KALA INVESTMENT CORP
NSAR-B, 1997-01-03
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<PAGE>      PAGE  1
000 B000000 10/31/96
000 C000000 356422
000 D000000 N
000 E000000 F
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 KALA INVESTMENT CORP. (FORMERLY M-L INVESTMENT CORP.)
001 B000000 811-3311
001 C000000 2129473490
002 A000000 225 WEST 34TH STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10122
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 N
007 B000000  0
013 A000001 STUART M. FRIED, CPA
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10001
015 A000001 NATIONSBANK TRUST
015 B000001 C
015 C010001 FT. LAUDERDALE
015 C020001 FL
015 C030001 33394
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020 A000001 MORGAN STANLEY & CO.
020 B000001 13-2655998
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020 B000002 59-0155622
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<PAGE>      PAGE  3
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<PAGE>      PAGE  6
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SIGNATURE   ARTHUR UDELL
TITLE       SECRETARY


<TABLE> <S> <C>


<ARTICLE>  6
<SERIES>
  <NUMBER> 1
  <NAME>   KALA INVESTMENT CORP. - CLASS A
       
<S>                          <C>
<PERIOD-TYPE>                YEAR
<FISCAL-YEAR-END>            OCT-31-1996
<PERIOD-START>               NOV-01-1995
<PERIOD-END>                 OCT-31-1996
<INVESTMENTS-AT-COST>        7,515,499
<INVESTMENTS-AT-VALUE>       7,535,295
<RECEIVABLES>                  167,040
<ASSETS-OTHER>                  21,350
<OTHER-ITEMS-ASSETS>             3,897
<TOTAL-ASSETS>               7,727,582
<PAYABLE-FOR-SECURITIES>             0
<SENIOR-LONG-TERM-DEBT>              0
<OTHER-ITEMS-LIABILITIES>      108,411
<TOTAL-LIABILITIES>            108,411
<SENIOR-EQUITY>                      0
<PAID-IN-CAPITAL-COMMON>        34,627
<SHARES-COMMON-STOCK>                0
<SHARES-COMMON-PRIOR>                0
<ACCUMULATED-NII-CURRENT>      (47,686)
<OVERDISTRIBUTION-NII>               0
<ACCUMULATED-NET-GAINS>              0
<OVERDISTRIBUTION-GAINS>             0
<ACCUM-APPREC-OR-DEPREC>        19,795
<NET-ASSETS>                 7,619,171
<DIVIDEND-INCOME>                    0
<INTEREST-INCOME>              369,151
<OTHER-INCOME>                       0
<EXPENSES-NET>                  46,539
<NET-INVESTMENT-INCOME>        322,612
<REALIZED-GAINS-CURRENT>       (50,654)
<APPREC-INCREASE-CURRENT>      (28,239)
<NET-CHANGE-FROM-OPS>          (19,447)
<EQUALIZATION>                       0
<DISTRIBUTIONS-OF-INCOME>      319,644
<DISTRIBUTIONS-OF-GAINS>             0
<DISTRIBUTIONS-OTHER>                0
<NUMBER-OF-SHARES-SOLD>              0
<NUMBER-OF-SHARES-REDEEMED>          0
<SHARES-REINVESTED>                  0
<NET-CHANGE-IN-ASSETS>          30,078
<ACCUMULATED-NII-PRIOR>         (6,244)
<ACCUMULATED-GAINS-PRIOR>            0
<OVERDISTRIB-NII-PRIOR>              0
<OVERDIST-NET-GAINS-PRIOR>           0
<GROSS-ADVISORY-FEES>                0
<INTEREST-EXPENSE>                   0
<GROSS-EXPENSE>                 46,539
<AVERAGE-NET-ASSETS>         7,677,944

<PER-SHARE-NAV-BEGIN>        284.79
<PER-SHARE-NII>               12.03
<PER-SHARE-GAIN-APPREC>        (.84)
<PER-SHARE-DIVIDEND>          11.92
<PER-SHARE-DISTRIBUTIONS>      0.000
<RETURNS-OF-CAPITAL>           0.000
<PER-SHARE-NAV-END>         (284.06)
<EXPENSE-RATIO>                 .06
<AVG-DEBT-OUTSTANDING>         0
<AVG-DEBT-PER-SHARE>           0.000
        


</TABLE>

<TABLE> <S> <C>


<ARTICLE>  6
<SERIES>
  <NUMBER> 2
  <NAME>   KALA INVESTMENT CORP. - CLASS B
       
<S>                          <C>
<PERIOD-TYPE>                YEAR
<FISCAL-YEAR-END>            OCT-31-1996
<PERIOD-START>               NOV-01-1995
<PERIOD-END>                 OCT-31-1996
<INVESTMENTS-AT-COST>        7,515,499
<INVESTMENTS-AT-VALUE>       7,535,295
<RECEIVABLES>                  167,040
<ASSETS-OTHER>                  21,350
<OTHER-ITEMS-ASSETS>             3,897
<TOTAL-ASSETS>               7,727,582
<PAYABLE-FOR-SECURITIES>             0
<SENIOR-LONG-TERM-DEBT>              0
<OTHER-ITEMS-LIABILITIES>      108,411
<TOTAL-LIABILITIES>            108,411
<SENIOR-EQUITY>                      0
<PAID-IN-CAPITAL-COMMON>        34,627
<SHARES-COMMON-STOCK>                0
<SHARES-COMMON-PRIOR>                0
<ACCUMULATED-NII-CURRENT>      (47,686)
<OVERDISTRIBUTION-NII>               0
<ACCUMULATED-NET-GAINS>              0
<OVERDISTRIBUTION-GAINS>             0
<ACCUM-APPREC-OR-DEPREC>        19,795
<NET-ASSETS>                 7,619,171
<DIVIDEND-INCOME>                    0
<INTEREST-INCOME>              369,151
<OTHER-INCOME>                       0
<EXPENSES-NET>                  46,539
<NET-INVESTMENT-INCOME>        322,612
<REALIZED-GAINS-CURRENT>       (50,654)
<APPREC-INCREASE-CURRENT>      (28,239)
<NET-CHANGE-FROM-OPS>          (19,447)
<EQUALIZATION>                       0
<DISTRIBUTIONS-OF-INCOME>      319,644
<DISTRIBUTIONS-OF-GAINS>             0
<DISTRIBUTIONS-OTHER>                0
<NUMBER-OF-SHARES-SOLD>              0
<NUMBER-OF-SHARES-REDEEMED>          0
<SHARES-REINVESTED>                  0
<NET-CHANGE-IN-ASSETS>          30,078
<ACCUMULATED-NII-PRIOR>         (6,244)
<ACCUMULATED-GAINS-PRIOR>            0
<OVERDISTRIB-NII-PRIOR>              0
<OVERDIST-NET-GAINS-PRIOR>           0
<GROSS-ADVISORY-FEES>                0
<INTEREST-EXPENSE>                   0
<GROSS-EXPENSE>                 46,539
<AVERAGE-NET-ASSETS>         7,677,944

<PER-SHARE-NAV-BEGIN>        284.79
<PER-SHARE-NII>               12.03
<PER-SHARE-GAIN-APPREC>        (.84)
<PER-SHARE-DIVIDEND>          11.92
<PER-SHARE-DISTRIBUTIONS>      0.000
<RETURNS-OF-CAPITAL>           0.000
<PER-SHARE-NAV-END>         (284.06)
<EXPENSE-RATIO>                 .06
<AVG-DEBT-OUTSTANDING>         0
<AVG-DEBT-PER-SHARE>           0.000
        


</TABLE>


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