<PAGE> PAGE 1
000 A000000 06/30/95
000 C000000 0000093704
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 STATE BOND EQUITY FUNDS, INC.
001 B000000 811-1138
001 C000000 5025827900
002 A000000 239 SOUTH FIFTH STREET, 12TH FLOOR
002 B000000 LOUISIVILLE
002 C000000 KY
002 D010000 40202
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 STATE BOND COMMON STOCK FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 ARM CAPITAL ADVISORS, INC.
008 B00AA01 A
008 C00AA01 801-47942
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10166
011 A00AA01 SBM FINANCIAL SERVICES, INC.
011 B00AA01 8-14810
011 C01AA01 MINNEAPOLIS
011 C02AA01 MN
011 C03AA01 55437
012 A00AA01 SBM FINANCIAL SERVICES, INC.
012 B00AA01 84-5576
012 C01AA01 MINNEAPOLIS
012 C02AA01 MN
012 C03AA01 55437
013 A00AA01 ERNST & YOUNG LLP
<PAGE> PAGE 2
013 B01AA01 KANSAS CITY
013 B02AA01 MO
013 B03AA01 64105
013 B04AA01 2143
014 A00AA01 MORGAN STANLEY AND COMPANY
014 B00AA01 8-15869
015 A00AA01 FIRST BANK NATIONAL ASSOCIATION
015 B00AA01 C
015 C01AA01 ST. PAUL
015 C02AA01 MN
015 C03AA01 55164
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 7
019 C00AA00 ARMCAPITAL
020 A000001 GRUNTAL & CO
020 B000001 04-2574409
020 C000001 2
020 A000002 MORGAN STANLEY & CO
020 B000002 13-2655998
020 C000002 2
020 A000003 ALEX BROWN
020 B000003 52-1319768
020 C000003 1
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 5
022 A000001 FORD MOTOR CREDIT CO
022 B000001 38-1612444
022 C000001 34876
022 D000001 0
022 A000002 AMERICAN EXPRESS CREDIT CORP
022 B000002 11-1988350
022 C000002 32859
022 D000002 0
022 A000003 ITT FINANCIAL CORP
022 B000003 43-0815676
022 C000003 17074
022 D000003 0
022 A000004 SEARS ROEBUCK ACCEPTANCE CORP
022 B000004 51-0080535
022 C000004 13713
022 D000004 0
022 A000005 ALEX BROWN
022 B000005 52-1319768
<PAGE> PAGE 3
022 C000005 277
022 D000005 524
022 A000006 GRUNTAL & CO
022 B000006 04-2574409
022 C000006 152
022 D000006 495
022 A000007 DONALDSON, LUFKIN & JENRETTE
022 B000007 13-2741729
022 C000007 0
022 D000007 395
022 A000008 SMITH BARNEY
022 B000008 13-1912900
022 C000008 0
022 D000008 261
022 A000009 MORGAN STANLEY & CO
022 B000009 13-2655998
022 C000009 153
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 99104
023 D000000 1675
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A01AA00 274
028 A02AA00 0
028 A03AA00 0
028 A04AA00 514
028 B01AA00 96
028 B02AA00 0
028 B03AA00 0
028 B04AA00 341
028 C01AA00 124
028 C02AA00 0
<PAGE> PAGE 4
028 C03AA00 0
028 C04AA00 342
028 D01AA00 137
028 D02AA00 0
028 D03AA00 0
028 D04AA00 421
028 E01AA00 146
028 E02AA00 0
028 E03AA00 0
028 E04AA00 517
028 F01AA00 68
028 F02AA00 252
028 F03AA00 0
028 F04AA00 479
028 G01AA00 845
028 G02AA00 252
028 G03AA00 0
028 G04AA00 2614
028 H00AA00 542
029 00AA00 Y
030 A00AA00 25
030 B00AA00 4.75
030 C00AA00 0.00
031 A00AA00 9
031 B00AA00 0
032 00AA00 0
033 00AA00 16
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
042 A00AA00 0
042 B00AA00 0
042 C00AA00 100
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 69
044 00AA00 0
045 00AA00 Y
046 00AA00 Y
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 100000
048 A02AA00 0.650
<PAGE> PAGE 5
048 B01AA00 100000
048 B02AA00 0.600
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 200000
048 K02AA00 0.550
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 Y
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 250
062 A00AA00 N
062 B00AA00 0.0
<PAGE> PAGE 6
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 0
063 B00AA00 0.0
066 A00AA00 Y
066 D00AA00 Y
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 N
070 B02AA00 N
070 C01AA00 N
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 N
070 E02AA00 N
070 F01AA00 N
070 F02AA00 N
070 G01AA00 N
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 N
070 J02AA00 N
070 K01AA00 N
070 K02AA00 N
070 L01AA00 Y
070 L02AA00 Y
070 M01AA00 N
070 M02AA00 N
070 N01AA00 Y
<PAGE> PAGE 7
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 N
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
071 A00AA00 581
071 B00AA00 1675
071 C00AA00 51088
071 D00AA00 2
072 A00AA00 6
072 B00AA00 446
072 C00AA00 139
072 D00AA00 0
072 E00AA00 0
072 F00AA00 181
072 G00AA00 0
072 H00AA00 0
072 I00AA00 33
072 J00AA00 6
072 K00AA00 11
072 L00AA00 3
072 M00AA00 3
072 N00AA00 13
072 O00AA00 0
072 P00AA00 0
072 Q00AA00 0
072 R00AA00 9
072 S00AA00 0
072 T00AA00 68
072 U00AA00 0
072 V00AA00 0
072 W00AA00 6
072 X00AA00 333
072 Y00AA00 0
072 Z00AA00 252
072AA00AA00 947
072BB00AA00 0
072CC01AA00 6949
072CC02AA00 0
072DD01AA00 266
072DD02AA00 0
072EE00AA00 0
073 A01AA00 0.0400
073 A02AA00 0.0000
073 B00AA00 0.0000
073 C00AA00 0.0000
074 A00AA00 17
<PAGE> PAGE 8
074 B00AA00 0
074 C00AA00 4785
074 D00AA00 0
074 E00AA00 0
074 F00AA00 54258
074 G00AA00 0
074 H00AA00 0
074 I00AA00 0
074 J00AA00 0
074 K00AA00 0
074 L00AA00 87
074 M00AA00 0
074 N00AA00 59147
074 O00AA00 0
074 P00AA00 51
074 Q00AA00 0
074 R01AA00 0
074 R02AA00 0
074 R03AA00 0
074 R04AA00 28
074 S00AA00 0
074 T00AA00 59068
074 U01AA00 6670
074 U02AA00 0
074 V01AA00 8.86
074 V02AA00 0.00
074 W00AA00 0.0000
074 X00AA00 5605
074 Y00AA00 0
075 A00AA00 0
075 B00AA00 56051
076 00AA00 0.00
077 A000000 Y
077 B000000 N
077 C000000 Y
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 Y
077 I000000 N
077 J000000 N
077 K000000 Y
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
<PAGE> PAGE 9
078 000000 N
080 A00AA00 ST. PAUL FIRE & MARINE INSURANCE CO.
080 C00AA00 5000
081 A00AA00 Y
081 B00AA00 7
082 A00AA00 Y
082 B00AA00 100
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
086 A01AA00 0
086 A02AA00 0
086 B01AA00 0
086 B02AA00 0
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086 F01AA00 0
086 F02AA00 0
SIGNATURE KEITH MARTENS
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE ANNUAL
REPORT TO SHAREHOLDERS FOR THE STATE BOND COMMON STOCK FUND AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000093704
<NAME> STATE BOND EQUITY FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> STATE BOND COMMON STOCK FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 32,493,175
<INVESTMENTS-AT-VALUE> 59,043,068
<RECEIVABLES> 87,036
<ASSETS-OTHER> 17,277
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 59,147,381
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 79,016
<TOTAL-LIABILITIES> 79,016
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 31,586,124
<SHARES-COMMON-STOCK> 6,669,845
<SHARES-COMMON-PRIOR> 6,853,029
<ACCUMULATED-NII-CURRENT> (14,401)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 946,749
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 26,549,893
<NET-ASSETS> 59,068,365
<DIVIDEND-INCOME> 445,895
<INTEREST-INCOME> 139,214
<OTHER-INCOME> 0
<EXPENSES-NET> 332,923
<NET-INVESTMENT-INCOME> 252,186
<REALIZED-GAINS-CURRENT> 946,749
<APPREC-INCREASE-CURRENT> 6,948,743
<NET-CHANGE-FROM-OPS> 8,147,678
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 266,162
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 103,193
<NUMBER-OF-SHARES-REDEEMED> 314,614
<SHARES-REINVESTED> 28,237
<NET-CHANGE-IN-ASSETS> 6,365,010
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (425)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 180,923
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 332,923
<AVERAGE-NET-ASSETS> 55,668,615
<PER-SHARE-NAV-BEGIN> 7.69
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 1.17
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.86
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
