Edgar Filing: ZWEIG FUND INC /MD/

April 1, 2008

Dear Fellow ZF Shareholder;

I am pleased to share with you the manager's report and commentary for The
Zweig Fund, Inc. for the quarter ended March 31, 2008.

The Zweig Fund's net asset value declined 7.29% in the quarter ended
March 31, 2008, including reinvested distributions. During the same period, the
S&P 500 fell 9.44% including reinvested dividends. The Fund's average equity
exposure for the quarter was approximately 82%.

Sincerely,

/s/ George R. Aylward
George R. Aylward
President, Chairman and Chief Executive Officer
The Zweig Fund, Inc.

MARKET REVIEW AND OUTLOOK

The first quarter of 2008 was a dismal period for the stock market with the
major indexes suffering their largest quarterly losses since the third quarter
of 2002. At the end of March, the Dow Jones Industrial Average was down
7.6%/(1)/, or 1,000.93 points for the year to date, its greatest first-quarter
point drop in the history of the index, and off 13%/(1)/ from its record high
in October 2007. Following five consecutive monthly losses, its longest losing
streak since 1990, the S&P 500 Index closed the quarter down 9.9%/(1)/ and
16%/(1)/ below its October peak. The Nasdaq Composite Index, which had out
performed the other two indexes last year, tumbled 14%/(1)/ in the first
quarter and closed 20%/(1)/ under its October high.

Indicating the growing correlation between U.S. and foreign markets, the Dow
Jones World Stock Index, excluding U.S. shares, dropped 8.7%/(1) /in dollar
terms for the quarter. Unlike their superior performance in the past five
years, foreign stocks generally did as poorly or worse than their U.S.
counterparts. Most benchmark indexes in Europe declined with Germany's down
19%/(1)/, France's 16%/(1)/, and the United Kingdom's 12%/(1)/. Asian markets
did not fare any better. India and China's markets plummeted more than 20%/(1)/
with Japan's closing 18%/(1)/ lower.

Extreme volatility made it a nail-biting quarter. In the U.S., there were
twelve daily sessions in which prices soared or sank more than 2%. That did not
occur even once during 2004 or 2005. For the S&P 500, the biggest fireworks
came on March 18 when it jumped 4.2%. In Europe, the markets had huge daily
moves about as often as in the U.S., but Asian exchanges had 27 days in which
markets moved 2% or more.

/(1)/ Return excludes reinvested dividends.

Managed Distribution Plan: The Fund has a policy to distribute 10% of its net
asset value annually. Please see the inside back cover for more details.

The turmoil in the stock market reflected the uncertainty of where the
economy was heading, with widening indications of a recession. The slump in
housing was worsening with permits for new residential construction falling
7.8% in February to an annual rate of 978,000 projects, the slowest pace since
the early 1990s. Repercussions of the subprime mortgage debacle sparked a
credit crisis that weakened financial institutions. Bear Stearns, the nation's
fifth largest investment bank, got into deep trouble and was rescued by the
Federal Reserve (the "Fed") guaranteeing a deal with JP Morgan Chase. The Fed
also offered low-cost loans to other investment banks. The total of the Fed's
direct and indirect support of the financial system is estimated at nearly $1
trillion. These actions helped alleviate the credit mess and helped the
teetering stock market keep vertical.

Seeking to prop up the stumbling economy, the Fed cut its benchmark federal
funds rate for the sixth time in six months to 2.25%. In the statement
accompanying the latest reduction, the Fed cited weakening in economic
activity, softer labor markets, stressed financial markets and the deepening
housing contraction. Hinting that further relief was possible, the Fed said it
will "act in timely manner as needed to promote sustainable economic growth and
price stability."

As we see it, the Fed did some things right and some things wrong. They had
no alternative to bailing out Bear Stearns. If the company had gone down, it
would have set off a chain reaction that would have caved in the entire
financial system. However, the Fed was wrong in cutting interest rates so fast
and so much. Doing so weakens the dollar further, raises prices of imported
goods priced in dollars and increases inflationary pressures. This can be a
serious long-term problem.

Confirming the Fed's citation of weakening economic activity, the Labor
Department reported that employers slashed 88,000 jobs in March, the most in
five years, and the fifth consecutive month of losses. This brought the
unemployment rate up to 5.1% from 4.8% and was the highest figure since
September 2005. Earlier, the Institute for Supply Management said its index of
manufacturing activity dipped to 48.3 in February from 50.7 in January. Figures
below 50 indicate a contraction. Also, the Commerce Department reported that
orders for durable goods fell 1.7% in February and sales of new homes dropped
1.8% that month to a 13-year low.

Another negative note came from the Conference Board survey that reported
consumer confidence on the economic outlook dropped 11.9 points in March to
64.5, marking a five-year low. This figure is significant because sales of
goods and services make up an estimated two-thirds of the nation's gross
domestic product.

On the more positive side, the Commerce Department reported that U.S.
exports, which also play a role in the GDP, rose 1.6% in January to $148.2
billion, the fifth straight month of increases. Helping to spur exports was the
weaker dollar. During the first quarter, the euro gained 7.5% against the
dollar, closing at $1.5787. The dollar also declined 10.5% against the yen to a
low of less than 96 yen to the dollar.

The severe global economic downturn is curtailing initial public offerings
("IPOs"). Every major region in the world reported fewer IPOs in the first
quarter than in the 2007 period. The number of global offerings fell 60% to 100
deals and the amount raised dropped 10% to $35.9 billion, according to
Dealogic. It was the lowest world-wide figure since 2003. In the U.S., new
issues in the first quarter slipped 79% to 10 deals. Highlighting the U.S.
activity was the VISA deal which raised $19.65 billion, the largest U.S.
offering ever.

Mergers and acquisitions are also feeling the impact of the global economic
slowdown. World- wide, the value of deals in the first quarter drop-

ped 24% from the like 2007 period to $730 billion. The U.S. decline was even
steeper, with deal volume slipping 41% to $204 billion. Europe saw a 17% dip to
$305 billion.

It's hard to do IPOs when markets around the world are down. However, the
fall of IPOs is not necessarily bad for the market because it reduces the
supply of stock. It's a different story with leveraged buyout loans, which had
been one of the market's most bullish props. That came to a halt last summer
when the leveraged buyout game ended as the financial system gridlocked. That's
pretty much dead right now.

While the economy is contracting, prices are expanding, a combination
economists call stagflation. That's the situation we are in right now. Producer
prices surged 1.1% in March from an increase of 0.3% in February, according to
the Labor Department. The gain was twice that had been forecast. Inflation
would probably decline if the domestic and global economies weakened further.
Should that happen, it would unleash a host of other problems. At this time the
Fed is more concerned about recession than inflation. Its number one priority
is to prevent a financial collapse that would cause a deep recession. However
if the Fed keeps its eye off inflation, that could be the next big issue we
will have to contend with.

Based on analysts' estimates, Thomson Financial says operating earnings of
the S&P 500 companies are expected to decline 12.2% in the first quarter. This
is a wide turn-about from January 1 when growth was estimated for the quarter
at 5.7%. Downward revisions in the financial sector, which were expected to
fall as much as 60%, were mainly responsible for the change. Companies in the
S&P 500 were trading at 17 times earnings at the close of the first quarter,
according to Barron's. This compares with 19 times earnings at the year-end and
17.2 times earnings on March 31, 2007. Although the analysts have cut back
their rosy estimates of earnings, we believe their figures are still too high
and overestimate the strength of today's economy.

Reflecting the uncertainties of the market, advisors were almost equally
divided among bulls and bears at the end of the quarter. The survey by Investor
Intelligence on March 31 showed 36.7% bulls and 41.1% bears. At the year-end
there were 54.1% bulls and only 23.1% bears. On March 31, 2007, the bulls were
at 48.4% and bears at 27.5%.

We are very concerned about today's bleak economic environment and credit
crisis because we have never seen anything quite like it. The last recession
followed a bubble in some stocks. Now we have a whole financial bubble and it
is hard to see how we will be able to supply the credit to get us out of this
mess. Because it is unprecedented, we cannot reliably chart the future by
traditional measures such as typical indicators or the patterns of previous
postwar recessions. It's like an animal we have never had to confront before.

Our own sentiment indicators are showing pretty good ratings and at the
year-end we were about 79% to 80% invested. If not for the gridlocked financial
system, we would be more highly invested. If not for our positive indicators,
we would be lower. With these extraordinary market conditions, we are trying to
play it in the middle. Consequently, our current investment posture can be
described as slightly above neutral.

Sincerely,

LOGO
Martin E. Zweig, Ph.D.
President
Zweig Consulting LLC

PORTFOLIO COMPOSITION

The Fund's leading stock market sectors on March 31, 2008 included
information technology, energy, financials, industrials, and consumer staples.
Financials, which replaced health care is new to this listing. During the
quarter we added to our positions in finances and consumer staples and reduced
our holdings in information technology and industrials.

As of March 31, 2008, our leading individual equity positions included
Caterpillar, ConocoPhillips, Freeport-McMoRan, Gilead Sciences, Halliburton,
Hudson City Bancorp, IBM, McDonald's, Nike and PepsiCo.

Although there were no changes in the number of shares held, Caterpillar,
Gilead Sciences, IBM, McDonald's and Nike are new to this listing. Also new are
Halliburton, where we added to our holdings, and Hudson City Bancorp, which is
a new position in our portfolio.

No longer in our top listing are Altria Group, Massey Energy and Nucor Corp,
where we trimmed our positions; Occidental Petroleum, UnitedHealth Group and
Valero Energy, where there were no changes in shares held, and Foster Wheeler,
where we added to our position.

Sincerely,

LOGO
Carlton Neel
Executive Vice President
Phoenix/Zweig Advisers LLC

The preceding information is the opinion of portfolio management. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts will be realized.
For definitions of indexes cited and certain investment terms used in this
report see the glossary on page 5.

Glossary

American Depositary Receipt (ADR): Represents shares of foreign companies
traded in U.S. dollars on U.S. exchanges that are held by a bank or a trust.
Foreign companies use ADRs in order to make it easier for Americans to buy
their shares.

Dow Jones Industrial Average/SM/: A price-weighted average of 30 blue chip
stocks. The index is calculated on a total return basis with dividends
reinvested.

The Dow Jones World Stock Index: The Dow Jones World Stock Index measures the
performance of companies worldwide as represented by various foreign stock
markets.

Federal funds rate: The interest rate charged on overnight loans of reserves by
one financial institution to another in the United States. The federal funds
rate is the most sensitive indicator of the direction of interest rates since
it is set daily by the market.

Federal Reserve (the "Fed"): The central bank of the United States, responsible
for controlling the money supply, interest rates and credit with the goal of
keeping the U.S. economy and currency stable. Governed by a seven-member board,
the system includes 12 regional Federal Reserve Banks, 25 branches and all
national and state banks that are part of the system.

Gross domestic product (GDP): An important measure of the United States'
economic performance, GDP is the total market value of all final goods and
services produced in the U.S. during any quarter or year.

Inflation: Rise in the prices of goods and services resulting from increased
spending relative to the supply of goods on the market.

Initial public offering (IPO): A company's first sale of stock to the public.

Investors Intelligence Survey: A weekly survey published by Chartcraft, an
investment services company, of the current sentiment of approximately 150
market newsletter writers. Participants are classified into three categories:
bullish, bearish or waiting for a correction.

NASDAQ Composite/(R)/ Index: A market capitalization-weighted index of all
issues listed in the NASDAQ (National Association Of Securities Dealers
Automated Quotation System) Stock Market, except for closed-end funds,
convertible debentures, exchange traded funds, preferred stocks, rights,
warrants, units and other derivative securities. The index is calculated on a
total return basis with dividends reinvested.

S&P 500/(R)/ Index: A free-float market capitalization-weighted index of 500 of
the largest U.S. companies. The index is calculated on a total return basis
with dividends reinvested.

Indexes cited are unmanaged and not available for direct investment; therefore
their performance does not reflect the expenses associated with the active
management of an actual portfolio.

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS AND SECURITIES SOLD SHORT

March 31, 2008
(Unaudited)

Number of
Shares Value
--------- -----------

INVESTMENTS
DOMESTIC COMMON STOCKS -- 76.71%
CONSUMER DISCRETIONARY -- 5.07%
McDonald's Corp............................... 170,000 $ 9,480,900
NIKE, Inc. Class B............................ 145,000 9,860,000
Under Armour, Inc. Class A/(b)(d)/............ 120,000 4,386,000
-----------
23,726,900
-----------
CONSUMER STAPLES -- 7.59%
Altria Group, Inc............................. 120,000 2,664,000
Bunge Ltd..................................... 100,000 8,688,000
Costco Wholesale Corp......................... 135,000 8,770,950
PepsiCo, Inc.................................. 130,000 9,386,000
Philip Morris International, Inc./(b)/........ 120,000 6,069,600
-----------
35,578,550
-----------
ENERGY -- 13.61%
Chesapeake Energy Corp........................ 200,000 9,230,000
ConocoPhillips................................ 140,000 10,669,400
Halliburton Co................................ 280,000 11,012,400
Massey Energy Co.............................. 215,000 7,847,500
Occidental Petroleum Corp..................... 125,000 9,146,250
St. Mary Land & Exploration Co................ 240,000 9,240,000
Valero Energy Corp............................ 135,000 6,629,850
-----------
63,775,400
-----------
FINANCIALS -- 10.90%
Allstate Corp. (The).......................... 165,000 7,929,900
Goldman Sachs Group, Inc. (The)............... 46,000 7,607,940
Hudson City Bancorp, Inc...................... 550,000 9,724,000
Reinsurance Group of America, Inc............. 165,000 8,982,600
Wells Fargo & Co.............................. 300,000 8,730,000
Wilmington Trust Corp......................... 260,000 8,086,000
-----------
51,060,440
-----------
HEALTH CARE -- 5.57%
Bristol-Myers Squibb Co....................... 115,000 2,449,500
Gilead Sciences, Inc./(b)/.................... 195,000 10,048,350

See notes to schedule of investments and securities sold short

Number of
Shares Value
--------- ------------

HEALTH CARE (CONTINUED)
Merck & Co., Inc................................. 195,000 $ 7,400,250
UnitedHealth Group, Inc.......................... 180,000 6,184,800
------------
26,082,900
------------
INDUSTRIALS -- 10.36%
Boeing Co. (The)................................. 100,000 7,437,000
Caterpillar, Inc................................. 120,000 9,394,800
Continental Airlines, Inc. Class B/(b)/.......... 325,000 6,249,750
Foster Wheeler Ltd./(b)/......................... 140,000 7,926,800
L-3 Communications Holdings, Inc................. 80,000 8,747,200
Union Pacific Corp............................... 70,000 8,776,600
------------
48,532,150
------------
INFORMATION TECHNOLOGY -- 14.22%
Ciena Corp./(b)/................................. 285,000 8,786,550
Cisco Systems, Inc./(b)/......................... 330,000 7,949,700
Corning, Inc..................................... 380,000 9,135,200
EMC Corp./(b)/................................... 475,000 6,811,500
Hewlett-Packard Co............................... 180,000 8,218,800
International Business Machines Corp............. 85,000 9,786,900
Microsoft Corp................................... 250,000 7,095,000
QUALCOMM, Inc.................................... 215,000 8,815,000
------------
66,598,650
------------
MATERIALS -- 5.96%
Alcoa, Inc....................................... 240,000 8,654,400
Freeport-McMoRan Copper & Gold, Inc.
(Indonesia)/(c)/............................... 105,000 10,103,100
NuCor Corp....................................... 135,000 9,144,900
------------
27,902,400
------------
TELECOMMUNICATION SERVICES -- 3.43%
AT&T, Inc........................................ 220,000 8,426,000
Verizon Communications, Inc./(e)/................ 210,000 7,654,500
------------
16,080,500
------------
Total Domestic Common Stocks (Identified Cost
$307,862,290)..................................... 359,337,890
------------
FOREIGN COMMON STOCKS/(c)/ -- 1.50%
INFORMATION TECHNOLOGY -- 1.50%
Nokia Oyj Sponsored ADR (Finland)................ 220,000 7,002,600
------------
Total Foreign Common Stocks (Identified Cost
$3,301,111)....................................... 7,002,600
------------

See notes to schedule of investments and securities sold short

Number of
Shares Value
--------- ------------

EXCHANGE TRADED FUNDS -- 1.87%
PowerShares Deutsche Bank Agriculture Fund/(b)/... 240,000 $ 8,748,000
------------
Total Exchange Traded Funds (Identified Cost
$8,196,236)........................................ 8,748,000
------------
Total Long Term Investments -- 80.08% (Identified Cost
$319,359,637)...................................... 375,088,490
------------

Par
(000's)
---------
SHORT-TERM INVESTMENTS 20.02%
COMMERCIAL PAPER/(g)/ -- 18.66%
Rabobank USA Financial Corp. 2.49%, 4/1/08........ 22,000 22,000,000
San Diego G&E 2.35%, 4/1/08....................... 13,000 13,000,000
Danaher Corp. 2.30%, 4/4/08....................... 22,000 21,995,783
7-Eleven, Inc. 2.27%, 4/11/08..................... 18,000 17,988,650
Nestle S.A. 2.20%, 6/10/08........................ 12,500 12,445,764
------------
Total Commercial Paper (Identified Cost $87,430,961). 87,430,197
------------
U.S. TREASURY BILLS -- 1.07%
U.S. Treasury Bill 2.18%,
5/8/08/(e)/ (Identified Cost $4,988,797)........ 5,000 4,993,575
------------

Number of
Shares
---------
MONEY MARKET MUTUAL FUNDS -- 0.29%
State Street Navigator Prime Plus (3.18%
seven-day effective yield)/(f)/................. 1,377,188 1,377,188
------------
Total Short-Term Investments (Identified Cost
$93,796,946)....................................... 93,800,960
------------
Total Investments (Identified Cost $413,156,583) --
100.10%............................................ 468,889,450/(a)/
Securities Sold Short (Proceeds $3,920,663) -- (0.50)% (2,362,500)
Other assets and liabilities, net -- 0.40%........... 1,911,128
------------
Net Assets -- 100.00%................................ $468,438,078
============

--------
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $60,731,258 and gross
depreciation of $5,855,287 for federal income tax purposes. At March 31,
2008, the aggregate cost of securities for federal income tax purposes was
$414,013,479.
(b) Non-income producing.
(c) A security is considered to be foreign if the security is issued in a
foreign country. The country of risk, noted parenthetically, is determined
based on criteria described in Note 1D "Foreign security country
determination" in the Notes to Schedules of Investments.
(d) All or a portion of security is on loan.
(e) Position, or a portion thereof, has been segregated as collateral for
securities sold short.
(f) Represents security purchased with cash collateral received for securities
on loan.
(g) The rate shown is the discount rate.

See notes to schedule of investments and securities sold short

Number of
Shares Value
--------- ----------

DOMESTIC COMMON STOCKS SOLD SHORT 0.50%
CONSUMER DISCRETIONARY -- 0.50%
Starbucks Corp................................... 135,000 $2,362,500
----------
Total Domestic Common Stocks Sold Short (Proceeds
$3,920,663)....................................... $2,362,500/(h)/
==========

--------
(h) Federal Tax Information: Net unrealized appreciation of securities sold
short is comprised of gross appreciation of $1,558,163, and gross
depreciation of $0 for federal income tax purposes. At March 31, 2008, the
aggregate proceeds of securities sold short for federal income tax
purposes was $3,920,663.

See notes to schedule of investments and securities sold short

THE ZWEIG FUND, INC.

FINANCIAL HIGHLIGHTS

March 31, 2008
(Unaudited)

Net Asset Value
Total Net Assets per share
-------------------------- --------------

Beginning of period: December 31, 2007............... $519,104,356 $ 5.65
Net investment income............................. $ 1,045,121 $ 0.01
Net realized and unrealized gain on investments... (38,652,863) (0.43)
Dividends from net investment income and
distributions from net long-term and short-term
capital gains*.................................. (13,058,536) (0.14)
------------ ------
Net increase (decrease) in net assets/net asset
value........................................... (50,666,278) (0.56)
------------ ------
End of period: March 31, 2008........................ $468,438,078 $ 5.09
============ ======

--------
*Please note that the tax status of our distributions is determined at the
end of the taxable year. However, based on interim data as of March 31,
2008, we estimate that 91% of distributions represent return of capital and
9% represent excess gain distributions which are taxable as ordinary income.

See notes to schedule of investments and securities sold short

THE ZWEIG FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS AND SECURITIES SOLD SHORT

March 31, 2008
(Unaudited)

NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principals
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amount of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.

A. Security Valuation:

Equity securities are valued at the official closing price (typically last
sale) on the exchange on which the securities are primarily traded, or if no
closing price is available, at the last bid price.

Debt securities are valued on the basis of broker quotations or valuations
provided by a pricing service, which utilizes information with respect to
recent sales, market transactions in comparable securities, quotations from
dealers, and various relationships between securities in determining value.

As required, some securities and other assets may be valued at fair value as
determined in good faith by or under the direction of the Directors.

Certain foreign common stocks may be fair valued in cases where closing
prices are not readily available or are deemed not reflective of readily
available market prices. For example, significant events (such as movement in
the U.S. securities market, or other regional and local developments) may occur
between the time that foreign markets close (where the security is principally
traded) and the time that the Fund calculates its net asset value (generally,
the close of the NYSE) that may impact the value of securities traded in these
foreign markets. In these cases, information from an external vendor may be
utilized to adjust closing market prices of certain foreign common stocks to
reflect their fair value. Because the frequency of significant events is not
predictable, fair valuation of certain foreign common stocks may occur on a
frequent basis.

Short-term investments having a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market.

The Fund has adopted the provisions of the Statement of Financial Accounting
Standards No. 157 (SFAS 157) as of the beginning of the current fiscal period
of the Fund. This standard clarifies the definition of fair value for financial
reporting, establishes a framework for measuring fair value and requires
additional disclosures about the use of fair value measurements. To increase
consistency and comparability in fair value measurements and related
disclosures, the Fund utilizes a fair value hierarchy which prioritizes the
inputs to valuation techniques used to measure fair value into three broad
levels:

. Level 1 -- quoted prices in active markets for identical securities

. Level 2 -- prices determined using other significant observable
inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.)

. Level 3 -- prices determined using significant unobservable inputs
(including the Fund's own assumptions in determining the fair value
of investments)

The following is a summary of the inputs used to value the Fund's net assets
as of March 31, 2008. The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities.

Valuation Inputs Investments in Securities
---------------- -------------------------

Assets:
Level 1 -- Quoted Prices....................... $376,465,678
Level 2 -- Other Significant Observable Inputs. 92,423,772
Level 3 -- Significant Unobservable Inputs..... --
------------
Total...................................... $468,889,450
============
Liabilities:
Level 1 -- Quoted Prices....................... $ 3,739,688
Level 2 -- Other Significant Observable Inputs. --
Level 3 -- Significant Unobservable Inputs..... --

In March 2008, Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" (FAS 161) was
issued and is effective for fiscal years and interim periods beginning after
November 15, 2008. FAS 161 is intended to improve financial reporting for
derivative instruments by requiring enhanced disclosure that enables investors
to understand how and why a fund uses derivatives, how derivatives are
accounted for, and how derivative instruments affect a fund's results of
operations and financial position. Management is currently evaluating the
impact of FAS 161 on financial statement disclosures, if any.

B. Security Transactions and Related Income:

Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date, or in the case of certain foreign securities,
as soon as the Fund is notified. Interest income is recorded on the accrual
basis. The Fund amortizes premiums and accretes discounts using the effective
interest method. Realized gains and losses are determined on the identified
cost basis.

C. Foreign Currency Translation:

Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at
the trade date. The gain or loss resulting from a change in currency exchange
rates between the trade and settlement dates of a portfolio transaction is
treated as a gain or loss on foreign currency. Likewise, the gain or loss
resulting from a change in currency exchange rates between the date income is
accrued and paid is treated as a gain or loss on foreign currency. The Fund
does not isolate that portion of the results of operations arising from changes
in exchange rates and that portion arising from changes in the market prices of
securities.

D. Foreign Security Country Determination:

A combination of the following criteria is used to assign the countries of
risk listed in the Schedule of Investments and Securities Sold Short: country
of incorporation, actual building address, primary exchange on which the
security is traded and country in which the greatest percentage of company
revenue is generated.

E. Short Sales:

A short sale is a transaction in which the Fund sells a security it does not
own in anticipation of a decline in market price. To sell a security short, the
Fund must borrow the security. The Fund's obligation to replace the security
borrowed and sold short will be fully collateralized at all times by the
proceeds from the short sale retained by the broker and by cash and securities
deposited in a segregated account with the Fund's custodian. If the price of
the security sold short increases between the time of the short sale and the
time the Fund replaces the borrowed security, the Fund will realize a loss, and
if the price declines during the period, the Fund will realize a gain. Any
realized gain will be decreased, and any realized loss increased, by the amount
of transaction costs. On ex-dividend date, dividends on short sales are
recorded as an expense to the Fund. At March 31, 2008, the value of securities
sold short amounted to $2,362,500 against which collateral of $13,127,325 was
held. The collateral includes the deposits with the broker for securities held
short and the value of the segregated investments held long, as shown in the
Schedule of Investments and Securities Sold Short. Short selling used in the
management of the Fund may accelerate the velocity of potential losses if the
prices of securities sold short appreciate quickly. Stocks purchased may
decline in value at the same time stocks sold short may appreciate in value,
thereby increasing potential losses.

F. Security Lending:

The Fund may loan securities to qualified brokers through an agreement with
State Street Bank and Trust Company (the "Custodian"). Under the terns of
agreement, the Fund is required to maintain collateral with a market value not
less than 100% of the market value of loaned securities. Collateral is adjusted
daily in connection with changes in the market value of securities on loan.
Collateral may consist of cash, securities issued or guaranteed by the U.S.
Government or its agencies. Cash collateral is invested in a short-term money
market fund. Dividends earned on the collateral and premiums paid by the broker
are recorded as income by the Fund net of fees and rebates charged by the
Custodian for its services in connection with this securities lending program.
Lending portfolio securities involves a risk of delay in the recovery of the
loaned securities or in the foreclosure on collateral.

At March 31, 2008, the Fund had securities valued at $1,342,299 on loan, for
which it received cash collateral of $1,377,188.

NOTE 2 -- CREDIT RISK AND ASSET CONCENTRATIONS

In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as the Fund's ability to
repatriate such amounts.

The Fund may invest a high percentage of its assets in specific sectors of
the market in its pursuit of a greater investment return. Fluctuations in these
sectors of concentration may have a greater impact on the Fund, positive or
negative, than if the Fund did not concentrate its investments in such sectors.

NOTE 3 -- INDEMNIFICATIONS

Under the Fund's organizational documents, its directors and officers are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, the Fund enters into contracts that contain a
variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these arrangements.

KEY INFORMATION

Zweig Shareholder Relations: 1-800-272-2700
For general information and literature, as well as updates on net asset
value, share price, major industry groups and other key information

REINVESTMENT PLAN

Many of you have questions about our reinvestment plan. We urge shareholders
who want to take advantage of this plan and whose shares are held in "Street
Name," to consult your broker as soon as possible to determine if you must
change registration into your own name to participate.

REPURCHASE OF SECURITIES

Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may from time to time purchase its shares of
common stock in the open market when Fund shares are trading at a discount from
their net asset value.

PROXY VOTING INFORMATION (FORM N-PX)

The Adviser and Sub-Adviser vote proxies relating to portfolio securities in
accordance with procedures that have been approved by the Fund's Board of
Directors. You may obtain a description of these procedures, along with
information regarding how the Fund voted proxies during the most recent
12-month period ended June 30, 2007, free of charge, by calling toll-free
1-800-243-1574. This information is also available through the Securities and
Exchange Commission's website at http://www.sec.gov.

FORM N-Q INFORMATION

The Fund files a complete schedule of portfolio holdings with the Securities
and Exchange Commission (the "SEC") for the first and third quarters of each
fiscal year on Form N-Q. Form N-Q is available on the SEC's website at
http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC's Public
Reference Room. Information on the operation of the SEC's Public Reference Room
can be obtained by calling toll-free 1-800-SEC-0330.

FUND DISTRIBUTIONS AND MANAGED DISTRIBUTION PLAN

The Fund has a Managed Distribution Plan to pay 10% of the Fund's net asset
value on an annualized basis. Distributions may represent earnings from net
investment income, realized capital gains, or, if necessary, return of capital.
The board believes that regular, fixed quarterly cash payouts will enhance
shareholder value and serve the long-term interests of shareholders. You should
not draw any conclusions about the Fund's investment performance from the
amount of the distributions or from the terms of the Fund's Managed
Distribution Plan.

The Fund estimates that it has distributed more than its income and net
realized capital gains in the fiscal year to date; therefore, a portion of your
distributions may be a return of capital. A return of capital may occur when
some or all of the money that you invested in the Fund is paid back to you. A
return of capital does not necessarily reflect the Fund's investment
performance and should not be confused with "yield" or "income".

Please note that the characterization of Fund distributions for federal
income tax purposes is different from book accounting generally accepted
accounting principles ("GAAP"). The amounts and sources of distributions
reported in Section 19(a) notices of the 1940 Act are only estimates and are
not being provided for tax reporting purposes. The actual amounts and sources
of the amounts for tax reporting purposes will depend upon the Fund's
investment experience during the remainder of its fiscal year and may be
subject to changes based on tax regulations. It is only after December 31, 2008
that we will know the exact source of our distributions. Shareholders should
use only the Form 1099-DIV that will be mailed by January 31, 2009 to determine
the taxability of our distributions.

The Board may amend, suspend or terminate the Managed Distribution Plan
without prior notice to shareholders if it deems such action to be in the best
interest of the Fund and its shareholders.

Information on the Zweig funds is available at http://www.PhoenixFunds.com.
Section 19(a) notices are posted on the website at: http://www.phoenix
investments.com/phxinv/PublicSite.jsp?Target=/Individual
/Products/Closed_End_
Funds/Zweig/ZF_Fund.html.

OFFICERS AND DIRECTORS
George R. Aylward
President, Chairman and Chief Executive Officer

Carlton Neel
Executive Vice President

David Dickerson
Senior Vice President

Marc Baltuch
Chief Compliance Officer and Vice President

Moshe Luchins
Vice President

Kevin J. Carr
Chief Legal Officer and Secretary

Nancy Curtiss
Treasurer

Jacqueline Porter
Vice President and Assistant Treasurer

Charles H. Brunie
Director

Wendy Luscombe
Director

Alden C. Olson, Ph.D.
Director

James B. Rogers, Jr.
Director

R. Keith Walton
Director

Investment Adviser
Phoenix/Zweig Advisers LLC
900 Third Avenue
New York, NY 10022-4793

Fund Administrator
Phoenix Equity Planning Corporation
One American Row
Hartford, CT 06103-2899

Custodian
State Street Bank and Trust Company
P.O. Box 5501
Boston, MA 02206-5501

Legal Counsel
Katten Muchin Rosenman LLP
575 Madison Avenue
New York, NY 10022-2585

Transfer Agent
Computershare Trust Company, NA
P.O. Box 43010
Providence, RI 02940-3010

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This report is transmitted to the shareholders of The Zweig Fund, Inc. for
their information. This is not a prospectus, circular or representation
intended for use in the purchase of shares of the Fund or any securities
mentioned in this report.

PXP4132 Q1-08

Quarterly Report

Zweig

The Zweig Fund, Inc.

March 31, 2008

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