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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE STEVE KEANE
TITLE GENERAL COUNSEL
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000201801
<NAME> Federated Municpal Securities Fund, Inc.-Class A
<SERIES>
<NUMBER> 101
<NAME>
<S> <C>
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<PERIOD-END> Mar-31-1999
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<PER-SHARE-NAV-END> 10.870
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[AVG-DEBT-OUTSTANDING]
[AVG-DEBT-PER-SHARE]
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000201801
<NAME> Federated Municpal Securities Fund, Inc.-Class B
<SERIES>
<NUMBER> 102
<NAME>
<S> <C>
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<FISCAL-YEAR-END> Mar-31-1999
<PERIOD-END> Mar-31-1999
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[AVG-DEBT-PER-SHARE]
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000201801
<NAME> Federated Municpal Securities Fund, Inc.-Class C
<SERIES>
<NUMBER> 103
<NAME>
<S> <C>
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<PERIOD-END> Mar-31-1999
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<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (3,851,364)
<OVERDIST-NET-GAINS-PRIOR> (2,325,516)
<GROSS-ADVISORY-FEES> 3,832,697
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,737,103
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<PER-SHARE-NAV-BEGIN> 10.910
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[AVG-DEBT-OUTSTANDING]
[AVG-DEBT-PER-SHARE]
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of
Federated Municipal Securities Fund, Inc.:
In planning and performing our audit of the financial statements of
Federated Municipal Securities Fund, Inc. (the "Fund") for the year
ended March 31, 1999 (on which we have issued our report dated May 14,
1999), we considered its internal control, including control activities
for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, and not to
provide assurance on the Fund's internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in any internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the Fund's internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American Institute of
Certified Public Accountants. A material weakness is a condition in
which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that
errors or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within
a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving the Fund's
internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as
defined above as of March 31, 1999.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
DELOITTE & TOUCHE
Boston, Massachusetts
May 14, 1999
