GREENSPRING FUND INC
485BPOS, 1996-04-30
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     As filed with the Securities and Exchange Commission on April 30, 1996

                                                                                
                                                       File No. 2-81956
                                                                811-3627

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  Form N - 1A

            REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933  
              
                        Post Effective Amendment No. 18                     X 
                                     AND/OR
                  REGISTRATION STATEMENT UNDER THE INVESTMENT              
    
                              COMPANY ACT OF 1940                           
                                Amendment No. 18                            X 
     
                         Greenspring Fund, Incorporated
               (Exact Name of Registrant as Specified in Charter)

                    2330 West Joppa Road, Suite 110
                    Lutherville, Maryland                   21093-4641
                    (Address of Principal Executive Offices)     (Zip Code)

Registrant's Telephone Number, including Area Code (410)823-5353

                       Mr. Charles vK. Carlson, President
                        2330 West Joppa Road, Suite 110
                        Lutherville, Maryland 21093-4641
                    (Name and address of Agent for Service)

Copies To:                 Ralph V. De Martino, Esq.
                     De Martino Finkelstein Rosen & Virga 
                         1818 N Street, N.W., Suite 400
                             Washington, D.C. 20036
                           Telephone:  (202)659-0494
                           Telecopier:  (202)659-1290

Approximate Date of Proposed Public Offering: As soon as practicable after the 
effective date.

It is proposed that this filing will become effective (check appropriate line)
      immediately upon filing pursuant to paragraph (b)
  
   X  on April 30, 1996 pursuant to paragraph (b)

      60 days after filing pursuant to paragraph (a)

      on (date) pursuant to paragraph (a), of Rule 485.

The Registrant has registered an indefinite number of shares of Common Stock 
under the Securities Act of 1933 pursuant to Rule 24f-2 under the Investment 
Company Act of 1940. The Registrant filed with the Commission a Rule 24f-2 
Notice for the Registrant's most recent fiscal year on February 26, 1996. 

                      Greenspring Fund, Incorporated

                           Cross Reference Sheet
                           Pursuant to Rule 495


N-1A Item Number                        Location and Page of Prospectus

Part A

Item 1.     Cover Page . . . . .  Cover Page, Page 1 

Item 2.     Synopsis . . . . . .  Fund Expenses, Page 2 

Item 3.     Financial Highlights Table.. Financial Highlights Table, Page 3

Item 4.     General Description of      
                  Financial  Statements. Cover Page, Page 1; Investment 
                                         Objectives, Page 5; Investment Program,
                                         Page 6 

Item 5.     Management of the Fund....   Management of the Fund, Page 9

Item 6.     Capital Stock  and Other    
                  Securities . . . .     Capital Stock, Page 12 

Item 7.     Purchase of Shares . . .     Purchase of Shares, Page 16 

Item 8.     Redemption of Shares . .     Redemption of Shares, Page 21

Item 9.     Pending Legal Proceedings    Not Applicable<PAGE>

<PAGE>
<PAGE>

Part B

Item 10.  Cover Page . . . . . . . .     Cover Page, Page 1 

Item 11.  Table of Contents. . . . .     Table of Contents, Page 2 

Item 12.  General Information
               and History . . . . .     Not Applicable   

Item 13.  Investment Objectives
               and Policies. . . . .     Investment Objectives, Page 3; 
                                         Investment Policies, Page 3; 
                                         Investment Program, Page 5   

Item 14.  Management of the Fund . .     Management of the Fund, Page 8 

Item 15.  Control Persons and
               Principal Holders of 
               Securities. . . . . .     Control Persons and Principal Holders
                                         of Securities, Page 10  

Item 16.  Investment Advisory 
                and Other Services . .   Investment Advisor and Advisory
                                         Agreement, Page 10 

Item 17.  Brokerage Allocation 
               and Other Services. . .   Portfolio Transactions and Brokerage,
                                         Page 11 

Item 18.  Capital Stock and
               Other Securities. . . .   Not Applicable 

Item 19.  Purchase, Redemption and
               Pricing of Securities
               Being Offered . . . . .   Purchase, Redemption and Pricing of the
                                         Fund's Shares, Page 11  


Item 20.  Taxes. . . . . . . . . . . .  Taxes, Page 12

Item 21.  Underwriters . . . . . . . .  Not Applicable 

Item 22.  Calculations of Yield         
              Quotations of Money 
              Market Funds . . . . . .  Not Applicable 

Item 23.  Financial Statements . . . . Statement of Assets and Liabilities,
                                       Statement of Operations, Statement of
                                       Changes in Net Assets, Notes to Financial
                                       Statements, Financial Highlights Table,
                                       Portfolio of Investments: Was filed in 
                                       the Annual Report for the Fiscal Year
                                       ended December 31, 1995, and is hereby
                                       incorporated by reference.

<PAGE>
Information required to be included in Part C is set forth under the 
appropriate Item so numbered in Part C of this Registration Statement.

                                    GREENSPRING FUND, 
                                      INCORPORATED
                                     APRIL 30, 1996
               
               The Greenspring Fund (the "Fund") is a no-load mutual fund
               that seeks long-term growth of capital from a mixture of
               equity and debt securities.  Current income is an important,
               but secondary, factor in the selection of the Fund's
               investments.  The Fund strives for superior risk-averse
               performance through steady and consistent investment gains. 
               For further details, see "Investment Objective" on page 5.
               
               Shares of the Fund are purchased and redeemed at the
               current net asset value per share.  There are no sales
               commissions or other charges on any transactions.  The
               Fund does not pay "12b-1 fees" (marketing fees) to promote
               or distribute its shares.
               
               This Prospectus, which should be retained for future
               reference, is designed to set forth concisely the information
               that an investor should know about the Fund before
               investing.  A Statement of Additional Information, dated
               April 30, 1996, has been filed with the Securities and
               Exchange Commission and is incorporated by reference into
               this Prospectus.  A copy of the Statement of Additional
               Information may be obtained, without charge, by writing or
               calling the Fund.
                 
               THESE SECURITIES HAVE NOT BEEN APPROVED OR
               DISAPPROVED BY THE SECURITIES AND EXCHANGE
               COMMISSION OR ANY STATE SECURITIES
               COMMISSION, NOR HAS THE SECURITIES AND
               EXCHANGE COMMISSION OR ANY STATE
               SECURITIES COMMISSION PASSED UPON THE
               ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
               ANY REPRESENTATION TO THE CONTRARY IS A
               CRIMINAL OFFENSE.   
               
               FUND EXPENSES
               
               The following table illustrates all expenses and fees incurred
               during the most recent fiscal year.
               
               Shareholder Transaction Expenses                     None
               
               Annual Fund Operating Expenses
                (as a percentage of average net assets)
               Management Fees                                      0.75%
               Other Expenses (See Annual Report)                   0.31%
               Total Fund Operating Expenses                        1.06%
                                                       
               The following example illustrates the expenses you would
               incur on a $1,000 investment over various time periods
               assuming a 5% annual return and redemption at the end of
               each time period.  The purpose of this information is to
               assist the investor in understanding the various costs and
               expenses that an investor in the Fund will bear directly or
               indirectly.                               
                             
               1 Year-$11    3 Years-$34    5 Years-$58    10 Years-$129
               
               This example, which is hypothetical, should not be
               considered a representation of past or future expenses or
               performance.  Actual fees  and expenses may be greater or
               less than those indicated.  Moreover, while the example
               assumes a 5% annual return, the Fund's actual
               performance will vary and may result in an actual return
               greater or less than 5%.
                
               TOTAL RETURN PERFORMANCE
               
               Throughout the year, the Fund may include in its
               communications to current and prospective shareholders
               figures reflecting total return over various time periods. 
               Total return is the rate of return on an amount invested in
               the Fund from the beginning until the end of the stated
               period.  Average annual return is the annual compounded
               percentage change in the value of an amount invested in the
               Fund from the beginning until the end of the stated period. 
               Both rates of return assume the reinvestment of all dividends
               and distributions.  The Fund's total return is a historical
               measure of past performance and is not intended to indicate
               future performance.  Because investment return and
               principal value will fluctuate, the Fund's shares may become
               worth more or less than their original cost.  Further
               information on the Fund's performance is discussed in the
               Fund's Annual Report to Shareholders, which can be
               obtained without charge from the Fund.
               
               FINANCIAL HIGHLIGHTS TABLE
               
               The following table provides information regarding per share
               income and capital changes for the period December 31,
               1986 through December 31, 1995.  It is based on a single
               share outstanding throughout each fiscal year. This
               information should be read in conjunction with the Fund's
               financial statements appearing in the Fund's Annual Report
               to Shareholders, which are incorporated by reference into
               the Statement of Additional Information and this Prospectus.
               The Fund's financial statements and financial highlights table
               for the years ended December 31, 1992, 1993, 1994 and 1995
               have been audited by Coopers & Lybrand L.L.P.  Prior
               periods were audited by Arthur F. Bell, Jr. & Associates,
               L.L.C.  The unqualified opinion of the independent
               accountants covering the most recent five years is contained
               in the Fund's December 31, 1995 Annual Report to
               Shareholders.
               
               
               
               
               
               
               
               
               GENERAL INFORMATION
               
               ORGANIZATION
               
               The Fund is a no-load, open-end, diversified management
               investment company registered with the Securities and
               Exchange Commission under the Investment Company Act
               of 1940.  It was incorporated in Maryland on October 21,
               1982 and first offered its shares to the public on July 1, 1983.
                    
               INVESTMENT OBJECTIVE
               
               The Fund's principal objective is to provide long-term
               growth of capital for its shareholders through a total return
               approach to investing.  In pursuing its investment objective,
               the Fund invests primarily in common stocks, but may also
               invest in preferred stocks, debt securities, securities not
               publicly traded and money market instruments in order to
               enhance the total return of the Fund's portfolio and for
               temporary defensive purposes in order to preserve its
               principal during uncertain market conditions.  The Fund's
               active portfolio management may result in a higher level of
               taxable capital gains than other mutual funds.
               
               The Fund's investment policies are subject to restrictions as
               described in the Statement of Additional Information.  The
               Fund's investment objective and investment policies, unless
               otherwise specified, are not fundamental policies and may be
               changed without shareholder approval.  Shareholders will be
               notified prior to a material change.  Fundamental policies,
               which are listed in the Statement of Additional Information
               under "Investment Policies", may be changed only with
               approval of at least a majority of the outstanding shares of
               the Fund.  Operating policies of the Fund, which are also
               listed in the Statement of Additional Information under
               "Investment Policies", are subject to change by the Board of
               Directors without shareholder approval.  However, the Fund
               will not change any operating policy without notice to its
               shareholders.
               
               An investor should keep in mind that every investment
               carries risk.  Although the Fund seeks to reduce risk by
               diversification, a diversified portfolio does not eliminate all
               risk and the Fund can not assure its shareholders that it will
               achieve its investment objective.  The Fund's share price will
               fluctuate with changes in the market value of its securities. 
               Therefore, an investment in the Fund may be worth more or
               less when redeemed than when purchased.
               
               The Fund is not meant to be a vehicle for playing short-term
               swings in the stock market.
               
               INVESTMENT PROGRAM
               
               The Fund pursues its investment objective by investing in a
               diversified portfolio of securities that the Fund's Advisor,
               Key Equity Management Corporation ("Key Equity" or the
               "Advisor"), believes are undervalued after analyzing the
               company's profitability, the strength of its balance sheet, its
               ability to generate free cash flow, the value of unrecognized
               assets, management's ability to capitalize upon the company's
               assets and anticipated economic trends.  The Advisor
               researches and analyzes each security separately and seeks
               to purchase those securities that are undervalued relative to
               the general market and the company's industry peers.  The
               Fund has no specific criteria such as market capitalization,
               level of assets, sales or earnings, or industry type that would
               make a security unsuitable for purchase.  Consequently, the
               proportion of the Fund's assets invested in particular
               companies and industries will vary over time depending upon
               the Advisor's evaluation of the outlook for specific industries
               and companies.
               
               The Advisor looks for companies that may be somewhat out-
               of-favor, where the adverse conditions that caused the
               security to be out-of-favor are believed to be already 
               discounted by the investment community and reflected in the
               price of the company's securities.  Consequently, the risks
               associated with these type of investments may be somewhat
               limited.  Additionally, the Advisor selects those out-of-favor
               companies that possess a catalyst that may result in
               increased investor sponsorship.  Such catalysts include
               management changes, industry developments, new products
               and changing corporate structures.  The Fund may also
               invest a portion of its assets in the securities of companies in
               the process of financial reorganization or liquidation.  Such
               an investment is done only after careful analysis of the firm's
               assets, earnings power, and timing of the reorganization or
               liquidation proceedings.
               
               The Fund also reserves the right to invest in repurchase
               agreements, foreign securities and write or purchase call
               options, covered and uncovered, as well as write or purchase
               put options; however, the Fund has not utilized these
               investment practices recently.  For a more detailed
               description of these investment practices, please refer to the
               Statement of Additional Information.  
               
               If the Fund's Advisor cannot find securities that meet its
               investment criteria, short-term money market-type reserves
               may be utilized, which should reduce downside volatility
               during periods of market weakness.
               
               NON-INVESTMENT GRADE DEBT SECURITIES
               
               The Fund may invest in debt securities that are unrated or
               rated in the medium to lowest rating categories by Standard
               & Poor's Corporation ("S & P") or Moody's Investors
               Service, Inc. ("Moody's). (See Appendix A). The ratings of
               S & P and Moody's signify their opinions as to the credit
               quality of the securities which they undertake to rate. 
               Ratings are relative and arbitrary and, although they may be
               helpful in judging the assurance of interest and principal
               payments, it should be noted that they do not evaluate the
               market value risk of these securities, which are inclined to be
               less sensitive to interest rate fluctuations than higher-rated
               securities, but more sensitive to changing economic
               conditions or individual corporate developments.  Also, since
               the credit rating agencies may fail to timely change the credit
               ratings to reflect subsequent events, the Advisor continuously
               monitors the issuers of high yield bonds in its portfolio to
               determine if the issuers will have sufficient cash flow and
               profits to meet required principal and interest payments and
               to assure the bonds' liquidity so the Fund can meet
               redemption requests.  If the rating of an instrument held by
               the Fund changes, the Fund will reassess its investment and
               may retain the portfolio security.    
               
               Fluctuations in the prevailing levels of interest rates may
               have an inverse effect on the Fund's bond holdings, but not
               the income received by the Fund from its debt securities. 
               Because yields on debt securities available for purchase by
               the Fund vary over time, no specific yield on debt securities
               purchased by the Fund can be assured.  In addition, if debt
               securities contain call, pre-payment or redemption
               provisions, during a period of declining interest rates, these
               securities are likely to be redeemed, and the Fund may be
               unable to replace them with securities having as high of a
               yield.   
               
               During the Fund's most recent fiscal year, the percentage of
               the Fund's total investments represented by: (1) bonds rated
               by a nationally recognized statistical rating organization,
               separated into each applicable rating category by monthly
               dollar-weighted average is AAA (S & P)/ Aaa (Moody's) -
               1.56%; A (S & P)/A (Moody's) - 1.02%; BBB (S&P) -
               1.51%, Baa (Moody's) - 1.39%; Ba (Moody's) - 2.07%; BB,
               B (S & P) - 13.99%, B (Moody's) - 12.01%; Caa (Moody's) -
               2.91%, D (S & P) - 1.21% and (2) bonds not rated, which is
               not indicative of an unfavorable rating, is S & P - 14.08%
               and Moody's - 12.41%.  The foregoing dollar weighted
               average ratings of the Fund's portfolio should not be
               considered indicative of the future composition of the bonds
               held in the Fund's portfolio.  See "Non-Investment Grade
               Debt Securities" in the Statement of Additional Information.
               
               
               MANAGEMENT OF THE FUND
               
               The business and affairs of the Fund are managed under the
               supervision of its Board of Directors.  The Statement of
               Additional Information, under "Management of the Fund,"
               contains general background about each Director.  The
               executive officers of the Fund, whose services are provided
               by the Fund's Advisor serve without compensation from the
               Fund.
               
               The Fund has entered into an investment advisory agreement
               with Key Equity, located at 2330 West Joppa Road, Suite
               108, Lutherville, Maryland 21093. Key Equity was organized
               in October 1982, with its sole business to act as investment
               advisor to the Fund.  Key Equity is a wholly-owned
               subsidiary of Corbyn Investment Management, Inc.
               ("Corbyn"), an investment advisor providing investment
               management services for pension funds, endowments and
               individuals since 1973. Key Equity manages the investment
               of the Fund's assets and continuously reviews, supervises and
               administers the Fund's investment program subject to
               direction by the Fund's Board of Directors.   
               
               In return for its services, the Fund pays Key Equity a
               monthly fee, accrued daily, at an annual rate of .75% of the
               Fund's month-end net assets.  This fee may be in excess of
               that paid by other mutual funds.  For the year ended
               December 31, 1995, the total advisory fee paid by the Fund
               to Key Equity represented an annual effective rate of .75%
               of the Fund's total average daily net assets.  Total expenses
               incurred in the same time period by the Fund (including the
               advisory fee) represented an annual effective rate of 1.06%
               of the Fund's total average daily net assets.
               
               Charles vK. Carlson is President, Chairman of the Board of
               Directors and portfolio manager of the Fund.  He has been
               President of the Fund since March 1993, Chairman of the
               Board of Directors since January 1994 and portfolio manager
               of the Fund since January 1987.  Prior to becoming
               President of the Fund, Mr. Carlson was Senior Vice
               President of the Fund from March 1991 to March 1993.  He
               has been a Director of the Fund since January 1987.  Mr.
               Carlson is also the President of Corbyn Investment
               Management and has been since December 1991. 
               Additionally, Mr. Carlson is President and Director of Key
               Equity Management Corporation.  He has been President of
               Key Equity since February 1992 and Director since May
               1989.  A Chartered Financial Analyst, he received his B.S.
               degree in Political Economy in 1982 from The Johns
               Hopkins University.
               
               
               DISCUSSION OF FUND PERFORMANCE
               
               Those factors, including the relevant market conditions and
               the investment strategies and techniques pursued by the
               Fund's Advisor, that materially affected the performance of
               the Fund during 1995 are discussed in the shareholder letter
               in the Annual Report, which can be obtained from the Fund
               without charge.
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               Average annual total returns for the one, five and ten year
               periods ended December 31, 1995 were 18.79%, 14.26% and
               11.46%, respectively.  Average annual returns for more than
               one year assume a compounded rate of return and are not
               the Fund's year-by-year results, which fluctuated over the
               periods shown.  Past performance is not predictive of future
               performance. 
               
               
               CAPITAL STOCK 
               
               The Fund has authorized 30,000,000 shares of $.01 par value
               common stock.  All shares are of the same class, with equal
               rights and privileges.  Each share is entitled to one vote and
               participates equally in dividends and distributions declared. 
               The shares are fully paid and non-assessable when issued,
               are transferable, and have no preemptive, conversion, or
               exchange rights.
               
               The Fund's shares have non-cumulative voting rights, which
               means that the holders of more than 50% of the shares
               voting for the election of directors may elect 100% of the
               directors if they choose to do so and, in this event, the
               holders of the remaining shares will not be able to elect any
               directors. 
               
               Inasmuch as Corbyn had, as of February 29, 1996,
               discretionary authority over accounts holding 24% of the
               Fund, Corbyn, either alone or in combination with the
               Advisor, may be deemed to be controlling persons of the
               Fund.  Both Corbyn and the Advisor maintain that they do
               not control the Fund.
               
               On May 8, 1990, at its Annual Meeting of shareholders, the
               Fund's shareholders approved an amendment of the Fund's
               Articles of Incorporation and By-Laws providing that the
               Fund shall not be required to hold an Annual Meeting of
               stockholders in any year in which none of the following is
               required to be acted upon by stockholders pursuant to the
               Investment Company Act of 1940:  (1) Election of Directors;
               (2) Approval of the Investment Advisory Agreement; (3)
               Ratification of the selection of independent public
               accountants; and (4) Approval of a Distribution Agreement. 
               Therefore, the Fund does not intend to hold an Annual
               Meeting of shareholders.  The Fund will, however, call a
               meeting of shareholders for the purpose of voting upon the
               question of removal of any director upon receipt of written
               request to do so by the record holders of not less than 10
               percent of the outstanding shares of the Fund.
               
               SHAREHOLDER INQUIRIES
               
               Rodney Square Management Corporation ("Rodney
               Square"), located at 1105 North Market Street, 3rd Floor,
               Wilmington, DE 19890, is the transfer agent for the Fund.
               
               For shareholder account information, Rodney Square
               shareholder service representatives can be reached at (800)
               576-7498 between the hours of 9:00 a.m. and 5:00 p.m.
               Eastern Standard Time during any business day.   
               
               To change the address on your account, send a written
               request signed by all registered owners of your account. 
               Please include the account number(s), the name(s) on the
               account and both the old and new addresses.  When Rodney
               Square receives notification of a change of address, a
               confirmation will be mailed to you.  
                
               DIVIDENDS, DISTRIBUTIONS AND TAXES  
               
               The Fund has qualified and intends to continue to qualify
               under Subchapter M of the Internal Revenue Code as a
               regulated investment company.  The Fund will distribute all
               of its net income and realized gains to shareholders, which
               will be taxable as ordinary income or long-term capital gains
               to shareholders.  Shareholders may be proportionately liable
               for taxes on these distributions unless shareholders are not
               subject to tax on their income and would not be required to
               pay tax on amounts distributed to them.  The Fund will
               inform shareholders of the amount and nature of such
               income or gains.  Any dividends paid by the Fund will
               increase or decrease in relation to the income received by
               the Fund from its investments.
               
               Each distribution declared by the Fund will, at the option of
               each shareholder at the time of the initial purchase of
               shares, be paid in cash or in additional shares, but may be
               changed by notifying Rodney Square in writing prior to the
               record date for a particular distribution.  At the
               shareholder's option, distributions made in cash can be wired
               directly to a shareholder's bank account or paid by a check. 
               If electing to have the cash payment wired, please include
               wiring instructions when completing an Account Registration
               Form.  Distributions will be reinvested in full and fractional
               shares of the Fund at the next computed net asset value at
               the close of business on the ex-dividend date.  If no election
               is made, all distributions will automatically be reinvested in
               shares of the Fund.  There are no charges in connection with
               the reinvestment of distributions.  A Statement of Account
               will be mailed to shareholders when dividend and capital
               gains distributions are made whether they are paid in cash
               or reinvested in additional shares. 
               
               The election to reinvest dividends and distributions paid by
               the Fund in additional shares of the Fund will not affect the
               tax treatment of such dividends and distributions, which will
               be treated as received by the shareholder and then used to
               purchase shares of the Fund.  Ordinary income distributions,
               such as distributions from net investment income and
               distributions of net short-term capital gains, are taxable to
               shareholders as ordinary income whether received in cash or
               in additional shares.  Some portion of the dividends paid by
               the Fund may be eligible for the 70% dividends-received
               deduction for corporate shareholders to the extent that the
               Fund's income is derived from certain dividends received
               from domestic corporations.  Capital gains distributions are
               taxable as long-term capital gains regardless of how long the
               shares of the Fund have been owned.  Generally, by January
               31, Rodney Square will mail to shareholders information on
               the tax status of dividends, distributions and redemptions
               made during the preceding year.  Please retain these account
               records in a safe place, as they will be required for tax
               purposes.  
               
               Investors should consider the tax implications of buying
               shares immediately prior to a distribution.  Investors who
               purchase shares shortly before the record date for a
               distribution will pay a per share price that includes the value
               of the anticipated distribution and will be taxed on the
               distribution when received even though the distribution
               represents a return of a portion of the purchase price.
               
               Redemptions of shares of the Fund will be taxable
               transactions for Federal income tax purposes.  Generally, a
               capital gain or loss will be recognized in an amount equal to
               the difference between the shareholder's basis in the shares
               and the proceeds received.  Such gains or losses will be
               characterized as short- or long-term, depending on how long
               the shares were owned.  A loss recognized on the disposition
               of shares of the Fund will be disallowed under the wash sale
               rule if identical shares are acquired 30 days before or after
               the date of disposition.  See "Taxes" in the Statement of
               Additional Information.  
               
               The Fund may be required to withhold Federal income tax
               at the rate of 31% from dividend, capital gain and
               redemption payments to shareholders (a) who fail to furnish
               the Fund with and to certify the payee's correct taxpayer
               identification number or social security number, (b) when
               the Internal Revenue Service notifies the Fund that the
               payee has failed to report properly certain interest and
               dividend income to the IRS and to respond to notices to that
               effect or (c) when the payee fails to certify that he is not
               subject to backup withholding.  Investors should be sure to
               provide this information when completing the Account
               Registration Form.  Certain foreign accounts may be subject
               to U.S. withholding tax on ordinary distributions.
               
               In addition to Federal taxes, a shareholder may be subject to
               state or local taxes on payments received from the Fund. 
               For a further discussion of certain tax consequences of
               investing in shares of the Fund, see "Taxes" in the Statement
               of Additional Information.  Shareholders are urged to
               consult their own tax advisers regarding specific tax
               questions.
               
               
               PURCHASE OF SHARES
               
               INITIAL INVESTMENT 
               
               The minimum initial investment in the Fund is $2,000, except
               for an Individual Retirement Account, a Gift to a Minor
               account and an account opened through the Automatic
               Investment Plan, the minimums for which are $1,000.  To
               make an initial investment in the Fund, please complete and
               sign an Account Registration Form for a regular account or
               complete the necessary forms for an Individual Retirement
               Account or Simplified Employee Pension Plan and mail
               along with a check, payable to Greenspring Fund, to
               Greenspring Fund, c/o Rodney Square, P.O. Box 8987,
               Wilmington, DE 19899.  All courier deliveries, including
               overnight express, should be mailed to Greenspring Fund,
               c/o Rodney Square, 1105 N. Market Street, 3rd Floor,
               Wilmington, DE 19890. The Fund does not accept telephone
               orders for the purchase of shares, except it will accept
               telephone orders from brokerage firms with whom the Fund
               has certain operating relationships.  The Fund reserves the
               right to modify or limit its procedures for telephone orders
               or to terminate them at any time.  Checks should be drawn
               in U.S. currency on a U.S. bank.    
               
               If an investor purchases or redeems shares of the Fund
               through an investment dealer, bank or other institution, that
               institution may impose charges for its services.
               
               Shares of the Fund will be purchased at the Fund's net asset
               value next determined after Rodney Square receives the
               purchase order or application on each day the New York
               Stock Exchange (the "Exchange") is open for regular trading
               and the purchase order or application is determined to be in
               good form by Rodney Square.  Any purchase order for
               shares received by Rodney Square by mail or wire prior to
               the close of the Exchange, which is 4:00 p.m. Eastern
               Standard Time, will be valued at the closing net asset value
               on that day.  Purchase orders or applications received after
               the close of the Exchange will be deemed received on the
               next business day and be valued at the net asset value
               computed on that business day.  There is no sales charge
               included in the price of the shares and all purchases will be
               in full and fractional shares carried out to three decimal
               places.  Rodney Square will mail a confirmation of each
               transaction, in the form of a Statement of Account, showing
               the date of the transaction, the number of shares involved,
               the net asset value per share and the total balance of shares
               in the account after the transaction.  
               
               The Fund reserves the right to decline to accept a purchase
               order upon receipt when, in the judgement of the Fund, it
               would not be in the best interests of the existing
               shareholders to accept the order.  In the case of a check
               requiring special handling, the Fund reserves the right to
               delay the processing of a purchase order until the check is
               converted into Federal Funds by the Fund's custodian bank.
               
               Shares of the Fund may also be purchased by wiring funds
               to the Fund's custodian bank, Wilmington Trust Company. 
               Prior to wiring funds, Rodney Square must be advised of the
               investment so an account number can be established.  A
               signed and completed Account Registration Form can be
               sent by telecopy (fax) to Rodney Square to establish an
               account after notifying Rodney Square of the incoming wire,
               but the original must be mailed to Rodney Square shortly
               after the purchase is made.  Rodney Square's fax number is
               (302) 427-4511.  Funds should be wired to:
               
               
               
                    Rodney Square
                    c/o Wilmington Trust Company
                    Wilmington, DE
                    ABA# 0311-0009-2
                    DDA# 2656-8560
                    For Credit to the Greenspring Fund
                    Further Credit (Shareholder's Name)
                    Fund Account Number
               
               If you are planning to wire funds, it is suggested that you
               instruct your bank early in the day so the wire transfer can
               be accomplished the same day.
               
               If your check or wire does not clear, you will be responsible
               for any loss the Fund incurs.  If you are already a
               shareholder, the Fund reserves the right to direct Rodney
               Square to redeem shares from any identically registered
               account as reimbursement for any loss incurred.
               
               ADDITIONAL INVESTMENTS
               
               Additional purchases of shares may be made in minimum
               amounts of $100 by mailing either the detachable investment
               slip found at the bottom of a recent account statement or a
               letter indicating the amount of the purchase, your account
               number, and the name in which your account is registered
               along with a check, payable to Greenspring Fund,
               Incorporated, to Rodney Square, or by wiring monies to
               Wilmington Trust Company as described above.  Please
               specify the account number in the purchase request to assure
               proper crediting.
               
               Generally, certificates representing the shares are not issued. 
               This saves the Fund the cost of issuing the certificates, saves
               the shareholders the trouble of safekeeping the certificates,
               and facilitates redemptions and transfers.  However, share
               certificates are available at any time upon written request at
               no additional cost to shareholders.  No certificates will be
               issued for fractional shares.
               
               AUTOMATIC INVESTMENT PLAN
               
               The Automatic Investment Plan permits a shareholder to
               automatically purchase shares of the Fund on a monthly
               basis through an arrangement with his bank and Rodney
               Square.  The minimum initial investment for the Automatic
               Investment Plan is $1,000.  Rodney Square will arrange for
               a predetermined amount of money, selected by the
               shareholder (the minimum per month is $100), to be
               deducted on the 20th of the month from the shareholder's
               checking account to purchase shares of the Fund.  The
               shareholder will receive a confirmation from Rodney Square
               and his checking account will reflect the amount charged.  A
               shareholder may utilize this service by filing an Automatic
               Investment Plan application with a voided personal check
               with Rodney Square.  The shareholder's bank must be able
               to accept Automated Clearing House ("ACH") transactions
               and/or be a member of an ACH association.  The
               Automatic Investment Plan normally becomes active within
               30 days after the application is received.     
               
               OTHER PURCHASE INFORMATION
               
               If shares of the Fund are held in a "street name" account
               with an Authorized Dealer, all recordkeeping, transaction
               processing and payments of distributions relating to the
               beneficial owner's account will be performed by the
               Authorized Dealer and not by the Fund.  Since the Fund will
               have no record of the beneficial owner's transactions, a
               beneficial owner should contact the Authorized Dealer to
               purchase or redeem shares, to make changes in or give
               instructions concerning the account or to obtain information
               about the account.  The transfer of shares in a "street name"
               account to an account with another dealer or to an account
               directly with the Fund involves special procedures and will
               require the beneficial owner to obtain historical purchase
               information about the shares in the account from the
               Authorized Dealer. 
               
               NET ASSET VALUE PER SHARE
               
               The Fund's shares of stock are purchased and redeemed at
               the current net asset value per share.  The Fund determines
               the net asset value per share by subtracting its total 
               liabilities (including accrued expenses and dividends payable) 
               from its total assets (the current market value of securities 
               the Fund holds plus cash or other assets including income 
               accrued but not yet received) and dividing the result by the 
               total number of shares outstanding.  
               
               Securities listed on a national securities exchange or the
               NASDAQ National Market are valued at the last reported
               sales price on the exchange of major listings.  Securities
               which are traded principally in the over-the-counter market,
               listed securities for which no sale was reported on the day of
               valuation, listed securities for which the last reported sale
               price is not in the context of the highest closing bid price
               and the lowest closing offering price, and listed securities
               whose primary market is believed by the Advisor to be over-
               the-counter are valued at the mean of the closing bid and
               asked prices obtained from sources that the Advisor deems
               appropriate.
               
               Short-term investments are valued at amortized cost which
               approximates fair market value.  The value of securities that
               either mature or have an announced call within 60 days will
               be amortized on a straightline basis from the market value
               one day preceding the beginning of the amortization period.
               
               Securities for which market quotations are not readily
               available are valued at fair market value as determined in
               good faith by the Advisor as directed by the Board of
               Directors.
               
               The net asset value per share is calculated as of the close of
               the regular session of the New York Stock Exchange
               (currently 4:00 pm Eastern Standard Time) each day the
               Exchange is open for business.  The net asset value appears
               daily in the Wall Street Journal and most major newspapers
               and is also available by calling the Fund at (800) 366-3863
               after 4:30 pm Eastern Standard Time each business day.
               
               
               REDEMPTION OF SHARES
               
               Shares of the Fund may be redeemed at no charge on any
               day that the Exchange is open for business.  All redemptions
               will be effected as of the day that the Fund's net asset value
               is next determined after the receipt of a proper request to
               do so.  Payment will be made for the shares redeemed
               within seven days after the redemption request is processed
               by Rodney Square, in accordance with the procedures set
               forth below.  Redemptions of shares recently purchased by
               check will not be mailed until all checks in payment for the
               purchase of shares to be redeemed have been collected,
               which may take up to 15 days.  When payment for recently
               purchased shares is made by certified check or wired funds,
               redemptions will be made within seven days.  The value of
               the shares upon redemption may be more or less than the
               shareholder's cost depending on the value of the Fund at
               that time.  
               
               The redemption of shares held in a retirement account may
               involve the imposition of charges by the Fund's custodian. 
               These costs are detailed in Greenspring Fund's Retirement
               Account Package available at no charge from the Fund.  
               
               Redemption requests should be made in writing to Rodney
               Square.  Rodney Square does not accept redemption
               requests sent by telecopy (fax) unless the request is first
               authorized by the Fund.  The Fund's fax number is (410)
               823-0903.  The Fund does not accept telephone redemptions,
               except it will accept telephone redemptions from brokerage
               firms with whom the Fund has certain operating
               relationships.  The Fund reserves the right to modify or limit
               its procedures for telephone or telecopy redemptions or to
               terminate them at any time. Requests for redemption by
               telephone, telegram and requests which are subject to any
               special conditions or which specify an effective date other
               than as described in this Prospectus cannot be accepted.
               
               A proper redemption request includes a written request
               which specifies the account number and the number of
               shares or the dollar amount to be redeemed.  The request
               must be signed in exactly the same way as the shares are
               registered, including the signature of each joint owner, if
               applicable.  If any stock certificates were issued for shares
               that are included in the redemption request, the certificates
               must be presented in properly endorsed form.  If the amount
               to be redeemed is greater than $10,000, all of the signatures
               on the redemption request and/or certificate must be
               signature guaranteed as described below. Further
               documentation may be requested from corporations,
               administrators, executors, trustees, custodians or others who
               hold shares in a fiduciary or representative capacity to
               evidence the authority of the person or entity making the
               request.  Redemptions will not become effective until the
               Fund has received all of the required, properly executed,
               documents.  You will be notified promptly in writing by the
               Fund if your redemption request cannot be accepted.
               
               The Fund may suspend the right of redemption for any
               period during which a) the New York Stock Exchange is
               closed or the Securities and Exchange Commission
               determines that trading on the Exchange is restricted; b) the
               Securities and Exchange Commission determines there is an
               emergency as a result of which it is not reasonably
               practicable for the Fund to sell its portfolio securities or to
               calculate the fair value of its net assets; or c) for such other
               periods as the Securities and Exchange Commission may by
               order permit for the protection of the Fund's shareholders. 
               
               The Fund expects to make all redemptions in cash.  For
               those shareholders for which it is applicable, the Fund
               reserves the right to fulfill a request for redemption by
               making a payment in whole or in part in the form of a pro
               rata distribution of the Fund's readily marketable securities. 
               These securities would be valued the same way the securities
               are valued in calculating the net asset value of the Fund. 
               The Fund is governed by Rule 18f-1 under the Investment
               Company Act of 1940. Therefore, the Fund is obligated to
               redeem shares, with respect to one shareholder during any
               90-day period, solely in cash up to the lesser of $250,000 or
               1% of the net asset value of the Fund at the beginning of the
               period.
               
               The Fund reserves the right to automatically redeem any
               account where the account balance falls below $1,000 due to
               redemptions by the shareholder.  Such redemptions will not
               be implemented if the value of a shareholder's account falls
               below the minimum account balance due to market
               conditions.  Shareholders will be notified in writing 60 days
               prior to the automatic redemption of their account.
               
               The Fund also reserves the right to involuntarily redeem the
               account of any shareholder who has failed to furnish a
               certified social security or tax identification number ("TIN")
               to the Fund.  This will reduce unnecessary expenses
               associated with the maintenance of an account of any
               shareholder who fails to provide a TIN, and, therefore,
               should benefit a majority of the Fund's shareholders.  The
               Fund will notify shareholders in writing 30 days prior to
               involuntarily redeeming shares.
               
               SIGNATURE GUARANTEE
               
               Signature guarantees are required for shareholders'
               protection and to prevent fraudulent redemptions. A
               signature guarantee will be required for any redemption
               request over $10,000, any redemption request where there
               has been an address change within 30 days, and, regardless
               of the amount, if the redemption proceeds are to be paid to
               someone other than the registered owner(s).    
               
               A signature guarantee can be obtained from commercial
               banks that are FDIC members, trust companies, firms that
               are members of a domestic stock exchange and foreign
               branches of any of the above.  A notary public is not an
               acceptable guarantor.
               
               The signature guarantee must appear together with the
               signature(s) of the registered owner(s) on the written request
               for redemption, on a separate instrument of assignment
               (stock power) which may be obtained from banks or
               stockbrokers, or on all stock certificates surrendered for
               redemption, in which case the signature guarantees must also
               appear on the letter of stock power if shares held on deposit
               in non-certificate form are also being redeemed.
               
               
                                     APPENDIX A
                         Description of Corporate Bond Ratings
               
               Standard & Poor's Corporation
               
               The ratings are based on current information furnished by
               the issuer or obtained by Standard & Poor's from other
               sources it considers reliable.  Standard & Poor's does not
               perform any audit in connection with any rating and may, on
               occasion, rely on unaudited financial information.  The
               ratings may be changed, suspended or withdrawn as a result
               of changes in, or unavailability of, such information or for
               other circumstances.
               
               The ratings are based, in varying degrees, on the following
               considerations:
               
               I.   Likelihood of default-capacity and willingness of the
                                   obliger as to the timely payment of interest 
                                   and repayment of principal in accordance 
                                   with the terms of the obligations.
               
               II.  Nature and provisions of the obligation.
               
               III. Protection afforded by, and relative position of, the
                                   obligation in the event of bankruptcy, 
                                   reorganization or other arrangement under 
                                   the laws of bankruptcy and other laws 
                                   affecting creditors' rights.  
               
                    AAA - The highest rating assigned by Standard &
                                   Poor's with extremely strong capacity to pay 
                                   interest and repay principal.
               
                    AA - Differs from the higher rated issues minimally
                                   with a very strong capacity to pay interest 
                                   and repay principal.
               
                    A - Somewhat more susceptible to the adverse
                                   effects of changes in circumstances and 
                                   economic conditions than debt in higher 
                                   rated categories with strong capacity to 
                                   pay interest and repay principal.
               
                    BBB - Normally exhibits adequate protection
                                   parameters but adverse economic conditions or
                                   changing circumstances are more likely to 
                                   weaken the capacity to pay interest and 
                                   repay principal for debt in this category 
                                   than in higher rated categories.
               
                    BB, B, CCC, CC, C - While such debt will likely
                                   have some quality and protective 
                                   characteristics, these are outweighed by 
                                   large uncertainties or major risk 
                                   exposures to adverse conditions and are
                                   predominantly speculative with respect to 
                                   paying interest and repaying principal.
               
               Moody's Investors Service, Inc.
               
                    Aaa - Judged to be of the best quality and carry the
                                   smallest degree of investment risk.  Interest
                                   payments are protected by a large or 
                                   exceptionally stable margin and principal is 
                                   secure.  While the various protective 
                                   elements are likely to change,
                                   such changes as can be visualized are most 
                                   unlikely to impair the fundamentally strong 
                                   position of such issues.  
               
                    Aa - Judged to be of high quality with minimal
                                   investment risk.  They are rated lower than 
                                   Aaa bonds because margins of protection may 
                                   not be as large as Aaa securities or 
                                   fluctuation of protective elements may be 
                                   of greater amplitude or there may
                                   not be other elements present.  Consequently,
                                   the long term risks appear somewhat larger 
                                   than with Aaa securities. 
               
                    A - Possess many favorable investment attributes
                                   with adequate security for repayment of 
                                   principal and payment of interest; 
                                   elements may be present
                                   which suggest a susceptibility to impairment
                                   sometime in the future.
               
                    Baa - Neither highly protected nor poorly secured
                                   with interest payments and principal security
                                   appearing adequate for the present, but 
                                   certain protective elements may be lacking or
                                   may be characteristically unreliable over 
                                   any great length of time.  Such bonds lack 
                                   outstanding investment
                                   characteristics and in fact have speculative
                                   characteristics as well.
               
                    Ba - Judged to have speculative elements and often
                                   the protection of interest and principal 
                                   payments may be only moderate and thereby not
                                   well safeguarded during both good and bad 
                                   times over the future.  Uncertainty of 
                                   position characterizes
                                   bonds in this class.
               
                    B - Generally lack characteristics of a desirable
                                   investment with minimal assurance of interest
                                   and principal payments or of maintenance of 
                                   other terms of the contract over any long 
                                   period of time.
               
                    Caa - Are of poor standing and may be in default
                                   or elements of danger with respect to 
                                   principal or
                                   interest may be present.
               
                    Ca - Represent obligations which are speculative in
                                   a high degree and are often in default or 
                                   have other marked shortcomings. 
               
               
               
                  CONTENTS
               
               
               
               Synopsis. . . . . . . . . . .2
                    Fund Expenses. . . . . .2
                    Total Return Performance2
               
               Financial Highlights Table. .3
               
               General Information . . . . .5
                    Organization . . . . . .5
                    Investment Objective . .5
                    Investment Program . . .6
                    Non-Investment Grade 
                     Debt Securities        7
               
               Management of the Fund. . . .9
               
               Discussion of Fund 
                     Performance           11
               
               Capital Stock . . . . . . . 12
                    Shareholder Inquiries. 13
                    Dividends, 
                     Distributions and 
                     Taxes                 13
               
               Purchase of Shares. . . . . 16
                    Initial Investment . . 16
                    Additional Investments 18
                    Automatic Investment 
                      Plan                 19
                    Other Purchase 
                      Information          19
                    Net Asset Value Per 
                      Share                20
               
               Redemption of Shares. . . . 21
                    Signature Guarantee. . 24
               
               Appendix A. . . . . . . . . 25
               
               
               
               
               
                                PROSPECTUS               
               
               
                              APRIL 30, 1996<PAGE>
      


               Greenspring Fund, Incorporated
               2330 West Joppa Road, Suite 110
               Lutherville, MD 21093
               (410) 823-5353
               (800) 366-3863
               
               DIRECTORS
               Charles vK. Carlson, Chairman
               William E. Carlson
               David T. Fu
               Michael J. Fusting
               Michael T. Godack
               Richard Hynson, Jr.
               
               OFFICERS
               Charles vK. Carlson
               President and Chief Executive Officer
               
               Michael T. Godack
               Sr. Vice President and Secretary
               
               Michael J. Fusting
               Vice President, Treasurer and Chief 
               Financial Officer
               
               INVESTMENT ADVISOR
               Key Equity Investment Management
               2330 West Joppa Road, Suite 108
               Lutherville, MD 21093-7207
               
               TRANSFER AGENT
               Rodney Square Management Corporation
               1105 North Market Street, Third Floor
               Wilmington, DE 19890
               (800) 576-7498
               
               CUSTODIAN
               Wilmington Trust Company
               1100 North Market Street
               Wilmington, DE 19890
               
               INDEPENDENT ACCOUNTANTS
               Coopers & Lybrand L.L.P.
               217 E. Redwood Street
               Baltimore, MD 21202-3316
               
               LEGAL COUNSEL
               DeMartino Finkelstein Rosen & Virga
               1818 N Street, N.W.
               Washington, DC 20036-2492
               
               
               
               
               <PAGE>

FINANCIAL HIGHLIGHTS  



Net Asset Value, Beginning of Year                                              

Income From Investment Operations
     Net Investment Income
     Net Realized and Unrealized Gain/Loss on
      Investments

Total From Investment Operations

Less Distributions
     Net Investment Income
     Net Realized Gain on Investments 
     Distributions in Excess of Net Realized Gains

Total Distributions

Net Asset Value, End of Year

Total Return

Ratios/Supplemental Data

Net Assets, End of Year (000's)

Ratio of Expenses to Average Net Assets

Ratio of Net Investment Income to Average Net Assets

Portfolio Turnover Rate

<PAGE>


                                       1986


                                    $  13.85 


                                        0.75 

                                        1.21 

                                        1.96 


                                   (    0.74)
                                   (    1.46)
                                   (     -   )
  
                                   (    2.20)
  
                                    $  13.61 
   
                                       15.95%



                                    $ 14,000 

                                       1.46%
                                       5.55%
                                     501.65%

<PAGE>


                                       1987


                                  $   13.61 


                                       1.12 

                                       0.07 

                                       1.19 


                                  (    1.65)
                                  (    1.26)
                                  (     -   )

                                  (    2.91)

                                  $   11.89 

                                       9.26%



                                   $ 18,416 

                                       1.36%

                                       8.57%

                                     929.30%

<PAGE>

                                       1988   

                                   $   11.89 


                                        1.44 

                                        0.46 

                                        1.90 


                                   (    1.26)
                                   (    0.03)                                   
                                  (     -   )

                                   (    1.29)

                                   $   12.50 

                                       15.98%



                                    $ 21,208 

                                        1.29%

                                       11.13%

                                      198.76%

<PAGE>

                                       1989


                                  $   12.50 


                                       0.67 

                                       0.63 

                                       1.30 


                                  (    0.79)
                                  (    0.18)
                                  (     -  )                                    
                                  (    0.97)

                                  $   12.83 

                                     10.60%



                                  $ 22,119 

                                      1.27%

                                      6.23%

                                     71.26%
                                                                                
<PAGE>
                                       1990


                                  $   12.83 


                                       0.68 

                                  (    1.51)

                                  (    0.83)


                                  (    0.68)
                                       0.00 
                                 (     -   )

                                  (    0.68)

                                  $   11.32 

                                    ( 6.51%)



                                   $ 18,989 

                                      1.31%

                                      4.82%

                                     90.27%

<PAGE>

                                       1991


                                   $   11.32 


                                        0.49 

                                        1.69 

                                        2.18 


                                   (    0.52)
                                   (    0.07)
                                  (     -   )

                                   (    0.59)

                                   $   12.91 

                                       19.34%



                                    $ 18,916 

                                       1.33%

                                       3.79%

                                      70.21%

<PAGE>

                                       1992


                                  $   12.91 


                                       0.51 

                                       1.59 

                                       2.10 


                                  (    0.51)
                                  (    0.72)
                                 (     -   )

                                  (    1.23)

                                  $   13.78 

                                      16.52%



                                   $ 20,004 

                                       1.48%

                                       3.68%

                                     100.17%







<PAGE>

                                       1993


                                    $ 13.78 


                                       0.40 

                                       1.59 
                                                              
                                       1.99 
                                         

                                    (  0.40)
                                    (  1.41)
                                   (    -  )

                                    (  1.81)

                                    $ 13.96 
                                                                                
                                    14.65%



                                    $29,885

                                      1.31%

                                      2.78%

                                    121.79%



<PAGE>
                                       1994


                                  $   13.96 


                                       0.51 

                                  (    0.12)
                                                          
                                       0.39 
                                         

                                  (    0.51)
                                  (    0.45)
                                 (      -  )

                                  (    0.96)

                                   $  13.39 
                                                                                
                                       2.83%



                                   $ 50,322 

                                       1.27%

                                       4.03%

                                      76.55%

<PAGE>
<PAGE>

                                       1995


                                   $   13.39 


                                        0.70 

                                        1.78 
                                                                    
                                        2.48 
                                         

                                   (    0.68)
                                   (    0.07)
                                   (    0.07)

                                   (    0.82)

                                    $  15.05 
                                                                  
                                       18.79%



                                    $ 71,839 

                                        1.06%

                                        4.97%

                                       65.19%


<PAGE>

               
                                          ACCOUNT REGISTRATION FORM
                                       GREENSPRING FUND, INCORPORATED

         DO NOT USE THIS FORM TO OPEN AN INDIVIDUAL RETIREMENT ACCOUNT


[ ] INDIVIDUAL OR JOINT REGISTRANT*
*Joint tenancy with right of survivorship unless otherwise indicated.

                                                                                
Owner's First Name                Initial                  Last Name

                                                                                
Joint Owner's First Name         Initial                  Last Name


[ ] GIFT TO A MINOR

                                                                                
Custodian's First Name            Initial                  Last Name

As Custodian For:

                                                                                
Minor's First Name                 Initial                  Last Name

Under the                   Uniform Gifts to Minors Act
                  (State)


[ ] TRUST

                                                                                
Trustee's(s') Name(s) 

                                                                                
Name of Trust Agreement 

For the Benefit Of:

                                                                                
Beneficiary's(ies') Name(s)

                                                                                
Date of Trust Agreement

Please include a copy of the page(s) of the trust designating the
trustee(s) and naming the beneficiary(ies).


[ ] CORPORATION OR OTHER ENTITY

TYPE:  [ ] Corporation   [ ] Partnership  [ ] Other

                                                                                
Name of Entity

Include a copy of the corporate resolution.


MAILING ADDRESS

                                                                                
Street

                                                                                
City                                                  State         Zip Code    

(        )                                    (        )                        
Home Telephone                        Business Telephone


TAX IDENTIFICATION NUMBER

            -             -                or             -                     
     Social Security Number                  Tax Identification Number

If Gift to a Minor account, use Minor's Social Security Number.


DUPLICATE STATEMENTS

                                                                                
Name 

                                                                                
Company or Organization

                                                                                
Street

                                                                                
City                                                  State          Zip Code


AUTOMATIC INVESTMENT PLAN

You can invest each month by an Automated Clearing House ("ACH")
deduction from your checking account.  Please fill out the following
information, attach a voided check and return it to Greenspring Fund
(c/o Rodney Square Management Corporation, P.O. Box 8987,
Wilmington, DE 19899).  You will receive a confirmation of each
transaction, occurring on the 20th of each month, and the deduction
from your bank account will appear on your monthly bank statement. 
Your first automatic monthly investment will occur approximately 30
days after your application is received. 

Monthly investment amount (minimum is $100)                        to
begin on the 20th of                                   , 19         .

As a convenience to me, you are hereby requested and authorized to pay
and charge to my account debits drawn on my account as indicated
above.  This authority is to remain in effect until revoked by me in
writing  and, until you actually receive such notice, I agree you shall be
fully protected in honoring any such debit.  I further agree that if any
such debit be dishonored, whether with or without cause and whether
intentionally or inadvertantly, you shall be under no liability whatsoever.

                                                                                
Name of Bank

                                                                                
Address of Bank

                                                                                
City                                                  State          Zip Code   

                                                                                
Bank Account Name(s)

                                               (        )                       
Bank Account Number                 Bank Telephone          

                                                                                
Signature

                                                                                
Signature


INVESTMENT

Minimum initial investment is $2,000 for a regular account and $1,000
for an Automatic Investment Plan or a Gift to a Minor account.  Checks
should be made payable to Greenspring Fund, Incorporated.

Amount of check enclosed:                                                       

Amount wired:                                                                   

See the Prospectus for wiring instructions.


SIGNATURE

The undersigned certifies that I (we) have full authority and legal
capacity to purchase shares of the Greenspring Fund and affirms that I
(we) have received and read a current Prospectus for the Fund and
agree to be bound by its terms.  Furthermore, the undersigned certifies,
under penalty of perjury, that the Social Security or Tax Identification
Number given is correct, and that I (we) am (are) NOT currently subject
to IRS backup withholding because 1) I (we) have not been notified, or
2) notification has been revoked.  (Cross out "NOT" if you are currently
subject to backup withholding.)

WELCOME TO GREENSPRING FUND!

                                                                                
Signature                                                               Date

                                                                                
Signature                                                               Date

If you should need help completing this form or need additional
information, please call Rodney Square Management Corporation, the
Fund's transfer agent, at (800) 576-7498.

<PAGE>
<PAGE>

                      STATEMENT OF ADDITIONAL INFORMATION

                         Greenspring Fund, Incorporated

                                  ("the Fund")

                               FORM N-1A, PART B








This Statement of Additional Information is not a prospectus, but should be read
in conjunction with the Fund's Prospectus dated April 30, 1996, which may be 
obtained by calling the Fund at (410) 823-5353 or(800)366-3863 or by writing 
to Greenspring Fund, Incorporated, 2330 West Joppa Road, Suite 110, 
Lutherville, Maryland 21093-4641.

The date of this Statement of Additional Information is April 30, 1996.

<PAGE>
                               TABLE OF CONTENTS

                                                                           Page
Investment Objectives and Policies (Page 5 in Prospectus). . . . . . . .     3
     Investment Objective. . . . . . . . . . . . . . . . . . . . . . . .     3
     Investment Policies . . . . . . . . . . . . . . . . . . . . . . . .     3
          Fundamental Policies . . . . . . . . . . . . . . . . . . . . .     3  
          Operating Policies . . . . . . . . . . . . . . . . . . . . . .     4

Investment Program . . . . . . . . . . . . . . . . . . . . . . . . . . .     5
     Repurchase Agreements . . . . . . . . . . . . . . . . . . . . . . .     5
     Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     5
     Call Options. . . . . . . . . . . . . . . . . . . . . . . . . . . .     5
     Put Options . . . . . . . . . . . . . . . . . . . . . . . . . . . .     6
     Federal Income Tax Treatment of Options . . . . . . . . . . . . . .     6
     Non-investment Grade Debt Securities. . . . . . . . . . . . . . . .     7
     Foreign Securities. . . . . . . . . . . . . . . . . . . . . . . . .     7

Total Return Performance . . . . . . . . . . . . . . . . . . . . . . . .     8

Portfolio Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . .     8

Management of the Fund (Page 9 in Prospectus). . . . . . . . . . . . . .     8

Control Persons and Principal Holders of Securities. . . . . . . . . . .    10 
 
Investment Advisor and Advisory Agreement. . . . . . . . . . . . . . . .    10
 
Portfolio Transactions and Brokerage . . . . . . . . . . . . . . . . . .    11

Purchase, Redemption and Pricing of the Fund's Shares
     (Pages 16, 17, 18, 19, 20, 21, 22, 23 and 24 in Prospectus) . . . .    11

Net Asset Value Per Share (Page 20 in Prospectus). . . . . . . . . . . .    11

Pricing of Securities Being Offered. . . . . . . . . . . . . . . . . . .    12

Taxes (Page 13 in Prospectus). . . . . . . . . . . . . . . . . . . . . .    12

Custodian. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    13

Legal Counsel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    13

Independent Accountants. . . . . . . . . . . . . . . . . . . . . . . . .    13


                       Investment Objectives and Policies

The following information supplements the discussion of the Fund's investment 
objective and program discussed on page 5 of the Prospectus. Unless otherwise 
specified, the investment program and policies of the Fund are not fundamental 
policies. Any operating policies of the Fund are subject to change by its Board 
of Directors without shareholder approval. However, shareholders will be 
notified of a material change.

                              Investment Objective

The Fund's principal objective is to provide long-term growth of capital for its
shareholders through a total return approach to investing.  In pursuing its 
investment objective, the Fund invests primarily in common stocks, but may 
also invest in preferred stocks, debt securities, securities not publicly 
traded and money market instruments in order to enhance the total return of the
Fund's portfolio and for temporary defensive purposes in order to preserve its 
principal during uncertain market conditions.

                              Investment Policies

Fundamental Policies
     
Fundamental policies of the Fund may not be changed without the approval of 
the lesser of (1) 67% of the Fund's shares present at a meeting of shareholders 
if the holders of more than 50% of the outstanding shares are present in person 
or by proxy or (2) more than 50% of the Fund's outstanding shares.

The Fund may not:

     1)   purchase any securities which would cause more than 5% of its total 
          assets at the time of such purchase to be invested in the securities 
          of any issuer, except the U.S. Government;
          
     2)   purchase any securities which would cause the Fund at the time of 
          such purchase to own more than 10% of the outstanding securities of 
          any class of issuer;

     3)   purchase any securities which would cause more than 25% of its 
          total assets at the time of such purchase to be concentrated in the 
          securities of issuers engaged in any one industry;

     4)   invest in companies for the purpose of exercising management or 
          control;

     5)   purchase or sell real estate, although it may invest in the 
          securities of companies whose business involves the purchase or 
          sale of real estate;

     6)   purchase or sell commodities or commodity contracts;

     7)   purchase the securities of any other investment company except in 
          the open market in a transaction involving no commission or profit 
          to a sponsor or dealer (other than a customary sales load or 
          broker's commission, if applicable), or as a part of a merger, 
          consolidation or acquisition.

          The purchase of securities of other investment companies is also 
          limited by the Investment Company Act of 1940 (the "1940 Act"). The 
          1940 Act provides, in general, that a registered investment company 
          (the "Acquiring Company") may not acquire any security issued by 
          another investment company (the "Acquired Company") if the Acquiring 
          Company immediately after the acquisition owns in the aggregate: 
          (a) more than 3% of the total outstanding voting stock of the Acquired
          Company; (b) securities of the Acquired Company having an aggregate 
          value in excess of 5% of the value of the total assets of the 
          Acquiring Company; or (c) securities issued by all investment 
          companies having an aggregate value in excess of 10% of the total
          assets of the Acquiring Company.  Investors may incur duplicate fees 
          to the extent that the Fund invests in other investment companies.

     8)   purchase securities on margin or effect short sales of securities;  
     
     9)   make loans, except that it may acquire publicly distributed bonds, 
          debentures, notes and other  debt securities;          

    10)   borrow money, except for temporary emergency purposes, and 
          then only in amounts not exceeding the lesser of 10% of its total 
          assets valued at cost or 5% of its total assets valued at market;

    11)   mortgage, pledge or hypothecate securities;

    12)   act as securities underwriter, except to the extent that it may 
          be regarded as an underwriter upon disposition of any of its 
          securities for purposes of the Securities Act of 1933;

    13)   deal with any of its officers or directors or with any firm of 
          which any of its officers or directors is an officer, director or 
          member as principal in the purchase or sale of portfolio securities; 
          or effect portfolio transactions through any such officer, director 
          or firm as agent or broker unless the Fund pays no more than the 
          customary brokerage charges for such services;

    14)   purchase or obtain the securities of any issuer if any officer or
          director of the Fund owns more than .5% or if all officers and 
          directors of the Fund together own more than 5% of the securities 
          of such issuer, provided, that as a matter of operating policy, the 
          Fund has determined that such limitations will also apply to the 
          officers and directors of its investment advisor; or

    15)   issue any obligations, bonds, notes or other senior securities.

Operating Policies

The following restrictions are operating policies which are subject to change by
the Board of Directors without shareholder approval. However, the Fund will not 
change any operating policy without notice to the shareholders. The Fund may 
not:

     1)   invest more than 5% of its total assets in the securities of issuers 
          engaged in continuous operation for less than three years;

     2)   purchase any securities which will cause more than 5% of its total 
          assets at the time of such purchase to be invested in securities 
          which may not be publicly sold without registration under
          the Securities Act of 1933 or are otherwise illiquid and not readily 
          marketable;
                                        
     3)   invest in straddles or spreads;

     4)   purchase participations or other direct interests in oil, gas or 
          other mineral exploration or development programs;    

     5)   purchase any securities which would cause more than 2% of its total 
          assets at the time of such purchase to be invested in warrants which 
          are not listed on the New York Stock Exchange or
          the American Stock Exchange or more than 5% of its total assets to be 
          invested in warrants acquired by the Fund in units or attached to debt
          securities;         

     6)   purchase or sell real estate, including limited partnership interests 
          unless those limited partnership interests are listed on a nationally 
          recognized securities exchange, although it may
          invest in real estate investments trusts or securities of companies 
          which invest in real estate; and                           

     7)   invest in oil, gas or mineral leases or development programs, but 
          may invest in securities of companies that invest or sponsor oil,
          gas or mineral leases or development programs.


                               Investment Program

Repurchase Agreements

The Fund may invest in repurchase agreements with domestic banks, brokers or 
dealers either for temporary defensive purposes due to market conditions or to 
generate income from its excess cash balances. A repurchase agreement is an 
agreement under which the Fund acquires a money market instrument from a 
domestic bank, broker or dealer, subject to resale to the seller at
an agreed upon price and date (normally, the next business day). The resale 
price reflects an agreed upon interest rate effective for the period the 
instrument is held by the Fund and is unrelated to the interest rate on the 
underlying instrument. 

The use of repurchase agreements involves certain risks. For example, if the 
seller of securities under an agreement defaults on its obligation to repurchase
the underlying securities at a time when the value of these securities has 
declined, the seller may incur a loss upon disposition of them. If the seller 
becomes insolvent and subject to liquidation or reorganization under bankruptcy,
a court may determine that the underlying securities are collateral for a loan 
by the Fund and therefore subject to sale by the trustee in bankruptcy. It is 
expected that these risks can be controlled through careful monitoring 
procedures.

Options

The Fund may purchase and sell both call options and put options that are listed
on an organized securities exchange. Although these investment practices will be
used primarily in a hedging function to reduce principal fluctuations or to 
generate additional income, they do involve certain risks which are different in
some respects from the investment risks associated with similar funds
which do not engage in such activities. The Fund will not write an option, if, 
as a result, the aggregate market value of all portfolio securities covered by 
call options or subject to put options exceeds 25% of the market value of the 
Fund's net assets.

Since inception of the Fund, the only two options transactions in the Fund's 
portfolio enacted were during 1987 and 1991 when covered calls were sold against
a security.

The current market value of a put or call option which has been purchased will 
be recorded as an asset on the Fund's statement of assets and liabilities. This 
asset will be adjusted daily to the option's current market value which will 
be valued at the last quoted sales price, or, if the option has not been traded 
or if the last sales price is not within the context of the highest closing 
bid and the lowest closing offer, the mean of the bid and asked price on the day
the valuations are made. The assets will be extinguished upon the expiration of 
the option, the selling of an identical option in a closing transaction or the 
delivery of the underlying security upon the exercise of the option.

Call Options

A call option is a short-term contract pursuant to which the purchaser of the 
call option, in return for a premium paid, has the right to buy the security 
underlying the option at a specified exercise price at any time during the term 
of the option.  The writer ("seller") of the call option, who receives the 
premium, has the obligation, upon exercise of the option, to deliver the 
underlying security against payment of the exercise price during the option 
period.  A writer is required to deposit in escrow the underlying security or 
other assets in order to secure his obligation to deliver the underlying 
security.

The Fund may write ("sell") covered call options for the purpose of reducing 
the effect of price fluctuations of the securities owned by the Fund. Options 
will be sold on the basis of investment considerations consistent with the 
Fund's investment objectives. These options will generally be written on 
securities which, in the opinion of the Fund, are not expected to make any major
price moves in the near future but which, over the long term, are deemed to be 
attractive investments for the Fund. 

Options written by the Fund will normally have expiration dates ranging up to 
nine months. However, the Fund does not have any control over when it may be 
required to sell the underlying securities, since it may be assigned an exercise
notice at any time prior to the expiration of its obligation as a writer. The 
exercise price of the options may be below, equal to, or above the current
market value of the underlying securities at the time the options are written.

Although the Fund has no current intention to sell uncovered call options, the 
Fund reserves the right to do so. In writing an uncovered call option, the 
writer obligates itself to deliver the underlying security at the exercise 
price, even though, at the time the option is written, it does not own the 
underlying security. Once the option has been written, the Fund will establish 
and maintain for the term of the option a segregated account consisting of 
cash and U.S. government securities equal to the fluctuating market value of the
underlying  securities. If the holder of the option wishes to exercise its 
option to buy the underlying security from the writer, the writer must make 
arrangements to purchase and deliver the underlying security.

There are risks involved when writing uncovered equity call options. The writer 
has assumed the risk of an increase in the price of the underlying security 
above the exercise price so long as his obligation as a writer continues. 
Should this increase occur, the writer may be issued a notice to exercise the 
option and would therefore be required to sell the underlying security at the 
exercise price which may be less than the price it must pay or may have paid 
to acquire the security, thereby reducing its profit or incurring
a loss. Conversely, should the price of the security decline, the writer has 
retained the risk of a loss, which will be offset in whole or in part by the 
premium received.

Closing transactions may be effected in order to realize a profit on an 
outstanding option or to prevent an underlying security from being called. 
Effecting a closing transaction will also permit the Fund to write another
option on the underlying security with either a different expiration date or 
exercise price or both.

If the Fund effects a closing purchase transaction and the cost is less (more) 
than the premium received from the writing of the option, a profit (loss) will 
be realized.  Because increases in the market price of the underlying security 
will generally effect increases in the market price of an option, any loss 
resulting from the repurchase of the option is likely to be offset in whole or
in part by the appreciation of the underlying security owned by the Fund.

The Fund may purchase call options, which may give the Fund the right to buy an
underlying security at the exercise price any time during the option period. 
The Fund will not commit more that 5% of its total assets at the time of 
purchase to the purchasing of call options. The Fund may purchase a call option 
for the purpose of acquiring an underlying security for its portfolio. This
would give the Fund the ability to fix its cost of acquiring the stock at the 
exercise price of the call option plus the premium paid, which at time may 
cost the Fund less than purchasing the security directly. The Fund is also 
partially protected from any unexpected decline in the market price of the 
underlying security as long as it holds the option and, therefore, can allow 
the option to expire, incurring a loss only to the extent of the premium paid 
for the option. The Fund may also purchase a closing call to liquidate a 
position and to extinguish its obligation pursuant to a call it has sold.

Put Options

The Fund may write ("sell") put options, which give the Fund the right to sell 
and the writer the obligation to buy the underlying security at the exercise 
price during the option period. The Fund will generally write put options 
when it wishes to purchase the underlying security at a price lower than the 
current market price of the security. The Fund will provide that such options 
will be offset at the time of the sale by a segregated account consisting of 
cash, U.S. Government securities or high-grade debt securities equal in value 
to the amount the Fund will be obligated to pay upon exercise of the put. 
This amount must be maintained until the put is exercised, has expired or the 
Fund has purchased a closing put, which is a put of the same series as
the one previously sold. The risk the Fund would take in writing put options 
would be that the market price of the underlying security would decline below 
the exercise price less the premiums received. The daily valuation of put 
options is substantially identical to that of call options. 

The Fund may purchase put options, which give the Fund the right to sell the 
underlying security at the exercise price at any time during the option period. 
Put options may be purchased for defensive purposes in order to protect 
against an anticipated decline in the value of its securities. This 
protection would be provided only during the life of the option when the Fund, 
as the holder of the option, is able to sell the underlying security at the 
put exercise price regardless of that security's current market price.
Purchasing put options involves the risk of losing the entire premium (purchase 
price of the option).  No more that 5% of the Fund's total net assets, at the 
time of purchase, will be committed to the purchasing of put options.

Federal Income Tax Treatment of Options

Set forth below is a brief summary of the federal income tax consequences of 
options.  It is not intended to be, a complete and detailed description of all 
possible tax consequences.  Investors should consult their own tax advisors for 
more complete information.  The summary below assumes that options purchased 
by the Fund are capital assets. 

When puts and calls written by the Fund (seller) expire unexercised, the premium
received becomes a short-term capital gain at the time of such expiration. 
When a covered call written by the Fund is exercised, the amount realized on 
the sale of the underlying security is increased by the amount of the premium in
determining gain or loss, and the gain or loss on the sale of the
security is long- or short-term, depending on the holding period of the 
underlying security. When puts written by the Fund are exercised, the Fund 
will reduce the cost basis of the underlying security by the amount of the 
premium received. The Fund will recognize either a long- or short-term capital 
gain or loss upon the sale or expiration of the option. Upon the exercise of 
an option by the Fund (buyer), if it is a call option, the Fund will increase 
the cost basis of the underlying security by the amount value paid
for the option. If it is a put option, the Fund will reduce the amount realized 
on the sale of the underlying security by the amount paid for the put option. 
Because of tax considerations, the Fund may be limited in its ability to write 
or purchase options with an exercise period of less than three months.  Gains 
or loss on options sold or purchased in hedging transactions will be treated as 
ordinary income or loss.

Non-Investment Grade Debt Securities

The high yield bond market is relatively new. Its growth has parallelled a long 
economic expansion and has not weathered a recession in its present size and 
form. An economic downturn or increase in interest rates is likely to have a 
negative effect on the high yield bond market and on the value of high yield 
bonds in the Fund's portfolio, as well as the ability of the bonds' issuers
to repay principal and interest. Securities of companies in reorganization 
proceedings are relatively unaffected by such events or by changes in prevailing
interest rates.  Adverse publicity and investor perceptions, whether or not 
based upon rational analysis, may also affect the value and liquidity of high 
yield bonds.

The market for non-investment grade bonds may be thinner and less active than 
that for higher quality securities, which can adversely affect the price at 
which these securities are sold. If market quotations are not available, 
non-investment grade securities will be valued in accordance with standards 
established by the Board of Directors, including the use of outside pricing 
services.

Judgment plays a greater role in valuing high yield corporate debt-securities 
than is the case for securities for which more external sources for quotations 
and last-sale information is available. To the extent the Fund owns illiquid or 
restricted high yield bonds, these securities may involve special registration 
responsibilities, liabilities and costs, and liquidity and valuation 
difficulties.

The economy and interest rates affect high yield securities differently from 
other securities. The prices and, therefore, yields of high yield bonds have 
been found to be less sensitive to interest rate changes than higher-rated 
investments, but more sensitive to adverse economic changes or individual 
corporate developments. High yield bonds are subject to a greater risk of 
default than high-grade debt securities. During an economic downturn or 
substantial period of rising interest rates, highly leveraged issuers
may experience financial stress which would adversely affect their ability to 
obtain additional financing. If the issuer of a bond owned by the Fund defaults,
the Fund may incur additional expenses to seek recovery.  In addition, periods 
of economic uncertainty and changes can be expected to result in increased 
volatility of market prices of high yield bonds and the Fund's asset value.  
Furthermore, in the case of high yield bonds structured as zero coupon or pay-
in-kind securities, their market prices are affected to a greater extent by 
interest rate changes and, thereby, tend to be more speculative and 
volatile than securities which pay interest periodically and in cash.

High yield bonds present risk based on payment expectations. For example, 
high yield bonds may contain redemption or call provisions. If an issuer 
exercises these provisions in a declining interest rate market, the
Fund may have to replace the security with a lower yielding security, resulting 
in a decreased return for investors. Conversely, a high yield bond's value will 
decrease in a rising interest rate market, as will the value of the Fund's 
assets. In addition, there is ahigher risk of non-payment of interest
and/or principal by issuers of high-yield bonds than in the case of investment 
grade bonds.

New laws and proposed new laws may have a negative impact on the market for high
yield bonds. As examples, recent legislation requires federally-insured savings 
and loan associations to divest themselves of their investments in high yield 
bonds and pending proposals are designed to limit the use of tax and other 
advantages of high yield bonds. While no initiatives affecting the Fund
have prevailed, any such proposals, if enacted, could have a material negative 
effect on the Fund's net asset value and investment practices.

Special tax considerations are associated with investing in high yield bonds 
structured as zero coupon or pay-in-kind securities. The Fund reports the 
interest on these securities as income even though it receives no cash interest 
until the security's maturity or payment date. 

Foreign Securities

The Fund may invest in securities principally traded in markets outside the 
United States.  Investments in foreign securities involve risks that are 
different in some respects from investments in securities of U.S.
issuers such as the risk of fluctuations in the value of the currencies in 
which they are denominated.  Such a fluctuation could make the security worth 
less in U.S. dollars even though its worth is more in its home country.  
Investments in foreign securities may also be subject to local economic or 
political risks such as political instability of some foreign governments and 
the possibility of expropriation or confiscatory taxation, imposition of 
withholding taxes on dividend or interest payments and limitations
on the removal of funds or other assets of the Fund.  There also may be less 
publicly available information about foreign securities and governments than 
domestic ones.  Foreign securities are not registered with the Securities and 
Exchange Commission and are generally not subject to the regulatory
controls imposed on domestic securities.  Securities of some foreign companies 
are less liquid and more volatile than securities of domestic companies and 
incur higher custodian charges.

                            Total Return Performance

The Fund's total return calculations quoted in advertising reflect all aspects 
of the Fund's return including the reinvestment of all capital gains 
distributions and income dividends for the periods shown and any change in the
Fund's net asset value per share over the period without regard to tax 
consequences to the shareholder. Such performance information is based on
historical results and is not intended to indicate future performance.  Average 
annual returns are calculated by determining the growth or decline in value of 
a hypothetical historical investment in the Fund over a stated period and then 
calculating the annually compounded percentage rate that would have produced 
the same result if the rate of growth or decline in value had been constant 
over the period.  In addition, the Fund may quote cumulative total returns 
reflecting the change in value of an investment over a stated period of time.  
The average annual total return of the Fund for the one, five 
and ten year periods ended December 31, 1995 were 18.79%, 14.26% and 11.46%, 
respectively.   The cumulative total return of the Fund for the one, five and 
ten year periods ended December 31, 1995 were 18.79%, 94.74% and 195.85%, 
respectively.

                              Portfolio Turnover 

While the Fund generally invests in securities for the purpose of seeking 
long-term capital gains, the Fund's investment philosophy
may dictate the frequent realization of short-term gains and losses, which 
may result in a portfolio turnover rate higher than many other mutual funds. 
The portfolio turnover rates for 1995 and 1994 were 65.19% and 76.55%, 
respectively.  

With the Fund's emphasis on the preservation of capital, certain equities may be
sold at an earlier date than anticipated at the time of purchase. This may be 
the case if a sale is warranted by the attainment of the security's price 
objective or by a change in the company's investment prospects, economic 
conditions or the state of the financial markets. The Fund may also from time
to time purchase equities whose prices are expected to rise over the short term,
but whose longer-term prospects may or may not be attractive. The purchase and 
sale of these securities may also lead to a higher than average portfolio 
turnover rate. To the extent that the Fund's strategies result in short-term 
gains, shareholders will be taxed on such gains at ordinary income rates.
 
                             Management of the Fund

The following is a list of the officers and directors of the Fund, and a brief 
statement of their present positions and principaloccupations during the last 
five years. Unless otherwise noted, the address of each is 2330 West Joppa Road,
Suite 110, Lutherville, Maryland 21093-4641. The Fund's directors who are 
considered "interested persons" as that term is defined under Section 2(a)(19)
of the Investment Company Act of 1940 are noted with an asterisk (*). The 
individuals so noted are "interested persons" on the basis of their positions 
with the Fund's investment advisor, Key Equity Management Corporation 
("Advisor") and the Advisor's parent company, Corbyn Investment Management, 
Inc. ("Corbyn") except that Mr. William E. Carlson is an "interested person"
by virtue of his familial relationship with Charles vK. Carlson (they are 
brothers). 

Fletcher, Lewis & Company, Inc., a broker/dealer affiliated with the Fund and 
its Adviser through its management, ceased operations in October, 1991.

<PAGE>
                                                                   Principal
                                Position(s) Held         Occupation(s) During
           Name                       With Registrant        Past Five Years    

Charles vK. Carlson, CFA*  
Age 36
President and Chairman of 
the Board<PAGE>
   
President and Director of the Fund's
Advisor. President of Corbyn
Investment Management, Inc. from
December 1991 to present. Executive
Vice President of Corbyn Investment
Management, Inc. from October 1987
to December 1991.<PAGE>

Michael T. Godack*
Age 42
<PAGE>
Sr. Vice President, Secretary, and
Director<PAGE>
Vice President and Director of the
Fund's Advisor. Managing Director
of Corbyn Investment Management,
Inc.

<PAGE>
Michael J. Fusting, CFA, CPA*
Age 35<PAGE>
Vice President, Treasurer, and
Director<PAGE>
Vice President, Treasurer, and
Director of the Fund's Advisor. 
Managing Director of Corbyn
Investment Management, Inc. since
May 1991.  

<PAGE>
Richard Hynson, Jr.*
Age 52
<PAGE>
Director<PAGE>
Sr. Vice President and Managing
Director of Corbyn Investment
Management, Inc.

<PAGE>
David T. Fu
1246 Harbor Glen Court
Arnold, MD 21012
Age 39 <PAGE>
Director<PAGE>
Managing Director of Galway
Partners, L.L.C. from January 1995 to
present.  Director of Bell Atlantic
Information Services from September
1993 to January 1995. Vice President
of Network Management, Inc. from
February 1992 to September 1993. 
Sales Director of Hamilton Avnet
Computer from  February 1990 to
February 1992.  

<PAGE>
William E. Carlson*
117 E. Churchill Street
Baltimore, MD 21230
Age 38<PAGE>
Director<PAGE>
Partner of Shapiro and Olander from
February 1990 to present.  Appointed 
and commenced service as a director
on February 15, 1994 to fill vacancy
left by Daniel R. Long, III who
resigned due to competing personal
responsibilities.<PAGE>

<PAGE>
Directors who are not employees of the Fund or companies affiliated with the 
Fund will receive a fee of $1,000 for attending the annual meeting plus $350 
for each other meeting attended besides the annual meeting and reasonable 
out-of-pocket expenses incurred in connection with attending such meetings.  
Directors, as well as officers, who are "interested persons" of the Fund do
not receive remuneration from the Fund or from its Advisor, but may receive
remuneration from Corbyn Investment Management. 

<PAGE>
              Control Persons and Principal Holders of Securities

As of February 29, 1996, there were approximately 4,558,389 shares of capital 
stock of the Fund outstanding.  Of those shares, the following shareholders 
are the recordholders of 5% or more of the outstanding shares of the Fund:

     Name/Address           Amount/Nature of Ownership Percentage of Ownership  
Corbyn Investment Management         1,097,486                      24%
2330 West Joppa Road, Suite 108       Record                             
Lutherville, MD 21093

Charles Schwab & Co., Inc.            835,956                       18%
101 Montgomery Street                  Record
San Francisco, CA 94104

Corbyn Investment Management, an investment research management company
organized in the State of Maryland, is affiliated with the Fund through its 
management and with the Fund's Advisor through its management and ownership.  

Certain clients of Corbyn may have investment objectives similar to that of the 
Fund. Recommendations may be made from time to time which result in the purchase
or sale of a particular security by advisory clients simultaneously with the 
Fund. The acquisition or disposition of a security for such clients does not 
create an obligation to acquire or dispose of the security for the
Fund. If transactions on behalf of more than one client during the same period 
increase the demand for securities being purchased or the supply of the 
securities being sold, there may be an adverse effect on price and the ability 
of the Fund to obtain or dispose of the full amount of the security which it 
seeks to purchase or sell. If Corbyn's clients and the Fund are purchasing a 
given security on the same day from the same broker-dealer, the price of the 
transaction may be averaged and the average price allocated among the clients 
participating in the transaction.

As of March 25, 1996, the officers and directors of the Fund, as a group, 
beneficially and of record owned, directly or indirectly,
approximately 31,293 shares of the Fund, representing approximately .69% of the 
Fund's outstanding shares.

                   Investment Advisor and Advisory Agreement

The Fund's investment advisor, Key Equity Management Corporation, a wholly-owned
subsidiary of Corbyn Investment Management, Inc., is located at 2330 West Joppa 
Road, Suite 108, Lutherville, Maryland 21093.  Key Equity was organized in
October, 1982 and does not have any operating history prior to July 1, 1983. 
Key Equity's sole business is to act as investment advisor to the Fund. 

Under an Investment Advisory Agreement dated February 28, 1986, which was most
recently approved by the shareholders of the Fund on May 8, 1990, the Advisor 
will furnish the Fund with investment research, advice and supervision and will 
continuously provide the Fund with an investment program consistent with 
policies adopted by the Fund and declared by its Board of Directors.
The Advisor will also supervise the Fund's relations with its custodian, 
auditors and federal and state regulatory bodies, will furnish the office space 
and all necessary office facilities, equipment and personnel for managing the 
investments of the Fund and maintaining its organization and will pay the 
salaries and fees of all executive officers and directors of the Fund and for 
all clerical services relating to the research oriented work of the Fund's 
investment portfolio. However, Corbyn has and may continue to furnish the 
office facilities, equipment and salaries as described above, through the 
Advisor, at no additional cost to the Fund.

In return for these services, the Fund will pay its Advisor a monthly fee, 
accrued daily, at an annual rate of .75% of the Fund's month-end net asset 
value. The advisory fee may be reduced to the extent that the Fund's annual 
expenses exceed, in any fiscal year, 1.50% of the average daily net assets up 
to $30,000,000 and 1% of the average daily net assets over $30,000,000.
Reimbursements of fees paid in excess of this limitation, if any, will be on a 
monthly basis.  For this purpose, expenses exclude taxes, brokerage fees and 
commissions and extraordinary expenses, as determined by the Advisor, such as 
litigation.

The investment advisory fees paid by the Fund, under the Investment Advisory
Agreement, which was in effect for the years 1993, 1994 and 1995 were $196,810, 
$307,474 and 494,166, respectively. At December 31, 1995, investment advisory 
fees payable to the Advisor amounted to $44,801.

The Agreement between the Advisor and the Fund remains in effect from year to 
year if such continuance is approved in the manner required by the 1940 Act and,
in respect to its continuance, if the Advisor does not notify the Fund at least 
60 days prior to the termination date or 60 days prior to such date in any year 
thereafter that it does not desire such continuance. Each year, the Agreement 
must be approved by a majority of the Board of Directors or by vote of the 
holders of a majority of the outstanding voting securities of the Fund. 
Additionally, the Agreement must be approved annually by a majority of the 
directors of the Fund who are not parties to the Agreement or "interested 
persons" of any such party (as defined in the 1940 Act) by votes
cast in person at a meeting called for this purpose. The Agreement was last 
approved on February 15, 1996, the date of the last annual Board of Directors 
meeting. The Agreement may be terminated at any time by the Board of Directors 
or by the vote of a majority of the outstanding voting securities of the Fund, 
without penalty, on 60-days written notice to the Advisor and will
terminate automatically in the event of its assignment.  

                      Portfolio Transactions and Brokerage

The Advisor recommends investment decisions for the Fund which are implemented 
by the Fund's officers. Consistent with the policies adopted by the Fund, the 
Advisor also selects the brokerage firms which complete securities transactions 
for the Fund. All decisions and selections are subject to review quarterly by 
the Fund's Board of Directors.

The initial criterion which is applied by the Advisor in selecting brokers and 
dealers to effect securities transactions for the Fund is whether brokers and 
dealers can obtain the most favorable combination of price and execution for 
the transactions. This does not mean that the Fund must base its execution 
decisions solely on whether the lowest possible commissions costs may be
obtained. The Advisor determines if the amount of commissions is reasonable in 
relation to the value of the brokerage and research services provided, viewed 
in the terms of either that particular transaction or the overall 
responsibilities to the Fund and that the services provided by a broker provide 
the Advisor with lawful and appropriate assistance in the performance of its
investment decision-making responsibilities. In seeking to achieve the best 
combination of price and execution, an effort is made to evaluate the overall 
quality and reliability of broker-dealers and the 
services they provide, including their general execution capabilities and 
financial condition.  

Commissions paid by the Fund will be compared to commissions known to be 
charged by other brokers on similar transactions in order to ascertain that 
commissions are within a reasonable range.  The Fund's policy that obtaining 
a low commission is secondary to obtaining a favorable security price will be 
taken into consideration since it is recognized that it is usually more
beneficial to the Fund to obtain a favorable price than to pay the lowest 
commission. The Advisor may pay a higher brokerage commission than may be 
charged by other brokers to brokers who provide quality, comprehensive and 
frequent research studies (such as investment and market research and securities
and economic analysis) to the Fund and its Advisor, which are useful in
performing the advisory activities under contract with the Fund.  There is no 
current arrangement to do so.

With respect to securities traded only on the over-the-counter market, orders 
are executed on a principal basis with primary market makers in such securities,
except when, in the opinion of the Advisor, the Fund may obtain better prices 
or executions on a commission basis.  Portfolio transactions placed through 
dealers serving as primary market makers are effected at net prices,
without commissions, but which include compensation in the form of mark up or 
mark down.

During 1995, all the Fund's brokerage commissions were paid to firms which 
provided the Fund's Advisor with research services.

For the years 1993, 1994, and 1995 the total brokerage commissions paid by the 
Fund were $79,770, $93,888 and 154,298, respectively. No officer or director of 
the Fund, nor any officer, director or shareholder of the Fund's Advisor, has 
any direct or indirect affiliation with any person employed as a broker by or on
behalf of the Fund.

             Purchase, Redemption and Pricing of the Fund's Shares

Net Asset Value Per Share

The Fund's shares of stock are purchased and redeemed at the Fund's current net 
asset value per share.  The Fund determines the net asset value per share by 
subtracting its liabilities (including accrued expenses and
dividends payable) from its total assets (the current market value of the 
securities the Fund holds plus cash or other assets, including interest accrued 
but not yet received) and dividing the result by the total number of shares 
outstanding.  Securities for which market quotations are not readily available 
will be valued at their fair value as determined under the supervision of the 
officers of the Fund, as authorized by the Board of Directors.  The net asset 
value per share is calculated as of the close of trading on the Exchange each 
day the Exchange is open for business.

The Fund's shares are offered for sale on a continuing basis at the current net 
asset value per share. Orders received by the Fund prior to the close of the New
York Stock Exchange (the "Exchange") on any day the Exchange is open for 
business will be valued at the net asset value per share effective at the close 
of the Exchange on that day. It is expected the Exchange will be closed
during 1996 on Saturdays and Sundays and on January 1 (New Year's Day), February
19 (President's Day), April 5 (Good Friday), May 27 (Memorial Day), July 4 
(Independence Day), September 2 (Labor Day), November 28 (Thanksgiving Day) 
and December 25 (Christmas Day), 1996. Orders received after the close of the 
Exchange will be valued at the net asset value computed on the
next business day. There is no sales charge included in the price of the shares.
All purchases and redemptions will be in full and fractional shares carried out 
to three decimal places.

The Fund expects to make all redemptions in cash.  For those shareholders for 
which it is applicable, the Fund reserves the right to honor any request for 
redemption by making a payment in whole or in part in the form of a pro rata 
distribution of the Fund's readily marketable securities.  These securities 
would be valued the same way the securities are valued in calculating the net 
asset value of the Fund.  The Fund is governed by Rule 18f-1 under the 
Investment Company Act of 1940.  Therefore, the Fund is obligated to redeem 
shares, with respect to one shareholder during any 90-day period,
solely in cash up to the lesser of $250,000 or 1% of the net asset value of 
the Fund at the beginning of the period.

Pricing of Securities Being Offered

Securities listed on a national securities exchange or the NASDAQ National 
Market System are valued at the last reported sales price on the exchange of 
major listings.  Securities which are traded principally in the
over-the-counter market, listed securities for which no sale was reported on 
the day of valuation, listed securities for which the last
reported sales price is not in the context of the highest closing bid price 
and the lowest closing offering price and listed securities
whose primary market is believed by the Advisor to be over-the-counter are 
valued at the mean of the closing bid and asked prices obtained from sources 
that the Advisor deems appropriate.

Short-term investments are valued at amortized cost which approximates fair 
market value.  The value of securities that either mature or have an announced 
call within 60 days will be amortized on a straightline basis from the market 
value one day preceding the beginning of the amortization period.

Securities for which market quotations are not readily available are valued 
at fair market value as determined in good faith by the Advisor as directed 
by the Board of Directors.

                                     Taxes

Set forth below is a brief summary of the Federal income tax consequences of an
investment in the Fund.  It is not intended to be a complete and detailed 
description of all possible tax consequences.  Investors should consult their 
own tax advisors for more complete information.

The Fund intends to qualify each year as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986 ("the Code") as amended. To 
qualify as a regulated investment company, the Fund, among other things, must 
(a) diversify its holdings so that at the end of each fiscal quarter (i) at 
least 50% of the value of its total assets is represented by cash and cash
items (including receivables), Government securities, securities of other 
regulated investment companies and other securities generally limited, in 
respect of any one issuer, to an amount not greater than 5% of the total assets 
of the Fund taken at market value and to not more than 10% of the outstanding 
voting securities of such issuer and (ii) not more than 25% of the value of
its total assets is invested in the securities (other than Government securities
or securities of other regulated investment companies) of any one issuer; 
(b) derive at least 90% of its gross income from dividends, interest, payments 
with respect to securities loans, gains from the sale or other disposition of 
stock or securities or foreign currencies or other income derived with respect 
to the Fund's business of investing in such stock, securities or currencies; 
and (c) derive less than 30% of its gross income from the sale or other 
disposition of stock, securities and certain options, futures or forward 
contracts or certain foreign currencies held less than three months.

If the Fund qualifies as a regulated investment company, and provided that at 
least 90% of its investment company taxable income earned in the taxable year 
(computed without regard to the deduction for dividends paid) and at least 90% 
of its net interest income earned in the taxable year is distributed to its 
shareholders, the Fund, in computing its investment company taxable income
and the amount of its net capital gain subject to tax, will be entitled to a 
dividends-paid deduction for the ordinary dividends and capital gains 
distributions that it distributes to shareholders during the taxable year.  
In addition, in each calendar year, the Fund is required to distribute the 
sum of 98% of the ordinary income earned in such calendar year, 98% of the 
capital gain net income earned in the 12-month period ending October 31 and 
any undistributed ordinary income and undistributed capital gain net income
from the prior year or the Fund will be subject to a non-deductible 4% excise 
tax on the undistributed amount. For purposes of this excise tax, amounts on 
which the Fund pays income tax are treated as distributed. 

Dividends from the Fund may be ordinary income dividends or capital gains 
dividends and such dividends will be includable in the income of the 
shareholders whether received in cash or reinvested in shares of the Fund. 
The characterization of a dividend as a capital gain dividend will be designated
in a notice mailed to shareholders. Capital gains distributions are taxable to
shareholders as long term capital gains, regardless of how long the shares of 
the Fund have been held. Stockholders may also be required to include in income
a designated portion of the Fund's undistributed net capital gain, but will 
be entitled to a credit for tax on such amount that was paid by the Fund and 
to an increase in the basis of their shares for 65% of the amount included in 
income.  All or a portion of distributions received by corporate shareholders of
the Fund may not qualify for the dividends-received deduction depending, among 
other things, upon the amount of dividend income received by the Fund.  
Distributions from the Fund in excess of the Fund's current and accumulated 
earnings and profits will not be treated as a dividend. Instead, such 
distribution will be a non-taxable return of capital applied first to reduce 
the shareholder's adjusted basis in his shares, and to the extent that such 
distribution exceeds the shareholder's adjusted basis, the excess will be 
treated as a gain from the sale of the shares. For 1995, the Fund made the 
following distributions:

                    Ordinary Dividends Per Share $.68
                    Short-Term Capital Gains Distribution Per Share $.07        
                    Long-Term Capital Gains Distribution Per Share $.07     

Assuming the shares are a capital asset, any gain or loss realized upon a sale 
or redemption of shares by a shareholder will be treated as long-term a capital 
gain or loss if the shares have been held for more than one year.  Otherwise, 
the sale will be treated as a short-term capital gain or loss, except that 
any loss realized by a shareholder upon the sale of shares will be treated as a 
long-term capital loss to the extent of any capital gain distributions received 
by the shareholder plus any undistributed net capital gain which he has included
in income.

Dividends and distributions are generally taxable to shareholders in the year in
which received.  Dividends declared by the Fund in October, November or December
of a calendar year, but paid during January of the following calendar year, 
will be treated as received by shareholders on December 31.

                                   Custodian

Wilmington Trust Company, whose address is Rodney Square North, 1100 North 
Market Street, Wilmington, DE 19890-0001, acts as custodian for the Fund's 
investments. Wilmington Trust Company does not have any part in determining 
the investment policies of the Fund.
                                        
                                 Legal Counsel

The law firm of De Martino Finkelstein Rosen & Virga, whose address is 1818 N 
Street, N.W., Suite 400, Washington, D.C. 20036, serves as outside legal counsel
for the Fund.

                            Independent Accountants

Coopers & Lybrand L.L.P., Certified Public Accountants, whose address is 217 
East Redwood Street, Baltimore, Maryland 21202, has been retained as the 
independent accountants to the Fund.  The financial statements of the Fund for 
the year ended December 31, 1995 and the report ofindependent accountants are 
included in the Fund's Annual Report for the fiscal year ended December 31, 
1995, which is incorporated by reference into this Statement of Additional 
Information.


 
                                     PART C
                               OTHER INFORMATION

Item 24.  Financial Statements and Exhibits

     (a)  Part A:
          Financial Highlights Table for the Years Ended December 31, 1995; 
          1994; 1993; 1992; 1991; 1990; 1989; 1988; 1987; and 1986.

          Part B:

          The following financial statements are incorporated by reference from 
          the Registrant's Annual Report to Shareholders dated December 31, 
          1995:

          Portfolio of Investments, December 31, 1995
          Statement of Assets and Liabilities, December 31, 1995
          Statement of Operations for the Year Ended December 31, 1995
          Statement of Changes in Net Assets for the Years Ended December 31, 
          1995 and 1994
          Notes to Financial Statements, December 31, 1995
          Financial Highlights Table For the Years Ended December 31, 1995; 
          1994; 1993; 1992; and 1991
          Report of Independent Accountants
          Performance Since Inception

     (b)  Exhibits:

Exhibit
Number                                                      Description         
                 
 
    1(a)  Copy of the Articles of Incorporation of Registrant - Copy of the 
          Articles of Incorporation of the Registrant was filed
          as Exhibit 1 to the Registrant's Registration Statement on Form N-1 
          (File No. 2-81956 and 811-3627) on February 11, 1983, which is hereby 
          incorporated by reference. 

     (b)  Copy of the amendment to the Articles of Incorporation of Registrant -
          Copy of the amendment to the Articles of Incorporation of Registrant, 
          dated May 8, 1990, was filed as Exhibit 1 (a) to the Registrant's 
          Post-Effective Amendment No. 12 (File No. 2-81956 and 811-3627) on 
          April 29, 1992, which is hereby incorporated by reference.

    2(a)  Copy of the By-laws of the Registrant - Copy of the By-laws of the 
          Registrant was filed as Exhibit 2 to the Registrant's Registration 
          Statement on Form N-1 (File No. 2-81956 and 811-3627) on February 11, 
          1983, which is hereby incorporated by reference.

     (b)  Copy of the amendment to the By-Laws of Registrant - Copy of the 
          amendment to the By-Laws, dated May 8, 1990, was filed as Exhibit 2
          (b) to the Registrant's Post-Effective Amendment No. 12 (File No. 
          2-81956 and 811-3627) on April 29, 1992, which is hereby incorporated 
          by reference.

    3     Not Applicable (Copy of the voting trust agreement)

    4     Specimen certificate for shares of common stock of the Registrant was 
          filed as Exhibit 4 to the Registrant's Registration Statement on Form 
          N-1 (File No. 2-81956 and 811-3627) on February 11, 1983, which is 
          hereby incorporated by reference. 

    5     Copy of the Investment Advisory Agreement - Copy of the Investment 
          Advisory Agreement was filed as Exhibit 5 to the Registrant's 
          Post-Effective Amendment No. 5 (File No. 2-81956 and 811-3627) on 
          May 16, 1986, which is hereby incorporated by reference.    
     
    6     Not Applicable (Copy of the underwriting or distribution contract)

    7     Not Applicable (Copy of all bonus, profit sharing or similar contacts)

    8(a)  Copy of the Custodial Agreement of the Registrant - Copy of the 
          Custodial Agreement of the Registrant, dated October 1, 1994, was 
          filed as Exhibit 8(a) to the Registrant's Post-Effective Amendment 
          No. 17 (File No. 2-81956 and 811-3627) on March 29, 1995.        

    8(b)  Copy of the Custodial Fees (schedule of remuneration) of the 
          Registrant - Copy of the Custodial Fees (schedule of remuneration), 
          dated October 1, 1994, was filed as Exhibit 8(b) to the Registrant's 
          Post-Effective Amendment No. 17 (File No. 2-81956 and 811-3627) on 
          March 29, 1995.        
     
    9(a)  Copy of the Charles Schwab Operating Agreement - Copy of the Charles
          Schwab Operating Agreement, dated September 14, 1993, was filed as 
          Exhibit 9 to the Registrant's Post-Effective Amendment No. 16 
          (File No. 2-81956 and 811-3627) on March 31, 1994, which is hereby 
          incorporated by reference.

    9(b)  Copy of the Transfer Agent Agreement of the Registrant - Copy of the 
          Transfer Agent Agreement of the Registrant, dated October 1, 1994, 
          was filed as Exhibit 9(b) to the Registrant's Post-Effective 
          Amendment No. 17 (File No. 2-81956 and 811-3627) on March 29, 1995.

   10     An Opinion and Consent of Counsel was filed with Form 24f-2 on 
          February 26, 1996.  

   11     Copies of the Independent Certified Public Accountants' Opinions and
          Statements of Consent - the Opinions and Statements of Consent of 
          Coopers & Lybrand L.L.P., dated January 19, 1996 and April 24, 1996, 
          respectively, and Arthur F. Bell, Jr. and Associates, dated January 
          30, 1992 and April 11, 1996, respectively, are attached as
          Exhibit 11 to the Registrant's Post-Effective Amendment No. 18 (File 
          No. 2-81956 and 811-3627) as filed on April 30, 1996. 

   12     Not Applicable (Copy of financial statements omitted from Item 23)

   13     Copies of agreements of Registrant providing the initial capital of 
          $100,000.00 - Copies of agreements of Registrant's providing the 
          initial capital was filed as Exhibit 13 to the Registrant's 
          Registration Statement of Form N-1 (File No. 2-81956 and 811-3627) 
          on April 30, 1983, which is hereby incorporated by reference.    

   14     Copy of model plan used in establishing a retirement plan - Copy of 
          model plan used in establishing a retirement plan was filed as Exhibit
          14 to the Registrant's Post-Effective Amendment No. 3 (File No. 
          2-81956 and 811-3627) on February 6, 1985, which is hereby 
          incorporated by reference.

   15     Not Applicable (Copy of any plan entered into describing the financing
          and distribution of the Registrant's shares).

   16     Copy of Schedule of Computation of Performance of Registrant - Copy of
          the Schedule of Computation of the Registrant was filed as Exhibit 16 
          to the Registrant's Post-Effective Amendment No. 9 (File No. 2-81956 
          and 811-3627) on May 10, 1989, which is hereby incorporated by 
          reference.
                                        
   17     Copy of a Financial Data Schedule - A copy of a Financial Data 
          Schedule is being filed as Exhibit 17 to the Registrant's
          Post-Effective Amendment No. 18 (File No. 2-81956 and 811-3627) on  
          April 30, 1996.

Item 25.  Persons Controlled by or Under Common Control with  Registrant

Charles vK. Carlson is President of Corbyn Investment Management, Inc. and 
Messrs. Godack, Hynson, Trump and Fusting and Karla Moore are Managing Directors
of Corbyn Investment Management, Inc. Messrs. Carlson, Godack, Trump and Fusting
are also directors of Key Equity Management Corporation.  Corbyn Investment
Management, Inc. owns 100% of the total outstanding stock of Key Equity 
Management Corporation.  As of the date of this filing, approximately 24% of 
the Fund's outstanding stock was owned by various private counsel clients of 
Corbyn Investment Management, Inc., as to which Corbyn Investment
Management, Inc. has discretionary authority.  See the response to Item 28 below
for further information regarding Key Equity Management Corporation.            


Item 26.  Number of Holders of Securities

As of March 29, 1996, the number of record holders of each class of securities 
of the Registrant was as follows: 

                            Title of Class             Number of Record Holders 
                    Common Stock (par value                2,713                
                              $.01 per share)          

Item 27.  Indemnification

Under the terms of the Registrant's Articles of Incorporation and By-Laws, the 
registrant may indemnify any person to the extent permitted by law.

Section 2-418 of the Maryland General Corporation Law generally provides that
corporations may indemnify officers and directors, including indemnification for
judgments, fines, settlement amounts and reasonable expenses actually incurred, 
if the officer or director acted in good faith.  However, if the proceeding is 
one by or in the right of the corporation, indemnification may be made
only against reasonable expenses and may not be made in respect of any 
proceeding in which the director shall have been adjudged to be liable to the 
corporation.  The statute provides that the termination of any proceeding by 
judgment, order, settlement, conviction, or upon a plea of nolo contendere or 
its equivalent creates a rebuttable presumption that the director did
not meet the requisite standard of good faith.  This statute also provides that 
the corporation may maintain insurance on behalf of directors, officers, 
employees and agents for liabilities arising out of such persons' actions on 
behalf of the corporation in good faith.

Insofar as indemnification for liability arising under the Securities Act of 
1933 may be permitted to directors, officers and controlling persons of the 
Registrant pursuant to the foregoing provisions or otherwise, the Registrant 
has been advised that in the opinion of the Securities and Exchange Commission 
such indemnification is against public policy as expressed in the Act and
is, therefore, unenforceable.  In the event that a claim for indemnification 
against such liabilities (other than the payment by the Registrant of expenses 
incurred or paid by a director, officer or controlling person of the Registrant 
in the successful defense of any action, suit or proceeding) is asserted by 
such director, officer or controlling person in connection with the securities 
being registered, the Registrant will, unless if in the opinion of its counsel, 
the matter has been settled by a controlling precedent, submit to a court of 
appropriate jurisdiction the question whether such indemnification by it is 
against public policy as expressed in the Act and will be governed by the 
final adjudication of such issue.
                                        
Item 28.  Business and Other Connections of Investment Advisor

Key Equity Management Corporation (the "Advisor") was incorporated on October 
21, 1982 to act in the capacity of investment advisor to the Fund.  As stated 
in the Fund's Statement of Additional Information, officers and directors of the
Advisor are also directors of the Fund and Corbyn Investment Management.  
Corbyn Investment Management is a registered investment advisor
with its principal business address as 2330 West Joppa Road, Suite 108, 
Lutherville, Maryland 21093.     

Set forth below is a list of each officer and director of the Advisor indicating
each business, profession, vocation or employment of a substantial nature in 
which each such person is engaged:

Charles vK. Carlson

President and Director of Key Equity Management Corporation; President and
Chairman of the Board of Directors of Greenspring Fund, Inc; President of 
Corbyn Investment Management, Inc.

Michael Timothy Godack

Vice-President and Director of Key Equity Management Corporation; Senior
Vice-President, Secretary, and Director of the Greenspring Fund, Inc.; 
Managing Director of Corbyn Investment Management, Inc.

Michael J. Fusting

Vice-President, Treasurer, and Director of Key Equity Management Corporation;
Vice-President, Treasurer and Director of the Greenspring Fund, Inc.; 
Managing Director of Corbyn Investment Management, Inc.

David Allen Trump

Vice President and Director of Key Equity Management Corporation; Managing
Director of Corbyn Investment Management, Inc.

Karla Keller Moore

Secretary and Director of Key Equity Management Corporation; Managing Director 
and Secretary of Corbyn Investment Management, Inc.                        

Item 29.  Principal Underwriters

The Registrant does not have any principal underwriter of its shares.

Item 30.  Location of Accounts and Records:

(a)  With respect to the required books and records to be maintained by the 
Registrant's Custodian under Section 31(a) of the 1940 Act, the address is:

               Wilmington Trust Corporation
               Wilmington Trust Center
               Rodney Square North
               1100 North Market Street
               Wilmington, DE 19890-0001

(b)  With respect to the required books and records to be maintained by the 
Registrant's Transfer Agent under Section 31(a) of the 1940 Act, the address is:

               Rodney Square Management Corporation
               1105 North Market Street, 3rd Floor
               Wilmington, DE 19890                              


(c)  With respect to all other required books and records to be maintained by 
the Registrant at its principal office and the Registrant's Investment Advisor 
under Section 31(a) of the 1940 Act, the person maintaining physical possession 
and the address are:

               Michael T. Godack
               Greenspring Fund, Incorporated
               2330 West Joppa Road, Suite 110
               Lutherville, Maryland 21093

Item 31.  Management Services

The Registrant is not a party to any management-related service contract.  

Item 32.  Undertakings

Not Applicable<PAGE>
           

                                Signatures

Pursuant to the requirements of the Securities Act of 1933 and the Investment 
Company Act of 1940, the Registrant certifies that it meets all the requirements
for effectiveness of this Registration Statement pursuant to the Rule 485(b) 
under the  Securities Act of 1933 and has duly caused this Post-Effective 
Amendment No. 18 to be signed on its behalf by the undersigned, thereto duly
authorized, in the County of Baltimore and State of Maryland on the 18th day of 
April, 1996.

                              Greenspring Fund, Incorporated

                              By:  S/Charles vK. Carlson   
                                   Charles vK. Carlson, President

Pursuant to the requirements of the Securities Act of 1933, this Registration 
Statement has been signed below by the following persons in the capacities and 
on the date indicated.

          Signature                     Title                         Date    


S/Charles vK. Carlson     President and Chairman of the Board    April 18, 1996 
Charles vK. Carlson         (Principal Executive Officer)


S/Michael T. Godack        Senior Vice President, Secretary
Michael T. Godack           and Director


S/Michael J. Fusting       Vice-President, Treasurer
Michael J. Fusting          and Director (Principal 
                            Financial Officer)


S/Richard Hynson, Jr.      Director                      
Richard Hynson, Jr.


S/David T. Fu              Director
David T. Fu


S/William E. Carlson       Director       
William E. Carlson<PAGE>
                               



                                   EXHIBIT 11


                                 COPIES OF THE


                   INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS'

                                    OPINIONS

                                      AND

                             STATEMENTS OF CONSENT<PAGE>
                             





                                   Signatures

Pursuant to the requirements of the Securities Act of 1933 and the Investment 
Company Act of 1940, the Registrant certifies that it meets all the requirements
for effectiveness of this Registration Statement pursuant to the Rule 485(b) 
under the  Securities Act of 1933 and has duly caused this Post-Effective 
Amendment No. 18 to be signed on its behalf by the undersigned, thereto duly 
authorized, in the County of Baltimore and State of Maryland on the 18th day 
of April, 1996.

                         Greenspring Fund, Incorporated

                         By: S/Charles vK. Carlson                              
                             Charles vK. Carlson, President

Pursuant to the requirements of the Securities Act of 1933, this Registration 
Statement has been signed below by the following persons in the capacities 
and on the date indicated.

Signature                                Title                           Date   


              
                          President and Chairman of the Board    April 18, 1996
S/Charles vK. Carlson      (Principal Executive Officer)
Charles vK. Carlson                         


S/Michael T. Godack       Senior Vice President, 
Michael T. Godack           Secretary and Director


S/Michael J. Fusting      Vice-President, Treasurer
Michael J. Fusting          and Director (Principal    
                            Financial Officer)


S/Richard Hynson, Jr.     Director                      
Richard Hynson, Jr.


S/David T. Fu             Director
David T. Fu                              


S/William E. Carlson      Director
William E. Carlson<PAGE>
   



                                   EXHIBIT 17


                                   COPY OF THE 


                              FINANCIAL DATA SCHEDULE
<PAGE>
















<TABLE> <S> <C>

       
<ARTICLE> 6
<RESTATED> 
<CIK> 0000711322
<NAME> GREENSPRING FUND, INCORPORATED
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             JAN-01-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                       63,679,999
<INVESTMENTS-AT-VALUE>                      71,495,024
<RECEIVABLES>                                1,110,726
<ASSETS-OTHER>                                     701
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              72,606,451
<PAYABLE-FOR-SECURITIES>                       495,985
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      271,371
<TOTAL-LIABILITIES>                            767,356
<SENIOR-EQUITY>                                 47,744
<PAID-IN-CAPITAL-COMMON>                    64,353,353
<SHARES-COMMON-STOCK>                        4,774,378
<SHARES-COMMON-PRIOR>                        3,759,434
<ACCUMULATED-NII-CURRENT>                      109,378
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                       486,405
<ACCUM-APPREC-OR-DEPREC>                     7,815,025
<NET-ASSETS>                                71,839,095
<DIVIDEND-INCOME>                            1,210,291
<INTEREST-INCOME>                            2,718,489
<OTHER-INCOME>                                  13,564
<EXPENSES-NET>                                 693,136
<NET-INVESTMENT-INCOME>                      3,249,208
<REALIZED-GAINS-CURRENT>                     (127,537)
<APPREC-INCREASE-CURRENT>                    7,706,761
<NET-CHANGE-FROM-OPS>                       10,828,432
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (3,139,831)
<DISTRIBUTIONS-OF-GAINS>                     (289,108)
<DISTRIBUTIONS-OTHER>                        (358,868)
<NUMBER-OF-SHARES-SOLD>                      1,664,602
<NUMBER-OF-SHARES-REDEEMED>                    881,936
<SHARES-REINVESTED>                            232,278
<NET-CHANGE-IN-ASSETS>                      21,516,881
<ACCUMULATED-NII-PRIOR>                        289,108
<ACCUMULATED-GAINS-PRIOR>                      108,264
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          494,166
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                693,136
<AVERAGE-NET-ASSETS>                        65,340,177
<PER-SHARE-NAV-BEGIN>                            13.39
<PER-SHARE-NII>                                    .70
<PER-SHARE-GAIN-APPREC>                           1.78
<PER-SHARE-DIVIDEND>                             (.68)
<PER-SHARE-DISTRIBUTIONS>                        (.14)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              15.05
<EXPENSE-RATIO>                                   1.06
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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