<PAGE> PAGE 1
000 B000000 07/31/98
000 C000000 0000276206
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 VALOR INVESTMENT FUND, INC.
001 B000000 811-2850
001 C000000 3132567800
002 A000000 2290 FIRST NATIONAL BUILDING
002 B000000 DETROIT
002 C000000 MI
002 D010000 48226
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
022 A000001 NBD
022 B000001 38-0864715
022 C000001 2275
022 D000001 1785
022 C000002 0
022 D000002 0
022 C000003 0
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 2275
023 D000000 1785
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.7
<PAGE> PAGE 2
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 0.7
062 M000000 0.0
062 N000000 0.0
062 O000000 98.5
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 12.0
071 A000000 2275
071 B000000 2285
071 C000000 13895
071 D000000 16
072 A000000 12
072 B000000 784
072 C000000 0
072 D000000 0
072 E000000 15
072 F000000 0
072 G000000 0
072 H000000 0
072 I000000 0
072 J000000 9
072 K000000 0
072 L000000 0
072 M000000 0
072 N000000 0
072 O000000 6
072 P000000 0
072 Q000000 5
072 R000000 10
072 S000000 15
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 2
072 X000000 48
072 Y000000 0
072 Z000000 751
072AA000000 0
072BB000000 0
072CC010000 731
072CC020000 0
072DD010000 0
072DD020000 0
<PAGE> PAGE 3
072EE000000 0
073 A010000 0.8500
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 102
074 D000000 13723
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 102
074 J000000 0
074 K000000 0
074 L000000 196
074 M000000 5
074 N000000 14128
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 18
074 S000000 0
074 T000000 14110
074 U010000 883525
074 U020000 0
074 V010000 15.97
074 V020000 0.00
074 W000000 0.0000
074 X000000 0
074 Y000000 0
075 A000000 0
075 B000000 13926
076 000000 15.97
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
<PAGE> PAGE 4
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
080 A000000 FIDELITY AND DEPOSIT COMPANY OF MARYLAND
080 C000000 200
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
SIGNATURE JOHN PENCAK
TITLE AUDITOR
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> AUG-01-1997
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 13,196,135
<INVESTMENTS-AT-VALUE> 13,926,725
<RECEIVABLES> 196,467
<ASSETS-OTHER> 5,121
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 14,128,313
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,000
<TOTAL-LIABILITIES> 18,000
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 883,525
<SHARES-COMMON-STOCK> 883,525
<SHARES-COMMON-PRIOR> 883,525
<ACCUMULATED-NII-CURRENT> 347,730
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 730,590
<NET-ASSETS> 14,110,313
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 784,287
<OTHER-INCOME> 15,343
<EXPENSES-NET> 48,597
<NET-INVESTMENT-INCOME> 751,033
<REALIZED-GAINS-CURRENT> 15,343
<APPREC-INCREASE-CURRENT> 44,458
<NET-CHANGE-FROM-OPS> 795,491
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 752,128
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 43,363
<ACCUMULATED-NII-PRIOR> 348,825
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 48,597
<AVERAGE-NET-ASSETS> 13,925,218
<PER-SHARE-NAV-BEGIN> 15.92
<PER-SHARE-NII> 0.85
<PER-SHARE-GAIN-APPREC> 0.05
<PER-SHARE-DIVIDEND> 0.85
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.97
<EXPENSE-RATIO> 0.0034899
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
EXHIBIT 99.1
REPORT ON INTERNAL CONTROL
To the Board of Directors
Valor Investment Fund, Inc.
Detroit, Michigan
In planning and performing our audit of the financial statements of Valor
Investment Fund, Inc. (the "Fund") for the year ended July 31, 1998 (on which we
have issued our report dated September 21, 1998), 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 July 31, 1998.
This report is intended solely for the information and use of management, the
Board of Directors of Valor Investment Fund, Inc., and the Securities and
Exchange Commission.
DELOITTE & TOUCHE, LLP
September 21, 1998
Detroit, Michigan
-2-
