[TYPE] N-30D
[DESCRIPTION] SEMI-ANNUAL REPORT MAILED
TO SHAREHOLDERS
To Our Investors
Dear Fellow Shareholder:
Our philosophies of investing in the highest grade companies and
looking for opportunities for growth
have given you a total return of 15.5% for the six months period
ending January 31, 1997. We have
positioned our portfolio to take advantage of what we perceive to
be opportunities in the forthcoming
market. A large percentage of the portfolio is now invested in
commercial banking, oilfield services and
thrift industries. There are bound to be further opportunities for
growth out there, and American Growth
Fund will strive to find them.
This maybe a good time to remind our shareholders that we manage
the Fund with two objectives in
mind... to make money and not lose the money we've made. That's the
way we have managed American
Growth Fund for over 38 years and plan to in the future.
Perhaps, all things considered, this might be an appropriate time
to consider adding to your American
Growth Fund account. Our toll free number is (800) 525-2406 or give
your securities representative a call.
I invite your comments, questions and suggestions. Please feel free
to call or write to me.
American Growth Fund wishes you and yours a good future!
Sincerely,
Robert Brody
President & Shareholder
<PAGE>
How American Growth Fund Has Its Shareowners' Money Invested
STATEMENT OF
INVESTMENTS
January
31, 1997
<TABLE>
<CAPTION>
Market
Description of Security
Shares Value
COMMON
STOCKS
<S>
<C> <C>
Commercial Bank
Industry 16.4%
PNC Bank Corp. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 145,000 $ 5,763,750
(The nation's 13th largest bank holding company)
City National Corp.. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 200,000 4,550,000
(Owns City National Bank, the largest independent bank in S.
California.)
SouthTrust Corp... . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 90,000 3,403,125
(The 33rd largest bank in the U.S.)
Royal Bank of Canada . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 70,000 2,598,750
(Canada's largest bank)
First Union Corp.. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 28,800 2,408,400
(The 6th largest bank in the U.S.)
NationsBank. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 16,312 1,761,696
(The 4th largest bank in the U.S.)
20,485,721
Oilfield Services
Industry 15.0%
Schlumberger Limited . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 56,000 6,223,000
(Operates in two segments: Oilfield Services, Measurement &
Systems.))
Global Marine, Inc.* . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 160,000 3,580,000
(Engaged in contract offshore drilling and in exploration and
production of oil and gas)
Transocean Offshore Inc. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 50,000 3,275,000
(Provides contract drilling services for offshore oil and gas
wells.)
Rowan Companies, Inc.* . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 80,000 2,020,000
(Operates in three segments: Drilling, manufacturing and
aircraft.)
Tidewater Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 40,000 1,880,000
(Serves the international offshore energy industry through
transportation and gas/air compressors.)
Helmerich & Payne, Inc.. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 20,000 967,500
(Explores for and produces oil and natural gas; it also provides
drilling services.)
Petroleum Geo-Services AS* . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 10,000 430,000
(Creates images of the geology beneath the seabed.)
Daniel Industries, Inc.. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 20,000 287,500
(Leading provider of fluid measurements, flow control, and
analytical products, services, and integrated solutions.)
</TABLE> . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 18,663,000
<PAGE>
<TABLE>
<CAPTION>
Market
Description of Security
Shares Value
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . <C> <C>
Thrift
Industry 14.0%
Washington Mutual, Inc.. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 120,000 $ 6,517,500
(One of the largest thrifts in the U.S.)
Standard Federal Bancorp . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 100,000 5,737,500
(The 6th largest thrift in the U.S. and the largest in Michigan.)
Golden West Financial Corp.. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 78,000 5,235,750
(Third largest thrift in the U.S.)
17,490,750
Petroleum
Industry 5.9%
British Petroleum Company P.L.C. (The) . . . . . . . . . . . . . .
. . . . . . . . . . . . . 20,000 2,832,500
(One of the largest integrated oil enterprises in the world.)
USX-Marathon . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 90,000 2,396,250
(A medium sized integrated oil company)
Texaco Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 20,000 2,117,500
(A major integrated international oil company)
7,346,250
Aerospace/Defense
Industry 5.3%
Boeing Company (The) . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 62,000 6,641,750
(The leading manufacturer of commercial jet aircraft.)
Insurance
Industry 3.8%
American International Group, Inc. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 28,125 3,406,641
(Ranked fourth in the U.S. based on premiums written in domestic
property & casualty insurance.)
Equitable Companies Inc. (The) . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 50,000 1,381,250
(Parent holding company of The Equitable Life Assurance Society
of the U.S.)
4,787,891
Aluminum
Industry 3.3%
Aluminum Company of America (Alcoa). . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 60,000 4,140,000
(The world's largest aluminum producer.)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Market
Description of Security
Shares Value
Steel
Industry 2.9%
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . <C> <C>
USX-U.S. Steel Group . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 100,000 3,162,500
(The largest U.S. steelmaker)
Bethlehem Steel* . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 57,200 486,200
(The second largest U.S. steelmaker.)
3,648,700
Computer &
Peripherals Industry 2.5%
International Business Machines Corporation. . . . . . . . . . . .
. . . . . . . . . . . . . 20,000 $ 3,145,000
(The world's largest supplier of advanced information processing
technology, communication systems & services)
Financial Services
Industry 1.7%
Travelers Group Inc. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 40,000 2,095,000
(A diversified financial services company)
Building Materials
Industry 1.2%
Ameron International Corporation . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 30,000 1,488,750
(A multinational manufacturer of protective coatings for the
petroleum, marine , and industrial markets)
Total Common Stocks (cost $66,032,693) . . . . . . . . . . . . . .
. . . . . . . . . . . . . 72.0% 89,932,812
SHORT-TERM
INVESTMENT 17.9%
U.S. Treasury Bill, 4.95% due 03/27/97, principal amount
$10,500,000
(amortized cost $10,422,038) . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 10,422,038
U.S. Treasury Bill, 5.015%, due 4/24/97, principal amount
$12,000,000
(amortized cost $11,862,923 . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 11,862,923
22,284,961
Repurchase Agreement (cost $12,000,000). . . . . . . . . . . . . .
. . . . . . . . . . . . . 9.6% 12,000,000
(Nomura Securities International, Inc., 5.32% dated 01/30/97, due
02/06/97, Maturity value $12,012,413
Collateral: U.S. Treasury Note $12,400,000 par, 5.75%, due
08/15/03
Total Investment Securities, at Value (cost $100,317,654). . . . .
. . . . . . . . . . . . . 99.5% 124,217,773
Cash and Receivables, Less Liabilities . . . . . . . . . . . . . .
. . . . . . . . . . . . . 0.5% 588,857
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 100.0% $124,806,630
</TABLE>
PAGE
<PAGE>
Financial Statements
<TABLE>
<CAPTION>
AMERICAN GROWTH
FUND, INC.
STATEMENT OF ASSETS AND
LIABILITIES, JANUARY 31, 1997
(UNAUDITED)
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . <C>
ASSETS:
Investments at value (cost $100,317,654)-see accompanying
statement. . . . . . . . . . . . . . . . . . . . $
124,217,773
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 459,343
Receivables:
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 120,233
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 9,281
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 124,806,630
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . $ 124,806,630
COMPOSITION OF NET ASSETS:
Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . $ 99,516,803
Undistributed net investment income. . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . (118,459)
Accumulated net realized gain from investment transactions . . .
. . . . . . . . . . . . . . . . . . . . . 1,508,167
Net unrealized appreciation of investments . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 23,900,119
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . $ 124,806,630
NET ASSET VALUE PER SHARE:
Class A Shares:*
Net asset value and redemption price per share (based on net
assets
of $7,185,071 and 742,482 shares of beneficial interest
outstanding) . . . . . . . . . . . . . . . . . .
$9.68
Maximum offering price per share (net asset value plus sales
charge of
5.75% of offering price.). . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . $10.27
Class B Shares:
Net asset value, redemption price and offering price per share
(based
on net assets of $7,598,324 and 789,915 shares of beneficial
interest outstanding) . . . . . . . . . . . $9.62
Class C Shares:
Net asset value, redemption price and offering price per share
(based
on net assets of $2,173,615 and 225,885 shares of beneficial
interest outstanding) . . . . . . . . . . . $9.62
Class D Shares:*
Net asset value and redemption price and offering price per
share (based on
net assets of $107,849,620 and 11,127,464 shares of beneficial
interest outstanding) . . . . . . . . . . $9.69
Maximum offering price per share (net asset value plus sales
charge of 5.75% of
offering price). . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . $10.28
</TABLE>
PAGE
<PAGE>
Financial Statements
<TABLE>
<CAPTION>
AMERICAN GROWTH
FUND, INC.
STATEMENT OF OPERATIONS FOR THE
SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . <C>
INVESTMENT INCOME:
Dividends (net of $16,172 foreign tax) . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . $ 750,140
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 1,266,265
Total income . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 2,016,405
EXPENSES:
Investment advisory fees (Note 5). . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 480,674
Administration expenses. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 195,357
Transfer agent, shareholder servicing and data processing fees
(Note 4). . . . . . . . . . . . . . . . . 53,959
Custodian fees (Note 4). . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 25,354
Professional fees. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 26,791
Registration and filing fees:
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 1,476
Class B. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 1,229
Class C. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 456
Class D. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 29,114
Shareholder reports. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 8,078
Distribution fees:
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 7,606
Class B. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 25,657
Class C. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 8,679
Class D. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . -
Directors fees . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 4,800
Other expenses . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 16,592
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 885,822
Less expenses paid indirectly (Note 4) . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . (108,933)
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 776,889
Net Investment Income. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 1,239,516
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 1,147,212
Net change in unrealized appreciation or depreciation on
investments . . . . . . . . . . . . . . . . . . 14,463,844
Net realized and unrealized gain . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 15,611,056
Net Increase in Net Assets Resulting From Operations . . . . . . .
. . . . . . . . . . . . . . . . . . . . .$ 16,850,572
</TABLE>
<PAGE> <PAGE>
Financial Statements
<TABLE>
<CAPTION>
AMERICAN GROWTH
FUND, INC.
STATEMENTS OF
CHANGES IN NET ASSETS
Six Months Ended Year Ended
January 31, 1997 July 31, 1996
(unaudited)
<S>
<C> <C>
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . $ 1,239,516 $ 483,715
Net realized gain. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 1,147,212 7,083,415
Net change in unrealized appreciation or depreciation. . . . . .
. . . . . . . . . 14,463,844 (3,074,255)
Net increase in net assets resulting from operations . . . . .
. . . . . . . . . 16,850,572 4,492,875
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (78,116) -
Class B. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (60,893) -
Class C. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (17,406) -
Class D. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (1,288,377) (1,387,812)
Distributions from net realized gain:
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (253,876) -
Class B. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (263,868) -
Class C. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (75,426) -
Class D. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (4,187,225) (2,312,575)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase in net assets resulting from beneficial
interest transactions:
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 2,832,997 4,048,441
Class B. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 3,804,580 3,603,382
Class C. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 1,667,583 383,952
Class D. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . (1,876,017) 8,385,535
NET ASSETS:
Total increase . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 17,054,528 17,213,798
Beginning of period. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 107,752,102 90,538,304
End of period (including (over)/undistributed net investment
income of $(118,459) and $86,817 respectively) . . . . . . . . .
. . . . . . . . . $ 124,806,630 $ 107,752,102
</TABLE>
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class D
Six Months Ended Year
Ended July 31,
January 31, 1997
(Unaudited)
1997
1996 1995 1994 1993 1992
<S> <C>
<C> <C> <C> <C> <C>
Per Share Operating Data:
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . $ 8.85 $
8.75 $ 9.34 $ 9.39 $ 8.50 $ 8.02
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . . . . . . ..11
.03 .21 .03 .11 .10
Net realized and unrealized gain (loss). . . . . . . . 1.24
.39 .88 1.00 1.51 .94
Total income (loss) from investment operations . . . . 1.35
.42 1.09 1.03 1.62 1.04
Dividends and distributions to shareholders:
Dividends from net investment income . . . . . . . . .(.12)
(.12) (.12) (.05) (.08) (.06)
Distributions from net realized gain . . . . . . . . .(.39)
(.20) (1.56) (1.03) (.65) (.50)
Total dividends and distributions
to shareholders. . . . . . . . . . . . . . . . . . . .(.51)
(.32) (1.68) (1.08) (.73) (.56)
Net Asset Value, End of Period . . . . . . . . . . . $ 9.69 $
8.85 $ 8.75 $ 9.34 $ 9.39 $ 8.50
Total Return at Net Asset Value1<F1> . . . . . . . . .15.5%
4.8% 15.2% 11.1% 20.2% 13.6%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) . . . . .$107,850
$100,130 $90,538 $68,209 $62,180 $55,501
Ratios to average net assets:
Net investment income (loss)5<F5>. . . . . . . . . . .2.19%
0.47% 1.91% 0.35% 0.59% 1.14%
Expenses2,5<F2><F5>. . . . . . . . . . . . . . . . . .1.43%
1.63% 1.45% 1.34% 1.44% 1.46%
Portfolio Turnover Rate3,5<F3><F5> . . . . . . . . . 103.2%
163.1% 173.0% 87.2% 48.8% 39.8%
Average Brokerage Commission Rate4<F4> $0.0566
0.0561 - - - -
<FN>
See notes to financial statements.
<F1>
Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of
offering) with all dividends and distributions reinvested in
additional shares on the reinvestment date and redemption
at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in total
returns. Total returns are not annualized for periods of less than
one full year.
<F2>
Beginning in fiscal 1996, the expense ratio reflects the effect of
expenses paid indirectly by the fund. Prior year
expenses have not been adjusted.
<F3>
The lesser of purchases and sales of portfolio securities for a
period, divided by the monthly average of the market
value of securities owned during the period. Purchases and sales of
investment securities, other than U.S. government
and short-term securities for the period ended January 31, 1997,
aggregated $53,331,091 and $35,658,734,
respectively.
<F4>
Total brokerage commissions paid on applicable purchases and sales
of investment securities for the period divided
by the total number of related shares purchased and sold.
<F5>
Annualized
</FN>
</TABLE>
PAGE
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A Class
B Class C Class A Class B Class C
Six Months ended
January 31, 1997 Period ended July 31, 1996
(Unaudited) 19961 19961 19961
<S> <C>
<C> <C> <C> <C> <C>
Per Share Operating Data:
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . $ 8.84 $
8.80 $ 8.81 $ 9.21 $ 9.21 $ 9.21
Income (loss) from investment operations:
Net Investment income(loss). . . . . . . . . . . . . . ..09
.05 .06 -7 (.01) -7
Net realized and unrealized gain (loss). . . . . . . . 1.26
1.25 1.23 (.37) (.40) (.40)
Total income (loss) from investment operations . . . . 1.35
1.30 1.29 (.37) (.41) (.40)
Dividends and distributions to shareholders:
Dividends from net investment income . . . . . . . . .(.12)
(.09) (.09) - - -
Distributions from net realized gain . . . . . . . . .(.39)
(.39) (.39) - - -
Total dividends and distributions
to shareholders. . . . . . . . . . . . . . . . . . . .(.51)
(.48) (.48) - - -
Net Asset Value, End of Period . . . . . . . . . . . .$9.68
$9.62 $9.62 $ 8.84 $ 8.80 $ 8.81
Total Return at Net Asset Value1 . . . . . . . . . . .15.3%
14.8% 14.6% (4.0)% (4.5)% (4.3)%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) . . . . . . $7,185
$7,598 $2,174 $3,838 $3,417 $367
Ratio to average net assets:
Net investment income6 . . . . . . . . . . . . . . . .1.79%
.98% 1.02% 0.13%3 (0.52)%3 (0.63)%3
Expenses2,6. . . . . . . . . . . . . . . . . . . . . .1.61%
2.24% 2.31% 2.06% 2.81% 2.97%
Portfolio Turnover Rate3,6 . . . . . . . . . . . . . 103.2%
103.2% 103.2% 163.1% 163.1% 163.1%
Average Brokerage Commission Rate4 . . . . . . . . .$0.0566
$0.0566 $0.0566 $0.0561 $0.0561 $0.0561
<FN>
See notes to financial statements
<F1>
Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of
offering) with all dividends and distributions reinvested in
additional shares on the reinvestment date and redemption
at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in total
returns. Total returns are not annualized for periods of less than
one full year.
<F2>
Beginning in fiscal 1996, the expense ratio reflects the effects of
expenses paid indirectly by the Fund. Prior year
expenses have not been adjusted.
<F3>
The lesser of purchases and sales of portfolio securities for a
period, divided by the monthly average of the market
value of securities owned during the period. Purchases and sales of
investment securities, other than U.S.
Government and short-term securities for the period ended January
31, 1997, aggregated $53,331,091 and
$35,658,734, respectively.
<F4>
Total brokerage commissions paid on applicable purchases and sales
of investment securities for the period divided
by the total number of related shares purchased and sold.
<F5>
For the period from March 1, 1996 (inception of offering) to July
31, 1996.
<F6>
Annualized
<F7>
Less than $.005 per share.
</FN>
</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 Fund's primary
investment objective is to seek capital appreciation. The Fund
offers Class A, Class B, Class C and Class D shares. Class D
shares are available to shareholders in existence prior to
03/01/96.
Class A and Class D shares are sold with a front-end sales
charge. Class B and Class C shares may be subject to a contingent
deferred sales charge. All classes of shares have identical
rights to earnings, assets and voting privileges, except that each
class
has its own distribution and/or service plan and expenses
directly attributable to a particular class and exclusive voting
rights
with respect to matters affecting a single class. Class B
shares will automatically convert to Class A shares seven years
after
date of purchase. The following is a summary of significant
accounting policies consistently followed by the Fund.
Investment Valuation - Investment securities are valued at the
closing asked 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 having a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market value.
Allocation of Income, Expenses, and Gains and Losses - Income,
expenses (other than those attributable to a specific
class) and gains and losses are allocated daily to each class
of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly
attributable to a specific class are charged against the operations
of that
class.
Federal Income Taxes - No provision for federal income or
excise taxes has been made because it is the Fund's policy to
comply with provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its
taxable income to shareholders.
Classification of Distributions to Shareholders - The character
of distributions made during the year from net investment
income or net realized gains may differ from its ultimate
characterization for federal income tax purposes.
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.
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.
Use of estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases
in net assets from operations during the reporting period.
Actual results could differ from those estimates.
PAGE
<PAGE>
Notes to Financial Statements
2. Shares of Beneficial Interest - The Fund has authorized an
unlimited number of no par value shares of beneficial interest
of each class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1997 Year Ended July 31, 19961
(Unaudited)
Shares
Amount Shares Amount
<S> <C>
<C> <C> <C>
Class A:
Sold 397,220
$3,698,075 437,138 $ 4,077,847
Dividends and distributions reinvested 33,500
312,849 - -
Redeemed (122,210)
(1,177,927) (3,165) (29,406)
Net increase 308,510
2,832,997 433,973 4,048,441
Class B:
Sold 379,058
3,592,915 388,712 3,609,425
Dividends and distributions reinvested 29,386
272,992 - -
Redeemed (6,585)
(61,327) (656) (6,042)
Net increase 401,859
3,804,580 388,056 3,603,383
Class C:
Sold 182,815
1,656,057 41,705 383,954
Dividends and distributions reinvested 8,632
80,191 - -
Redeemed (7,267)
(68,665) - (3)
Net Increase 184,180
1,667,583 41,705 383,951
Class D:
Sold 257,824
2,419,054 2,553,651 23,031,338
Dividends and distributions reinvested 541,388
5,060,654 375,550 3,300,334
Redeemed (986,460)
(9,355,725) (1,956,583) (17,946,137)
Net increase (187,248)
$(1,876,017) 972,618 $ 8,385,535
1. For the period from March 1, 1996 (inception of offering) to
July 31, 1996 for Class A, Class B and Class C shares.
</TABLE>
3. Unrealized Gains and Losses on Investments
At January 31, 1997, net unrealized appreciation on investments
of $23,900,119 was comprised of gross appreciation of
$24,085,079 and gross depreciation of $184,960.
4. Fund Expenses Paid Indirectly
Fund expenses totaling $60,273 relating to certain operating
expenses were paid by broker dealers under terms of
brokerage/service arrangements. Fees for transfer agent and
data processing services and custodian services totaling $24,583
and $24,077, respectively, were offset by earnings on cash
balances maintained by the Fund at the custodian financial
institution.
The Fund could have invested the assets maintained at the
institution in income-producing assets if it had not agreed to a
reduction in fees.
5. Underwriting, Investment Advisory Contracts and Service Fees
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 first $30 million of average annual net assets of the Fund
<PAGE>
Notes to Financial Statements
and 0.75% of such assets above $30 million. The Fund pays its
own operating expenses. The advisor has agreed to reimburse
the Fund if total expenses exceed the most restrictive
limitation prescribed by any state in which the shares of the Fund
are sold.
Class B and Class C shares are subject to service and
distribution fees of 0.25% and 0.75% of average daily net assets,
respectively. Class A shares are subject to service and
distribution fees of 0.25% and 0.05% of average daily net assets,
respectively.
For the six months ended January 31, 1997 commissions and sales
charges paid by investors on the purchase of Fund shares
totalled $272,652 of which $74,927 was retained by American
Growth Fund Sponsors, Inc. ("Sponsors"), an affiliated
broker/dealer which serves as the underwriter and distributor
of the Fund. Sales charges advanced to broker/dealers by Sponsors
on sales of the Fund's Class B and C shares totaled $98,320.
Certain officers of the Fund are also officers of Sponsors and
IRC. For the six months ended January 31, 1997 the Fund paid
directors' fees and expenses of $4,800.
For the six months ended January 31, 1997, under an agreement
with IRC, the Fund was charged $162,542 for the costs and
expenses related to employees of IRC who provided
administrative, clerical and accounting services to the Fund. In
addition,
the Fund was charged $30,584 by an affiliated company of IRC
for the cost of office space under terms of a month-to-month
lease agreement.
6. Federal Income Tax Matters
On December 30, 1996, distributions of $0.12 and $0.39
aggregating $78,116 and $253,876, $0.09 and $0.39 aggregating
$60,893 and $263,868, $0.09 and $0.39 aggregating $17,406 and
$75,426, $0.12 and $0.39 aggregating $1,288,377 and
$4,187,225 were declared from net investment income and
realized gains, respectively on the Fund's Class A, B, C and D
shares, respectively. The dividends were paid December 31,
1996. For the Fund's six months ended January 31, 1997, all
ordinary income dividends have been determined to qualify for
the dividend received deduction for corporate shareholders.
For federal income tax purposes, the Fund realized net capital
gains of $1,147,212 during the six months ended January 31,
1997.
PAGE
<PAGE>
TRANSFER AGENT
Boston Financial
Data Services Inc.
Two Heritage Drive
North Quincy, MA 02171
CUSTODIAN
State Street Bank and
Trust Company
Two Heritage Drive
North Quincy, MA 02171
RETIREMENT PLAN CUSTODIAN
State Street Bank and
Trust Company
Two Heritage Drive
North Quincy, MA 02171
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
707 Seventeenth Street, Suite 2300
Denver, CO 80202
UNDERWRITER/DISTRIBUTOR
American Growth Fund Sponsors, Inc.
110 Sixteenth Street, Suite 1400
Denver, CO 80202
(303) 623-6137
(303) 623-7037 FAX
(800) 525-2406
<PAGE>
AMERICAN GROWTH FUND, INC.
BOARD OF ADVISORS
William D. Farr
President and Director of Farr Farms Co.
Chairman of the Board of Northern
Colorado Water Conservacy
Past President of the National
Cattlemen's Association
Board Member of Greeley Water Board
Frank J. Johns
Retired President of Denver Dry Goods
Company
Retired Director of Mountain Bell
Past President and Lifetime Member, Denver
Chamber of Commerce
OFFICERS AND DIRECTORS
Robert Brody,. . . .President and Director
Timothy E. Taggart . . . . .Executive Vice
President
D. Leann Baird . . . . . . . . . Secretary
Michael J. Baum, Jr. . . . . . . .Director
Eddie R. Bush. . . . . . . . . . .Director
Don S. Strauss . . . . . . . . . .Director
Harold Rosen . . . . . . . . . . .Director
INVESTMENT ADVISOR
Investment Research Corporation
110 Sixteenth Street, Suite 1400
Denver, CO 80202
Robert Brody . . . . .President, Treasurer
. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .and Director
Timothy E. Taggart . . . . .Vice President
. . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .and Director
D. Leann Baird . . . . . . . . . Secretary
and Director
<PAGE>
<PAGE>
<PAGE>
This is what American Growth Fund* has done for its investors over
the last 38 1/2 years.
$528,552** Total value on 12/31/96 with both dividends and capital
gains reinvested.
[MOUNTAIN CHART]
Average Annual thru 12/31/96 thru 12/31/96
Total Return** without sales
charge
1 Year 4.20% 10.50%
5 Years 11.92% 13.26%
10 Years 11.01% 11.66%
15 Years 11.46% 11.91%
38 Years 10.75% 10.93%
$10,000 investment
on 08/01/58
*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
dividends 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 prospectus. Please read the prospectus carefully
before investing. Distributor American Growth Fund Sponsors, Inc.
<PAGE>
