<PAGE> PAGE 1
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002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
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002 D020000 5034
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008 D020001 MA
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010 A000001 KEYSTONE INVESTMENTS, INC.
010 C010001 BOSTON
010 C020001 MA
010 C030001 02116
010 C040001 5034
011 A000001 KEYSTONE INVESTMENT DISTRIBUTORS CO
011 B000001 8-395
011 C010001 BOSTON
011 C020001 MA
011 C030001 02110
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012 B000001 84-1571
<PAGE> PAGE 2
012 C010001 CAMBRIDGE
012 C020001 MA
012 C030001 02142
020 A000001 NEWBRIDGE SECURITIES
020 B000001 13-3214963
020 C000001 405
020 A000002 DONALDSON, LUFKIN & JENRETTE
020 B000002 13-2741729
020 C000002 228
020 A000003 MERRILL LYNCH
020 B000003 13-5674085
020 C000003 220
020 A000004 BEAR STEARNS SECURITIES
020 B000004 13-3299429
020 C000004 184
020 A000005 JERFERIES & CO., INC.
020 B000005 95-2622900
020 C000005 175
020 A000006 MORGAN STANELY & CO.
020 B000006 13-2655998
020 C000006 174
020 A000007 SMITH BARNEY SHEARSON
020 B000007 13-1912900
020 C000007 159
020 A000008 INSTINET
020 B000008 13-3443395
020 C000008 106
020 A000009 THE CHICAGO CORP.
020 B000009 36-2549961
020 C000009 77
020 A000010 PAINE WEBBER, INC.
020 B000010 13-2638166
020 C000010 74
021 000000 1802
022 A000001 GOLDMAN SACHS
022 B000001 13-5108880
022 C000001 6042416
022 D000001 31523
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022 C000002 691292
022 D000002 0
022 A000003 MORGAN STANLEY & CO.
022 B000003 13-2655998
022 C000003 49371
022 D000003 142631
022 A000004 SHEARSON LEHMAN BROS INC.
022 C000004 163569
022 D000004 0
022 A000005 MERRILL LYNCH
022 B000005 13-5674085
<PAGE> PAGE 3
022 C000005 75246
022 D000005 87533
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022 C000006 121785
022 D000006 29027
022 A000007 BROWN(ALEX) & SONS,INC.
022 B000007 52-1319768
022 C000007 103897
022 D000007 37704
022 A000008 LEHMAN BROTHERS, INC.
022 C000008 97632
022 D000008 18421
022 A000009 ADAMS HARKNESS & HILL, INC.
022 B000009 04-2149932
022 C000009 59935
022 D000009 53623
022 A000010 DONALDSON, LUFKIN & JENRETTE
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 7
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080 B000000 SEDGWICK JAMES
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SIGNATURE J. KEVIN KENELY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE SMALL COMPANY GROWTH FUND (S-4) CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-START> JUN-01-1995
<PERIOD-END> MAY-31-1996
<INVESTMENTS-AT-COST> 1,401,487,135
<INVESTMENTS-AT-VALUE> 1,991,511,825
<RECEIVABLES> 34,075,067
<ASSETS-OTHER> 253,267
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,025,840,159
<PAYABLE-FOR-SECURITIES> 20,037,582
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 20,037,582
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,220,629,744
<SHARES-COMMON-STOCK> 193,826,852
<SHARES-COMMON-PRIOR> 169,274,066
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (7,483)
<ACCUMULATED-NET-GAINS> 195,155,626
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 590,024,690
<NET-ASSETS> 2,005,802,577
<DIVIDEND-INCOME> 3,276,217
<INTEREST-INCOME> 3,732,102
<OTHER-INCOME> 0
<EXPENSES-NET> (31,486,761)
<NET-INVESTMENT-INCOME> (24,478,442)
<REALIZED-GAINS-CURRENT> 389,754,504
<APPREC-INCREASE-CURRENT> 127,581,090
<NET-CHANGE-FROM-OPS> 492,857,152
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (173,760,139)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 141,592,081
<NUMBER-OF-SHARES-REDEEMED> (131,599,635)
<SHARES-REINVESTED> 14,560,340
<NET-CHANGE-IN-ASSETS> 545,847,719
<ACCUMULATED-NII-PRIOR> 7,480,848
<ACCUMULATED-GAINS-PRIOR> 59,421,377
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (8,473,139)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (31,708,506)
<AVERAGE-NET-ASSETS> 1,833,222,927
<PER-SHARE-NAV-BEGIN> 8.62
<PER-SHARE-NII> (0.13)
<PER-SHARE-GAIN-APPREC> 2.87
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.01)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.35
<EXPENSE-RATIO> 1.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Small Company Growth Fund (S-4)
In planning and performing our audit of the financial statements of Keystone
Small Company Growth Fund (s-4) for the year ended May 31, 1996, we considered
their internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing an opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of Keystone Small Company Growth Fund (S-4) is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments made by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objective of an internal control structure
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and
that transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure 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 internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities 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 internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
May 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
Boston, Massachusetts
June 28, 1996
<PAGE>
