[TYPE] N-30D
[DESCRIPTION] Semi-Annual report mailed to
shareholders
This is what American Growth Fund* has done for its
investors over the last 37.5 years.
504,605** Total value on 12/31/95 with both
dividends and capital gains reinvested.
Average Annual
Total Return** thru thru 12/31/95
12/31/95 w/o sales charge
1 year 18.2% 25.5%
5 years 14.5% 15.9%
10 years 10.6% 11.2%
15 years 11.0% 11.5%
37 years 10.8% 10.9%
$10,000 investment
on Aug. 1, 1958
<PAGE>
*A conservative, long-term growth mutual fund with income as a
secondary objective.
The above information reflects the performance of the fund's Class
D shares. On 3/1/96, the Fund adopted a multi-class distribution
arrangement to issue additional classes of shares, designated as
Class A, Class B and Class C shares. Shares existing prior to
3/1/96
became Class D shares. Performance information on Class A, Class
B and Class C shares is not yet available. Class A and Class D
shares are subject to a maximum front-end sales charge of 5.75%,
Class B shares are subject to a maximum contingent deferred sales
charge of 5% and Class C shares are subject to a 1% contingent
deferred sales charge within the first year of purchase.
The Fund may incur 12b-1 expenses up to an annual maximum of
.30 of 1% on its average daily net assets of its Class A shares, 1%
of its average daily net assets of its Class B shares, and 1% of
its
average daily net assets of its Class C shares. Class D shares have
no 12b-1 fees. Performance figures for Class D shares include the
5.75% initial sales charge and assume the reinvestment of income
dividend and capital gain distributions. Performance quoted
represents past performance. The investment return and principal
value of an investment will fluctuate so that investor's shares,
when
redeemed, may be worth more or less than their original cost. Call
for complete information including a prespectus. Please read the
prespectus carefully before investing.
Distributor American Growth Fund Sponsors, Inc.
This report is intended solely for the use by the shareholders of
American Growth Fund, Inc. If it is provided to any member of the
public, it must be accompanied by a currently effective prospectus
of the Fund.
<PAGE>
<PAGE>To Our Investors
Dear Shareowner:
Your Fund has given you a total return of 24% in the last twelve
months. The Fund's portfolio has been
positioned to take advantage of what we perceive to be
opportunities in the forthcoming market. A large
percentage of the portfolio is now invested in the petroleum,
commercial bank, thrift and air transport
industries.
We are pleased to announce that all proposals submitted at the
recent shareholders meeting were passed
(a vote count can be found on page 12 of this report). We feel that
all the changes will benefit you. This
might be an appropriate time to consider adding to your American
Growth Fund account. Call our toll free
number (800) 525-2406 or (303) 623-6137 if you have questions or if
you wish information on how to
add to your account. I invite your comments, questions and
suggestions. Please feel free to call or write
to me.
American Growth Fund wishes you A Good Future!
Robert Brody
President
PAGE
<PAGE>
How American Growth Fund Has Its Shareowners' Money Invested
PORTFOLIO OF INVESTMENTS
<TABLE>
January 31, 1996
<CAPTION>
Market
Name of Security
Shares
Value
COMMON STOCKS
<S>
Petroleum Industry 15.7%. . . . . . . . . . . <C>
<C>
Texaco Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
70,000 $ 5,661,250
(The fourth largest oil company in the U.S.)
British Petroleum Company P.L.C.. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
45,000 4,393,125
(Third largest integrated oil enterprise in the world.)
Repsol S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
66,000 2,301,750
(Explores/produces oil and gas in Spain, North Sea, Africa,
Latin America, Indonesia
and the Middle East.)
ELF Aquitaine . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
60,000 2,242,500
(France's largest corporation and the 3rd largest integrated oil
& gas company in Europe.)
Ultramar Corporation. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
80,000 2,260,000
(Leading independent refiner and marketer of petroleum products
in California
and Eastern Canada.)
16,858,625
Commercial Bank Industry 14.5%
PNC Bank Corp.. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
205,000 6,150,000
(The nation's eleventh largest bank holding company.)
First Union Corp... . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
80,000 4,630,000
(The nation's ninth largest bank holding company.)
City National Corp. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
200,000 2,650,000
(Owns City National Bank, sixth largest bank in California.)
SouthTrust Corp.. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
80,000 2,090,000
(The thirty seventh largest bank in the U.S.)
15,520,000
</TABLE>
PAGE
<PAGE>
<TABLE>
Market
Name of Security
Shares
Value
<CAPTION>
<S>
Thrift Industry 13.6%. . . . . . . . . . . . <C>
<C>
Great Western Financial Corp... . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
160,000 $ 3,840,000
(Holding company for Great Western Bank, the nation's second
largest thrift.)
Standard Federal Bancorp. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
80,000 3,260,000
(The seventh largest thrift in the U.S.)
Golden West Financial Corp. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
60,000 3,105,000
(Holding company for World Savings & Loan, the nation's third
largest thrift.)
Washington Mutual, Inc. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
80,000 2,415,000
(Largest thrift in Washington and the sixth largest in the
nation.)
H.F. Ahmanson & Co. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
80,000 1,920,000
(Largest thrift holding company in the U.S.)
14,540,000
Air Transport Industry 13.3%
UAL Corporation*. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
35,000 5,635,000
(Owns United Airlines, the second largest domestic carrier.)
AMR Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
60,000 4,560,000
(Owns American Airlines, the largest domestic carrier.)
Delta Air Lines, Inc... . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
60,000 4,102,500
(The 3rd ranking domestic airline.)
14,297,500
Pharmaceutical Products Industry 9.4%
Merck & Co., Inc. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
75,000 5,268,750
(Leading manufacturer of human & animal health care products.)
Schering Plough Corp. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
87,800 4,752,175
(Worldwide manufacturer of prescription & over-the-counter
drugs.)
10,020,925
</TABLE>
PAGE
<PAGE>
<TABLE>
Market
Name of Security
Shares
Value
<CAPTION>
<S>
Insurance Industry 7.5% . . . . . . . . . . . <C>
<C>
Aetna Life & Casualty Company . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
55,000 $ 4,097,500
(Ranked fifth in the U.S. based on premiums written in domestic
property & casualty insurance.)
American International Group. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
28,125 2,724,609
(Ranked fourth in the U.S. based on premiums written in domestic
property & casualty insurance.)
Equitable Companies Inc.. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
50,000 1,231,250
(Parent holding company of The Equitable Life Assurance Society
of the U.S.)
8,053,359
Financial Services Industry 6.3%
SunAmerica. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
45,000 2,216,250
(Concentrates mainly on investment-oriented, long-term savings
products.)
Money Store Inc. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
112,500 2,165,625
(Primary business of originating, selling, and servicing
consumer and commercial loans.)
Travelers Group Inc.. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
20,000 1,315,000
(A diversified financial services company.)
MBNA Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
25,000 1,018,750
(One of the country's largest lenders through bank credit
cards.)
6,715,625
Aerospace/Defense Industry 4.5%
Boeing Company. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
62,000 4,812,750
(The leading manufacturer of commercial jet aircraft.)
Chemical Industry 4.4%
Union Carbide . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
90,000 3,791,250
(Producer of ethylene glycol, polyethylene, ethylene oxide,
solvents, coatings, specialty chemicals,
surfactants.)
IMC Global Inc. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
25,000 937,500
(World's largest private enterprise miner of phosphate rock and
potash.)
4,728,750
</TABLE>
PAGE
<PAGE>
<TABLE>
Market
Name of Security
Shares
Value
<CAPTION>
<S>
Oil Services Industry 4.2% . . . . . . . . . . <C>
<C>
Sonat Offshore Drilling Inc.. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
22,000 $ 1,014,750
(Provides contract drilling services for offshore oil & gas
wells.)
McDermott International, Inc. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
50,000 968,750
(Produces and services nuclear and fossil fuel steam generating
systems.)
Nabors Industries Inc.* . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
45,000 545,625
(World's largest land drilling contractor and provides oilfield
support.)
Reading & Bates*. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
32,000 544,000
(Provides contract drilling services in major offshore oil & gas
producing areas worldwide.)
Tidewater Inc.. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
16,000 530,000
(Provides transport, towing, barging services. Sells & leases
gas and air compressors.)
Global Marine*. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
57,000 491,625
(Contract offshore drilling and in exploration and production of
oil and gas.)
BJ Services Company*. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
17,000 454,750
(Third largest pressure pumping service company in the world.)
4,549,500
Telecommunication Services Industry 2.5%
AT & T Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
40,000 2,675,000
(Operates in the global information movement and management and
the financial services and
leasing industry.)
Building Materials Industry 1.0%
Ameron, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
30,000 1,121,250
(Multinational manufacturer of protective coatings for
petroleum, marine and industrial markets.)
Total Common Stocks (cost $88,708,382). . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
96.9% 103,893,284
Repurchase Agreement (cost $2,900,000). . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
2.7% 2,900,000
(State Street Bank & Trust, 5.25% dated 01/25/96, due 02/01/96,
maturity value $2,902,960,
Collateral: U.S. Treasury Note $2,925,000 par, 5.875%, due
5-13-96)
Total Investments . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
99.6% 106,793,284
Cash and Receivables, Less Liabilities. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
0.4% 426,954
Total Net Assets. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
100.0% $107,220,238
</TABLE>
<PAGE>
Financial Statements
AMERICAN GROWTH FUND, INC.
STATEMENT OF
ASSETS AND LIABILITIES, JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
<C>
Investments at value (identified cost and cost for federal
income tax purposes $91,608,382). . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 106,793,284
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 236,939
Receivable from sale of Fund shares. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 487,490
Dividends receivable . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 105,012
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 107,622,725
LIABILITIES:
Payable for redemption of Fund shares. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 402,487
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 402,487
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 107,220,238
NET ASSETS:
Paid in capital, 50,000,000 shares of $.01 par value capital
stock authorized;
12,067,683 shares outstanding . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 92,082,111
Undistributed net investment loss. . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . (215,781)
Accumulated net realized gain. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 169,006
Net unrealized appreciation of investments . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 15,184,902
Total net assets . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 107,220,238
Net asset value per share
(Total net assets / Total shares outstanding) . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 8.88
Add selling commissions (5.75% of offering price)* . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 0.54
Maximum offering price per share . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 9.42
</TABLE>
PAGE
<PAGE>
Financial Statements
AMERICAN GROWTH FUND, INC.
STATEMENT
OF OPERATIONS FOR THE SIX MONTHS ENDED
JANUARY 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
INCOME FROM INVESTMENTS:
<S> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . <C>
Income:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 697,237
Interest. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 181,749
Total Income . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 878,986
EXPENSES:
Investment advisory fee . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 412,597
Administrative expenses . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 143,850
Transfer agent, custodian and data processing fees. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 19,877
Other . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 121,820
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 698,144
Net investment income . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 180,842
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from investment transactions . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 2,111,079
Increase in unrealized appreciation of investments . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 2,674,372
Net gain on investments. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 4,785,451
Net increase in net assets resulting from operations. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . $ 4,966,293
</TABLE>
<PAGE>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .<PAGE>
Financial Statements
AMERICAN GROWTH FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
Year Ended
<S>
January 31, 1996
July 31, 1995
(unaudited)
OPERATIONS:
<C>
<C>
Net investment income. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . $ 180,842
$ 1,444,321
Net realized gain from investment transactions . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 2,111,079
325,639
Increase in unrealized appreciation of investments . . . . . .
. . . . . . . . . . . . . . . . . . . . 2,674,372
9,773,542
Net increase in net assets resulting from operations . . . . .
. . . . . . . . . . . . . . . . . . . . 4,966,293
11,543,502
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ($.12 and $.12 per share, respectively).
. . . . . . . . . . . . . . . . . . . . (1,387,537)
(938,292)
Net realized gain on investment transactions ($0.20 and $1.56
per
share, respectively) . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . (2,312,583)
(12,215,279)
Net decrease from distributions. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . (3,700,120)
(13,153,571)
CAPITAL STOCK TRANSACTIONS:
Proceeds from sale of shares (2,047,469 and 2,352,448 shares).
. . . . . . . . . . . . . . . . . . . . 18,374,543
19,867,517
Net asset value of shares issued in reinvestment of dividends
(375,550 and 1,701,369 shares). . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 3,300,334
12,454,018
Cost of shares redeemed (698,059 and 1,017,480 shares) . . . .
. . . . . . . . . . . . . . . . . . . . (6,259,116)
(8,382,337)
Increase in net assets derived from capital stock transactions
. . . . . . . . . . . . . . . . . . . . 15,415,761
23,939,198
Net increase in net assets . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 16,681,934
22,329,129
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 90,538,304
68,209,175
End of period (including undistributed net investment
(loss) income of $(215,781) and $990,914 respectively). . .
. . . . . . . . . . . . . . . . . . . $ 107,220,238
$ 90,538,304
</TABLE>
PAGE
<PAGE>
Notes to Financial Statements
1. Summary of Significant Accounting Policies
American Growth Fund, Inc. ("Fund") is registered under the
Investment Company Act of 1940, as amended, as a diversified,
open-end management investment company. The following is a
summary of significant accounting policies consistently followed
by the Fund. The policies are in accordance with generally
accepted accounting principles.
Investment Valuation - Investment securities are valued at the
closing sales price as reported by the principal securities
exchange on which the security is traded. If no sale is
reported, or if the security is not traded on an exchange, value is
based
on the average of the latest bid and asked prices. Short-term
debt securities are valued at amortized cost, which approximates
value.
Federal Income Taxes - No provision for federal income taxes
has been made because it is the Fund's policy to comply with
provisions of the Internal Revenue Code available to regulated
investment companies and to distribute all of its taxable income
to shareholders.
Other - Investment transactions are accounted for on the date
the investments are purchased or sold (trade date). Dividend
income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual
basis.
For Federal income tax purposes, the cost of investments owned
as of January 31, 1996 was $88,708,382. Realized gains and
losses from investment transactions and unrealized
appreciation and depreciation of investments are reported on an
identified
cost basis which is the same basis used for federal income tax
purposes.
2. Federal Income Tax Matters
For federal income tax purposes, the Fund realized a net
capital gain of $2,111,079 during the six months ended January 31,
1996.
At January 31, 1996, the net unrealized appreciation of
investments for federal income tax purposes of $15,184,902 was
comprised of gross appreciation of $16,247,114 for those
investments having an excess of value over cost, and gross
depreciation of $1,062,212 for those investments having an
excess of cost over value.
3. Dividends, Distributions and Fund Expenses
For the Fund's six months ended January 31, 1996, it has been
determined that all ordinary income dividends qualify for the
dividend received deduction for corporate shareholders. Fund
expenses in the amount of $11,238 relating to transfer agent fees
and certain other expenses were paid by broker dealers.
4. Investment Security Transactions
Purchases of investment securities, other than U.S. Government
and short-term securities, aggregated $98,250,987 with
proceeds from maturities and sales aggregating $82,355,991.
5. Underwriting and Investment Advisory Contracts
Under the investment advisory contract with Investment
Research Corporation ("IRC"), the advisor receives annual
compensation
for investment advice, computed and paid monthly, equal to 1%
of the average net assets of the Fund up to $30 million of such
assets and 3/4 of 1% of such assets above $30 million. The
Fund pays its own operating expenses. The total of expenses of
the Fund for any fiscal year may not exceed the most
restrictive limitation prescribed by any state in which the shares
of the Fund
are sold.
For the six months ended January 31, 1996 commissions and
sales charges paid by investors on the purchase of Fund shares
totalled $951,340 of which $173,384 was retained by American
Growth Fund Sponsors, Inc. ("Sponsors"), the underwriter and
distributor of the Fund.
Certain officers of the Fund are also officers of Sponsors and
IRC. For the six months ended January 31, 1996 the Fund paid
directors' fees and expenses of $2,900.
Under an agreement with IRC, the Fund is charged for the costs
and expenses related to employees of IRC who provide
administrative, clerical and accounting services to the Fund.
In addition, the Fund is charged by an affiliated company of IRC
for the cost of office space associated with the provision of
such services.
PAGE
<PAGE>
Financial Highlights
For a share
outstanding throughout the period's indicated.
The following per
share data covers the five and one half years from
August
1, 1990 through January 31, 1996.
The information contained in the table below for the five years
ended July 31, 1995 has been
examined by Smith, Brock and Gwinn, Independent Certified Public
Accountants, to the extent stated
in their report.
<TABLE>
<CAPTION>
Six
Months YEARS ENDED JULY 31
Ended
January
31, 1996
INCOME & EXPENSES
(Unaudited) 1995 1994 1993
1992 1991
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.<C> <C> <C> <C>
<C> <C>
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . . . . . .$
8.75 $ 9.34 $ 9.39 $ 8.50 $
8.02 $ 7.59
Income From Investment Operations
Net Investment Income. . . . . . . . . . . . . . . . . . . . .
..006 .210 .034 .105
.097 .157
Net Gains or Losses on Securities
(both realized and unrealized) . . . . . . . . . . . . . . . .
..444 .880 0.996 1.515
.943 .533
Total From Investment Operations . . . . . . . . . . . . . . .
..450 1.090 1.030 1.620
1.040 .690
Less Distributions
Dividends
(from net investment income) . . . . . . . . . . . . . . . . .
(.120) (.120) (.050) (.080)
(.060) (.260)
Distributions
(from capital gains) . . . . . . . . . . . . . . . . . . . . .
(.200) (1.560) (1.030) (.650)
(.500) .......
Returns of Capital . . . . . . . . . . . . . . . . . . . . .
........ ....... ....... .......
....... .......
Total Distributions. . . . . . . . . . . . . . . . . . . . .
.(0.320) (1.680) (1.080) (.730)
(.560) (.260)
Net Asset Value, End of Period . . . . . . . . . . . . . . . .$
8.88 $ 8.75 $ 9.34 $ 9.39 $
8.50 $ 8.02
Total Return*(***) . . . . . . . . . . . . . . . . . . . . . . .
5.2% 15.2% 11.1% 20.2%
13.6% 9.6%
Ratios/Supplemental Data
Net Assets, End of Period (millions) . . . . . . . . . . . . .
.107.2 90.5 68.2 62.2
55.5 55.7
Ratio of Expenses to
Average Net Assets**** . . . . . . . . . . . . . . . . . .
.1.40%** 1.45% 1.34% 1.44%
1.46% 1.33%
Ratio of Net Income
to Average Net Assets. . . . . . . . . . . . . . . . . . . .
.36%** 1.91% .35% .59%
1.14% 2.02%
Portfolio Turnover Rate. . . . . . . . . . . . . . . . . . .
206.0%** 173.0% 87.2% 48.8%
39.8% 135.5%
/TABLE
<PAGE>
<PAGE>
Vote count
from Special Meeting of Shareholders
The special meeting of shareholders of the
Fund that was called for February 15, 1996 was adjourned
and held February 22, 1996. The following is a description as to
the vote for each matter submitted to the meeting.
For
Withhold
1. Election of Directors
Robert Brody
7,047,490
118,757
Michael J. Baum, Jr.
7,001,577
283,427
Eddie R. Bush
7,056,018
110,229
Don S. Strauss
7,053,115
113,131
Harold Rosen
7,057,081
109,166
2. Approval of amendments to the Articles of Incorporation of the
Fund to permit multiple class distribution arrangement.
3. Approval of other amendments to the Articles of
Incorporation of the Fund as follows:
3a. Elimination of Investment Restrictions Contained in
Article
Second.
3b. Elimination of Reporting Requirements in Connection with,
and Restrictions on, Sales of Fund shares to certain
persons.
3c. Elimination of Provisions Dealing with Transactions with
Fund Insiders.
3d. Amendment of Provisions Relating to the Determination of
the Fund's Share Price.
3e. Amendments to Liability and Indemnification Provisions.
3f. Amendments to Redemption Provisions.
3g. Amendment Governing Binding Effect of Determinations as
to Financial Matters.
4. Selection of KPMG Peat Marwick LLP as independent auditors.
<PAGE>
For
Against
Abstain
6,582,338
202,004
381,905
6,140,659
357,989
667,599
5,966,428
567,483
632,336
5,925,818
531,489
708,940
6,286,422
193,307
686,517
6,162,340
246,992
750,923
6,200,916
226,737
738,594
6,268,723
200,469
697,055
6,626,014
63,209
477,023
<PAGE>
<PAGE>
[TYPE] EX-27.3B
[DESCRIPTION] FINANCIAL DATA SCHEDULE
[ARTICLE] 6
[CIK] 0000005138
[NAME] American Growth Fund, Inc.
[MULTIPLIER] 1
<TABLE>
<S> <C>
[PERIOD-TYPE] SIX MONTHS
[PERIOD-START] AUG-01-1995
[PERIOD-END] JAN-31-1996
[INVESTMENTS-AT-COST] 91,608,382
[INVESTMENTS-AT-VALUE] 106,793,284
[RECEIVABLES] 592,502
[ASSETS-OTHER] 236,939
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 107,622,725
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 402,487
[TOTAL-LIABILITIES] 402,487
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 92,082,111
[SHARES-COMMON-STOCK] 12,067,683 -
Outstanding
[SHARES-COMMON-PRIOR] 10,342,095 -
Outstanding
<ACCUMULATED-NIL-CURRENT> (215,781)
<OVERDISTRIBUTION-NII) 0
[ACCUMULATED-NET-GAINS] 169,006
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 15,184,902
[NET-ASSETS] 107,220,238
[DIVIDEND-INCOME] 697,237
[INTEREST-INCOME] 181,749
[OTHER-INCOME] 0
[EXPENSES-NET] 698,144
[NET-INVESTMENT-INCOME] 180,842
[REALIZED-GAINS-CURRENT] 2,111,079
[APPREC-INCREASE-CURRENT] 2,674,372
[NET-CHANGE-FROM-OPS] 4,996,293
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,387,537
[DISTRIBUTIONS-OF-GAINS] 2,312,583
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,047,469
[NUMBER-OF-SHARES-REDEEMED] 698,059
[SHARES-REINVESTED] 375,550
[NET-CHANGE-IN-ASSETS] 16,681,934
[ACCUMULATED-NII-PRIOR] 990,914
<OVERDIS-NET-GAINS-PRIOR> 0
[GROSS-ADVISORY-FEES] 412,597
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 698,144
[AVERAGE-NET-ASSETS] 100,025,763
[PER-SHARE-NAV-BEGIN] 8.75
[PER-SHARE-NII] .006
[PER-SHARE-GAIN-APPREC] .444
[PER-SHARE-DIVIDEND] (.120)
[PER-SHARE-DISTRIBUTIONS] (.200)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.88
[EXPENSE-RATIO] 1.40
[AVG-DEBT-OUTSTANDING] 0
<AVG-DEBT-PER-SHARE 0.000
</TABLE>
