KEMPER TARGET EQUITY FUND
NSAR-B, 1998-09-29
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<PAGE>      PAGE  1
000 B000000 07/31/98
000 C000000 0000854905
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 KEMPER TARGET EQUITY FUND
001 B000000 811-5896
001 C000000 3125377000
002 A000000 222 SOUTH RIVERSIDE PLAZA
002 B000000 CHICAGO
002 C000000 IL
002 D010000 60606
002 D020000 5808
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  8
007 C010100  1
007 C020100 KEMPER RETIREMENT FUND SERIES I
007 C030100 N
007 C010200  2
007 C020200 KEMPER RETIREMENT FUND SERIES II
007 C030200 N
007 C010300  3
007 C020300 KEMPER RETIREMENT FUND SERIES III
007 C030300 N
007 C010400  4
007 C020400 KEMPER RETIREMENT FUND SERIES IV
007 C030400 N
007 C010500  5
007 C020500 KEMPER RETIREMENT FUND SERIES V
007 C030500 N
007 C010600  6
007 C020600 KEMPER WORLDWIDE 2004 FUND
007 C030600 N
007 C010700  7
007 C020700 KEMPER RETIREMENT FUND SERIES VI
007 C030700 N
007 C010800  8
007 C020800 KEMPER RETIREMENT FUND SERIES VII
007 C030800 N
007 C010900  9
007 C011000 10
008 A00AA01 SCUDDER KEMPER INVESTMENTS, INC.
008 B00AA01 A
<PAGE>      PAGE  2
008 C00AA01 801-44899
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10154
010 A00AA01 KEMPER DISTRIBUTORS, INC.
010 B00AA01 8-47765
010 C01AA01 CHICAGO
010 C02AA01 IL
010 C03AA01 60606
010 C04AA01 5808
011 A00AA01 KEMPER DISTRIBUTORS, INC.
011 B00AA01 8-47765
011 C01AA01 CHICAGO
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011 C03AA01 60606
011 C04AA01 5808
012 A00AA01 KEMPER SERVICE COMPANY
012 B00AA01 84-1713
012 C01AA01 KANSAS CITY
012 C02AA01 MO
012 C03AA01 64105
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014 A00AA02 KEMPER DISTRIBUTORS, INC.
014 B00AA02 8-47765
014 A00AA03 GRUNTAL & CO., INC.
014 B00AA03 8-31022
014 A00AA04 THE GMS GROUP, L.L.C. ( A GRUNTAL AFFILIATE)
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014 A00AA05 ZURICH CAPITAL MARKETS
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014 A00AA06 BANK HANDLOWY
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<PAGE>      PAGE  3
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<PAGE>      PAGE  4
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<PAGE>      PAGE  9
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<PAGE>      PAGE  12
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<PAGE>      PAGE  13
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<PAGE>      PAGE  15
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<PAGE>      PAGE  16
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<PAGE>      PAGE  17
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<PAGE>      PAGE  18
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<PAGE>      PAGE  20
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<PAGE>      PAGE  21
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<PAGE>      PAGE  22
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<PAGE>      PAGE  23
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<PAGE>      PAGE  24
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<PAGE>      PAGE  27
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<PAGE>      PAGE  32
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SIGNATURE   PHILIP J. COLLORA                            
TITLE       SECRETARY           
 


<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 001
   <NAME> KEMPER RETIREMENT FUND 1
<MULTIPLIER> 1,000
       
<S>                             <C>
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<EXPENSES-NET>                                 (1,057)
<NET-INVESTMENT-INCOME>                          3,705
<REALIZED-GAINS-CURRENT>                        11,237
<APPREC-INCREASE-CURRENT>                      (7,635)
<NET-CHANGE-FROM-OPS>                            7,307
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (3,920)
<DISTRIBUTIONS-OF-GAINS>                      (12,075)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                    (1,595)
<SHARES-REINVESTED>                              1,563
<NET-CHANGE-IN-ASSETS>                        (10,778)
<ACCUMULATED-NII-PRIOR>                          2,354
<ACCUMULATED-GAINS-PRIOR>                        8,641
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              560
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  1,057
<AVERAGE-NET-ASSETS>                           112,072
<PER-SHARE-NAV-BEGIN>                            11.86
<PER-SHARE-NII>                                    .40
<PER-SHARE-GAIN-APPREC>                            .25
<PER-SHARE-DIVIDEND>                             (.42)
<PER-SHARE-DISTRIBUTIONS>                       (1.29)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.80
<EXPENSE-RATIO>                                    .94
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 002
   <NAME> KEMPER RETIREMENT FUND 2
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                          144,458
<INVESTMENTS-AT-VALUE>                         158,349
<RECEIVABLES>                                      594
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 158,943
<PAYABLE-FOR-SECURITIES>                           300
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          206
<TOTAL-LIABILITIES>                                506
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       132,489
<SHARES-COMMON-STOCK>                           12,770
<SHARES-COMMON-PRIOR>                           12,959
<ACCUMULATED-NII-CURRENT>                        3,667
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          8,390
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        13,891
<NET-ASSETS>                                   158,437
<DIVIDEND-INCOME>                                1,024
<INTEREST-INCOME>                                6,813
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (1,564)
<NET-INVESTMENT-INCOME>                          6,273
<REALIZED-GAINS-CURRENT>                        12,702
<APPREC-INCREASE-CURRENT>                      (8,609)
<NET-CHANGE-FROM-OPS>                           10,366
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (6,567)
<DISTRIBUTIONS-OF-GAINS>                      (14,360)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                    (1,999)
<SHARES-REINVESTED>                              1,810
<NET-CHANGE-IN-ASSETS>                        (14,946)
<ACCUMULATED-NII-PRIOR>                          3,972
<ACCUMULATED-GAINS-PRIOR>                       10,037
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              825
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  1,564
<AVERAGE-NET-ASSETS>                           165,355
<PER-SHARE-NAV-BEGIN>                            13.38
<PER-SHARE-NII>                                    .52
<PER-SHARE-GAIN-APPREC>                            .23
<PER-SHARE-DIVIDEND>                             (.54)
<PER-SHARE-DISTRIBUTIONS>                       (1.18)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              12.41
<EXPENSE-RATIO>                                    .94
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 003
   <NAME> KEMPER RETIREMENT FUND 3
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                          107,387
<INVESTMENTS-AT-VALUE>                         117,999
<RECEIVABLES>                                      581
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 118,580
<PAYABLE-FOR-SECURITIES>                           300
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          196
<TOTAL-LIABILITIES>                                496
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        97,878
<SHARES-COMMON-STOCK>                           11,222
<SHARES-COMMON-PRIOR>                           11,213
<ACCUMULATED-NII-CURRENT>                        2,389
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          7,205
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        10,612
<NET-ASSETS>                                   118,084
<DIVIDEND-INCOME>                                  817
<INTEREST-INCOME>                                4,494
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (1,172)
<NET-INVESTMENT-INCOME>                          4,139
<REALIZED-GAINS-CURRENT>                        10,444
<APPREC-INCREASE-CURRENT>                      (6,524)
<NET-CHANGE-FROM-OPS>                            8,059
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (4,303)
<DISTRIBUTIONS-OF-GAINS>                      (11,501)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                    (1,684)
<SHARES-REINVESTED>                              1,693
<NET-CHANGE-IN-ASSETS>                         (9,014)
<ACCUMULATED-NII-PRIOR>                          2,563
<ACCUMULATED-GAINS-PRIOR>                        8,252
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              615
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  1,172
<AVERAGE-NET-ASSETS>                           123,221
<PER-SHARE-NAV-BEGIN>                            11.33
<PER-SHARE-NII>                                    .39
<PER-SHARE-GAIN-APPREC>                            .27
<PER-SHARE-DIVIDEND>                             (.40)
<PER-SHARE-DISTRIBUTIONS>                       (1.07)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.52
<EXPENSE-RATIO>                                    .95
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 004
   <NAME> KEMPER RETIREMENT FUND 4
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                          114,994
<INVESTMENTS-AT-VALUE>                         123,397
<RECEIVABLES>                                      685
<ASSETS-OTHER>                                     878
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 124,960
<PAYABLE-FOR-SECURITIES>                           300
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          243
<TOTAL-LIABILITIES>                                543
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       106,918
<SHARES-COMMON-STOCK>                           11,653
<SHARES-COMMON-PRIOR>                           12,053
<ACCUMULATED-NII-CURRENT>                        2,261
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          6,835
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         8,403
<NET-ASSETS>                                   124,417
<DIVIDEND-INCOME>                                  815
<INTEREST-INCOME>                                4,354 
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (1,278)
<NET-INVESTMENT-INCOME>                          3,891
<REALIZED-GAINS-CURRENT>                        10,153
<APPREC-INCREASE-CURRENT>                      (4,798)
<NET-CHANGE-FROM-OPS>                            9,246
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (4,220)
<DISTRIBUTIONS-OF-GAINS>                      (10,945)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                    (1,932)
<SHARES-REINVESTED>                              1,532
<NET-CHANGE-IN-ASSETS>                        (11,513)
<ACCUMULATED-NII-PRIOR>                          2,599
<ACCUMULATED-GAINS-PRIOR>                        7,618
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              651
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  1,278
<AVERAGE-NET-ASSETS>                           130,402
<PER-SHARE-NAV-BEGIN>                            11.28
<PER-SHARE-NII>                                    .35
<PER-SHARE-GAIN-APPREC>                            .38
<PER-SHARE-DIVIDEND>                             (.37)
<PER-SHARE-DISTRIBUTIONS>                        (.96)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.68
<EXPENSE-RATIO>                                    .98
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 005
   <NAME> KEMPER RETIREMENT FUND 5
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                          110,360
<INVESTMENTS-AT-VALUE>                         125,386
<RECEIVABLES>                                      584
<ASSETS-OTHER>                                     379
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 126,349
<PAYABLE-FOR-SECURITIES>                           300
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          163
<TOTAL-LIABILITIES>                                463
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       100,173
<SHARES-COMMON-STOCK>                           12,375
<SHARES-COMMON-PRIOR>                           12,624
<ACCUMULATED-NII-CURRENT>                        2,390
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          8,297
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        15,026
<NET-ASSETS>                                   125,886
<DIVIDEND-INCOME>                                  895
<INTEREST-INCOME>                                4,566
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (1,305)
<NET-INVESTMENT-INCOME>                          4,156
<REALIZED-GAINS-CURRENT>                        11,794
<APPREC-INCREASE-CURRENT>                      (6,015)
<NET-CHANGE-FROM-OPS>                            9,935
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (4,539)
<DISTRIBUTIONS-OF-GAINS>                      (12,545)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                    (2,031)
<SHARES-REINVESTED>                              1,782
<NET-CHANGE-IN-ASSETS>                        (11,245)
<ACCUMULATED-NII-PRIOR>                          2,779
<ACCUMULATED-GAINS-PRIOR>                        9,042
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              657
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                  1,305
<AVERAGE-NET-ASSETS>                           131,601
<PER-SHARE-NAV-BEGIN>                            10.86
<PER-SHARE-NII>                                    .35
<PER-SHARE-GAIN-APPREC>                            .39
<PER-SHARE-DIVIDEND>                             (.38)
<PER-SHARE-DISTRIBUTIONS>                       (1.05)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              10.17
<EXPENSE-RATIO>                                    .99
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 006
   <NAME> KEMPER WORLDWIDE 2004 FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                           26,940
<INVESTMENTS-AT-VALUE>                          32,013
<RECEIVABLES>                                      378
<ASSETS-OTHER>                                     857
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  33,248
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          178
<TOTAL-LIABILITIES>                                178
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        24,660
<SHARES-COMMON-STOCK>                            2,809
<SHARES-COMMON-PRIOR>                            3,080
<ACCUMULATED-NII-CURRENT>                          658
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          2,679
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         5,073
<NET-ASSETS>                                    33,070
<DIVIDEND-INCOME>                                  181
<INTEREST-INCOME>                                1,397
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (401)
<NET-INVESTMENT-INCOME>                          1,177
<REALIZED-GAINS-CURRENT>                         2,956
<APPREC-INCREASE-CURRENT>                        (593)
<NET-CHANGE-FROM-OPS>                            3,540
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (1,402)
<DISTRIBUTIONS-OF-GAINS>                       (1,517)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                      (537)
<SHARES-REINVESTED>                                266
<NET-CHANGE-IN-ASSETS>                         (2,655)
<ACCUMULATED-NII-PRIOR>                            954
<ACCUMULATED-GAINS-PRIOR>                        1,169
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              202
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    401
<AVERAGE-NET-ASSETS>                            33,716
<PER-SHARE-NAV-BEGIN>                            11.60
<PER-SHARE-NII>                                    .42
<PER-SHARE-GAIN-APPREC>                            .77
<PER-SHARE-DIVIDEND>                             (.49)
<PER-SHARE-DISTRIBUTIONS>                        (.53)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              11.77
<EXPENSE-RATIO>                                   1.19
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 007
   <NAME> KEMPER RETIREMENT FUND 6
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                           64,651
<INVESTMENTS-AT-VALUE>                          70,621
<RECEIVABLES>                                      151
<ASSETS-OTHER>                                       9
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  70,781
<PAYABLE-FOR-SECURITIES>                           150
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          144
<TOTAL-LIABILITIES>                                294
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        59,974
<SHARES-COMMON-STOCK>                            6,264
<SHARES-COMMON-PRIOR>                            6,325
<ACCUMULATED-NII-CURRENT>                        1,296
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                          3,247
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         5,970
<NET-ASSETS>                                    70,487
<DIVIDEND-INCOME>                                  422
<INTEREST-INCOME>                                2,595
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (727)
<NET-INVESTMENT-INCOME>                          2,290
<REALIZED-GAINS-CURRENT>                         4,581
<APPREC-INCREASE-CURRENT>                      (1,054)
<NET-CHANGE-FROM-OPS>                            5,817
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (2,370)
<DISTRIBUTIONS-OF-GAINS>                       (4,917)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                      (757)
<SHARES-REINVESTED>                                696
<NET-CHANGE-IN-ASSETS>                         (2,684)
<ACCUMULATED-NII-PRIOR>                          1,379
<ACCUMULATED-GAINS-PRIOR>                        3,580
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              358
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    727
<AVERAGE-NET-ASSETS>                            71,962
<PER-SHARE-NAV-BEGIN>                            11.57
<PER-SHARE-NII>                                    .38
<PER-SHARE-GAIN-APPREC>                            .50
<PER-SHARE-DIVIDEND>                             (.39)
<PER-SHARE-DISTRIBUTIONS>                        (.81)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              11.25
<EXPENSE-RATIO>                                   1.01
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 1998
ANNUAL REPORT TO SHAREHOLDERS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000854905
<NAME> KEMPER TARGET EQUITY FUND
<SERIES>
   <NUMBER> 008
   <NAME> KEMPER RETIREMENT FUND 7
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               JUL-31-1998
<INVESTMENTS-AT-COST>                           23,989
<INVESTMENTS-AT-VALUE>                          25,045
<RECEIVABLES>                                       82
<ASSETS-OTHER>                                     773
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  25,900
<PAYABLE-FOR-SECURITIES>                            75
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                           38
<TOTAL-LIABILITIES>                                113
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        24,337
<SHARES-COMMON-STOCK>                            2,428
<SHARES-COMMON-PRIOR>                              465
<ACCUMULATED-NII-CURRENT>                          332
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                             62
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         1,056
<NET-ASSETS>                                    25,787
<DIVIDEND-INCOME>                                   83
<INTEREST-INCOME>                                  549
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (189)
<NET-INVESTMENT-INCOME>                            443
<REALIZED-GAINS-CURRENT>                            65
<APPREC-INCREASE-CURRENT>                          870
<NET-CHANGE-FROM-OPS>                            1,378
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        (125)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          2,064
<NUMBER-OF-SHARES-REDEEMED>                      (117)
<SHARES-REINVESTED>                                 16
<NET-CHANGE-IN-ASSETS>                          21,237
<ACCUMULATED-NII-PRIOR>                             14
<ACCUMULATED-GAINS-PRIOR>                          (3)
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                   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 period ended as of the date listed  in  Exhibit  A
attached   hereto  ("Report  Date"),  we  considered  their  internal
control, including control activities 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.

The  management  of  the Funds 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 internal control, errors or  fraud
may occur and not be detected.  Also, projection of any evaluation of
internal control 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  would  not  necessarily
disclose  all  matters  in 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 one or more of specific  internal
control components does not reduce to a relatively low level the risk
that errors or fraud 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 and its operation, including  controls
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  the
board  of  trustees  and management and the Securities  and  Exchange
Commission.


                                        ERNST & YOUNG LLP

Chicago, Illinois
September 17, 1998


Kemper Funds                                      Exhibit A

July 31, 1998

Kemper Horizon Funds-
  Kemper Horizon 20+ Portfolio
  Kemper Horizon 10+ Portfolio
  Kemper Horizon 5 Portfolio

Kemper Target Equity Funds-
  Kemper Retirement Fund Series I
  Kemper Retirement Fund Series II
  Kemper Retirement Fund Series III
  Kemper Retirement Fund Series IV
  Kemper Retirement Fund Series V
  Kemper Retirement Fund Series VI
  Kemper Retirement Fund Series VII
  Kemper WorldWide 2004

Cash Equivalent Fund-
  Money Market Portfolio
  Government Securities Portfolio
  Tax Exempt Portfolio

Zurich Money Funds-
  Zurich Money Market Funds
  Zurich Government Money Fund
  Zurich Tax-Free Money Fund

Zurich Yieldwise Money Fund



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