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000 C000000 0000275039
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<PAGE> PAGE 2
012 A000001 SECURITIES MANAGEMENT AND RESEARCH, INC.
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<PAGE> PAGE 3
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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SIGNATURE BRENDA KOELEMAY
TITLE VP/TREASURER
[ARTICLE] 6
[CIK] 0000275039
[NAME] SM&R BALANCED FUND, INC.
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-END] JUN-30-1999
[INVESTMENTS-AT-COST] 22549815
[INVESTMENTS-AT-VALUE] 30068800
[RECEIVABLES] 157518
[ASSETS-OTHER] 15067
[OTHER-ITEMS-ASSETS] 38796
[TOTAL-ASSETS] 30280181
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 34354
[TOTAL-LIABILITIES] 34354
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 22507864
[SHARES-COMMON-STOCK] 1496752
[SHARES-COMMON-PRIOR] 1496411
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 204010
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 7518985
[NET-ASSETS] 30245827
[DIVIDEND-INCOME] 119223
[INTEREST-INCOME] 365907
[OTHER-INCOME] 0
[EXPENSES-NET] 179564
[NET-INVESTMENT-INCOME] 305566
[REALIZED-GAINS-CURRENT] 192611
[APPREC-INCREASE-CURRENT] 706035
[NET-CHANGE-FROM-OPS] 1204212
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (315765)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 126642
[NUMBER-OF-SHARES-REDEEMED] (141917)
[SHARES-REINVESTED] 15616
[NET-CHANGE-IN-ASSETS] (9724)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 11399
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 105974
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 211461
[AVERAGE-NET-ASSETS] 29027405
[PER-SHARE-NAV-BEGIN] 19.63
[PER-SHARE-NII] 0.21
[PER-SHARE-GAIN-APPREC] 0.59
[PER-SHARE-DIVIDEND] (0.22)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 20.21
[EXPENSE-RATIO] 1.25
</TABLE>
