<PAGE> PAGE 1
000 A000000 03/31/99
000 C000000 0000701804
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 THE MERGER FUND
001 B000000 811-3445
001 C000000 4142873527
002 A000000 615 E. MICHIGAN ST.
002 B000000 MILWAUKEE
002 C000000 WI
002 D010000 53202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 WESTCHESTER CAPITAL MANAGEMENT, INC.
008 B000001 A
008 C000001 801-15556
008 D010001 VALHALLA
008 D020001 NY
008 D030001 10595
010 A000001 FIRSTAR MUTUAL FUND SERVICES, LLC
010 B000001 85-11357
010 C010001 MILWAUKEE
010 C020001 WI
010 C030001 53202
011 A000001 MERCER ALLIED COMPANY LP
011 B000001 8-20745
011 C010001 ALBANY
011 C020001 NY
011 C030001 12205
012 A000001 FIRSTAR MUTUAL FUND SERVICES, LLC
012 B000001 85-11357
012 C010001 MILWAUKEE
<PAGE> PAGE 2
012 C020001 WI
012 C030001 53202
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 MILWAUKEE
013 B020001 WI
013 B030001 53202
015 A000001 FIRSTAR BANK MILWAUKEE, N.A.
015 B000001 C
015 C010001 MILWAUKEE
015 C020001 WI
015 C030001 53202
015 E010001 X
018 000000 Y
019 A000000 N
019 B000000 0
020 A000001 OPPENHEIMER & COMPANY
020 C000001 325
020 A000002 JEFFRIES & COMPANY
020 B000002 95-2622906
020 C000002 300
020 A000003 CATHAY FINANCIAL CORP
020 C000003 230
020 A000004 INTERSTATE/JOHNSON LANE CORP
020 C000004 119
020 A000005 JONES & ASSOCIATES
020 C000005 94
020 A000006 INSTINET
020 C000006 63
020 A000007 BEAR STEARNS
020 C000007 42
020 A000008 LEHMAN BROTHERS INC.
020 C000008 29
020 A000009 TORONTO DOMINION SECURITIES
020 C000009 28
020 A000010 FIDELITY CAPITAL MARKETS
020 C000010 23
021 000000 1542
022 A000001 FIRSTAR BANK MONEY CENTER
022 C000001 82680
022 D000001 0
022 A000002 JONES & ASSOCIATES
022 C000002 31903
022 D000002 18163
022 A000003 JEFFRIES & CO
022 B000003 95-2622906
022 C000003 27294
022 D000003 6185
022 A000004 OPPENHEIMER & COMPANY
022 C000004 15412
022 D000004 12051
022 A000005 BEAR STEARNS
<PAGE> PAGE 3
022 C000005 7759
022 D000005 18862
022 A000006 MONTGOMERY SECURITIES
022 C000006 1512
022 D000006 19708
022 A000007 MERRILL LYNCH
022 C000007 8760
022 D000007 3519
022 A000008 SHERWOOD SECURITIES
022 C000008 8362
022 D000008 0
022 A000009 CHASE SECURITIES
022 C000009 8090
022 D000009 0
022 A000010 LEWCO/WERTHEIM SCHRODER
022 C000010 6730
022 D000010 0
023 C000000 229535
023 D000000 101651
024 000000 Y
025 A000001 INTERSTATE/JOHNSON LANE INC.
025 C000001 E
025 D000001 5389
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 Y
026 G020000 N
026 H000000 Y
027 000000 Y
028 A010000 3618
028 A020000 0
028 A030000 0
028 A040000 69615
028 B010000 6587
028 B020000 0
028 B030000 0
028 B040000 11718
028 C010000 13312
028 C020000 28406
028 C030000 0
<PAGE> PAGE 4
028 C040000 43087
028 D010000 38041
028 D020000 0
028 D030000 0
028 D040000 11568
028 E010000 11813
028 E020000 0
028 E030000 0
028 E040000 9522
028 F010000 61993
028 F020000 0
028 F030000 0
028 F040000 23790
028 G010000 135364
028 G020000 28406
028 G030000 0
028 G040000 169300
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 5
042 C000000 0
042 D000000 95
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 311
044 000000 85
045 000000 Y
046 000000 N
047 000000 Y
048 000000 1.000
048 A010000 0
048 A020000 0.000
048 B010000 0
<PAGE> PAGE 5
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 Y
055 B000000 Y
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 2000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
<PAGE> PAGE 6
062 D000000 0.0
062 E000000 0.0
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 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 Y
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 Y
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 Y
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
<PAGE> PAGE 7
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 Y
071 A000000 731445
071 B000000 869489
071 C000000 426408
071 D000000 172
072 A000000 6
072 B000000 3815
072 C000000 2558
072 D000000 0
072 E000000 0
072 F000000 1870
072 G000000 86
072 H000000 0
072 I000000 50
072 J000000 52
072 K000000 0
072 L000000 47
072 M000000 13
072 N000000 19
072 O000000 0
072 P000000 1737
072 Q000000 27
072 R000000 18
072 S000000 48
072 T000000 285
072 U000000 0
072 V000000 0
072 W000000 575
072 X000000 4827
072 Y000000 0
072 Z000000 1546
072AA000000 81922
072BB000000 78478
072CC010000 31237
072CC020000 0
072DD010000 5109
072DD020000 0
072EE000000 25529
073 A010000 0.2201
<PAGE> PAGE 8
073 A020000 0.0000
073 B000000 1.0997
073 C000000 0.0000
074 A000000 10034
074 B000000 0
074 C000000 0
074 D000000 8240
074 E000000 0
074 F000000 405903
074 G000000 8286
074 H000000 0
074 I000000 0
074 J000000 23040
074 K000000 0
074 L000000 171363
074 M000000 28529
074 N000000 655395
074 O000000 22042
074 P000000 337
074 Q000000 18350
074 R010000 0
074 R020000 183552
074 R030000 2547
074 R040000 2116
074 S000000 0
074 T000000 426451
074 U010000 30334
074 U020000 0
074 V010000 14.06
074 V020000 0.00
074 W000000 0.0000
074 X000000 3274
074 Y000000 276907
075 A000000 0
075 B000000 375016
076 000000 0.00
077 A000000 Y
077 B000000 N
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
077 N000000 N
077 O000000 N
<PAGE> PAGE 9
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 C000000 0
081 B000000 0
082 B000000 0
083 B000000 0
084 B000000 0
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE FREDERICK GREEN
TITLE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000701804
<NAME> THE MERGER FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 418,183,142
<INVESTMENTS-AT-VALUE> 422,428,468
<RECEIVABLES> 194,403,149
<ASSETS-OTHER> 38,563,589
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 655,395,206
<PAYABLE-FOR-SECURITIES> 22,042,335
<SENIOR-LONG-TERM-DEBT> 18,350,000
<OTHER-ITEMS-LIABILITIES> 188,551,779
<TOTAL-LIABILITIES> 228,944,114
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 426,569,589
<SHARES-COMMON-STOCK> 30,333,548
<SHARES-COMMON-PRIOR> 30,667,591
<ACCUMULATED-NII-CURRENT> 397,114
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 498,375
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,013,986)
<NET-ASSETS> 426,451,092
<DIVIDEND-INCOME> 2,557,819
<INTEREST-INCOME> 3,814,923
<OTHER-INCOME> 0
<EXPENSES-NET> (4,826,392)
<NET-INVESTMENT-INCOME> 1,546,350
<REALIZED-GAINS-CURRENT> 3,444,006
<APPREC-INCREASE-CURRENT> 31,237,115
<NET-CHANGE-FROM-OPS> 36,227,471
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,109,498)
<DISTRIBUTIONS-OF-GAINS> (25,528,920)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,746,153
<NUMBER-OF-SHARES-REDEEMED> (12,184,305)
<SHARES-REINVESTED> 2,104,109
<NET-CHANGE-IN-ASSETS> 58,728
<ACCUMULATED-NII-PRIOR> 5,458,760
<ACCUMULATED-GAINS-PRIOR> 21,084,792
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,869,516
<INTEREST-EXPENSE> 1,736,903
<GROSS-EXPENSE> 4,826,392
<AVERAGE-NET-ASSETS> 375,016,035
<PER-SHARE-NAV-BEGIN> 13.90
<PER-SHARE-NII> 0.06
<PER-SHARE-GAIN-APPREC> 1.42
<PER-SHARE-DIVIDEND> (0.22)
<PER-SHARE-DISTRIBUTIONS> (1.10)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.06
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 68,858,670
<AVG-DEBT-PER-SHARE> 2.57
</TABLE>
