PRINCIPAL SPECIAL MARKETS FUND INC
NSAR-B, 1995-02-21
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<PAGE>      PAGE  1
000 B000000 12/31/94
000 C000000 0000898745
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 PRINCIPAL SPECIAL MARKETS FUND, INC.
001 B000000 811-7572
001 C000000 5152475476
002 A000000 THE PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000  2
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 DES MOINES
013 B02AA01 IA
013 B03AA01 50309
020 A000001 PEREGRIN BROKERAGE, INC
020 B000001 13-3580644
020 C000001     14
020 A000002 HOARE GOVETT SECURITIES, INC.
020 B000002 13-3227945
020 C000002      5
020 A000003 CROSBY SECURITIES, INC.
020 B000003 13-3431728
020 C000003      4
020 A000004 SAL OPPENHEIMEIM JR. & CIE
020 B000004 13-3469151
020 C000004      3
020 A000005 KLEINWORT BENSON
020 B000005 13-2647786
020 C000005      3
020 A000006 FIRST BOSTON CORP.
020 B000006 13-5659485
020 C000006      2
020 A000007 HG ASIA - SMITH BARNEY, INC.
020 B000007 NONE
020 C000007      2
020 A000008 SG WARBURG AND CO.
020 B000008 13-3340045
020 C000008      2
<PAGE>      PAGE  2
020 A000009 J.B. WERE & SONS
020 B000009 13-3077027
020 C000009      2
020 A000010 ENSKILDA SECURITIES, INC.
020 B000010 13-3497509
020 C000010      2
021  000000       48
022 A000001 FIRST CHICAGO CAPITAL MARKETS
022 B000001 36-3595942
022 C000001     94047
022 D000001         0
022 A000002 GENERAL ELECTRIC CAPITAL CORP.
022 B000002 13-1500700
022 C000002     15277
022 D000002         0
022 A000003 GOLDMAN SACHS
022 B000003 13-5108880
022 C000003      3025
022 D000003      6659
022 A000004 FIRST BOSTON CORP.
022 B000004 13-5659485
022 C000004      2976
022 D000004      4983
022 A000005 ASSOCIATES CORP. OF NORTH AMERICA
022 B000005 74-1494554
022 C000005      6729
022 D000005         0
022 A000006 MERRILL LYNCH
022 B000006 13-5674085
022 C000006      1421
022 D000006      1792
022 A000007 GENERAL ELECTRIC CO.
022 B000007 42-1192999
022 C000007      2514
022 D000007         0
022 A000008 SALOMON BROTHERS
022 B000008 13-3082694
022 C000008      1907
022 D000008         0
022 A000009 FORD MOTOR CREDIT CO.
022 B000009 38-1612444
022 C000009      1824
022 D000009         0
022 A000010 AMERICAN EXPRESS CREDIT CORP.
022 B000010 11-1988350
022 C000010      1695
022 D000010         0
023 C000000     136807
023 D000000      13964
077 A000000 Y
077 B000000 Y
<PAGE>      PAGE  3
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077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
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077 N000000 N
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077 P000000 N
077 Q010000 N
077 Q020000 N
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080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00    10300
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<PAGE>      PAGE  5
070 E020100 N
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070 F020100 N
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070 H020100 N
070 I010100 N
070 I020100 N
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070 J020100 N
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<PAGE>      PAGE  8
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<PAGE>      PAGE  9
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SIGNATURE   A.S. FILEAN                                  
TITLE       V.P. & SECRETARY    
 

WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                       14,208,434
<INVESTMENTS-AT-VALUE>                      15,401,477
<RECEIVABLES>                                   36,620
<ASSETS-OTHER>                                      60
<OTHER-ITEMS-ASSETS>                           447,471
<TOTAL-ASSETS>                              15,885,628
<PAYABLE-FOR-SECURITIES>                       159,003
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      185,030
<TOTAL-LIABILITIES>                            344,033
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    14,085,601
<SHARES-COMMON-STOCK>                        1,376,476
<SHARES-COMMON-PRIOR>                        1,308,588
<ACCUMULATED-NII-CURRENT>                    (114,791)
<OVERDISTRIBUTION-NII>                              0 
<ACCUMULATED-NET-GAINS>                        377,169
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     1,193,616
<NET-ASSETS>                                15,541,595
<DIVIDEND-INCOME>                              289,484
<INTEREST-INCOME>                               11,756
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 147,720
<NET-INVESTMENT-INCOME>                        153,520
<REALIZED-GAINS-CURRENT>                     1,094,165
<APPREC-INCREASE-CURRENT>                  (2,325,295)
<NET-CHANGE-FROM-OPS>                      (1,077,607)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      328,451
<DISTRIBUTIONS-OF-GAINS>                       680,385
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                              0
<NUMBER-OF-SHARES-REDEEMED>                          0
<SHARES-REINVESTED>                             67,888
<NET-CHANGE-IN-ASSETS>                     (1,296,353)
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<ACCUMULATED-GAINS-PRIOR>                       17,645
<OVERDISTRIB-NII-PRIOR>                              0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                147,720
<AVERAGE-NET-ASSETS>                        16,403,532
<PER-SHARE-NAV-BEGIN>                            12.87
<PER-SHARE-NII>                                    .13
<PER-SHARE-GAIN-APPREC>                          (.95)
<PER-SHARE-DIVIDEND>                               .25
<PER-SHARE-DISTRIBUTIONS>                          .51
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              11.29
<EXPENSE-RATIO>                                    .90
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               DEC-31-1995
<INVESTMENTS-AT-COST>                       16,773,276
<INVESTMENTS-AT-VALUE>                      15,135,968
<RECEIVABLES>                                   97,558
<ASSETS-OTHER>                                      87
<OTHER-ITEMS-ASSETS>                             2,769
<TOTAL-ASSETS>                              15,236,382
<PAYABLE-FOR-SECURITIES>                       491,875
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       30,762
<TOTAL-LIABILITIES>                            522,637
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    17,126,569
<SHARES-COMMON-STOCK>                        1,614,570
<SHARES-COMMON-PRIOR>                        2,406,177
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                     (775,516)
<ACCUM-APPREC-OR-DEPREC>                   (1,637,308)
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<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            1,600,630
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 102,737
<NET-INVESTMENT-INCOME>                      1,497,893
<REALIZED-GAINS-CURRENT>                     (775,513)
<APPREC-INCREASE-CURRENT>                  (1,838,174)
<NET-CHANGE-FROM-OPS>                      (1,115,794)
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    1,497,893
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        246,548
<NUMBER-OF-SHARES-REDEEMED>                  1,161,754
<SHARES-REINVESTED>                            123,599
<NET-CHANGE-IN-ASSETS>                     (9,595,287)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          (3)
<OVERDISTRIB-NII-PRIOR>                              0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                102,737
<AVERAGE-NET-ASSETS>                        22,826,710
<PER-SHARE-NAV-BEGIN>                            10.10
<PER-SHARE-NII>                                    .63
<PER-SHARE-GAIN-APPREC>                          (.99)
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<PER-SHARE-DISTRIBUTIONS>                            0
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<PER-SHARE-NAV-END>                               9.11
<EXPENSE-RATIO>                                    .45
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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