<PAGE> PAGE 1
000 B000000 09/30/97
000 C000000 0001002948
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 SIERRA PRIME INCOME FUND
001 B000000 811-9122
001 C000000 8187250330
002 A000000 9301 CORBIN AVENUE
002 B000000 NORTHRIDGE
002 C000000 CA
002 D010000 91324
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 SIERRA INVESTMENT ADVISORS CORPORATION
008 B000001 A
008 C000001 801-32921
008 D010001 NORTHRIDGE
008 D020001 CA
008 D030001 91324
008 A000002 VAN KAMPEN AMERICAN CAPITAL MANAGEMENT INC.
008 B000002 S
008 C000002 801-40808
008 D010002 OAKBROOK TERRACE
008 D020002 IL
008 D030002 60181
010 A000001 SIERRA FUND ADMINISTRATION CORPORATION
010 B000001 84-1879
010 C010001 NORTHRIDGE
010 C020001 CA
010 C030001 91324
010 A000002 STATE STREET BANK AND TRUST COMPANY
010 B000002 85-05003
<PAGE> PAGE 2
010 C010002 NORTH QUINCY
010 C020002 MA
010 C030002 02171
011 A000001 SIERRA INVESTMENT SERVICES CORPORATION
011 B000001 8-45144
011 C010001 NORTHRIDGE
011 C020001 CA
011 C030001 91324
012 A000001 FIRST DATA INVESTOR SERVICES GROUP, INC.
012 B000001 84-1761
012 C010001 WESTBORO
012 C020001 MA
012 C030001 01581
013 A000001 PRICE WATERHOUSE LLP
013 B010001 BOSTON
013 B020001 MA
013 B030001 02110
014 A000001 SIERRA INVESTMENT SERVICES CORPORATION
014 B000001 8-45144
014 A000002 GREAT WESTERN FINANCIAL
014 B000002 8-30410
014 A000003 W.M. FINANCIAL SERVICES
014 B000003 8-03641
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 NORTH QUINCY
015 C020001 MA
015 C030001 02171
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 31
019 C000000 SIERRAFUND
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 FUJI GOVERNMENT SECURITIES
022 B000001 36-2880742
022 C000001 701383
022 D000001 0
022 A000002 GOLDMAN SACHS
022 B000002 13-5108880
022 C000002 21976
<PAGE> PAGE 3
022 D000002 0
022 A000003 PEARL STREET LP
022 C000003 0
022 D000003 1455
022 A000004 MORGAN GUARANTY
022 C000004 900
022 D000004 358
022 A000005 CHASE SECURITIES
022 B000005 13-3112953
022 C000005 0
022 D000005 1233
022 A000006 CANADIAN IMPERIAL BANK OF COMMERCE
022 C000006 125
022 D000006 584
022 A000007 BANKERS TRUST
022 B000007 13-4941247
022 C000007 0
022 D000007 197
022 A000008 BANK OF AMERICA
022 B000008 94-1687665
022 C000008 145
022 D000008 0
022 A000009 LEHMAN
022 B000009 13-2518466
022 C000009 0
022 D000009 74
022 A000010 NATIONSBANK
022 B000010 75-0520130
022 C000010 0
022 D000010 25
023 C000000 724529
023 D000000 3925
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 N
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
<PAGE> PAGE 4
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
<PAGE> PAGE 5
047 000000 Y
048 000000 0.950
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
<PAGE> PAGE 6
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 250
062 A000000 Y
062 B000000 0.0
062 C000000 55.7
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 43.1
062 R000000 0.0
063 A000000 0
063 B000000 2.2
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
<PAGE> PAGE 7
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 1025
071 B000000 3925
071 C000000 5927
071 D000000 17
072 A000000 12
072 B000000 759
072 C000000 0
072 D000000 10
072 E000000 0
072 F000000 103
072 G000000 27
072 H000000 0
072 I000000 7
072 J000000 1
072 K000000 0
072 L000000 46
072 M000000 75
072 N000000 4
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 34
072 S000000 98
072 T000000 0
072 U000000 49
072 V000000 0
072 W000000 49
072 X000000 493
072 Y000000 493
072 Z000000 769
072AA000000 0
072BB000000 0
072CC010000 0
072CC020000 4
072DD010000 769
<PAGE> PAGE 8
072DD020000 0
072EE000000 0
073 A010000 0.7100
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 13
074 B000000 0
074 C000000 4695
074 D000000 3631
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 9
074 L000000 30
074 M000000 166
074 N000000 8544
074 O000000 0
074 P000000 2
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 118
074 S000000 0
074 T000000 8424
074 U010000 842
074 U020000 0
074 V010000 10.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 360
074 Y000000 0
075 A000000 0
075 B000000 10782
076 000000 10.00
077 A000000 Y
077 B000000 Y
077 Q010000 N
078 000000 N
080 A000000 FEDERAL INSURANCE CO.
080 B000000 NONE
080 C000000 4000
081 A000000 Y
081 B000000 4
082 A000000 Y
082 B000000 10
083 A000000 N
<PAGE> PAGE 9
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 93
086 A020000 933
086 B010000 504
086 B020000 5038
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE SHEILA TWIBLE
TITLE ASST. VICE-PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001002948
<NAME> SIERRA PRIME INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 8324315
<INVESTMENTS-AT-VALUE> 8325766
<RECEIVABLES> 38899
<ASSETS-OTHER> 178918
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8543583
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119288
<TOTAL-LIABILITIES> 119288
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8417012
<SHARES-COMMON-STOCK> 842216
<SHARES-COMMON-PRIOR> 1252700
<ACCUMULATED-NII-CURRENT> 5305
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 527
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1451
<NET-ASSETS> 8424295
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 758883
<OTHER-INCOME> 9725
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 768608
<REALIZED-GAINS-CURRENT> 527
<APPREC-INCREASE-CURRENT> (4866)
<NET-CHANGE-FROM-OPS> 764269
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 768608
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 507414
<NUMBER-OF-SHARES-REDEEMED> (5037768)
<SHARES-REINVESTED> 425453
<NET-CHANGE-IN-ASSETS> (4109240)
<ACCUMULATED-NII-PRIOR> 845
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 102711
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 492778
<AVERAGE-NET-ASSETS> 10782009
<PER-SHARE-NAV-BEGIN> 10.01
<PER-SHARE-NII> .71
<PER-SHARE-GAIN-APPREC> (.01)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.71)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.00
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
