<PAGE> PAGE 1
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000 C000000 0000757440
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002 D020000 2555
003 000000 N
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007 C010700 7
007 C020700 EVERGREEN BALANCED FUND
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011 A00AA01 EVERGREEN KEYSTONE DISTRIBUTOR, INC.
011 B00AA01 8-46906
011 C01AA01 FALLS RIVER
011 C02AA01 NJ
011 C03AA01 00000
013 A00AA01 KPMG PEAT MARWICK LLP
013 B01AA01 BOSTONURGH
013 B02AA01 MA
013 B03AA01 02110
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 78
019 C00AA00 EVERGREENS
020 A000001 SALOMON BROTHERS INC.
<PAGE> PAGE 2
020 B000001 13-3082694
020 C000001 29
020 A000002 GOLDMAN SACHS
020 B000002 1351088808
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020 A000003 LEHMAN BROTHERS, INC.
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020 C000003 26
020 A000004 BOSTON INSTITUTIONAL SERVICES
020 B000004 04-2479358
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020 A000005 PAINE WEBBER INC.
020 B000005 13-2638166
020 C000005 20
020 A000006 BONALDSON, LUFKIN & JENRETTE SECS. CORP.
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020 C000006 19
020 A000007 ESI SECURITIES
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020 C000007 13
020 A000008 PRUDENTIAL SECURITIES INC.
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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SIGNATURE JOHN J. PILEGGI
TITLE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN BALANCED FUND CLASS A
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 803,831,536
<INVESTMENTS-AT-VALUE> 905,659,177
<RECEIVABLES> 16,356,436
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<SHARES-COMMON-PRIOR> 3,333,437
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<OVERDISTRIBUTION-NII> 0
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 101,827,641
<NET-ASSETS> 41,429,056
<DIVIDEND-INCOME> 3,035,556
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<EXPENSES-NET> 1,899,974
<NET-INVESTMENT-INCOME> 8,751,104
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<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 82,428
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN BALANCED FUND CLASS B
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 803,831,536
<INVESTMENTS-AT-VALUE> 905,659,177
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<SHARES-COMMON-PRIOR> 8,453,724
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<ACCUMULATED-NET-GAINS> 56,897,422
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 101,827,641
<NET-ASSETS> 107,347,482
<DIVIDEND-INCOME> 3,035,556
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<EXPENSES-NET> 1,899,974
<NET-INVESTMENT-INCOME> 8,751,104
<REALIZED-GAINS-CURRENT> 56,839,210
<APPREC-INCREASE-CURRENT> (62,291,441)
<NET-CHANGE-FROM-OPS> 3,298,873
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<DISTRIBUTIONS-OF-INCOME> (786,903)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 165,348
<NUMBER-OF-SHARES-REDEEMED> (341,159)
<SHARES-REINVESTED> 56,925
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<ACCUMULATED-NII-PRIOR> 115,118
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<GROSS-EXPENSE> 1,899,974
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<PER-SHARE-NAV-BEGIN> 12.96
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<PER-SHARE-GAIN-APPREC> (0.07)
<PER-SHARE-DIVIDEND> (0.10)
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN BALANCED FUND CLASS C
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 803,831,536
<INVESTMENTS-AT-VALUE> 905,659,177
<RECEIVABLES> 16,356,436
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 922,063,160
<PAYABLE-FOR-SECURITIES> 2,659,900
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,527,057
<TOTAL-LIABILITIES> 5,186,957
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 757,904,605
<SHARES-COMMON-STOCK> 27,591
<SHARES-COMMON-PRIOR> 27,541
<ACCUMULATED-NII-CURRENT> 246,535
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 56,897,422
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 101,827,641
<NET-ASSETS> 353,161
<DIVIDEND-INCOME> 3,035,556
<INTEREST-INCOME> 7,615,522
<OTHER-INCOME> 0
<EXPENSES-NET> 1,899,974
<NET-INVESTMENT-INCOME> 8,751,104
<REALIZED-GAINS-CURRENT> 56,839,210
<APPREC-INCREASE-CURRENT> (62,291,441)
<NET-CHANGE-FROM-OPS> 3,298,873
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,467)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,813
<NUMBER-OF-SHARES-REDEEMED> (3,891)
<SHARES-REINVESTED> 128
<NET-CHANGE-IN-ASSETS> (14,880,064)
<ACCUMULATED-NII-PRIOR> 115,118
<ACCUMULATED-GAINS-PRIOR> 7,713
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,170,691
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,899,974
<AVERAGE-NET-ASSETS> 385,131
<PER-SHARE-NAV-BEGIN> 12.88
<PER-SHARE-NII> 0.1
<PER-SHARE-GAIN-APPREC> (0.09)
<PER-SHARE-DIVIDEND> (0.09)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.8
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN BALANCED FUND CLASS Y
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 803,831,536
<INVESTMENTS-AT-VALUE> 905,659,177
<RECEIVABLES> 16,356,436
<ASSETS-OTHER> 47,547
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 922,063,160
<PAYABLE-FOR-SECURITIES> 2,659,900
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,527,057
<TOTAL-LIABILITIES> 5,186,957
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 757,904,605
<SHARES-COMMON-STOCK> 59,654,900
<SHARES-COMMON-PRIOR> 60,120,604
<ACCUMULATED-NII-CURRENT> 246,535
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 56,897,422
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 101,827,641
<NET-ASSETS> 767,746,504
<DIVIDEND-INCOME> 3,035,556
<INTEREST-INCOME> 7,615,522
<OTHER-INCOME> 0
<EXPENSES-NET> 1,899,974
<NET-INVESTMENT-INCOME> 8,751,104
<REALIZED-GAINS-CURRENT> 56,839,210
<APPREC-INCREASE-CURRENT> (62,291,441)
<NET-CHANGE-FROM-OPS> 3,298,873
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7,410,252)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,764,660
<NUMBER-OF-SHARES-REDEEMED> (4,480,218)
<SHARES-REINVESTED> 249,854
<NET-CHANGE-IN-ASSETS> (14,880,064)
<ACCUMULATED-NII-PRIOR> 115,118
<ACCUMULATED-GAINS-PRIOR> 7,713
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,170,691
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,899,974
<AVERAGE-NET-ASSETS> 792,350,862
<PER-SHARE-NAV-BEGIN> 12.95
<PER-SHARE-NII> 0.13
<PER-SHARE-GAIN-APPREC> (0.08)
<PER-SHARE-DIVIDEND> (0.13)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.87
<EXPENSE-RATIO> 0.68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
The Evergreen American Retirement Trust
Evergreen Investment Trust
Evergreen Foundation Trust
In planning and performing our audit of the financial statements of the
Evergreen Balanced Funds (including Evergreen American Retirement Fund,
Evergreen Balanced Fund, Evergreen Foundation Fund and Evergreen Tax Strategic
Foundation Fund) for the three months ended March 31, 1997, we considered its
internal control structure, including procedures 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 the internal control structure.
The management of the Evergreen Balanced Funds is responsible for establishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risks that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
May 2, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
May 2, 1997
