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

VAN KAMPEN MERRITT TRUST FOR INVESTMENT GRADE MUNICIPALS
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 ... 11
Statement of Operations ............... 12
Statement of Changes in Net Assets .... 13
Financial Highlights ................. 14
Notes to Financial Statements ......... 15
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 annual gross
domestic product 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 a
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 produced a tax-exempt distribution of 7.24 percent <F3>, based
on the closing stock price of $15.75 per common share on October 31, 1995.
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 11.31 percent <F4>. In fact, many closed-end
municipal bond funds, such as your investment, are currently offering
higher yields (after taxes) over many income alternatives.

As the graph on the following page shows, the Trust's net asset value and
market price have made significant gains over the one-year period. The
Trust's closing stock price, for example, gained 12.5 percent from October
1994 to October 1995. Moreover, we are pleased to report the Trust
generated a one-year total return at market price of 21.15 percent <F1>,
which includes reinvestment of dividends for the period ended October 31,
1995.

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 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.

Trust Particpates in Market Gains of '95

Market
Date NAV Price

31-Oct-94 15.030 14.000
30-Nov-94 14.330 13.750
31-Dec-94 14.850 13.750
31-Jan-95 15.350 15.000
28-Feb-95 15.990 15.625
31-Mar-95 16.080 15.375
30-Apr-95 15.960 15.375
31-May-95 16.490 15.250
3O-Jun-95 16.160 15.375
31-Jul-95 16.180 15.625
31-Aug-95 16.310 15.625
3O-Sep-95 16.320 15.250
31-Oct-95 16.580 15.750

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 high current income. 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 Trust For Investment Grade Municipals
(NYSE Ticker Symbol--VGM)

<TABLE>
<CAPTION>
<S> <C>
Total Returns
One-year total return based on market price<F1> ....................................... 21.15%
One-year total return based on NAV<F2> ................................................ 18.51%
Distribution Rates
Distribution rate as a % of initial offer common stock price<F3> ...................... 7.60%
Taxable-equivalent distribution rate as a % of initial offer common stock price<F4> ... 11.88%
Distribution rate as a % of closing common stock price<F3> ........................... 7.24%
Taxable-equivalent distribution rate as a % of closing common stock price<F4> ......... 11.31%
Share Valuations
Net asset value ....................................................................... $ 16.58
Closing common stock price ............................................................ $ 15.750
One-year high common stock price (07/07/95) ........................................... $ 16.000
One-year low common stock price (11/08/94) ........................................... $ 13.000
Preferred share (Series A) rate<F5> .................................................. 3.750%
Preferred share (Series B) rate<F5> .................................................. 3.790%
Preferred share (Series C) rate<F5> ................................................... 3.774%
Preferred share (Series D) rate<F5> ................................................... 3.781%

<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.

</FN>
</TABLE>

Portfolio of Investments

Arkansas 1.8%
12,500 Blytheville, AR Solid Waste Recycling & Swr Treatment
Rev Nucor Corp Proj .................................... 6.900 12/01/21 13,233,125
------------

California 6.3%
2,000 California Pollutn Ctl Fin Auth Pollutn Ctl Rev Pacific
Gas & Elec Co Ser B (MBIA Insd) ....................... 5.850 12/01/23 1,974,080
2,000 California Pollutn Ctl Fin Auth Pollutn Ctl Rev Southern
CA Edison Co (Embedded Cap) (AMBAC Insd) .............. 6.000 07/01/27 2,004,780
25,750 Foothill/Eastern Tran Corridor Agy CA Toll Road Rev
Sr Lien Ser A ......................................... * 01/01/23 4,066,955
7,000 Foothill/Eastern Tran Corridor Agy CA Toll Road Rev
Sr Lien Ser A ......................................... 6.000 01/01/34 6,634,600
2,175 Los Angeles Cnty, CA Pub Wks Fin Auth Lease Rev
Multi Cap Fac Proj IV .................................. 5.250 12/01/16 2,069,752
4,000 Los Angeles, CA Convention & Exhibition Cent Auth
Lease Rev Ser A Rfdg (MBIA Insd) ....................... 5.150 08/15/08 3,951,400
5,000 Los Angeles, CA Dept Wtr & Pwr Elec Plant Rev
Crossover Rfdg (MBIA Insd) ............................ 5.375 09/01/23 4,777,500
2,000 Orange Cnty, CA Recovery Ser A Rfdg (MBIA Insd) ....... 6.000 06/01/09 2,096,660
15,000 San Diego, CA Indl Dev Rev San Diego Gas & Elec
Ser A (Embedded Cap) (AMBAC Insd) ...................... 6.100 09/01/19 15,090,450
2,000 Southern CA Pub Pwr Auth (FSA Insd) ................... 6.000 07/01/12 2,041,760
------------
44,707,937
------------

Colorado 4.5%
1,000 Arapahoe Cnty, CO Cap Impt Trust Fund Hwy
Rev E-470 Proj Ser B .................................. 6.950 08/31/20 1,056,060
7,000 Denver, CO City & Cnty Arpt Rev Ser A ................. 8.500 11/15/23 7,981,330
5,000 Denver, CO City & Cnty Arpt Rev Ser A ................. 8.750 11/15/23 5,864,850
7,915 Denver, CO City & Cnty Arpt Rev Ser A ................. 8.000 11/15/25 8,830,845
3,500 Denver, CO City & Cnty Arpt Rev Ser B (MBIA Insd) ..... 5.750 11/15/17 3,416,665
1,685 Meridian Metro Dist CO Peninsular & Oriental
Steam Navig Co Rfdg ................................... 7.000 12/01/00 1,819,648
3,250 Meridian Metro Dist CO Peninsular & Oriental
Steam Navig Co Rfdg ................................... 7.500 12/01/11 3,490,403
------------
32,459,801
------------
</TABLE>

4 See Notes to Finanical Statements

Portfolio of Investments (Continued)

Georgia 1.4%
3,150 Burke Cnty, GA Dev Auth Pollutn Ctl Rev GA Pwr Co
Plant Vogtle Proj (MBIA Insd) ...................... 6.350 05/01/19 3,236,846
5,900 Municipal Elec Auth, GA Spl Oblig 5th Crossover
Ser Proj One (MBIA Insd) .......................... 6.500 01/01/17 6,604,165
------------
9,841,011
------------

Hawaii 0.9%
6,000 Hawaii St Arpt Sys Rev Ser 2 (MBIA Insd) .......... 6.750 07/01/21 6,353,820
------------

Illinois 11.6%
4,865 Chicago, IL Cap Apprec (AMBAC Insd) ................ * 07/01/16 1,299,928
1,600 Chicago, IL Cent Pub Lib Ser A (AMBAC Insd) ....... 6.650 01/01/05 1,772,672
1,800 Chicago, IL Cent Pub Lib Ser A (AMBAC Insd) ....... 6.700 01/01/06 2,010,762
1,600 Chicago, IL Cent Pub Lib Ser B (AMBAC Insd) ....... 6.650 01/01/05 1,772,672
10,000 Chicago, IL Cent Pub Lib Ser B
(Prerefunded @ 04/01/02) (AMBAC Insd) ............. 6.850 01/01/17 11,438,800
1,400 Chicago, IL Cent Pub Lib Ser C (AMBAC Insd) ....... 6.650 01/01/05 1,551,088
1,500 Chicago, IL Cent Pub Lib Ser C (AMBAC Insd) ....... 6.700 01/01/06 1,675,635
7,000 Chicago, IL O'Hare Intl Arpt Rev Genl Arpt 2nd Lien
Ser A (MBIA Insd) .................................. 6.375 01/01/12 7,472,220
13,645 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc ................................... 8.500 05/01/18 14,972,522
3,735 Chicago, IL O'Hare Intl Arpt Spl Fac Rev
United Airls Inc Proj Ser 84A ...................... 8.850 05/01/18 4,224,173
4,505 East Peoria, IL Ser C Rfdg ......................... 7.000 05/01/17 4,906,756
10,010 Hoffman Estates, IL Tax Increment Rev Jr Lien
Sears Roebuck & Co ................................. * 05/15/05 5,877,772
10,000 Hoffman Estates, IL Tax Increment Rev Jr Lien
Sears Roebuck & Co ................................. * 05/15/06 5,474,100
2,000 Illinois Hlth Fac Auth Rev Edward Hosp Assn Proj ... 7.000 02/15/12 2,107,520
1,900 Illinois Hlth Fac Auth Rev Evangelical Hosps Ser C
(FSA Insd) ........................................ 6.750 04/15/17 2,034,292

</TABLE>

5 See Notes to Finanical Statements

Portfolio of Investments (Continued)

Indiana 0.7%
4,500 Indianapolis, IN Arpt Auth Rev Spl Fac Federal
Express Corp Proj .................................. 7.100 01/15/17 4,787,505
------------

Iowa 0.4%
2,375 Iowa Student Ln Liquidity Corp Rev Ser C .......... 6.950 03/01/06 2,560,701
------------

Kentucky 3.1%
10,000 Kenton Cnty, KY Arpt Brd Arpt Rev Spl Fac
Delta Airls Proj Ser A ............................ 7.500 02/01/20 10,655,600
11,000 Kenton Cnty, KY Arpt Brd Arpt Rev Spl Fac
Delta Airls Proj Ser A ............................ 7.125 02/01/21 11,460,680
------------
22,116,280
------------

Maine 2.1%
2,650 Maine Muni Bd Bank Ser A Rfdg (MBIA Insd) ......... 5.800 11/01/20 2,641,334
5,250 Maine St Hsg Auth Mtg Pur Ser D6 ................... 7.250 11/15/19 5,557,230
6,755 Maine St Hsg Auth Mtg Pur Ser D6 ................... 7.250 11/15/22 7,106,868
------------
15,305,432
------------

Maryland 0.7%
5,000 Maryland St Cmnty Dev Admin Dept Hsg & Cmnty Dev
Rev Single Family Pgm 7th Ser ...................... 7.300 04/01/25 5,314,500
------------

Massachusetts 2.4%
12,685 Massachusetts St Cons Ln Ser D
(Prerefunded @ 07/01/01) .......................... 6.875 07/01/10 14,428,046
2,410 Massachusetts St Hsg Fin Agy Residential Dev
Ser C (FNMA Collateralized) ........................ 6.875 11/15/11 2,564,119
------------
16,992,165
------------

Michigan 3.8%
8,015 Detroit, MI Econ Dev Corp Res Recovery Rev
Ser A (FSA Insd) ................................... 6.875 05/01/09 8,744,766
3,500 Grand Rapids, MI Downtown Dev Cap Apprec
(MBIA Insd) ....................................... * 06/01/15 1,114,435
2,765 Grand Rapids, MI Downtown Dev Cap Apprec
(MBIA Insd) ....................................... * 06/01/16 830,274

</TABLE>

6 See Notes to Finanical Statements

Portfolio of Investments (Continued)

Nevada 0.5%
3,000 Clark Cnty, NV Indl Dev Rev NV Pwr Co Proj C
Rfdg (AMBAC Insd) ................................ 7.200 10/01/22 3,378,330
------------

New Hampshire 3.1%
16,500 New Hampshire St Indl Dev Auth Rev Pollutn Ctl
Pub Svcs Co NH Proj A ............................ 7.650 05/01/21 17,558,475
4,000 New Hampshire St Indl Dev Auth Rev Pollutn Ctl
Pub Svcs Co NH Proj C ............................ 7.650 05/01/21 4,254,720
------------
21,813,195
------------
New Jersey 7.0%
11,000 Mercer Cnty, NJ Impt Auth Rev Solid Waste
Ser A Rfdg (FGIC Insd) ........................... 6.700 04/01/13 11,580,250
25,000 New Jersey Econ Dev Auth St Contract Econ
Recovery (Embedded Cap) <F3> ...................... 5.900 03/15/21 25,578,000
2,000 New Jersey Hlthcare Fac Fin Auth Rev Genl Hosp
Cent at Passaic (FSA Insd) ....................... 6.000 07/01/06 2,169,660
10,000 New Jersey St Hsg & Mtg Fin Agy Rev .............. 6.950 05/01/15 10,489,800
------------
49,817,710
------------
New York 18.2%
12,155 Metropolitan Tran Auth NY Svcs Contract Commuter
Fac Ser 5 Rfdg ................................... 6.500 07/01/16 12,496,555
5,000 New York City Ser A .............................. 6.500 08/01/14 5,091,100
1,740 New York City Ser A (Prerefunded @ 08/15/01) ...... 8.000 08/15/20 2,082,101
8,500 New York City Ser C ............................... 7.500 08/01/19 9,325,775
2,900 New York City Ser C Rfdg ......................... 6.500 08/01/04 3,045,551
5,250 New York City Tran Auth Tran Fac Livingston Plaza
Proj Rfdg (FSA Insd) .............................. 5.400 01/01/18 5,062,313
13,500 New York St Dorm Auth Rev City Univ Sys Ser C ..... 7.500 07/01/10 15,914,340
2,000 New York St Dorm Auth Rev Court Fac Lease Ser A ... 5.375 05/15/16 1,839,100
5,725 New York St Environmental Fac Corp Spl Oblig
Riverbank State Park .............................. 7.375 04/01/22 6,186,836
5,000 New York St Hsg Fin Agy Svcs Contract Oblig Rev
Ser A (Prerefunded @ 03/15/01) .................... 7.375 09/15/21 5,878,900

</TABLE>

7 See Notes to Finanical Statements

Portfolio of Investments (Continued)

October 31, 1995
- ----------------------------------------------------------------------------------------------------
Par
Amount
(000) Description Coupon Maturity Market Value
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (Continued)
$ 27,700 New York St Loc Govt Assistance Corp Ser D
(Prerefunded @ 04/01/02) .......................... 7.000% 04/01/18 $ 32,021,477
2,840 New York St Loc Govt Assistance Corp Ser E Rfdg .... 6.000 04/01/14 2,974,360
6,450 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser A (AMBAC Insd) ........................ 5.700 08/15/14 6,416,267
3,000 New York St Med Care Fac Fin Agy Rev NY Hosp
Mtg Ser A (AMBAC Insd) ............................ 6.750 08/15/14 3,311,610
5,875 New York St Med Care Fac Fin Agy Rev Saint Peter's
Hosp Proj Ser A (AMBAC Insd) ....................... 5.375 11/01/20 5,573,554
11,500 New York St Urban Dev Corp Rev St Fac ............. 7.500 04/01/11 12,590,890
------------
129,810,729
------------
North Carolina 4.6%
2,500 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev
Ser B Rfdg ........................................ 6.250 01/01/23 2,572,600
10,000 North Carolina Eastn Muni Pwr Agy Pwr Sys Rev
Ser B Rfdg (Embedded Cap) ......................... 6.000 01/01/14 9,822,700
15,000 North Carolina Muni Pwr Agy No 1 Catawba Elec
Rev (Embedded Cap) ................................. 6.000 01/01/12 14,913,150
5,150 North Carolina Muni Pwr Agy No 1 Catawba Elec
Rev Rfdg (FSA Insd) ............................... 6.200 01/01/18 5,314,697
------------
32,623,147
------------
Ohio 0.6%
1,000 Ohio St Air Quality Dev Auth Rev JMG Funding
Ltd Partnership Proj Rfdg (AMBAC Insd) ............. 6.375 04/01/29 1,054,660
3,000 Ohio St Wtr Dev Auth Pollutn Ctl Fac Rev PA
Pwr Co Proj Rfdg (AMBAC Insd) ...................... 6.150 08/01/23 3,130,380
------------
4,185,040
------------
Oklahoma 3.7%
17,475 Tulsa, OK Muni Arpt Tran Rev American Airls Inc .... 7.375 12/01/20 18,411,660
7,500 Tulsa, OK Muni Arpt Tran Rev American Airls Inc .... 7.600 12/01/30 8,000,025
------------
26,411,685
------------
Oregon 1.1%
7,670 Oregon St Hsg & Cmnty Svcs Dept Mtg Rev
Single Family Mtg Proj Ser B ...................... 6.875 07/01/28 8,054,190
------------

Pennsylvania 3.4%
2,500 Allegheny Cnty, PA Arpt Rev Gtr Pittsburgh Intl Arpt
Ser B (FSA Insd) ................................... 6.625 01/01/22 2,621,650
4,000 Falls Twp, PA Hosp Auth Hosp Rev DE Vly Med
Rfdg (FHA Gtd) ..................................... 7.000 08/01/22 4,265,920
7,000 Montgomery Cnty, PA Indl Dev Auth Rev Pollutn Ctl
Ser E Rfdg (MBIA Insd) ............................. 6.700 12/01/21 7,573,020

</TABLE>

8 See Notes to Finanical Statements

Portfolio of Investments (Continued)

Rhode Island 0.2%
1,500 Rhode Island Depositors Econ Protn Corp Spl
Oblig Ser A (Prerefunded @ 08/01/02) ............... 6.950 08/01/22 1,732,065
------------

South Carolina 0.4%
2,700 Charleston Cnty, SC Solid Waste (MBIA Insd) ......... 6.000 01/01/14 2,755,917
------------

South Dakota 0.4%
2,500 South Dakota Dev Auth Homeownership Mtg Ser C ........ 7.300 05/01/24 2,638,450
------------

Tennessee 1.0%
6,825 Memphis, TN Hlth Edl & Hsg Fac Brd Mtg Rev
Edgewater Terr Rfdg (FHA Gtd) ...................... 7.375 01/20/27 7,383,899
------------

Texas 1.1%
5,250 Alliance Arpt Auth Inc TX Spl Fac Rev
American Airls Inc Proj ............................. 7.500 12/01/29 5,573,033
2,000 Coastal Bend Hlth Fac Dev Corp TX Incarnate
Word Hlth Svcs Ser A (FSA Insd) .................... 6.000 11/15/22 2,017,280
------------
7,590,313
------------

Utah 1.4%
2,500 Salt Lake City, UT Hosp Rev IHC Hosp Inc Rfdg
(Embedded Cap) ...................................... 5.500 02/15/27 2,342,600
1,125 Utah St Hsg Fin Agy Single Family Mtg Mezzanine
Issue H1 (AMBAC Insd) <F2> .......................... 6.000 07/01/12 1,125,000
5,060 Utah St Hsg Fin Agy Single Family Mtg
Ser A2 (FHA Gtd) ..................................... 7.150 07/01/25 5,312,342
1,235 Utah St Hsg Fin Agy Single Family Mtg Sr
Ser A1 (FHA Gtd) ................................... 7.100 07/01/14 1,305,099
------------
10,085,041
------------

Virginia 0.4%
1,000 Henrico Cnty, VA Indl Dev Auth Pub Fac Lease Rev
Henrico Cnty Regl Jail Proj ......................... 7.125 08/01/21 1,134,260
1,500 Virginia St Hsg Dev Auth Multi Family Ser E Rfdg ... 5.900 11/01/17 1,463,925
------------
2,598,185
------------
Washington 0.8%
5,000 Washington St Pub Pwr Supply (FGIC Insd) ........... 6.875 07/01/17 5,417,900
------------

</TABLE>

9 See Notes to Finanical Statements

Portfolio of Investments (Continued)

Wisconsin 1.5%
9,855 Wisconsin Hsg & Econ Dev Auth
Homeownership Rev Ser A ....................... 7.100 03/01/23 10,424,323
--------------

Puerto Rico 0.1%
1,110 Puerto Rico Comwlth Ser A Rfdg (AMBAC Insd) ... 6.000 07/01/14 1,124,474
--------------

Total Long-Term Investments 96.5%
(Cost $637,153,132) <F1> ................................................... 687,551,257
Short-Term Investments at Amortized Cost 2.0% .............................. 14,300,000
Other Assets in Excess of Liabilities 1.5% ................................. 11,003,581
--------------
Net Assets 100% ............................................................. $ 712,854,838
==============
*Zero coupon bond

<FN>
<F1> At October 31, 1995, cost for federal income tax purposes is $637,153,132;
the aggregate gross unrealized appreciation is $50,860,702 and the aggregate gross
unrealized depreciation is $1,076,691, resulting in net unrealized appreciation including
futures transactions of $49,784,011.

<F2> Securities purchased on a when issued or delayed delivery basis.

<F3> Assets segregated as collateral for when issued or delayed delivery purchase commitments
and open futures transactions.

</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

<TABLE>
<CAPTION>
<S> <C>
AAA ....................... 35.4%
AA ........................ 12.2
A ......................... 15.5
BBB ....................... 19.8
BB ........................ 17.1
------
100.0%
======

</TABLE>

10 See Notes to Finanical Statements

Statement of Assets and Liabilities

October 31, 1995
- ----------------------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments, at Market Value (Cost $637,153,132) (Note 1) ................... $ 687,551,257
Short-Term Investments (Note 1) ............................................. 14,300,000
Cash ....................................................................... 125,239
Interest Receivable ......................................................... 13,662,163
Unamortized Organizational Expenses (Note 1) ............................... 9,817
---------------
Total Assets ................................................................ 715,648,476
---------------
Liabilities:
Payables:
Investments Purchased ..................................................... 1,134,375
Income Distributions - Common and Preferred Shares ....................... 749,881
Investment Advisory Fee (Note 2) .......................................... 391,959
Administrative Fee (Note 2) .............................................. 120,603
Margin on Futures (Note 4) ............................................... 56,250
Accrued Expenses ............................................................ 340,570
---------------
Total Liabilities ...................................................... 2,793,638
---------------
Net Assets .................................................................. $ 712,854,838
===============

Net Assets Consist of:
Preferred Shares ($.01 par value, authorized 100,000,000 shares, 5,300 issued
with liquidation preference of $50,000 per share) (Note 5) ................ $ 265,000,000
---------------
Common Shares ($.01 par value with an unlimited number of shares authorized,
27,013,149 shares issued and outstanding) ................................ 270,131
Paid in Surplus ............................................................ 399,318,038
Net Unrealized Appreciation on Investments ................................. 49,784,011
Accumulated Undistributed Net Investment Income ............................ 4,841,135
Accumulated Net Realized Loss on Investments ................................ (6,358,477)
---------------
Net Assets Applicable to Common Shares ................................. 447,854,838
---------------
Net Assets .................................................................. $ 712,854,838
===============
Net Asset Value Per Common Share($447,854,838 divided
by 27,013,149 shares outstanding) ......................................... $ 16.58
===============

</TABLE>

11 See Notes to Financial Statements

Statement of Operations

For the Year Ended October 31,1995
- ----------------------------------------------------------------------------------------------------
<S> <C>
Investment Income:
Interest ..................................................................................... $ 45,429,180
----------------

Expenses:
Investment Advisory Fee (Note 2) ............................................................ 4,495,999
Administrative Fee (Note 2) .................................................................. 1,383,384
Preferred Share Maintenance (Note 5) ......................................................... 739,101
Legal (Note 2) .............................................................................. 40,150
Trustees Fees and Expenses (Note 2) .......................................................... 31,137
Amortization of Organizational Expenses (Note 1) ............................................ 8,001
Other ........................................................................................ 478,246
----------------
Total Expenses ............................................................................... 7,176,018
----------------
Net Investment Income ........................................................................ $ 38,253,162
================

Realized and Unrealized Gain/Loss on Investments:
Realized Gain/Loss on Investments:
Proceeds from Sales .......................................................................... $ 121,070,573
Cost of Securities Sold ...................................................................... (127,024,609)
----------------
Net Realized Loss on Investments (Including realized loss on closed and expired
option and futures transactions of $3,552 and $6,308,614, respectively) ..................... (5,954,036)
----------------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period ..................................................................... (789,237)
End of the Period (Including unrealized depreciation on futures transactions of $614,114) ... 49,784,011
----------------
Net Unrealized Appreciation on Investments During the Period ................................. 50,573,248
----------------
Net Realized and Unrealized Gain on Investments .............................................. $ 44,619,212
================
Net Increase in Net Assets from Operations ................................................... $ 82,872,374
================

</TABLE>

12 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 ............................................. $ 38,253,162 $ 38,676,264
Net Realized Loss on Investments .................................. (5,954,036) (404,501)
Net Unrealized Appreciation/Depreciation on
Investments During the Period ..................................... 50,573,248 (76,344,833)
--------------- ---------------
Change in Net Assets from Operations ............................. 82,872,374 (38,073,070)
--------------- ---------------
Distributions from Net Investment Income:
Common Shares ..................................................... (30,794,473) (30,794,679)
Preferred Shares ................................................. (10,276,931) (8,243,153)
--------------- ---------------
(41,071,404) (39,037,832)
--------------- ---------------
Distributions from Net Realized Gain on Investments (Note 1):
Common Shares ..................................................... -0- (1,523,542)
Preferred Shares ................................................. -0- (309,705)
--------------- ---------------

-0- (1,833,247)
--------------- ---------------
Total Distributions .............................................. (41,071,404) (40,871,079)
--------------- ---------------
Net Change in Net Assets from Investment Activities ............... 41,800,970 (78,944,149)
Net Assets:
Beginning of the Period .......................................... 671,053,868 749,998,017
--------------- ---------------
End of the Period (Including undistributed net investment income of
$4,841,135 and $7,659,377, respectively) ......................... $ 712,854,838 $ 671,053,868
=============== ===============

</TABLE>

13 See Notes to Financial Statements

<TABLE>
<CAPTION>
Financial Highlights

The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated.
- ----------------------------------------------------------------------------------------------------
January 24, 1992
(Commencement
Year Ended October 31 of Investment
===================================== Operations) to
1995 1994 1993 October 31,1992
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period <F1> ........ $ 15.032 $ 17.954 $ 15.557 $ 14.792
---------- --------------- ---------- ---------------
Net Investment Income ............... 1.415 1.432 1.454 1.010
Net Realized and Unrealized
Gain/Loss on Investments ......... 1.652 (2.842) 2.424 .550
---------- --------------- ---------- ---------------
Total from Investment Operations ..... 3.067 (1.410) 3.878 1.560
---------- --------------- ---------- ---------------
Less:
Distributions from Net
Investment Income:
Paid to Common Shareholders ....... 1.140 1.140 1.085 .595
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders .......... .380 .305 .287 .200
Distributions from Net Realized
Gain on Investments (Note 1):
Paid to Common Shareholders ....... -0- .056 .083 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders .......... -0- .011 .026 -0-
---------- --------------- ---------- ---------------
Total Distributions ................... 1.520 1.512 1.481 .795
---------- --------------- ---------- ---------------
Net Asset Value, End of the Period ... $ 16.579 $ 15.032 $ 17.954 $ 15.557
========== =============== ========== ===============

Market Price Per Share
at End of the Period ................ $ 15.750 $ 14.000 $ 17.375 $ 14.875
Total Investment Return at Market
Price (Non-Annualized) <F2> ......... 21.15% (13.12%) 25.40% 3.08%
Total Return at Net Asset
Value (Non-Annualized) <F3> ......... 18.51% (9.99%) 23.53% 7.68%
Net Assets at End of the Period
(In millions) ....................... $ 712.9 $ 671.1 $ 750.0 $ 685.2
Ratio of Expenses to Average
Net Assets Applicable to
Common Shares (Annualized) .......... 1.68% 1.63% 1.59% 1.54%
Ratio of Expenses to Average
Net Assets (Annualized) ............ 1.04% 1.03% 1.01% 1.01%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (Annualized) <F4> ..... 6.55% 6.79% 6.87% 6.71%
Portfolio Turnover .................... 14.66% 20.20% 19.77% 37.07%

<FN>
<F1> Net asset value at January 24, 1992, is adjusted for common and preferred
share offering costs of $.208 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.

</TABLE>

14 See Notes to Financial Statements

Notes to Financial Statements

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

1. Significant Accounting Policies
Van Kampen Merritt Trust for Investment Grade Municipals (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 January 24, 1992.

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 or, if such valuations are not available, 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. 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.

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 are being amortized on a straight line
basis over the 60 month period ending January 23, 1997. Van Kampen American
Capital Investment Advisory Corp. (the "Adviser") has agreed that in the
event any of the initial shares of the Trust originally purchased by VKAC are
redeemed during the amortization period, the Trust will be reimbursed for any
unamortized organizational expenses in the same proportion as the number of
shares redeemed bears to the number of initial shares held at the time of
redemption.

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

Notes to Financial Statements (Continued)

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

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 for tax purposes of $6,358,477, of which $404,441 and $5,954,036
will expire on October 31, 2002 and 2003, respectively.

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 on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for
tax purposes.

2. Investment Advisory Agreement and Other Transactions with Affiliates
Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly of .65% of the average net assets of the Trust. In addition, the Trust
will pay a monthly administrative fee to VKAC, the Trust's Administrator, at an
annual rate of .20% of the average net assets of the Trust. The administrative
services provided by the Administrator include record keeping and reporting
responsibilities with respect to the Trust's portfolio and preferred shares and
providing certain services to shareholders.

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 $36,400 representing VKAC's cost of providing accounting and legal
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 of VKAC. The Trust's liability under the
deferred compensation and retirement plans at October 31, 1995 was $24,800.

At October 31, 1995, VKAC owned 6,700 common shares of the Trust.

Notes to Financial Statements (Continued)

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

3. Investment Transactions
Aggregate purchases and cost of sales of investment securities, excluding
short-term notes, for the year ended October 31, 1995, were $99,566,986 and
$127,024,609, 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 .................... -0- $ -0-
Options Written and Purchased (Net) ................ 400 (173,933)
Options Terminated in Closing Transactions (Net) ... (175) 79,148
Options Expired (Net) .............................. (175) 65,475
Options Exercised (Net) ............................ (50) 29,310
--------- ------------
Outstanding at October 31, 1995 ................... -0- $ -0-
========= ============
</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.

Notes to Financial Statements (Continued)

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

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:

<TABLE>
<CAPTION>
Contracts
- --------------------------------------------------------------------------------
<S> <C>
Outstanding at October 31, 1994 ....................................... 600
Futures Opened ........................................................ 1,800
Futures Closed ........................................................ (2,200)
--------
Outstanding at October 31, 1995 ...................................... 200
========
</TABLE>

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

Unrealized
Contracts Depreciation
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Bond Futures
Dec. 1995-Sells to Open ........................ 200 $ 614,114
=== =========
</TABLE>

C. Indexed Securities-- These instruments are identified in the portfolio of
investments. The price of these securities may be more volatile than the price
of a comparable fixed rate security.

An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index upon
which the cap is based rises above the strike level. The Trust invests in these
instruments as a hedge against a rise in the short-term interest rates which it
pays on its preferred shares.

5. Preferred Shares
The Trust has outstanding 5,300 Auction Preferred Shares ("APS") in four series.
Series A, B, and C contain 1,500 shares each while Series D contains 800 shares.
Dividends are cumulative and the dividend rate is currently reset through an
auction process. The dividend period is 28 days for Series A, B, C and D. The
average rate in effect on October 31, 1995, was 3.773%. During the year ended
October 31, 1995, the rates ranged from 2.875% to 4.75%.

The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.

The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $50,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.

Independent Auditors' Report

The Board of Trustees and Shareholders of
Van Kampen Merritt Trust for Investment Grade Municipals:

We have audited the accompanying statement of assets and liabilities of Van
Kampen Merritt Trust for Investment Grade Municipals (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 and brokers. 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 Trust for Investment Grade Municipals 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") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at
any time.

If you decide to participate in the Plan, State Street Bank and Trust Company,
as your Plan Agent, will automatically invest your dividends and capital gains
distributions in Common Shares of the Trust for your account.

How to Participate
If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be
re-registered in your own name which will enable your participation in the Plan.

How the Plan Works
Participants in the Plan will receive the equivalent in Common Shares valued on
the valuation date, generally at the lower of market price or net asset value,
except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If,before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in the acquisition of fewer Common Shares than if the dividend or
distribution had been paid in Common Shares issued by the Trust. All
reinvestments are in full and fractional Common Shares and are 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
changes 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 divi-
dends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.

Right to Withdraw
Plan participants may withdraw 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 Trust For Investment Grade Municipals

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.