<PAGE> PAGE 1
000 B000000 03/31/99
000 C000000 0000072699
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 Y
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 IAI INVESTMENT FUND VII
001 B000000 811-2147
001 C000000 6123762600
002 A000000 3700 FIRST BANK PLACE, 601 2ND AVE SOUTH
002 B000000 MINNEAPOLIS
002 C000000 MN
002 D010000 55402
002 D020000 4327
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 IAI GROWTH & INCOME FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 INVESTMENT ADVISERS, INC.
008 B00AA01 A
008 C00AA01 801-3784
008 D01AA01 MINNEAPOLIS
008 D02AA01 MN
008 D03AA01 55402
008 D04AA01 4327
010 A00AA01 INVESTMENT ADVISERS, INC.
010 B00AA01 8013784
010 C01AA01 MINNEAPOLIS
010 C02AA01 MN
010 C03AA01 55402
010 C04AA01 4327
011 A00AA01 INVESTMENT ADVISERS, INC.
011 B00AA01 8-013784
011 C01AA01 MINNEAPOLIS
<PAGE> PAGE 2
011 C02AA01 MN
011 C03AA01 55402
011 C04AA01 4327
012 A00AA01 INVESTMENT ADVISERS, INC.
012 B00AA01 84-1664
012 C01AA01 MINNEAPOLIS
012 C02AA01 MN
012 C03AA01 55402
012 C04AA01 4327
013 A00AA01 KPMG PEAT MARWICK, LLP
013 B01AA01 MINNEAPOLIS
013 B02AA01 MN
013 B03AA01 55402
015 A00AA01 NORWEST BANK MINNESOTA, N.A.
015 B00AA01 C
015 C01AA01 MINNEAPOLIS
015 C02AA01 MN
015 C03AA01 55479
015 C04AA01 0065
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 15
019 C00AA00 INVESTADVS
020 A000001 POSIT INVESTMENT TECHNOLOGY GROUP
020 C000001 6
020 A000002 EXECUTION SERVICES
020 B000002 13-3747159
020 C000002 5
020 A000003 SALOMON BROTHERS
020 B000003 13-3082694
020 C000003 5
020 A000004 ALEX BROWN
020 B000004 52-1319768
020 C000004 5
020 A000005 FIDELITY BROKERAGE
020 B000005 04-2653569
020 C000005 3
020 A000006 DAIN BOSWORTH
020 B000006 41-0212020
020 C000006 2
020 A000007 GOLDMAN SACHS & CO
020 B000007 13-5108880
020 C000007 2
020 A000008 S&P SECURITIES
020 B000008 13-2671951
020 C000008 2
020 A000009 ROBINSON HUMPHREY
020 B000009 58-1472560
020 C000009 1
020 A000010 BLAIR, WM
<PAGE> PAGE 3
020 B000010 36-2214610
020 C000010 1
021 000000 39
022 A000001 GE CAPITAL
022 C000001 377446
022 D000001 0
022 A000002 ASSOCIATES
022 C000002 337651
022 D000002 0
022 A000003 MERRILL LYNCH
022 B000003 13-5674085
022 C000003 112182
022 D000003 0
022 A000004 GOLDMAN SACHS & CO
022 B000004 13-5108880
022 C000004 43616
022 D000004 112
022 A000005 SALOMON BROTHERS
022 B000005 13-3082694
022 C000005 13297
022 D000005 55
022 A000006 LEHMAN BROTHERS
022 B000006 13-2518466
022 C000006 4268
022 D000006 0
022 A000007 WHEAT 1ST SECURITIES
022 B000007 54-0796506
022 C000007 1023
022 D000007 70
022 A000008 MCDONALD & CO
022 B000008 34-0642435
022 C000008 0
022 D000008 895
022 A000009 TROSTER
022 B000009 13-5515160
022 C000009 0
022 D000009 598
022 A000010 COWEN
022 B000010 13-5616116
022 C000010 0
022 D000010 250
023 C000000 889627
023 D000000 2742
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
<PAGE> PAGE 4
025 D00AA08 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 N
041 00AA00 N
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 Y
053 B00AA00 Y
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 Y
054 E00AA00 Y
054 F00AA00 Y
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 Y
054 J00AA00 Y
054 K00AA00 Y
054 L00AA00 Y
054 M00AA00 Y
054 N00AA00 Y
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
<PAGE> PAGE 5
061 00AA00 5000
077 A000000 Y
077 B000000 Y
077 Q010000 Y
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 5000
081 A00AA00 Y
081 B00AA00 21
082 A00AA00 Y
082 B00AA00 75
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
028 A010100 697
028 A020100 0
028 A030100 0
028 A040100 6012
028 B010100 779
028 B020100 0
028 B030100 0
028 B040100 3389
028 C010100 1170
028 C020100 11288
028 C030100 0
028 C040100 9294
028 D010100 1373
028 D020100 0
028 D030100 0
028 D040100 9019
028 E010100 439
028 E020100 0
028 E030100 0
028 E040100 5026
028 F010100 917
028 F020100 0
<PAGE> PAGE 6
028 F030100 0
028 F040100 2876
028 G010100 5375
028 G020100 11288
028 G030100 0
028 G040100 35616
028 H000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 0
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 0
044 000100 0
045 000100 Y
046 000100 N
047 000100 Y
048 000100 0.000
048 A010100 100000
048 A020100 1.250
048 B010100 150000
048 B020100 1.150
048 C010100 250000
048 C020100 1.050
048 D010100 0
048 D020100 0.000
048 E010100 0
048 E020100 0.000
048 F010100 0
048 F020100 0.000
048 G010100 0
048 G020100 0.000
048 H010100 0
048 H020100 0.000
048 I010100 0
048 I020100 0.000
048 J010100 0
048 J020100 0.000
048 K010100 500000
048 K020100 1.000
055 A000100 N
055 B000100 Y
056 000100 Y
057 000100 N
062 A000100 N
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
<PAGE> PAGE 7
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 0.0
066 A000100 Y
066 B000100 N
066 C000100 N
066 D000100 N
066 E000100 Y
066 F000100 N
066 G000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 N
070 A010100 Y
070 A020100 N
070 B010100 Y
070 B020100 N
070 C010100 Y
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 Y
070 K010100 Y
070 K020100 Y
070 L010100 Y
070 L020100 Y
<PAGE> PAGE 8
070 M010100 Y
070 M020100 Y
070 N010100 Y
070 N020100 N
070 O010100 N
070 O020100 N
070 P010100 Y
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 46065
071 B000100 91166
071 C000100 69653
071 D000100 66
072 A000100 12
072 B000100 278
072 C000100 772
072 D000100 0
072 E000100 0
072 F000100 942
072 G000100 0
072 H000100 0
072 I000100 0
072 J000100 0
072 K000100 0
072 L000100 0
072 M000100 19
072 N000100 0
072 O000100 0
072 P000100 6
072 Q000100 0
072 R000100 0
072 S000100 0
072 T000100 0
072 U000100 0
072 V000100 0
072 W000100 0
072 X000100 967
072 Y000100 19
072 Z000100 102
072AA000100 31993
072BB000100 5749
072CC010100 0
072CC020100 26792
072DD010100 95
072DD020100 0
072EE000100 22992
073 A010100 0.0233
073 A020100 0.0000
<PAGE> PAGE 9
073 B000100 5.3589
073 C000100 0.0000
074 A000100 122
074 B000100 0
074 C000100 4700
074 D000100 0
074 E000100 0
074 F000100 42742
074 G000100 0
074 H000100 0
074 I000100 4270
074 J000100 274
074 K000100 0
074 L000100 60
074 M000100 53
074 N000100 52221
074 O000100 0
074 P000100 0
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 1
074 S000100 0
074 T000100 52220
074 U010100 3590
074 U020100 0
074 V010100 14.55
074 V020100 0.00
074 W000100 0.0000
074 X000100 2148
074 Y000100 0
075 A000100 0
075 B000100 75342
076 000100 0.00
SIGNATURE JILL STEVENSON
TITLE MANAGER MUTUAL FUNDS
Independent Auditors' Report on Internal
Accounting Control
The Board of Directors and Shareholders
IAI Investment Funds VII, Inc.:
In planning and performing our audit of
the financial statements of IAI Growth and
Income Fund (a separate portfolio of IAI
Investment Funds VII, Inc.) for the year
ended March 31, 1999, we considered its
internal control, including control
activities for safeguarding securities, in
order to determine our auditing procedures
for the purpose of expressing our opinion
on the financial statements and to comply
with the requirements of Form N-SAR, not
to provide assurance on internal control.
The management of the IAI Investment Funds
VII, Inc. is responsible for establishing
and maintaining internal control. In
fulfilling this responsibility, estimates
and judgments by management are required
to assess the expected benefits and
related costs of controls. Generally,
controls that are relevant to an audit
pertain to the entity's objective of
preparing financial statements for
external purposes that are fairly
presented in conformity with generally
accepted accounting principles. Those
controls include the safeguarding of
assets against unauthorized acquisition,
use, or disposition.
Because of inherent limitations in
internal control, error or fraud may occur
and not be detected. Also, projection of
any evaluation of internal control to
future periods is subject to the risk that
it may become inadequate because of
changes in conditions or that the
effectiveness of the design and operation
may deteriorate.
Our consideration of internal control
would not necessarily disclose all matters
in internal control that might be material
weaknesses under standards established by
the American Institute of Certified Public
Accountants. A material weakness is a
condition in which the design or operation
of one or more of the internal control
components does not reduce to a relatively
low level the risk that misstatements
caused by error or fraud in amounts that
would be material in relation to the
financial statements being audited may
occur and not be detected within a timely
period by employees in the normal course
of performing their assigned functions.
However, we noted no matters involving
internal control and its operation,
including controls for safeguarding
securities, that we consider to be
material weaknesses as defined above as of
March 31, 1999.
This report is intended solely for the
information and use of management, the
Board of Directors, and the Securities and
Exchange Commission and is not intended to
be and should not be used by anyone other
than these specified parties.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
May 14, 1999
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 01
<NAME> IAI GROWTH AND INCOME FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 45361
<INVESTMENTS-AT-VALUE> 51712
<RECEIVABLES> 334
<ASSETS-OTHER> 175
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 52221
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1
<TOTAL-LIABILITIES> 1
<SENIOR-EQUITY> 36
<PAID-IN-CAPITAL-COMMON> 32663
<SHARES-COMMON-STOCK> 3590
<SHARES-COMMON-PRIOR> 4905
<ACCUMULATED-NII-CURRENT> 571
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12600
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6351
<NET-ASSETS> 52220
<DIVIDEND-INCOME> 772
<INTEREST-INCOME> 278
<OTHER-INCOME> 0
<EXPENSES-NET> 948
<NET-INVESTMENT-INCOME> 102
<REALIZED-GAINS-CURRENT> 26244
<APPREC-INCREASE-CURRENT> (26792)
<NET-CHANGE-FROM-OPS> (446)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 95
<DISTRIBUTIONS-OF-GAINS> 22992
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 862
<NUMBER-OF-SHARES-REDEEMED> 3602
<SHARES-REINVESTED> 1425
<NET-CHANGE-IN-ASSETS> (44534)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 9912
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 942
<INTEREST-EXPENSE> 6
<GROSS-EXPENSE> 967
<AVERAGE-NET-ASSETS> 75342
<PER-SHARE-NAV-BEGIN> 19.72
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> .02
<PER-SHARE-DISTRIBUTIONS> 5.36
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.55
<EXPENSE-RATIO> 1.26
</TABLE>
