FEDERATED ARMS FUND
NSAR-B, EX-27, 2000-10-26
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE>                         6
<CIK>                             0000771524
<NAME>                            Federated ARMs Fund
<SERIES>
     <NUMBER>                     012
     <NAME>                       Federated ARMs Fund-Institutional Service Shares

<S>                               <C>
<PERIOD-TYPE>                     12-MOS
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<PERIOD-END>                      Aug-31-2000
<INVESTMENTS-AT-COST>             311,235,575
<INVESTMENTS-AT-VALUE>            309,353,201
<RECEIVABLES>                     4,097,904
<ASSETS-OTHER>                    0
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<TOTAL-ASSETS>                    313,451,105
<PAYABLE-FOR-SECURITIES>          0
<SENIOR-LONG-TERM-DEBT>           0
<OTHER-ITEMS-LIABILITIES>         1,348,780
<TOTAL-LIABILITIES>               1,348,780
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<SHARES-COMMON-STOCK>             2,989,473
<SHARES-COMMON-PRIOR>             3,508,418
<ACCUMULATED-NII-CURRENT>         0
<OVERDISTRIBUTION-NII>            (64,603)
<ACCUMULATED-NET-GAINS>           (83,950,208)
<OVERDISTRIBUTION-GAINS>          0
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<OTHER-INCOME>                    0
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<APPREC-INCREASE-CURRENT>         2,241,310
<NET-CHANGE-FROM-OPS>             20,058,752
<EQUALIZATION>                    0
<DISTRIBUTIONS-OF-INCOME>         (1,643,599)
<DISTRIBUTIONS-OF-GAINS>          0
<DISTRIBUTIONS-OTHER>             0
<NUMBER-OF-SHARES-SOLD>           227,524
<NUMBER-OF-SHARES-REDEEMED>       (805,496)
<SHARES-REINVESTED>               59,027
<NET-CHANGE-IN-ASSETS>            (105,285,270)
<ACCUMULATED-NII-PRIOR>           0
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<GROSS-EXPENSE>                   3,800,157
<AVERAGE-NET-ASSETS>              30,162,322
<PER-SHARE-NAV-BEGIN>             9.510
<PER-SHARE-NII>                   0.520
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<RETURNS-OF-CAPITAL>              0.000
<PER-SHARE-NAV-END>               9.500
<EXPENSE-RATIO>                   0.82
[AVG-DEBT-OUTSTANDING]            0
[AVG-DEBT-PER-SHARE]              0.000



</TABLE>


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