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SIGNATURE JIM ARNOLD
TITLE ADMINISTRATOR
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000794801
<NAME> THE PRIMARY TREND FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 18,910,582
<INVESTMENTS-AT-VALUE> 23,652,784
<RECEIVABLES> 98,252
<ASSETS-OTHER> 3,402
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 23,754,438
<PAYABLE-FOR-SECURITIES> 500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 48,795
<TOTAL-LIABILITIES> 548,795
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 15,526,513
<SHARES-COMMON-STOCK> 1,566,337
<SHARES-COMMON-PRIOR> 1,677,314
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,936,928
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,742,202
<NET-ASSETS> 23,205,643
<DIVIDEND-INCOME> 355,140
<INTEREST-INCOME> 95,118
<OTHER-INCOME> 0
<EXPENSES-NET> (265,639)
<NET-INVESTMENT-INCOME> 184,619
<REALIZED-GAINS-CURRENT> 3,131,721
<APPREC-INCREASE-CURRENT> 1,891,832
<NET-CHANGE-FROM-OPS> 5,208,172
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (233,063)
<DISTRIBUTIONS-OF-GAINS> (1,224,581)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 73,343
<NUMBER-OF-SHARES-REDEEMED> (298,834)
<SHARES-REINVESTED> 114,514
<NET-CHANGE-IN-ASSETS> 2,082,568
<ACCUMULATED-NII-PRIOR> 361,557
<ACCUMULATED-GAINS-PRIOR> 716,675
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<AVERAGE-NET-ASSETS> 22,448,667
<PER-SHARE-NAV-BEGIN> 12.59
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 2.98
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> (0.73)
<RETURNS-OF-CAPITAL> 0
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</TABLE>
Exhibit to Accompany
Item 77J (b)
Form N-SAR
The Primary Trend Fund
(the "Fund")
According to the provisions of Statement of Position 93 - 2 (SOP
93 - 2) "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies," the Fund is required to
report the accumulated net investment income (loss) and
accumulated net capital gain (loss) accounts to approximate
amounts available for future distributions on a tax basis (or to
offset future realized capital gains). Accordingly, at June 30, 1997
reclassifications in The Primary Trend Fund were recorded from
undistributed net investment income to increase net realized gains
by $313,113.
This reclassification has no impact on the net asset value of the
Fund and is designed to present the Fund's capital account on a tax
basis.
sl
K:\PRIMARY\N-SAR\ITEM77JB.DOC
08/28/97
Report of Independent Auditors
The Board of Directors
The Primary Trend Fund, Inc.
In planning and performing our audit of the financial
statements of The Primary Trend Fund, Inc. for the
year ended June 30, 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 Primary Trend Fund, Inc., 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 may 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 internal control structure 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 June 30, 1997.
This report is intended solely for the information
and use of management and the Securities and Exchange
Commission.
/s/ ERNST & YOUNG LLP
July 25, 1997
Milwaukee, Wisconsin
