<PAGE> PAGE 1
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002 B000000 CHICAGO
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008 B000001 A
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008 D020001 IL
008 D030001 60606
008 D040001 5808
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<PAGE> PAGE 2
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012 A000001 KEMPER SERVICE COMPANY
012 B000001 84-1713
012 C010001 KANSAS CITY
012 C020001 MO
012 C030001 64105
013 A000001 ERNST & YOUNG LLP
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013 B020001 IL
013 B030001 60606
014 A000001 KEMPER DISTRIBUTORS, INC.
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014 A000002 GRUNTAL SECURITIES, INC.
014 B000002 8-31022
014 A000003 THE GMS GROUP, INC.
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015 A000001 INVESTORS FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
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015 B000002 C
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015 C030002 11245
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015 C030003 02110
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020 B000002 13-3082694
020 C000002 53
020 A000003 SMITH BARNEY INC.
020 B000003 13-1912900
020 C000003 46
020 A000004 ALEX. BROWN & SONS INCORPORATED
020 B000004 52-0256630
020 C000004 44
020 A000005 BRIDGE TRADING COMPANY
<PAGE> PAGE 3
020 B000005 43-1450530
020 C000005 44
020 A000006 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
020 B000006 13-2741729
020 C000006 33
020 A000007 STANDARD & POOR'S SECURITIES, INC.
020 B000007 13-2671951
020 C000007 30
020 A000008 CS FIRST BOSTON CORPORATION
020 B000008 13-5659485
020 C000008 24
020 A000009 PAINEWEBBER INCORPORATED
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022 C000008 1286
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<PAGE> PAGE 4
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<PAGE> PAGE 10
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SIGNATURE JEROME L. DUFFY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1996 ANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000823342
<NAME> KEMPER BLUE CHIP FUND
<SERIES>
<NUMBER> 001
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 246,316
<INVESTMENTS-AT-VALUE> 265,640
<RECEIVABLES> 2,951
<ASSETS-OTHER> 576
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 269,167
<PAYABLE-FOR-SECURITIES> 11,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,434
<TOTAL-LIABILITIES> 12,995
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186,540
<SHARES-COMMON-STOCK> 11,607
<SHARES-COMMON-PRIOR> 10,318
<ACCUMULATED-NII-CURRENT> 1,663
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 48,645
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,324
<NET-ASSETS> 256,172
<DIVIDEND-INCOME> 3,915
<INTEREST-INCOME> 1,579
<OTHER-INCOME> 0
<EXPENSES-NET> (2,874)
<NET-INVESTMENT-INCOME> 2,620
<REALIZED-GAINS-CURRENT> 48,809
<APPREC-INCREASE-CURRENT> (3,487)
<NET-CHANGE-FROM-OPS> 47,942
<EQUALIZATION> 36
<DISTRIBUTIONS-OF-INCOME> (2,127)
<DISTRIBUTIONS-OF-GAINS> (12,384)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,066
<NUMBER-OF-SHARES-REDEEMED> (2,753)
<SHARES-REINVESTED> 976
<NET-CHANGE-IN-ASSETS> 87,906
<ACCUMULATED-NII-PRIOR> 1,262
<ACCUMULATED-GAINS-PRIOR> 13,818
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,198
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,874
<AVERAGE-NET-ASSETS> 206,620
<PER-SHARE-NAV-BEGIN> 14.87
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> 3.45
<PER-SHARE-DIVIDEND> (0.20)
<PER-SHARE-DISTRIBUTIONS> (1.20)
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<PER-SHARE-NAV-END> 17.14
<EXPENSE-RATIO> 1.26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1996 ANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000823342
<NAME> KEMPER BLUE CHIP FUND
<SERIES>
<NUMBER> 002
<NAME> CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 246,316
<INVESTMENTS-AT-VALUE> 265,640
<RECEIVABLES> 2,951
<ASSETS-OTHER> 576
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 269,167
<PAYABLE-FOR-SECURITIES> 11,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,434
<TOTAL-LIABILITIES> 12,995
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186,540
<SHARES-COMMON-STOCK> 3,166
<SHARES-COMMON-PRIOR> 946
<ACCUMULATED-NII-CURRENT> 1,663
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 48,645
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,324
<NET-ASSETS> 256,172
<DIVIDEND-INCOME> 3,915
<INTEREST-INCOME> 1,579
<OTHER-INCOME> 0
<EXPENSES-NET> (2,874)
<NET-INVESTMENT-INCOME> 2,620
<REALIZED-GAINS-CURRENT> 48,809
<APPREC-INCREASE-CURRENT> (3,487)
<NET-CHANGE-FROM-OPS> 47,942
<EQUALIZATION> 36
<DISTRIBUTIONS-OF-INCOME> (137)
<DISTRIBUTIONS-OF-GAINS> (1,506)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,136
<NUMBER-OF-SHARES-REDEEMED> (1,026)
<SHARES-REINVESTED> 110
<NET-CHANGE-IN-ASSETS> 87,906
<ACCUMULATED-NII-PRIOR> 1,262
<ACCUMULATED-GAINS-PRIOR> 13,818
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,198
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,874
<AVERAGE-NET-ASSETS> 206,620
<PER-SHARE-NAV-BEGIN> 14.82
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 3.45
<PER-SHARE-DIVIDEND> (0.08)
<PER-SHARE-DISTRIBUTIONS> (1.20)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 17.09
<EXPENSE-RATIO> 2.08
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1996 ANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000823342
<NAME> KEMPER BLUE CHIP FUND
<SERIES>
<NUMBER> 003
<NAME> CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 246,316
<INVESTMENTS-AT-VALUE> 265,640
<RECEIVABLES> 2,951
<ASSETS-OTHER> 576
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 269,167
<PAYABLE-FOR-SECURITIES> 11,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,434
<TOTAL-LIABILITIES> 12,995
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186,540
<SHARES-COMMON-STOCK> 181
<SHARES-COMMON-PRIOR> 58
<ACCUMULATED-NII-CURRENT> 1,663
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 48,645
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,324
<NET-ASSETS> 256,172
<DIVIDEND-INCOME> 3,915
<INTEREST-INCOME> 1,579
<OTHER-INCOME> 0
<EXPENSES-NET> (2,874)
<NET-INVESTMENT-INCOME> 2,620
<REALIZED-GAINS-CURRENT> 48,809
<APPREC-INCREASE-CURRENT> (3,487)
<NET-CHANGE-FROM-OPS> 47,942
<EQUALIZATION> 36
<DISTRIBUTIONS-OF-INCOME> (7)
<DISTRIBUTIONS-OF-GAINS> (75)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 168
<NUMBER-OF-SHARES-REDEEMED> (51)
<SHARES-REINVESTED> 6
<NET-CHANGE-IN-ASSETS> 87,906
<ACCUMULATED-NII-PRIOR> 1,262
<ACCUMULATED-GAINS-PRIOR> 13,818
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,198
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,874
<AVERAGE-NET-ASSETS> 206,620
<PER-SHARE-NAV-BEGIN> 14.88
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 3.45
<PER-SHARE-DIVIDEND> (0.08)
<PER-SHARE-DISTRIBUTIONS> (1.20)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 17.15
<EXPENSE-RATIO> 2.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL. ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1996 ANNUAL REPORT TO
SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000823342
<NAME> KEMPER BLUE CHIP FUND
<SERIES>
<NUMBER> 004
<NAME> CLASS I
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-22-1995
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 246,316
<INVESTMENTS-AT-VALUE> 265,640
<RECEIVABLES> 2,951
<ASSETS-OTHER> 576
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 269,167
<PAYABLE-FOR-SECURITIES> 11,561
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,434
<TOTAL-LIABILITIES> 12,995
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186,540
<SHARES-COMMON-STOCK> 1
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,663
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 48,645
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,324
<NET-ASSETS> 256,172
<DIVIDEND-INCOME> 3,915
<INTEREST-INCOME> 1,579
<OTHER-INCOME> 0
<EXPENSES-NET> (2,874)
<NET-INVESTMENT-INCOME> 2,620
<REALIZED-GAINS-CURRENT> 48,809
<APPREC-INCREASE-CURRENT> (3,487)
<NET-CHANGE-FROM-OPS> 47,942
<EQUALIZATION> 36
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (1)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3
<NUMBER-OF-SHARES-REDEEMED> (2)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 87,906
<ACCUMULATED-NII-PRIOR> 1,262
<ACCUMULATED-GAINS-PRIOR> 13,818
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,198
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,874
<AVERAGE-NET-ASSETS> 206,620
<PER-SHARE-NAV-BEGIN> 15.30
<PER-SHARE-NII> 0.36
<PER-SHARE-GAIN-APPREC> 2.96
<PER-SHARE-DIVIDEND> (0.24)
<PER-SHARE-DISTRIBUTIONS> (1.20)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 17.18
<EXPENSE-RATIO> 1.31
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
SUPPLEMENTARY REPORT OF INDEPENDENT AUDITORS
Board of Trustees
Kemper Funds
In planning and performing our audit of the financial statements of
each of the Kemper Funds listed in Exhibit A attached hereto (the
"Funds") for the year ended as of the date listed in Exhibit A
attached hereto ("Report Date"), 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 their 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 Report Date.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
ERNST & YOUNG LLP
Chicago, Illinois
December 17, 1996
Kemper Funds Exhibit A
October 31, 1996
Kemper Technology Fund
Kemper Total Return Fund
Kemper Income and Capital Preservation Fund
Kemper Diversified Income Fund
Kemper U.S. Government Securities Fund
Kemper International Fund
Kemper Blue Chip Fund
