<PAGE> PAGE 1
000 B000000 03/31/98
000 C000000 0000789280
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 CORNERCAP GROUP OF FUNDS
001 B000000 811-4581
001 C000000 4048700700
002 A000000 SUITE 1700 1355 PEACHTREE STREET
002 B000000 ATLANTA
002 C000000 GA
002 D010000 30309
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 CORNERCAP GROWTH FUND
007 C030100 N
007 C010200 2
007 C020200 CORNERCAP BALANCED FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
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007 C011200 12
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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007 C018400 84
007 C018500 85
007 C018600 86
007 C018700 87
007 C018800 88
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008 A00AA01 CORNERSTONE CAPITAL CORP.
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008 D01AA01 ATLANTA
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008 D03AA01 30309
010 A00AA01 CORNERSTONE CAPITAL CORP
010 C01AA01 ATLANTA
010 C02AA01 GA
010 C03AA01 30309
011 A00AA01 ATKISSON, CARTER & AKERS
011 B00AA01 8-33797
011 C01AA01 ATLANTA
011 C02AA01 GA
011 C03AA01 30305
012 A00AA01 FORTUNE FUND ADMININSTRATION, INC.
012 B00AA01 84-5672
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012 C03AA01 30309
012 C04AA01 3035
013 A00AA01 TAIT, WELLER AND BAKER
013 B01AA01 PHILADELPHIA
013 B02AA01 PA
013 B03AA01 19102
013 B04AA01 1707
015 A00AA01 WACHOVIA BANK OF N.C.
015 B00AA01 C
015 C01AA01 WINSTON-SALEM
015 C02AA01 NC
015 C03AA01 27150
015 C04AA01 3099
015 E01AA01 X
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<PAGE> PAGE 4
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020 A000003 FSC SECURITIES
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
038 000100 0
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057 000100 N
058 A000100 N
058 B000100 N
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058 D000100 N
058 E000100 N
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<PAGE> PAGE 8
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066 D000100 N
066 E000100 N
066 F000100 N
066 G000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 N
070 A010100 Y
070 A020100 Y
070 B010100 N
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 N
070 F020100 N
070 G010100 N
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 N
070 J020100 N
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 N
070 N020100 N
070 O010100 N
070 O020100 N
070 P010100 N
070 P020100 N
070 Q010100 N
<PAGE> PAGE 9
070 Q020100 N
070 R010100 N
070 R020100 N
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<PAGE> PAGE 10
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080 A000100 ICI MUTUAL
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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070 C020200 N
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<PAGE> PAGE 13
070 E010200 N
070 E020200 N
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070 G010200 N
070 G020200 N
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070 H020200 N
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<PAGE> PAGE 14
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<PAGE> PAGE 15
080 A000200 ICI MUTUAL
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082 A000200 N
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SIGNATURE THOMAS E. QUINN
TITLE PRINCIPAL
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000789280
<NAME> CORNERCAP GROUP OF FUNDS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 13,776,493
<INVESTMENTS-AT-VALUE> 17,887,351
<RECEIVABLES> 15,328
<ASSETS-OTHER> 88,999
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 17,991,678
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 49,859
<TOTAL-LIABILITIES> 49,859
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,975,042
<SHARES-COMMON-STOCK> 1,208,215
<SHARES-COMMON-PRIOR> 1,063,083
<ACCUMULATED-NII-CURRENT> 11,435
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,844,484
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,110,858
<NET-ASSETS> 17,941,819
<DIVIDEND-INCOME> 230,064
<INTEREST-INCOME> 36,514
<OTHER-INCOME> 0
<EXPENSES-NET> 240,303
<NET-INVESTMENT-INCOME> 26,275
<REALIZED-GAINS-CURRENT> 3,153,012
<APPREC-INCREASE-CURRENT> 2,778,761
<NET-CHANGE-FROM-OPS> 5,958,048
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 37,280
<DISTRIBUTIONS-OF-GAINS> 2,070,572
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 204,161
<NUMBER-OF-SHARES-REDEEMED> 254,409
<SHARES-REINVESTED> 159,748
<NET-CHANGE-IN-ASSETS> 5,085,522
<ACCUMULATED-NII-PRIOR> 28,721
<ACCUMULATED-GAINS-PRIOR> 1,751,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 153,687
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 318,990
<AVERAGE-NET-ASSETS> 16,399,058
<PER-SHARE-NAV-BEGIN> 1,168
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> 5.05
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 2.09
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.85
<EXPENSE-RATIO> 1.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000789280
<NAME> CORNERCAP GROUP OF FUNDS
<S> <C>
<PERIOD-TYPE> 10-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 1,938,665
<INVESTMENTS-AT-VALUE> 2,215,464
<RECEIVABLES> 15,949
<ASSETS-OTHER> 64,795
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,296,208
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,018
<TOTAL-LIABILITIES> 2,018
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,991,746
<SHARES-COMMON-STOCK> 187,905
<SHARES-COMMON-PRIOR> 63,449
<ACCUMULATED-NII-CURRENT> 12,055
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 13,590
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 276,799
<NET-ASSETS> 2,294,190
<DIVIDEND-INCOME> 32,179
<INTEREST-INCOME> 40,110
<OTHER-INCOME> 0
<EXPENSES-NET> 25,539
<NET-INVESTMENT-INCOME> 46,750
<REALIZED-GAINS-CURRENT> 44,033
<APPREC-INCREASE-CURRENT> 270,962
<NET-CHANGE-FROM-OPS> 361,745
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 35,472
<DISTRIBUTIONS-OF-GAINS> 1,439,603
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 80,377
<NUMBER-OF-SHARES-REDEEMED> 90,694
<SHARES-REINVESTED> 134,773
<NET-CHANGE-IN-ASSETS> 200,749
<ACCUMULATED-NII-PRIOR> 777
<ACCUMULATED-GAINS-PRIOR> 1,409,160
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 16,709
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 46,423
<AVERAGE-NET-ASSETS> 2,193,816
<PER-SHARE-NAV-BEGIN> 32.99<F1>
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> 2.20
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 23.22
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.21
<EXPENSE-RATIO> 1.53
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Per share amounts have been adjusted for the year ended May 31, 1997 to reflect
a 1 for 4 reverse stock split effective June 30, 1997.
</FN>
</TABLE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON INTERNAL CONTROL STRUCTURE
Shareholders and Board of Trustees
CornerCap Group of Funds
Atlanta, Georgia
In planning and performing our audit of the financial statements
of CornerCap Growth Fund and the CornerCap Balanced Fund, each a
series of shares of CornerCap Group of Funds, for the period
ended March 31, 1998, we considered their 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 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 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 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 March 31, 1998.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission, and should
not be used for any other purpose.
Philadelphia, Pennsylvania
May 1, 1998
