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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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SIGNATURE LINDA S. MARTINSON
TITLE GENERAL COUNSEL
[ARTICLE] 6
[CIK] 0000810902
[NAME] BARON ASSET FUND
[SERIES]
[NUMBER] 1
[NAME] BARON ASSET FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] SEP-30-1997
[PERIOD-START] OCT-01-1996
[PERIOD-END] SEP-30-1997
[INVESTMENTS-AT-COST] $ 2,379,533,912
[INVESTMENTS-AT-VALUE] $ 3,250,591,801
[RECEIVABLES] $ 8,331,073
[ASSETS-OTHER] $ 240,618
[OTHER-ITEMS-ASSETS] $ 0
[TOTAL-ASSETS] $ 3,259,163,492
[PAYABLE-FOR-SECURITIES] $ 34,024,476
[SENIOR-LONG-TERM-DEBT] $ 0
[OTHER-ITEMS-LIABILITIES] $ 640,622
[TOTAL-LIABILITIES] $ 34,665,098
[SENIOR-EQUITY] $ 0
[PAID-IN-CAPITAL-COMMON] $ 2,378,338,831
[SHARES-COMMON-STOCK] 67,990,946
[SHARES-COMMON-PRIOR] 32,842,555
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] $( 24,898,326)
[OVERDISTRIBUTION-GAINS] $ 0
[ACCUM-APPREC-OR-DEPREC] $ 871,057,889
[NET-ASSETS] $ 3,224,498,394
[DIVIDEND-INCOME] $ 8,100,908
[INTEREST-INCOME] $ 7,294,972
[OTHER-INCOME] $ 50
[EXPENSES-NET] $ 25,136,197
[NET-INVESTMENT-INCOME] $( 9,740,291)
[REALIZED-GAINS-CURRENT] $( 25,537,003)
[APPREC-INCREASE-CURRENT] $ 699,696,611
[NET-CHANGE-FROM-OPS] $ 664,419,317
[EQUALIZATION] $ 0
[DISTRIBUTIONS-OF-INCOME] $ 0
[DISTRIBUTIONS-OF-GAINS] $( 1,419,734)
[DISTRIBUTIONS-OTHER] $ 0
[NUMBER-OF-SHARES-SOLD] 48,411,239
[NUMBER-OF-SHARES-REDEEMED] 13,300,780
[SHARES-REINVESTED] 37,932
[NET-CHANGE-IN-ASSETS] $ 2,058,440,740
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] $ 1,307,985
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] $ 18,573,064
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] $ 25,136,191
[AVERAGE-NET-ASSETS] $ 1,864,526,970
[PER-SHARE-NAV-BEGIN] $ 35.50
[PER-SHARE-NII] $( 0.14)
[PER-SHARE-GAIN-APPREC] $ 12.11
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] $ (0.04)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] $ 47.43
[EXPENSE-RATIO] .013
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000810902
[NAME] BARON ASSET FUND
[SERIES]
[NUMBER] 2
[NAME] BARON GROWTH & INCOME FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] SEP-30-1997
[PERIOD-START] OCT-01-1996
[PERIOD-END] SEP-30-1997
[INVESTMENTS-AT-COST] $ 279,626,837
[INVESTMENTS-AT-VALUE] $ 392,328,219
[RECEIVABLES] $ 1,621,036
[ASSETS-OTHER] $ 958
[OTHER-ITEMS-ASSETS] $ 14,793
[TOTAL-ASSETS] $ 393,965,006
[PAYABLE-FOR-SECURITIES] $ 3,013,572
[SENIOR-LONG-TERM-DEBT] $ 0
[OTHER-ITEMS-LIABILITIES] $ 119,573
[TOTAL-LIABILITIES] $ 3,133,145
[SENIOR-EQUITY] $ 0
[PAID-IN-CAPITAL-COMMON] $ 276,584,044
[SHARES-COMMON-STOCK] 15,702,090
[SHARES-COMMON-PRIOR] 11,261,852
[ACCUMULATED-NII-CURRENT] $ 285,821
[OVERDISTRIBUTION-NII] $ 0
[ACCUMULATED-NET-GAINS] $ 1,560,614
[OVERDISTRIBUTION-GAINS] $ 0
[ACCUM-APPREC-OR-DEPREC] $ 112,401,382
[NET-ASSETS] $ 390,831,861
[DIVIDEND-INCOME] $ 4,334,443
[INTEREST-INCOME] $ 671,458
[OTHER-INCOME] $ 325
[EXPENSES-NET] $ 3,959,701
[NET-INVESTMENT-INCOME] $ 1,046,525
[REALIZED-GAINS-CURRENT] $ 790,402
[APPREC-INCREASE-CURRENT] $ 93,851,250
[NET-CHANGE-FROM-OPS] $ 95,688,177
[EQUALIZATION] $ 0
[DISTRIBUTIONS-OF-INCOME] $( 1,142,621)
[DISTRIBUTIONS-OF-GAINS] $( 2,059,229)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 9,989,857
[NUMBER-OF-SHARES-REDEEMED] ( 5,713,945)
[SHARES-REINVESTED] 164,326
[NET-CHANGE-IN-ASSETS] $ 183,597,367
[ACCUMULATED-NII-PRIOR] $ 1,147,402
[ACCUMULATED-GAINS-PRIOR] $ 2,063,957
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] $ 2,828,391
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] $ 3,959,701
[AVERAGE-NET-ASSETS] $ 283,578,591
[PER-SHARE-NAV-BEGIN] $ 18.40
[PER-SHARE-NII] $ 0.06
[PER-SHARE-GAIN-APPREC] $ 6.68
[PER-SHARE-DIVIDEND] $( 0.09)
[PER-SHARE-DISTRIBUTIONS] $( 0.16)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] $ 24.89
[EXPENSE-RATIO] .014
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
Coopers & Lybrand, L.L.P.
1301 Avenue of the Americas
New York, NY 10019-6013
Tel: 212-259-1000
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Baron Asset Fund:
In planning and performing our audit of the financial statements of Baron Asset
Fund, for the year ended September 30, 1997, we considered its internal
control, including controls over 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 Baron Asset Fund 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 any internal control structure, errors
or irregularities may occur and may not be detected. Also, projection of any
evaluation of internal control to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in the 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 the
specific internal control component 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, including controls over safeguarding securities, that we consider to be
material weaknesses, as defined above, as of September 30, 1997.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
/s/ COOPERS & LYBRAND L.L.P.
----------------------------
Coopers & Lybrand L.L.P.
New York, New York
November 24, 1997