U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 24F-2
Annual Notice of Securities Sold
Pursuant to Rule 24f-2
1 Name and Address of Issuer:
Principal Special Markets Fund, Inc.
The Principal Financial Group
Des Moines, IA 50392-0200
2 The name of each series or class of securities for which this
Form is filed (If the Form is being filed for all series and
classes of securities of the issues, check the box but do not
list series or classes):
X
3 Investment Company Act File Number: 811-07572
Securities Act File Number: 33-59474
4 a Last day of fiscal year for which this notice if filed:
December 31, 1997
4 b Check this box if this Form is being filed late (i.e., more than
90 calendar days after the end of the issuer's fiscal year).
(See Instruction A.2)
N/A
Note: If the Form is being filed late, interest must be paid on
the registration fee due.
4 c Check box if this is the last time the issuer will be filing
this Form.
N/A
5 Calculation of registration fee:
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(i) Aggregate sale price of securities sold during the
fiscal year in reliance on rule 24f-2: $82,014,850
(ii) Aggregate price of shares redeemed or
repurchased during the fiscal year: 11,072,544
(iii) Aggregate price of shares redeemed or repurchased during
any prior fiscal year ending no earlier than October 11,
1995 that were not previously used to reduce
registration fees payable to the Commission: 0
(iv) Total available redemption credits
[Add items 5(ii) and 5(iii)]: 11,072,544
(v) Net Sales - If Item 5(i) is greater than Item 5(iv)
[subtract Item 5(iv) from Item 5(i)]: 70,942,306
(vi) Redemption credits available for use in future years --
if Item 5(i) is less than Item 5(iv) [subtract Item
5(iv) from Item 5(i)]" N/A
(vii) Multiplier for determining registration fee (See
Instruction c.9): 0.000295
(viii) Registration fee due [Multiply Item 5(v) by Item
5(vii)] (enter "0" if no fee is due): 20,927.98
6 Prepaid Shares
If the response to Item 5(i) was determined by deducting an
amount of securities that were registered under the Securities
Act of 1933 pursuant to rule 24e-2 as in effect before
[effective date of rescisision of rule 24e-2], then report the
amount of securities (number of shares or other units) deducted
here: ____________. If there is a number of shares or other
units that were registered pursuant to rule 24e-2 remaining
unsold at the end of the fiscal year for which this form is
filed that are available for use by the issuer in future fiscal
years, then state the number here: ____________.
7 Interest due-if this Form is being filed more than 90 days after
the end of the issuer's fiscal year
(see Instruction D):
+ 0
8 Total of the amount of the registration fee due plus any
interest due [line 5(viii) plus line 7]:
20,927.98
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9 Date the registration fee and any interest payment was sent to
the Commission's lockbox depository:
02/25/98
Method of Delivery:
X Wire Transfer
N/A Mail or other means
Signature
This report has been signed below by the following persons on behalf of the
issuer and in the capacities and on the dates indicated:
Principal Special Markets Fund, Inc.
By /s/ A. S. Filean
__________________________________
A. S. Filean, Vice President
and Secretary
Date: 25th day of February, 1998
