<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 5
<NAME> PREFERRED ASSET ALLOCATION FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> JUN-30-2000
<INVESTMENTS-AT-COST> 183,316,023
<INVESTMENTS-AT-VALUE> 214,217,048
<RECEIVABLES> 2,862,579
<ASSETS-OTHER> 9,115
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 217,088,742
<PAYABLE-FOR-SECURITIES> 165,656
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 212,246
<TOTAL-LIABILITIES> 377,902
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 162,583,426
<SHARES-COMMON-STOCK> 12,925,096
<SHARES-COMMON-PRIOR> 14,363,121
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 23,768,245
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30,359,169
<NET-ASSETS> 216,710,840
<DIVIDEND-INCOME> 1,045,412
<INTEREST-INCOME> 8,439,051
<OTHER-INCOME> 0
<EXPENSES-NET> 1,986,735
<NET-INVESTMENT-INCOME> 7,497,728
<REALIZED-GAINS-CURRENT> 25,458,206
<APPREC-INCREASE-CURRENT> (21,817,058)
<NET-CHANGE-FROM-OPS> 11,138,876
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,497,728
<DISTRIBUTIONS-OF-GAINS> 4,951,396
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,964,114
<NUMBER-OF-SHARES-REDEEMED> 4,158,781
<SHARES-REINVESTED> 756,642
<NET-CHANGE-IN-ASSETS> (24,801,281)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,263,596
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,554,952
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,981,952
<AVERAGE-NET-ASSETS> 222,744,609
<PER-SHARE-NAV-BEGIN> 16.81
<PER-SHARE-NII> 0.57
<PER-SHARE-GAIN-APPREC> 0.33
<PER-SHARE-DIVIDEND> 0.57
<PER-SHARE-DISTRIBUTIONS> 0.37
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.77
<EXPENSE-RATIO> 0.89
</TABLE>
