Merrill Lynch Index Funds, Inc.
February 11, 1998
Securities and Exhange Commission
450 Fifth Street, N.W.
Judiciary Plaza
Washington, D.C. 20549
Attention: Division of Investment Management
Re: Merrill Lynch Index Funds, Inc.
Form 40-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of Management Investment
Companies Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act File Number:
Date examination completed:
811-7899: January 30, 1998
2. State Identification Number: MD
3. Exact Number of investment company as specified in
registration statement: 4
4. Address of principal executive office:
(number, street, city, state, zip code)
P.O. Box 9011
Princeton, New Jersey 08543-9011
Independent Accountants' Report
To the Board of Directors of
Merrill Lynch Index Funds, Inc.:
We have examined the investment accounts shown
by the books and records of Merrill Lynch S&P 500
Index Fund, Merrill Lynch SmallCap Index Fund and
Merrill Lynch Aggregate Bond Index Fund
(collectively the "Funds")of the Merrill Lynch
Index Funds, Inc. (the "Corportion") for the
period August 31, 1997, to October 31, 1997.
Our examination was made without prior notice to
the Corporation. It is understood that this report is
solely for the use of management and the Securities
and Exchange Commission and should not be used
for any other purpose.
Securities owned as of the close of business on
October 31, 1997, all of which are in book entry
form and shown by the books and records audited
by us, were confirmed with Depository Trust Company,
New York, New York; Participant Trust Company, New
York, New York; and Chase Manhattan Bank, New York,
New York. We confirmed all securities out on loan
on that date with the applicable brokers. For
unsettled trades, we performed other auditing
procedures.
Because the above procedures do not constitute an
audit in accordance with generally accepted auditing
standards, we do not express an opinion on the
investment accounts referred to above. In connection
with the procedures referred to above no matters
came to our attention that caused us to believe that
the specified accounts should be adjusted. Had we
performed additional procedures or had we audited
the financial statements in accordance with generally
accepted auditing standards, matters might have
come to our attention that would have been reported
to you. This report relates only to the investments
specified above and does not extned to any financial
statements of the Funds taken as a whole.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Princeton, New Jersey
January 30, 1998
