VAN KAMPEN MERRITT INVESTMENT GRADE MUNICIPAL TRUST, N-30D, 1995-12-28

VAN KAMPEN MERRITT INVESTMENT GRADE MUNICIPAL TRUST
N-30D, 1995-12-28

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Table of Contents
<S> <C>
Letter to Shareholders................. 1
Performance Results.................... 3
Portfolio of Investments............... 4
Statement of Assets and Liabilities.... 9
Statement of Operations................ 10
Statement of Changes in Net Assets..... 11
Financial Highlights................... 12
Notes to Financial Statements.......... 14
Independent Auditors' Report........... 19
Dividend Reinvestment Plan............. 20
</TABLE>

Letter to Shareholders

November 22, 1995

Dear Shareholder:
The first ten months of 1995 have been very positive for most investors. Both
the fixed-income and equity markets have made considerable gains during the
period ended October 31, 1995.
This year serves as a reminder of just how quickly markets can move and how
difficult it can be to predict the timing of those movements. Moreover, this
year reinforces the importance of maintaining a long-term perspective and
reaffirms the principle that it is time---not timing---that leads to
investment success.

[PHOTO]
Dennis J. McDonnell and Don G. Powell

Economic Overview

Although the third quarter posted a stronger-than-expected gross domestic
product annual growth rate of 4.2 percent, the economy has slowed significantly
this year. This slowdown is due in large part to the Federal Reserve Board's
efforts to tighten monetary supply in 1994--a measure that proved successful,
as economic growth during the first half of 1995 was substantially lower than
its fourth quarter 1994 rate of 5.1 percent. And, while other key economic
data have shown mixed signs during recent months, the general economic trends
for the year continue to support a "soft landing" scenario.
Comfortable with the economy's rate of growth and level of inflation, the Fed
reversed its trend of raising interest rates and lowered short-term rates by
one-quarter percent on July 6. With slowing growth, interest rates declined and
the value of many fixed-income investments rose (bond yields and prices move in
opposite directions).

Performance Summary

The Trust's tax-exempt distribution rate on October 31, 1995, was 7.34
percent <F3>, based on the closing stock price of $10.625 per common share.
Because income from the Trust is exempt from federal income tax, it is important
to compare the Trust's distribution rate to an equivalent taxable rate. For
example, for investors in the 36 percent federal income tax bracket, the Trust's
distribution rate represents a yield equivalent to a taxable investment earning
11.47 percent <F4>. In fact, many closed-end municipal bond funds, such as your
investment, are currently offering higher yields (after taxes) than many income
alternatives.
During the past year, the municipal yield curve remained relatively flat
(meaning that yields on short-term and long-term municipal bonds are similar).
As the graph on the following page shows, the Trust's market price reacted by
trading downward, as high short-term rates elevated the Trust's preferred costs
and put pressure on the common share dividend. Subsequently, in May, the Trust's
Board of Trustees approved a new annualized dividend level of $0.78 per common
share which more closely reflects the Trust's earnings potential.

1 (Continued on page two)

Economic Outlook

We believe the Fed will move cautiously before it continues to lower
short-term rates, waiting for key indicators to show that the economy has truly
settled into a slow growth pattern. Although current economic data continues to
send mixed signals, we anticipate the economy will grow at an annual rate of 3
percent in the fourth quarter and inflation will run under 3 percent.
Based upon a generally modest growth and low inflation outlook, we believe
the outlook for fixed-income markets, including municipal bonds, is positive.
As interest rates fall in response to a slowing economy, we believe yields on
short term municipal bonds will continue to move significantly lower than
long-term municipal bonds. Lower short-term rates typically translate into
lower leveraging costs for the Trust, which provides increased
opportunities for higher earnings over time. Additionally, a steepening of
the municipal yield curve would likely increase investor demand for long-term
municipal bonds and help to boost market prices. Long-term municipal bond
prices will also benefit from the combination of low supply of new municipal
bond issues and increased demand driven by scheduled bond maturities.

[GRAPH]

Market
Date NAV Price

31-Oct-94 10.50 11.125
30-Nov-94 10.14 10.500
31-Dec-94 10.33 10.500
31-Jan-95 10.61 11.125
28-Feb-95 10.99 11.375
31-Mar-95 10.95 11.250
30-Apr-95 10.76 11.500
31-May-95 10.76 10.875
30-Jun-95 10.70 10.500
31-Jul-95 10.63 10.625
31-Aug-95 10.76 10.500
30-Sep-95 10.71 10.750
31-Oct-95 10.75 10.625

Based on month-end prices

While there has been varied speculation about the impact of tax reform, no one
is certain about what will finally happen. Consequently, in the near term, the
municipal market may continue to experience periodic market fluctuations as
various proposals come to the forefront. However, in the long term, we believe
the municipal market will remain an attractive investment choice for investors
seeking a high level of current income exempt from federal income tax. We will
continue to keep a close watch over any new developments and evaluate the
potential impact they may have on your investment in the Trust.
Once again, thank you for your continued confidence in your investment with
Van Kampen American Capital and for the privilege of working with you in seeking
to reach your financial goals.

Sincerely,

Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Investment Advisory Corp. Investment Advisory Corp.

Performance Results for the Period Ended October 31, 1995
Van Kampen Merritt Investment Grade Municipal Trust
(NYSE Ticker Symbol - VIG)

<S> <C>
Total Returns
One-year total return based on market price<F1>........................................ 2.88%
One-year total return based on NAV<F2>................................................. 10.59%

Distribution Rates
Distribution rate as a % of initial offer common stock price<F3>....................... 6.50%
Taxable-equivalent distribution rate as a % of initial offer common stock price<F4>.... 10.16%
Distribution rate as a % of closing common stock price<F3>............................. 7.34%
Taxable-equivalent distribution rate as a % of closing common stock price<F4>.......... 11.47%

Share Valuations
Net asset value........................................................................ $10.75
Closing common stock price............................................................. $10.625
One-year high common stock price (04/27/95)............................................ $11.625
One-year low common stock price (11/11/94)............................................. $ 9.75
Preferred share rate<F5>............................................................... 3.786%

<FN>
<F1> Total return based on market price assumes an investment at the market price at
the beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing stock price at the end of the period indicated.

<F2> Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

<F3> Distribution rate represents the monthly annualized distributions of the Trust
at the end of the period and not the earnings of the Trust.

<F4> The taxable-equivalent distribution rate is calculated assuming a 36% federal
tax bracket.

<F5> See "Notes to Financial Statements" footnote #5, for more information
concerning Preferred Share reset periods.

A portion of the interest income may be taxable for those investors subject
to the federal alternative minimum tax (AMT).

Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.

</TABLE>

Portfolio of Investments

October 31, 1995
- -------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds
Arkansas 4.2%
$ 1,000 Dogwood Addition PRD Muni Ppty Owners Multi Purp Impt
Dist No 8 AR Impt Ser A <F3> ......................... 9.750% 07/01/12 $ 629,000
1,000 Dogwood Addition PRD Muni Ppty Owners Multi Purp Impt
Dist No 8 AR Impt Ser B <F3> ......................... 9.750 07/01/12 629,000
2,165 Maumelle, AR West Pointe Addition Muni Ppty Owners
Multi Purp Impt Dist No 7 <F2> ....................... 9.500 12/01/10 1,948,500
-----------
3,206,500
-----------

California 4.4%
4,490 Contra Costa, CA Home Mtg Fin Auth Home
Mtg Rev (MBIA Insd) .................................. * 09/01/17 1,160,485
225 Foothill/Eastern Tran Corridor Agy CA Toll Rd Rev .... * 01/01/13 124,213
650 Foothill/Eastern Tran Corridor Agy CA Toll Rd Rev
Ser A ................................................ * 01/01/28 72,417
2,000 Metropolitan Wtrwks Dist Southern CA Rev ............. 5.950 08/05/22 1,999,780
-----------
3,356,895
-----------

Colorado 11.3%
4,500 Arapahoe Cnty, CO Cap Impt Trust Fund Hwy
Rev E-470 Proj Ser C ................................. * 08/31/15 1,104,390
10,000 Arapahoe Cnty, CO Cap Impt Trust Fund Hwy Rev E-470
Proj Ser C ........................................... * 08/31/26 1,042,700
2,800 Denver, CO City & Cnty Arpt Rev Ser A ................ 8.500 11/15/23 3,192,532
220 Jefferson Cnty, CO Residential Mtg Rev ............... 11.500 09/01/11 361,585
100 Jefferson Cnty, CO Residential Mtg Rev ............... 9.000 09/01/12 139,466
145 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/03) ............................................ 11.500 09/01/11 209,092
160 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/04) ............................................ 11.500 09/01/11 237,008
180 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/05) ............................................ 11.500 09/01/11 272,529
205 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/06) ............................................ 11.500 09/01/11 317,428
235 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/07) ............................................ 11.500 09/01/11 369,883
265 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/08) ............................................ 11.500 09/01/11 422,577
300 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/09) ............................................ 11.500 09/01/11 483,522
340 Jefferson Cnty, CO Residential Mtg Rev (Prerefunded @
09/01/10) ............................................ 11.500 09/01/11 552,184
-----------
8,704,896
-----------
</TABLE>

4 See Notes to Financial Statements

Portfolio of Investments (Continued)

Florida 6.0%
2,000 Florida Hsg Fin Agy Hsg Bradley Park Apts Proj <F3> ...... 9.750 12/01/19 914,200
1,000 Orange Cnty, FL Hlth Fac Auth Rev Hosp Orlando Genl Hosp
Ser A (Prerefunded @ 06/01/99) ........................... 8.750 06/01/16 1,157,390
1,000 Orange Cnty, FL Hlth Fac Auth Rev Hosp Orlando Genl Hosp
Ser B (Prerefunded @ 06/01/99) ........................... 8.750 06/01/16 1,157,390
2,300 Sun N Lake of Sebring, FL Impt Dist Spl Assmt Ser A <F3>
.......................................................... 10.000 12/15/11 1,357,000
------------
4,585,980
------------

Illinois 19.4%
1,000 Alton, IL Hlth Fac Rev & Impt Christian Hlth Ser C
Rfdg (Prerefunded @ 02/15/01) (FGIC Insd) <F2> ........... 7.200 02/15/21 1,145,620
2,500 Alton, IL Hosp Fac Rev Saint Anthony's Hlth Cent Proj .... 8.375 09/01/14 2,703,525
7,405 Aurora, IL Single Family Mtg Rev Cap Apprec (AMBAC Insd).. * 12/01/22 874,086
2,740 Chicago, IL O'Hare Intl Arpt Spl Fac Rev United Airls Inc
Ser B .................................................... 8.950 05/01/18 3,111,407
510 Cook Cnty, IL Sch Dist No 107 La Grange .................. 7.150 12/01/08 586,699
575 Cook Cnty, IL Sch Dist No 107 La Grange .................. 7.200 12/01/09 661,336
625 Cook Cnty, IL Sch Dist No 107 La Grange .................. 7.000 12/01/10 702,369
500 Hodgkins, IL Tax Increment Rev Ser A Rfdg ................ 7.625 12/01/13 511,630
950 Illinois Hlth Fac Auth Rev Glenoaks Med Cent Ser D ....... 9.500 11/15/15 1,120,012
745 Illinois Hlth Fac Auth Rev Glenoaks Med Cent Ser D
(Prerefunded @ 11/15/00) ................................. 9.500 11/15/15 926,028
500 Illinois Hlth Fac Auth Rev Lutheran Social Svcs Proj Ser
A (Prerefunded @ 08/01/00) ............................... 7.650 08/01/20 573,105
1,910 Illinois Hsg Dev Auth Residential Mtg Rev Ser B .......... 7.250 08/01/17 2,031,686
------------
14,947,503
------------

Indiana 2.9%
2,000 Kokomo, IN Hosp Auth Hosp Rev Saint Joseph Hosp & Hlth
Cent Ser A Rfdg (Prerefunded @ 08/15/98) ................. 8.750 02/15/13 2,263,080
------------
</TABLE>
5 See Notes to Financial Statements

Portfolio of Investments (Continued)

Maryland 4.6%
2,800 Baltimore, MD Cap Apprec Cons Pub Impt Ser
(FGIC Insd) ...................................... * 10/15/08 1,387,904
2,000 Maryland St Cmnty Dev Admin Dept Hsg & Cmnty Dev
Single Family Ser 4 (FHA Gtd) .................... 7.450 04/01/32 2,121,100
------------
3,509,004
------------

Massachusetts 1.2%
500 Massachusetts St Hlth & Edl Fac Auth Rev
Melrose-Wakefield Hosp Ser A
(Prerefunded @ 07/01/96) ......................... 8.625 07/01/18 525,645
395 Massachusetts St Hsg Fin Agy Multi Family
Residential Dev Ser A (FNMA Collateralized) ...... 8.150 02/01/29 423,187
------------
948,832
------------

Michigan 1.3%
850 Michigan St Hosp Fin Auth Rev Battle Creek
Hosp Ser H ....................................... 9.500 11/15/15 983,875
------------

Minnesota 1.7%
5,660 Southern MN Muni Pwr Agy Pwr Supply Sys Rev
Ser A (MBIA Insd) ................................ * 01/01/21 1,329,421
------------

Montana 4.6%
2,900 Forsyth, MT Pollutn Ctl Rev Puget Sound Pwr & Lt
Ser B Rfdg (AMBAC Insd) .......................... 7.250 08/01/21 3,283,873
300 Montana St Brd Invt Res Recovery Rev Yellowstone
Energy L P Proj .................................. 7.000 12/31/19 290,469
------------
3,574,342
------------

Nevada 2.0%
1,500 Clark Cnty, NV Indl Dev Rev NV Pwr Co Proj Ser A
(FGIC Insd) ...................................... 6.700 06/01/22 1,579,305
------------

New Hampshire 4.2%
2,500 New Hampshire Higher Edl & Hlth Fac Auth Rev Hosp
Catholic Med Cent Rfdg ........................... 8.250 07/01/13 2,717,450
500 New Hampshire St Indl Dev Auth Rev Pollutn Ctl
Pub Svcs Co NH Proj C ............................ 7.650 05/01/21 531,840
------------
3,249,290
------------

</TABLE>
6 See Notes to Financial Statements

Portfolio of Investments (Continued)

October 31, 1995
- ---------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York 9.6%
$ 1,260 New York City Muni Wtr Fin Auth Ser A
(Prerefunded @ 06/15/01) (AMBAC Insd) .............. 6.750% 06/15/06 $ 1,419,201
1,240 New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev
(AMBAC Insd) ....................................... 6.750 06/15/06 1,356,746
2,000 New York St Loc Govt Assistance Corp Ser C Rfdg .... 5.000 04/01/21 1,792,200
1,000 New York St Med Care Fac Fin Agy Rev Presbyterian
Hosp (MBIA Insd) ................................... 5.375 02/15/25 945,060
2,000 New York St Urban Dev Corp Rev Correctional Fac Ser
A Rfdg (AMBAC Insd) ................................ 5.000 01/01/17 1,850,960
------------
7,364,167
------------

Pennsylvania 3.2%
1,000 Beaver Cnty, PA Indl Dev Auth Pollutn Ctl Rev Coll
Toledo Edison Co Proj Rfdg ......................... 7.625 05/01/20 1,037,610
500 Pennsylvania Econ Dev Fin Auth Recycling Rev
Ponderosa Fibres Proj Ser A ........................ 9.250 01/01/22 513,180
1,000 Ridley Park, PA Hosp Auth Rev Hosp Auth Rev Ser
1993 A ............................................. 6.000 12/01/13 903,930
------------
2,454,720
------------

Tennessee 3.2%
2,195 Shelby Cnty, TN Hlth Edl & Hsg Fac Brd Rev
Open Arms Dev Cent Ser E ........................... 9.750 08/01/19 2,439,216
------------

Texas 4.7%
2,580 Texas St Pub Ppty Fin Corp Rev Mental Hlth &
Retardation Rfdg (Cap Guar Insd) ................... 5.500 09/01/13 2,529,277
1,000 West Side Calhoun Cnty, TX Navig Dist Solid Waste
Disp Union Carbide Chem & Plastics ................. 8.200 03/15/21 1,131,960
------------
3,661,237
------------
</TABLE>

7 See Notes to Financial Statements

Portfolio of Investments (Continued)

Wyoming 1.4%
1,000 Laramie Cnty, WY Indl Dev Rev Cheyenne Lt,
Fuel & Pwr Co Ser A (AMBAC Insd) ............. 7.250 09/01/21 1,066,310
------------

Total Long-Term Investments 94.1%
(Cost $68,810,296) <F1>................................................ 72,510,776
Short-Term Investments at Amortized Cost 3.7%........................... 2,800,000
Other Assets in Excess of Liabilities 2.2%............................. 1,726,612
------------

Net Assets 100%......................................................... $ 77,037,388
============
*Zero coupon bond

<FN>
<F1> At October 31, 1995, for federal income tax purposes, cost is $68,957,848,
and the aggregate gross unrealized appreciation is $6,360,831 and the
aggregate gross unrealized depreciation is $2,953,267, resulting in net
unrealized appreciation including options and futures transactions of
$3,407,564.

<F2> Assets segregated as collateral for open option and open futures
transactions.

<F3> Non-Income producing security.

</TABLE>

The following table summarizes the portfolio composition at October 31, 1995,
based upon quality ratings issued by Standard & Poor's. For securities not rated
by Standard & Poor's, the Moody's rating is used.

Portfolio Composition by Credit Quality
<S> <C>
AAA......................... 35.4%
AA.......................... 5.7
A........................... 11.0
BBB......................... 23.0
BB.......................... 10.8
Non-Rated................... 14.1
-------
100.0%
=======

</TABLE>

8 See Notes to Financial Statements

Statement of Assets and Liabilities

October 31, 1995
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments, at Market Value (Cost $68,810,296) (Note 1).................................... $ 72,510,776
Short-Term Investments (Note 1)............................................................. 2,800,000
Cash........................................................................................ 85,984
Receivables:
Interest ................................................................................. 2,111,850
Investments Sold.......................................................................... 109,441
Margin on Futures (Note 4)................................................................ 18,750
--------------
Total Assets........................................................................... 77,636,801
--------------

Liabilities:
Payables:
Income Distributions - Common and Preferred Shares........................................ 368,991
Investment Advisory Fee (Note 2).......................................................... 39,327
Options at Market Value (Net premiums received of $39,441) (Note 4)......................... 39,844
Accrued Expenses............................................................................ 151,251
--------------
Total Liabilities...................................................................... 599,413
--------------
Net Assets.................................................................................. $ 77,037,388
==============

Net Assets Consist of:
Preferred Shares ($.01 par value, authorized 100,000,000 shares, 250 issued with
liquidation preference of $100,000 per share) (Note 5).................................... $ 25,000,000
--------------
Common Shares ($.01 par value with an unlimited number of shares authorized,
4,839,000 shares issued and outstanding).................................................. 48,390
Paid in Surplus............................................................................. 52,700,019
Net Unrealized Appreciation on Investments.................................................. 3,555,116
Accumulated Distributions in Excess of Net Investment Income (Note 1)....................... (840,077)
Accumulated Net Realized Loss on Investments................................................ (3,426,060)
--------------
Net Assets Applicable to Common Shares................................................. 52,037,388
--------------
Net Assets.................................................................................. $ 77,037,388
==============

Net Asset Value Per Common Share ($52,037,388 divided by 4,839,000 shares outstanding)...... $ 10.75
==============
</TABLE>

9 See Notes to Financial Statements

Statement of Operations

For the Year Ended October 31, 1995
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income:
Interest..................................................................................... $ 5,028,945
---------------
Expenses:
Investment Advisory Fee (Note 2)............................................................. 459,964
Preferred Share Maintenance (Note 5)......................................................... 78,257
Audit........................................................................................ 51,374
Shareholder Services (Note 2)................................................................ 45,026
Custody...................................................................................... 41,877
Legal (Note 2)............................................................................... 31,718
Trustees Fees and Expenses (Note 2).......................................................... 24,524
Amortization of Organizational Expenses (Note 1)............................................. 610
Other........................................................................................ 51,591
---------------
Total Expenses............................................................................... 784,941
---------------
Net Investment Income........................................................................ $ 4,244,004
===============
Realized and Unrealized Gain/Loss on Investments:
Realized Gain/Loss on Investments:
Proceeds from Sales.......................................................................... $ 40,840,955
Cost of Securities Sold (Including reorganization and restructuring costs of $71,745)........ (42,732,523)
---------------
Net Realized Loss on Investments (Including realized loss on closed and expired option and
futures transactions of $203,384 and $2,630,972, respectively)............................... (1,891,568)
---------------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period...................................................................... (301,649)
End of the Period (Including unrealized depreciation on open option and futures transactions
of $403 and $144,961, respectively).......................................................... 3,555,116
---------------
Net Unrealized Appreciation on Investments During the Period................................. 3,856,765
---------------
Net Realized and Unrealized Gain on Investments.............................................. $ 1,965,197
===============

Net Increase in Net Assets from Operations................................................... $ 6,209,201
===============
</TABLE>

10 See Notes to Financial Statements

Statement of Changes in Net Assets

For the Years Ended October 31, 1995 and 1994
- -------------------------------------------------------------------------------------------------------
Year Ended Year Ended
October 31, 1995 October 31, 1994
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net Investment Income.............................................. $ 4,244,004 $ 4,636,263
Net Realized Loss on Investments................................... (1,891,568) (1,060,509)
Net Unrealized Appreciation/Depreciation on Investments
During the Period................................................ 3,856,765 (6,105,171)
---------------- ----------------
Change in Net Assets from Operations .............................. 6,209,201 (2,529,417)
---------------- ----------------
Distributions from Net Investment Income:
Common Shares.................................................... (3,256,358) (4,395,348)
Preferred Shares................................................. (987,646) (687,350)
---------------- ----------------
(4,244,004) (5,082,698)
Distributions in Excess of Net Investment
Income - Common Shares (Note 1).................................. (735,484) (104,593)
---------------- ----------------
Total Distributions................................................ (4,979,488) (5,187,291)
---------------- ----------------
Net Change in Net Assets from Investment Activities................ 1,229,713 (7,716,708)
Net Assets:
Beginning of the Period............................................ 75,807,675 83,524,383
---------------- ----------------
End of the Period (Including undistributed net investment income
of $(840,077) and $(104,593), respectively)........................ $ 77,037,388 $ 75,807,675
================ ===============

</TABLE>

11 See Notes to Financial Statements

Financial Highlights

The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated.
- --------------------------------------------------------------------------------
Year Ended October 31,
-----------------------
1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of the Period <F1>......... $ 10.500 $ 12.094
---------- ------------
Net Investment Income............................... .877 .958
Net Realized and Unrealized Gain/Loss on
Investments....................................... .406 (1.480)
---------- ------------
Total from Investment Operations...................... 1.283 (.522)
---------- ------------
Less:
Distributions from and in Excess of Net Investment
Income (Note 1):
Paid to Common Shareholders....................... .825 .930
Common Share Equivalent of Distributions Paid to
Preferred Shareholders.......................... .204 .142
---------- ------------
Total Distributions................................... 1.029 1.072
---------- ------------
Net Asset Value, End of the Period.................... $ 10.754 $ 10.500
========== ============

Market Price Per Share at End of the Period........... $ 10.625 $ 11.125
Total Investment Return at Market Price
(Non-Annualized) <F2>............................... 2.88% (13.59%)
Total Return at Net Asset Value (Non-Annualized)<F3>.. 10.59% (5.77%)
Net Assets at End of the Period (In millions) $ 77.0 $ 75.8
Ratio of Expenses to Average Net Assets Applicable to
Common Shares (Annualized) ......................... 1.52% 1.47%
Ratio of Expenses to Average Net Assets
(Annualized)........................................ 1.02% 1.01%
Ratio of Net Investment Income to Average Net Assets
Applicable to Common Shares (Annualized) <F4>....... 6.31% 7.20%
Portfolio Turnover.................................... 50.27% 29.89%

<FN>
<F1> Net asset value at November 30, 1989, is adjusted for common and preferred
share offering costs of $.259 per common share.

<F2> Total investment return at market price reflects the change in market
value of the common shares for the period indicated with reinvestment of
dividends in accordance with the Trust's dividend reinvestment plan.

<F3> Total return at net asset value (NAV) reflects the change in value of
the Trust's assets with reinvestment of dividends based upon NAV.

<F4> Net investment income is adjusted for the common share equivalent of
distributions paid to preferred shareholders.

N/A = Not Applicable

</TABLE>

Financial Highlights (Continued)

.917 (.348) .647 (.115)
---------- --------- --------- -----------
2.007 .742 1.800 .886
---------- --------- --------- -----------

.930 .925 .886 .725

.134 .168 .244 .230
---------- --------- --------- -----------
1.064 1.093 1.130 .955
---------- --------- --------- -----------
$ 12.094 $ 11.151 $ 11.502 $ 10.832
========== ========= ========= ===========

$ 13.875 $ 11.750 $ 12.250 $ 10.500

26.46% 3.10% 25.65% .21%

17.40% 5.04% 14.87% 3.70%
$ 83.5 $ 79.0 $ 80.7 $ 77.4

1.35% 1.52% 1.53% 1.41%
.94% 1.05% 1.05% N/A
8.14% 8.01% 8.12% 7.75%
7.04% 20.87% 52.20% 133.73%

</TABLE>

13 See Notes to Financial Statements

Notes to Financial Statements

October 31, 1995
- --------------------------------------------------------------------------------

1. Significant Accounting Policies
Van Kampen Merritt Investment Grade Municipal Trust (the "Trust") is registered
as a diversified closed-end management investment company under the Investment
Company Act of 1940, as amended. The Trust commenced investment operations on
November 30, 1989.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.

A. Security Valuation -- Investments are stated at value using market
quotations, prices provided by market makers or estimates obtained from
yield data relating to instruments or securities with similar characteristics
in accordance with procedures established in good faith by the Board of
Trustees. Investments valued using estimates of market value are generally
those non-rated securities in which the Trust owns over 90% of the original
bond issue. At October 31, 1995, approximately 10.3% of the Trust's net assets
consisted of such securities. Short-term securities with remaining maturities
of less than 60 days are valued at amortized cost.

B. Security Transactions -- Security transactions are recorded on a trade
date basis. Realized gains and losses are determined on an identified cost
basis. The Trust may purchase and sell securities on a "when issued" or
"delayed delivery" basis with settlement to occur at a later date. The value
of the security so purchased is subject to market fluctuations during this
period. The Trust will maintain, in a segregated account with its custodian,
assets having an aggregate value at least equal to the amount of the when
issued or delayed delivery purchase commitments until payment is made.
At October 31, 1995, there were no when issued or delayed delivery purchase
commitments.

C. Investment Income -- Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of
each applicable security.

D. Organizational Expenses -- The Trust has reimbursed Van Kampen American
Capital Distributors, Inc. or its affiliates (collectively "VKAC") for costs
incurred in connection with the Trust's organization and initial registration
in the amount of $40,000. These costs were amortized on a straight line basis
over the 60 month period ended November 30, 1994.

Notes to Financial Statements (Continued)

October 31, 1995
- --------------------------------------------------------------------------------

E. Federal Income Taxes -- It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.
The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset such losses against any future realized capital
gains. At October 31, 1995, the Trust had an accumulated capital loss
carryforward of $3,278,508, of which $414,447, $15,580, $1,028,658 and
$1,819,823 will expire on October 31, 1998, 2001, 2002 and 2003, respectively.
Net realized gains or losses may differ for financial and tax reporting purposes
primarily as a result of the capitalization of reorganization and restructuring
costs for tax purposes.

F. Distribution of Income and Gains -- The Trust declares and pays dividends
from net investment income to common shareholders monthly. Net realized gains,
if any, are distributed annually. Due to inherent differences in the
recognition of interest income under generally accepted accounting principles
and federal income tax purposes, for those securities which the Trust has
placed on non-accrual status, the amount of distributable net investment
income may differ between book and federal income tax purposes for a
particular period. These differences are temporary in nature, but may
result in book basis distributions in excess of net investment income
for certain periods.

2. Investment Advisory Agreement and Other Transactions with Affiliates
Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
American Capital Investment Advisory Corp. (the "Adviser") will provide
investment advice and facilities to the Trust for an annual fee payable
monthly of .60% of the average net assets of the Trust.
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom,
counsel to the Trust, of which a trustee of the Trust is an affiliated person.
For the year ended October 31, 1995, the Trust recognized expenses of
approximately $18,800 representing VKAC's cost of providing accounting, legal
and certain shareholder services to the Trust.
Certain officers and trustees of the Trust are also officers and directors of
VKAC. The Trust does not compensate its officers or trustees who are officers of
VKAC.
The Trust has implemented deferred compensation and retirement plans for its
trustees. Under the deferred compensation plan, trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those trustees who are not officers

Notes to Financial Statements (Continued)

October 31, 1995
- --------------------------------------------------------------------------------

of VKAC. The Trust's liability under the deferred compensation and retirement
plans at October 31, 1995, was approximately $25,700.
At October 31, 1995, VKAC owned 9,000 common shares of the Trust.

3. Investment Transactions
Aggregate purchases and cost of sales of investment securities, excluding
short-term notes, for the year ended October 31, 1995 were $36,557,370 and
$42,660,778, respectively.

4. Derivative Financial Instruments
A derivative financial instrument in very general terms refers to a security
whose value is "derived" from the value of an underlying asset, reference rate
or index.
The Trust has a variety of reasons to use derivative instruments, such as to
attempt to protect the Trust against possible changes in the market value of its
portfolio and to manage the portfolio's effective yield, maturity and duration.
All of the Trust's portfolio holdings, including derivative instruments, are
marked to market each day with the change in value reflected in the unrealized
appreciation/depreciation on investments. Upon disposition, a realized gain or
loss is recognized accordingly, except for exercised option contracts where the
recognition of gain or loss is postponed until the disposal of the security
underlying the option contract.
Summarized below are the specific types of derivative financial instruments
used by the Trust.

A. Option Contracts -- An option contract gives the buyer the right, but not
the obligation to buy (call) or sell (put) an underlying item at a fixed
exercise price during a specified period. These contracts are generally used
by the Trust to manage the portfolio's effective maturity and duration.
Transactions in options for the year ended October 31, 1995,
were as follows:

<TABLE>
<CAPTION>
Contracts Premium
- ------------------------------------------------------------------------------
<S> <C> <C>
Outstanding at October 31, 1994...................... 50 $ 15,222
Options Written and Purchased (Net).................. 1,292 (375,132)
Options Terminated in Closing Transactions (Net)..... (200) 20,364
Options Expired (Net)................................ (592) 212,451
Options Exercised (Net).............................. (500) 166,536
-------- ------------
Outstanding at October 31, 1995...................... 50 $ 39,441
======== ============
</TABLE>

Notes to Financial Statements (Continued)

October 31, 1995
- --------------------------------------------------------------------------------

The related futures contracts of the outstanding option transactions as of
October 31, 1995, and the description and market value are as follows:

<TABLE>
<CAPTION>
Expiration
Month/
Exercise Market Value
Contracts Price of Option
- -------------------------------------------------------------------
<S> <C> <C> <C>
Municipal Bond Index Futures
Written Put............... 50 Dec/115 $ (39,844)
== ============

</TABLE>

B. Futures Contracts -- A futures contract is an agreement involving the
delivery of a particular asset on a specified future date at an agreed upon
price. The Trust generally invests in futures on U.S. Treasury Bonds and the
Municipal Bond Index and typically closes the contract prior to the delivery
date. These contracts are generally used to manage the portfolio's effective
maturity and duration.
The fluctuation in market value of the contracts is settled daily through a
cash margin account. Realized gains and losses are recognized when the
contracts are closed or expire.
Transactions in futures contracts for the year ended October 31, 1995,
were as follows:

Contracts
- -----------------------------------------------
<S> <C>
Outstanding at October 31, 1994..... 1,140
Futures Opened...................... 3,890
Futures Closed...................... (4,880)
---------
Outstanding at October 31, 1995..... 150
=========
</TABLE>

The futures contracts outstanding as of October 31, 1995, and the descriptions
and unrealized depreciation are as follows:

<TABLE>
<CAPTION>
Unrealized
Contracts Depreciation
- ----------------------------------------------------------
<S> <C> <C>
Municipal Bond Index Futures
Dec. 1995-Sells to Open.......... 50 $103,529
U.S. Treasury Bond Futures
Dec. 1995-Buys to Open........... 100 41,432
---- --------
150 $144,961
==== ========

</TABLE>

Notes to Financial Statements (Continued)

October 31, 1995
- --------------------------------------------------------------------------------

5. Preferred Shares
The Trust has outstanding 250 Remarketed Preferred Shares ("RP"). Dividends are
cumulative and the dividend rate is currently reset every 28 days through a
remarketing process. The rate in effect on October 31, 1995 was 3.786%. During
the year ended October 31, 1995, the rates ranged from 3.375% to 4.250%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
shares. These fees are included as a component of Preferred Share Maintenance
expense.
The RP are redeemable at the option of the Trust in whole or in part at the
liquidation value of $100,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the RP are subject to
mandatory redemption if the tests are not met.

Independent Auditors' Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Van Kampen Merritt Investment Grade Municipal Trust:

We have audited the accompanying statement of assets and liabilities of Van
Kampen Merritt Investment Grade Municipal Trust (the "Trust"), including the
portfolio of investments, as of October 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Van
Kampen Merritt Investment Grade Municipal Trust as of October 31, 1995, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods presented, in conformity with generally accepted
accounting principles.

KPMG Peat Marwick LLP

Chicago, Illinois
December 5, 1995

Dividend Reinvestment Plan
- --------------------------------------------------------------------------------

The Trust offers a Dividend Reinvestment Plan (the "Plan") for Common
Shareholders pursuant to which Common Shareholders who are participants in the
Plan may have all distributions of dividends and capital gains distributions
automatically reinvested in Common Shares of the Trust. All Common Shareholders
are deemed to be participants in the Plan unless they specifically elect not to
participate. Common Shareholders who elect not to participate in the Plan will
receive all distributions of dividends and capital gains in cash paid by check
mailed directly to the Common Shareholder by the Trust's dividend disbursing
agent.

How the Plan Works
State Street Bank and Trust Company, as your Plan Agent, serves as agent for the
Common Shareholders in administering the Plan. After the Trust declares a
dividend or determines to make a capital gains distribution, the Plan Agent
will, as agent for the participants, receive the cash payment and use it to buy
Common Shares in the open market, on the New York Stock Exchange or elsewhere,
for the participants' accounts. The Trust will not issue any new Common Shares
in connection with the Plan. All reinvestments are in full and fractional Common
Shares, carried to three decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of
the change sent to all Common Shareholders of the Trust at least 90 days before
the record date for the dividend or distribution. The Plan also may be amended
or terminated by the Plan Agent by at least 90 days written notice to all
Common Shareholders of the Trust.

Costs of the Plan
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.

Tax Implications
You will receive tax information annually for your personal records and to help
you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.

Right to Withdraw
All Common Shareholders of the Trust are deemed to be participants in the Plan
unless they specifically elect not to participate. You may withdraw from the
Plan at any time by calling 1-800-341-2929 or by writing State Street Bank and
Trust Company, P.O. Box 8200, Boston, MA 02266-8200. If you withdraw, you will
receive, without charge, a share certificate issued in your name for all full
Common Shares credited to your account under the Plan and a cash payment will be
made for any fractional Common Share credited to your account under the Plan.
You may again elect to participate in the Plan at any time by calling
1-800-341-2929 or writing to the Trust at:

One Parkview Plaza, Oakbrook Terrace, IL 60181
Attn: Closed-End Funds

Van Kampen Merritt Investment Grade Municipal Trust
- --------------------------------------------------------------------------------

Officers and Trustees

Don G. Powell*
Chairman and Trustee

Dennis J. McDonnell*
President and Trustee

David C. Arch
Trustee

Rod Dammeyer
Trustee

Howard J Kerr
Trustee

Theodore A. Myers
Trustee

Hugo F. Sonnenschein
Trustee

Wayne W. Whalen*
Trustee

Peter W. Hegel*
Vice President

Ronald A. Nyberg*
Vice President and Secretary

Edward C. Wood, III*
Vice President and Treasurer

Scott E. Martin*
Assistant Secretary

Weston B. Wetherell*
Assistant Secretary

Nicholas Dalmaso*
Assistant Secretary

John L. Sullivan*
Controller

Steven M. Hill*
Assistant Treasurer

Investment Adviser

Van Kampen American Capital Investment Advisory Corp.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181

Custodian and
Transfer Agent

State Street Bank
and Trust Company
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom
333 West Wacker Drive
Chicago, Illinois 60606

Independent Auditors

KPMG Peat Marwick LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601

* "Interested" persons of the Trust, as defined in the
Investment Company Act of 1940.

SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.