<PAGE> PAGE 1
000 A000000 02/29/96
000 C000000 0000881166
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 SM&R CAPITAL FUNDS, INC
001 B000000 811-6477
001 C000000 4097632767
002 A000000 ONE MOODY PLAZA
002 B000000 GALVESTON
002 C000000 TX
002 D010000 77550
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 GOVERNMENT INCOME FUND SERIES
007 C030100 N
007 C010200 2
007 C020200 PRIMARY FUND SERIES
007 C030200 N
007 C010300 3
007 C020300 TAX FREE FUND SERIES
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 SECURITIES MANAGEMENT AND RESEARCH, INC.
008 B00AA01 A
008 C00AA01 801-8002
008 D01AA01 GALVESTON
008 D02AA01 TX
008 D03AA01 77550
010 A00AA01 SECURITIES MANAGEMENT AND RESEARCH, INC.
010 C01AA01 GALVESTON
010 C02AA01 TX
010 C03AA01 77550
012 A00AA01 SECURITIES MANAGEMENT AND RESEARCH, INC.
012 B00AA01 84-00749
012 C01AA01 GALVESTON
<PAGE> PAGE 2
012 C02AA01 TX
012 C03AA01 77550
013 A00AA01 KPMG PEAT MARWICK
013 B01AA01 HOUSTON
013 B02AA01 TX
013 B03AA01 77210
013 B04AA01 4545
014 A00AA01 SECURITIES MANAGEMENT AND RESEARCH, INC.
014 B00AA01 8-12745
015 A00AA01 SECURITIES MANAGEMENT AND RESEARCH, INC.
015 B00AA01 C
015 C01AA01 GALVESTON
015 C02AA01 TX
015 C03AA01 77550
015 E03AA01 X
018 00AA00 N
019 A00AA00 Y
019 B00AA00 10
019 C00AA00 AMER NAT'L
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000001 13-5674085
022 C000001 66386
022 D000001 72169
022 A000002 BANK OF AMERICA NT & SA
022 B000002 94-1687665
022 C000002 27492
022 D000002 29507
022 A000003 LEHMAN BROTHERS INC.
022 B000003 13-2618466
022 C000003 22481
022 D000003 16342
022 A000004 FIRST BOSTON CO. (THE)
022 B000004 13-5659485
022 C000004 17162
022 D000004 15539
022 A000005 J. M. LUMMIS & CO.
022 B000005 06-0909285
022 C000005 5989
022 D000005 4126
022 A000006 GOLDMAN, SACHS & CO.
<PAGE> PAGE 3
022 B000006 13-5108880
022 C000006 1050
022 D000006 1055
022 A000007 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000007 36-3595942
022 C000007 995
022 D000007 0
022 A000008 MASTERSON, MORELAND, SAUER, WHISMAN, INC.
022 B000008 76-0148331
022 C000008 696
022 D000008 103
022 A000009 DEAN WITTER REYNOLDS, INC.
022 B000009 94-1671384
022 C000009 399
022 D000009 199
022 A000010 FIRST SOUTHWEST CO.
022 B000010 75-0708002
022 C000010 198
022 D000010 198
023 C000000 142849
023 D000000 139239
024 00AA00 N
026 A000000 N
026 B000000 N
026 C000000 N
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026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 N
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 Y
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 Y
055 B00AA00 N
056 00AA00 N
057 00AA00 N
<PAGE> PAGE 4
077 A000000 N
078 000000 N
028 A010100 317
028 A020100 81
028 A030100 0
028 A040100 158
028 B010100 356
028 B020100 101
028 B030100 0
028 B040100 86
028 C010100 185
028 C020100 74
028 C030100 0
028 C040100 37
028 D010100 172
028 D020100 89
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028 D040100 287
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028 G020100 545
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045 000100 Y
046 000100 N
047 000100 Y
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048 A010100 100000
<PAGE> PAGE 5
048 A020100 0.500
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048 J020100 0.000
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048 K020100 0.000
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<PAGE> PAGE 6
063 A000100 0
063 B000100 8.6
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070 E020100 N
070 F010100 N
070 F020100 N
070 G010100 N
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 N
070 K020100 N
070 L010100 Y
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 N
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
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<PAGE> PAGE 7
072 C000100 0
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072AA000100 0
072BB000100 1
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072DD010100 638
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073 A020100 0.0000
073 B000100 0.0000
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074 A000100 90
074 B000100 0
074 C000100 639
074 D000100 20192
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
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074 K000100 9
074 L000100 165
074 M000100 62
074 N000100 21157
074 O000100 0
074 P000100 13
<PAGE> PAGE 8
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 120
074 S000100 0
074 T000100 21024
074 U010100 2003
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074 V010100 10.50
074 V020100 0.00
074 W000100 0.0000
074 X000100 834
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076 000100 0.00
028 A010200 2971
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028 B010200 1256
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028 C010200 2075
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028 D040200 1284
028 E010200 2832
028 E020200 95
028 E030200 0
028 E040200 2647
028 F010200 1854
028 F020200 94
028 F030200 0
028 F040200 1004
028 G010200 11904
028 G020200 558
028 G030200 0
028 G040200 10878
028 H000200 0
029 000200 N
030 A000200 0
030 B000200 0.00
030 C000200 0.00
034 000200 N
<PAGE> PAGE 9
035 000200 0
036 B000200 0
037 000200 N
038 000200 0
039 000200 Y
040 000200 N
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.500
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048 B020200 0.000
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048 E020200 0.000
048 F010200 0
048 F020200 0.000
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048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 0
048 K020200 0.000
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 Y
053 B000200 Y
053 C000200 N
058 A000200 N
059 000200 Y
060 A000200 Y
060 B000200 Y
061 000200 1000
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
<PAGE> PAGE 10
062 H000200 0.0
062 I000200 100.2
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 17
063 B000200 0.0
064 A000200 Y
064 B000200 N
066 A000200 N
067 000200 N
068 A000200 N
068 B000200 N
069 000200 N
070 A010200 Y
070 A020200 N
070 B010200 N
070 B020200 N
070 C010200 N
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 N
070 K020200 N
070 L010200 Y
070 L020200 N
070 M010200 N
070 M020200 N
070 N010200 N
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 N
<PAGE> PAGE 11
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 0
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072 B000200 644
072 C000200 0
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072 J000200 12
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072 U000200 6
072 V000200 0
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072 Y000200 32
072 Z000200 557
072AA000200 0
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072DD010200 557
072DD020200 0
072EE000200 0
073 A010200 0.0300
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 1
074 B000200 0
074 C000200 22534
074 D000200 0
074 E000200 0
<PAGE> PAGE 12
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 0
074 K000200 15
074 L000200 5
074 M000200 47
074 N000200 22602
074 O000200 0
074 P000200 13
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 108
074 S000200 0
074 T000200 22481
074 U010200 22486
074 U020200 0
074 V010200 1.00
074 V020200 0.00
074 W000200 0.0000
074 X000200 878
074 Y000200 0
075 A000200 0
075 B000200 21879
076 000200 0.00
028 A010300 41
028 A020300 35
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028 B010300 163
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028 C020300 39
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028 D020300 40
028 D030300 0
028 D040300 9
028 E010300 37
028 E020300 40
028 E030300 0
028 E040300 26
028 F010300 125
028 F020300 41
028 F030300 0
<PAGE> PAGE 13
028 F040300 7
028 G010300 721
028 G020300 233
028 G030300 0
028 G040300 61
028 H000300 560
029 000300 Y
030 A000300 21
030 B000300 4.50
030 C000300 0.50
031 A000300 4
031 B000300 0
032 000300 0
033 000300 17
034 000300 N
035 000300 0
036 B000300 0
037 000300 N
038 000300 0
039 000300 Y
040 000300 N
045 000300 Y
046 000300 N
047 000300 Y
048 000300 0.000
048 A010300 100000
048 A020300 0.500
048 B010300 200000
048 B020300 0.450
048 C010300 10000000
048 C020300 0.400
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048 E020300 0.000
048 F010300 0
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048 G010300 0
048 G020300 0.000
048 H010300 0
048 H020300 0.000
048 I010300 0
048 I020300 0.000
048 J010300 0
048 J020300 0.000
048 K010300 0
048 K020300 0.000
049 000300 N
050 000300 N
051 000300 N
052 000300 N
<PAGE> PAGE 14
053 A000300 Y
053 B000300 Y
053 C000300 N
058 A000300 N
059 000300 Y
060 A000300 Y
060 B000300 Y
061 000300 100
062 A000300 Y
062 B000300 0.0
062 C000300 8.8
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 91.8
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 0
063 B000300 12.2
064 A000300 Y
064 B000300 N
066 A000300 N
067 000300 N
068 A000300 N
068 B000300 N
069 000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 N
070 C020300 N
070 D010300 N
070 D020300 N
070 E010300 N
070 E020300 N
070 F010300 N
070 F020300 N
070 G010300 N
070 G020300 N
070 H010300 N
070 H020300 N
<PAGE> PAGE 15
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 N
070 K020300 N
070 L010300 Y
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 N
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 N
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 994
071 B000300 606
071 C000300 8420
071 D000300 7
072 A000300 6
072 B000300 235
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072 V000300 0
072 W000300 2
072 X000300 53
072 Y000300 53
072 Z000300 235
072AA000300 6
<PAGE> PAGE 16
072BB000300 0
072CC010300 194
072CC020300 0
072DD010300 235
072DD020300 0
072EE000300 0
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073 C000300 0.0000
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074 B000300 0
074 C000300 830
074 D000300 8677
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074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 4
074 L000300 121
074 M000300 17
074 N000300 9649
074 O000300 0
074 P000300 5
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 192
074 S000300 0
074 T000300 9452
074 U010300 928
074 U020300 0
074 V010300 10.18
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074 X000300 120
074 Y000300 0
075 A000300 0
075 B000300 9001
076 000300 0.00
SIGNATURE BRENDA T. KOELEMAY
TITLE VP/TREASURER
[ARTICLE] 6
[CIK] 0000881166
[NAME] SM&R CAPITAL FUNDS, INC.
[SERIES]
[NUMBER] 01
[NAME] GOVERNMENT INCOME FUND SERIES
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] AUG-31-1996
[PERIOD-END] FEB-29-1996
[INVESTMENTS-AT-COST] 20,181,337
[INVESTMENTS-AT-VALUE] 20,831,034
[RECEIVABLES] 173,449
[ASSETS-OTHER] 90,251
[OTHER-ITEMS-ASSETS] 62,602
[TOTAL-ASSETS] 21,157,336
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 133,643
[TOTAL-LIABILITIES] 133,643
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 20,727,195
[SHARES-COMMON-STOCK] 2,002,576
[SHARES-COMMON-PRIOR] 1,946,741
[ACCUMULATED-NII-CURRENT] 2
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (353,201)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 649,697
[NET-ASSETS] 21,023,693
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 743,834
[OTHER-INCOME] 0
[EXPENSES-NET] 105,417
[NET-INVESTMENT-INCOME] 638,417
[REALIZED-GAINS-CURRENT] (1)
[APPREC-INCREASE-CURRENT] (29,003)
[NET-CHANGE-FROM-OPS] 609,413
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 638,415
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 128,566
[NUMBER-OF-SHARES-REDEEMED] 114,605
[SHARES-REINVESTED] 41,874
[NET-CHANGE-IN-ASSETS] 557,884
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (353,200)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 52,779
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 114,248
[AVERAGE-NET-ASSETS] 21,230,941
[PER-SHARE-NAV-BEGIN] 10.51
[PER-SHARE-NII] 0.32
[PER-SHARE-GAIN-APPREC] (0.01)
[PER-SHARE-DIVIDEND] 0.32
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 10.50
[EXPENSE-RATIO] 1.00<F1>
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
<FN>
<F1>Expenses for the calculation are net of a reimbursement from Securities
Management & Research, Inc. Without this reimbursement, the ratio of
expenses to average net assets would have been 1.00% for the six months
ended February 29, 1996.
</FN>
</TABLE>
[ARTICLE] 6
[CIK] 0000881166
[NAME] SM&R CAPITAL FUNDS, INC.
[SERIES]
[NUMBER] 02
[NAME] PRIMARY FUND SERIES
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] AUG-31-1996
[PERIOD-END] FEB-29-1996
[INVESTMENTS-AT-COST] 22,534,142
[INVESTMENTS-AT-VALUE] 22,534,142
[RECEIVABLES] 4,770
[ASSETS-OTHER] 546
[OTHER-ITEMS-ASSETS] 62,519
[TOTAL-ASSETS] 22,601,977
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 121,423
[TOTAL-LIABILITIES] 121,423
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 22,486,309
[SHARES-COMMON-STOCK] 22,486,313
[SHARES-COMMON-PRIOR] 20,990,035
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (5,755)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 22,480,554
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 644,284
[OTHER-INCOME] 0
[EXPENSES-NET] 87,688
[NET-INVESTMENT-INCOME] 556,596
[REALIZED-GAINS-CURRENT] 0
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 556,596
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 556,596
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 11,905,967
[NUMBER-OF-SHARES-REDEEMED] 10,879,852
[SHARES-REINVESTED] 470,163
[NET-CHANGE-IN-ASSETS] 1,496,278
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (5,755)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 54,352
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 119,275
[AVERAGE-NET-ASSETS] 21,878,561
[PER-SHARE-NAV-BEGIN] 1.00
[PER-SHARE-NII] 0.03
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0.03
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 1.00
[EXPENSE-RATIO] 0.80<F1>
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
<FN>
<F1>Expenses for the calculation are net of reimbursement from Securities
Management & Research, Inc. Without this reimbursement, the ratio of
expenses to average net assets would have been 1.09% for the six months
ended February 29, 1996.
</FN>
</TABLE>
[ARTICLE] 6
[CIK] 0000881166
[NAME] SM&R CAPITAL FUNDS, INC.
[SERIES]
[NUMBER] 03
[NAME] TAX-FREE FUND SERIES
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] AUG-31-1996
[PERIOD-END] FEB-29-1996
[INVESTMENTS-AT-COST] 9,257,932
[INVESTMENTS-AT-VALUE] 9,506,503
[RECEIVABLES] 125,679
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 17,762
[TOTAL-ASSETS] 9,648,944
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 197,242
[TOTAL-LIABILITIES] 197,242
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 9,246,766
[SHARES-COMMON-STOCK] 928,409
[SHARES-COMMON-PRIOR] 844,414
[ACCUMULATED-NII-CURRENT] 2,168
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (45,803)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 248,571
[NET-ASSETS] 9,451,702
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 235,176
[OTHER-INCOME] 0
[EXPENSES-NET] 0
[NET-INVESTMENT-INCOME] 235,176
[REALIZED-GAINS-CURRENT] 6,023
[APPREC-INCREASE-CURRENT] 193,939
[NET-CHANGE-FROM-OPS] 435,138
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 235,226
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 71,008
[NUMBER-OF-SHARES-REDEEMED] 5,994
[SHARES-REINVESTED] 18,981
[NET-CHANGE-IN-ASSETS] 1,052,586
[ACCUMULATED-NII-PRIOR] 2,218
[ACCUMULATED-GAINS-PRIOR] (51,826)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 22,354
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 52,974
[AVERAGE-NET-ASSETS] 9,000,731
[PER-SHARE-NAV-BEGIN] 9.95
[PER-SHARE-NII] 0.26
[PER-SHARE-GAIN-APPREC] 0.23
[PER-SHARE-DIVIDEND] 0.26
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 10.18
[EXPENSE-RATIO] 0<F1>
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
<FN>
<F1>Expenses for the calculation are net of reimbursement from Securities
Management & Research, Inc. Without this reimbursement, the ratio of
expenses to average net assets would have been 1.29% for the six months
ended February 29, 1996.
</FN>
</TABLE>
