------    ----------- 
                                                                                                                
Shares sold.............................................    560,355    $ 7,805,081       164,214    $ 1,854,451 
Shares issued on reinvestment of distributions..........    120,132      1,556,515       208,793      2,247,195 
Shares redeemed.........................................   (484,726)    (6,620,313)     (511,309)    (5,762,051)
                                                          ---------    -----------    ----------    ----------- 
Net increase (decrease).................................    195,761    $ 2,741,283      (138,302)   $(1,660,405)
                                                                        ==========                   ========== 
Shares outstanding:                                                                                             
  Beginning of year.....................................  2,739,571                    2,877,873                
                                                          ---------                   ----------                
  End of year...........................................  2,935,332                    2,739,571                
                                                           ========                    =========                

Transactions in Class C Shares of the Fund during the year ended  
September 30, 1996 and from April 3, 1995 (commencement of Class C
Shares) to September 30, 1995 were as follows:                    

                                                        · Enlarge/Download Table

                                                                                           FOR THE PERIOD      
                                                                                           APRIL 3, 1995       
                                                                 FOR THE YEAR             (COMMENCEMENT OF     
                                                                     ENDED               CLASS C SHARES) TO    
                                                              SEPTEMBER 30, 1996         SEPTEMBER 30, 1995    
                                                            -----------------------   ------------------------ 
                      CLASS C SHARES                         SHARES        AMOUNT       SHARES        AMOUNT   
----------------------------------------------------------  ---------    ----------   ----------    ---------- 
                                                                                                               
Shares sold                                                   397,688    $5,605,737       17,555    $  202,648 
Shares issued on reinvestment of distributions                  2,008        26,420          100         1,164 
Shares redeemed...........................................    (16,234)     (228,656)        (222)       (2,616)
                                                            ---------    ----------   ----------    ---------- 
Net increase..............................................    383,462    $5,403,501       17,433    $  201,196 
                                                                          =========                  ========= 
Shares outstanding:                                                                                            
  Beginning of period.....................................     17,433                         --               
                                                            ---------                 ----------               
  End of period...........................................    400,895                     17,433               
                                                             ========                  =========               

Note 3: PURCHASES AND SALES OF SECURITIES.  For the year ended September 30,    
        1996, purchases and sales of investment securities (excluding repurchase
        agreements) aggregated $29,876,929 and $26,273,244, respectively. Agency
      brokerage commissions for the same period aggregated $61,278, of which
$12,370 was paid to Raymond James & Associates, Inc.            

      Transactions in covered call options written on equity securities were
as follows:                                                     

                                                        · Enlarge/Download Table

                                                                                 NUMBER OF  PREMIUMS 
                                                                                 CONTRACTS  RECEIVED 
                                                                                 ---------  ---------
                                                                                                     
Outstanding September 30, 1995..................................................      115   $ 34,477 
  Written.......................................................................    1,765    535,641 
  Closed........................................................................     (720)  (215,785)
  Exercised.....................................................................     (185)   (41,589)
  Expired.......................................................................     (215)   (85,075)
  Corporate Actions.............................................................       80         -- 
                                                                                      ---   ---------
Outstanding September 30, 1996..................................................      840   $227,669 
                                                                                      ===   =========

Note 4: MANAGEMENT, SUBADVISORY, DISTRIBUTION, SHAREHOLDER SERVICING AGENT AND  
        TRUSTEES' FEES.  Under the Fund's Investment Advisory and Administration
        Agreement with Heritage Asset Management, Inc. (the "Manager"), the Fund
       agrees to pay to the Manager a fee equal to an annualized rate of 0.75%
     of the first $100,000,000 of the Fund's average daily net assets, and
        0.60% of any excess over $100,000,000 of such net assets, computed daily
        and payable monthly. The agreement also provides for a reduction in such
  fees in any year to the extent that operating expenses of the Fund
    exceed applicable state expense limitations. From October 1, 1995 to
        January 31, 1996, the Manager voluntarily agreed to waive its fee to the
     extent that Fund operating expenses exceed 1.65% and 2.40% on Class A
  Shares and Class C Shares respectively, on an annual basis, of the
Fund's average                                                  

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--------------------------------------------------------------------------------
HERITAGE INCOME-GROWTH TRUST
NOTES TO FINANCIAL STATEMENTS 
(CONTINUED) 
--------------------------------------------------------------------------------

daily net assets attributable to each class of shares. Effective
        February 1, 1996, the Manager has voluntarily agreed to waive its fee to
       the extent that Fund operating expenses exceed 1.60% and 2.35% on Class
    A Shares and Class C Shares respectively, on an annual basis, of the
     Fund's average daily net assets attributable to each class of shares.
     This agreement is more restrictive than any state expense limitation.
Under this agreement, no fees were waived and no expenses were  
reimbursed for the year ended September 30, 1996.               

      The Manager has entered into an agreement with Eagle Asset Management,
 Inc. (the "Subadviser") for the Subadviser to provide to the Fund
investment advice, portfolio management services (including the 
        placement of brokerage orders) and certain compliance and other services
        for a fee payable by the Manager equal to 50% of the fees payable by the
Fund to the Manager without regard to any reduction due to the  
imposition of expense limitations.                              

       The Manager is also the Dividend Paying and Shareholder Servicing Agent
       for the Fund. The amount payable to the Manager for such expenses as of
     September 30, 1996 was $7,800. In addition, the Manager performs Fund
    accounting services and charged $31,011 during the current period of
which $7,500 was payable as of September 30, 1996.              

    Raymond James & Associates, Inc. (the "Distributor") has advised the
       Fund that it received $173,493 in front and sales charges and $1,367 in
       contingent deferred sales charges for the twelve months ended September
30, 1996. From these fees, the Distributor paid commissions to  
salespersons and incurred other distribution costs.             

    Pursuant to the Class A Distribution Plan adopted in accordance with
      Rule 12b-1 of the Investment Company Act of 1940, as amended, the Fund
is authorized to pay Raymond James & Associates, Inc. (the      
       "Distributor") a fee, equal to .25% of the average daily net assets for
        Class A Shares. Under the Class C Distribution Plan the Fund may pay the
    Distributor a fee equal to 1.00% of the average daily net assets for
        Class C Shares. The Distributor, on Class C Shares, may retain the first
   12 months distribution fee for reimbursement of amounts paid to the
      broker/dealer at the time of purchase. Such fees are accrued daily and
 payable monthly. During the year $94,590 and $13,604 were paid as
      distribution fees for Class A Shares and Class C Shares, respectively.
   The Manager, Distributor, Fund Accountant and Shareholder Servicing
        Agent are all wholly-owned subsidiaries of Raymond James Financial, Inc.

    Trustees of the Fund also serve as Trustees for Heritage Cash Trust,
    Heritage Capital Appreciation Trust, Heritage Income Trust, Heritage
 Series Trust and Heritage U.S. Government Income Fund, investment
companies which are also advised by the Manager of the Fund     
    (collectively called the Heritage mutual funds). Each Trustee of the
    Heritage mutual funds who is not an interested person of the Manager
    receives an annual fee of $8,000 and an additional fee of $2,000 for
      each combined quarterly meeting of the Heritage mutual funds attended.
      Trustees' fees and expenses are shared equally by each of the Heritage
mutual funds.                                                   

Note 5: FEDERAL INCOME TAXES.  For the year ended September 30, 1996, to reflect
       reclassifications arising from permanent book/tax differences primarily
    attributable to market discount, the Fund credited undistributed net
 investment income $11,354, and debited paid in capital $8,541 and
accumulated net realized gain $2,813.                           

16

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--------------------------------------------------------------------------------

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
--------------------------------------------------------------------------------

To the Shareholders and Board of Trustees of                                    
Heritage Income-Growth Trust                                                

In our opinion, the accompanying statement of assets and liabilities, including 
the investment portfolio, and the related statements of operations and of       
changes in net assets and the financial highlights present fairly, in all       
material respects, the financial position of Heritage Income-Growth Trust (the  
"Fund") at September 30, 1996, and the results of its operations, the changes in
its net assets and the financial highlights for the year then ended, in         
conformity with generally accepted accounting principles. These financial       
statements and financial highlights (hereafter referred to as "financial        
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We   
conducted our audit of these financial statements in accordance with generally  
accepted auditing standards which require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free of  
material misstatement. An audit includes examining, on a test basis, evidence   
supporting the amounts and disclosures in the financial statements, assessing   
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our    
audit, which included confirmation of securities at September 30, 1996 by       
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide 
a reasonable basis for the opinion expressed above. The financial statements of 
the Fund for the year ended September 30, 1995, including the financial         
highlights for each of the periods indicated, were audited by other independent 
accountants whose report dated November 27, 1995 expressed an unqualified       
opinion on those statements.                                                    

/s/ Price Waterhouse                                                            

PRICE WATERHOUSE LLP                                                            
Tampa, Florida                                                                  

November 12, 1996                                                               

--------------------------------------------------------------------------------

1996 FEDERAL INCOME TAX NOTICE
(UNAUDITED) 
--------------------------------------------------------------------------------

 During the year ended September 30, 1996, the Fund paid to shareholders
$685,375 or $.25 per share from long-term capital gains. For such period 39% of 
the income dividends qualified for the dividend received deduction available to 
corporations.                                                                   

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HERITAGE INCOME-GROWTH TRUST is a member of the Heritage family of mutual funds.
Other investment alternatives available from Heritage include:                  

[]   HERITAGE CASH TRUST                                  
MONEY MARKET FUND                       
MUNICIPAL MONEY MARKET FUND             
[]   HERITAGE CAPITAL APPRECIATION TRUST                  
[]   HERITAGE INCOME TRUST                                
HIGH YIELD BOND FUND                    
INTERMEDIATE GOVERNMENT FUND            
[]   HERITAGE SERIES TRUST                                
EAGLE INTERNATIONAL EQUITY PORTFOLIO    
GROWTH EQUITY FUND                      
SMALL CAP STOCK FUND                    
VALUE EQUITY FUND                       
[]   HERITAGE U.S. GOVERNMENT INCOME FUND                 
(A CLOSED-END FUND THAT TRADES ON       
THE NEW YORK STOCK EXCHANGE)            

We are pleased that many of you are also investors in these funds. For          
information and a prospectus for any of these mutual funds, please contact your 
account executive. Please read the prospectus carefully before you invest in any
of the funds.                                                                   

N-30D Last Page of 20 TOC 1st Previous Next Bottom Just 20th

Heritage Income-Growth Trust                                          
P.O. Box 33022                                                        
St. Petersburg, FL 33733                                              

--------------------------------------                                

Address Change Requested                                              

This report is for the information of shareholders of                 
Heritage Income-Growth Trust. It may also be used as                  
sales literature when preceded or accompanied by a prospectus.        

5M 11/96 (LOGO) Printed on recycled paper                             

[HERITAGE LOGO]                                                                 

A MUTUAL FUND SEEKING                                                           
LONG-TERM TOTAL RETURN                                                          
WITH APPROXIMATELY EQUAL                                                        
EMPHASIS ON CURRENT INCOME                                                      
AND CAPITAL APPRECIATION                                                        

ANNUAL REPORT                                                                   
and Investment Performance                                                      
Review for the Year Ended                                                       
SEPTEMBER 30, 1996                                                              

A member of the                                                                 
Heritage Family of Mutual Funds(TM)

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Dates Referenced Herein and Documents Incorporated By Reference

		Referenced-On Page
This N-30D Filing	Date	First	Last	Other Filings

	9/30/92	13
	4/3/95	13	15
	8/31/95	13
	9/30/95	12	17	24F-2NT, NSAR-B, NT-NSAR
	10/1/95	15
	11/27/95	17
	1/31/96	15
	2/1/96	16
For The Period Ended	9/30/96	1	20	24F-2NT, 485B24E, NSAR-B
	10/1/96	9
	11/11/96	1	2
	11/12/96	17
Filed On / Filed As Of	12/10/96
	11/30/97	9

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Heritage Growth & Income Trust · N-30D · For 9/30/96

Filed On 12/10/96 · SEC File 811-04767 · Accession Number 950144-96-8964

Annual or Semi-Annual Report Mailed to Shareholders · Rule 30d-1Filing Table of Contents

Dates Referenced Herein and Documents Incorporated By Reference

Annual or Semi-Annual Report Mailed to Shareholders · Rule 30d-1
Filing Table of Contents