<PAGE> PAGE 1
000 B000000 12/31/96
000 C000000 0000094825
000 D000000 Y
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 STRATTON GROWTH FUND, INC.
001 B000000 811-2297
001 C000000 6109410255
002 A000000 610 W. GERMANTOWN PIKE, SUITE 300
002 B000000 PLYMOUTH MEETING
002 C000000 PA
002 D010000 19462
002 D020000 1050
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
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 A000001 STRATTON MANAGEMENT COMPANY
008 B000001 A
008 C000001 801-8681
008 D010001 PLYMOUTH MEETING
008 D020001 PA
008 D030001 19462
008 D040001 1050
010 A000001 FPS SERVICES, INC.
010 B000001 34910
010 C010001 KING OF PRUSSIA
010 C020001 PA
010 C030001 19406
010 C040001 0903
011 A000001 FPS BROKER SERVICES, INC.
011 B000001 8-41540
011 C010001 KING OF PRUSSIA
011 C020001 PA
011 C030001 19406
<PAGE> PAGE 2
011 C040001 0903
012 A000001 FPS SERVICES, INC.
012 B000001 84-932
012 C010001 KING OF PRUSSIA
012 C020001 PA
012 C030001 19406
012 C040001 0903
013 A000001 TAIT, WELLER & BAKER
013 B010001 PHILADELPHIA
013 B020001 PA
013 B030001 19102
013 B040001 1707
014 A000001 FPS BROKER SERVICES, INC.
014 B000001 8-41540
015 A000001 BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 3
019 C000000 STRATTNFDS
020 A000001 1. INTERSTATE JOHNSON LANE CORP.
020 B000001 56-0276690
020 C000001 10
020 A000002 2. ALEX BROWN & SONS, INC.
020 B000002 52-1319768
020 C000002 7
020 A000003 3. PAINE WEBBER JACKSON & CURTIS
020 B000003 13-2638166
020 C000003 2
020 A000004 4. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC
020 B000004 13-5674085
020 C000004 2
020 A000005 5 FRANK RUSSELL SECURITIES
020 B000005 96-0604934
020 C000005 1
020 A000006 6. LEHMAN BROTHERS, INC.
020 B000006 13-2518466
020 C000006 1
020 A000007 7. WILLIAM O'NEIL & CO., INC.
020 B000007 95-2269163
020 C000007 1
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 24
022 A000001 1. GENERAL ELECTRIC CREDIT CORP.
022 B000001 13-1500700
<PAGE> PAGE 3
022 C000001 22730
022 D000001 0
022 A000002 2. GENERAL MOTORS ACCEPTANCE CORP.
022 B000002 38-0572512
022 C000002 19625
022 D000002 0
022 A000003 3. FORD MOTORS CREDIT CORP.
022 B000003 38-1612444
022 C000003 12025
022 D000003 0
022 A000004 4. CHEVRON OIL
022 B000004 25-1215010
022 C000004 10275
022 D000004 0
022 A000005 5. AMERICAN EXPRESS
022 B000005 13-2985263
022 C000005 6545
022 D000005 0
022 A000006 6. ASSOCIATES CORP. OF AMERICA
022 B000006 74-1494554
022 C000006 6040
022 D000006 0
022 A000007 7. HOUSEHOLD FINANCE GROUP
022 B000007 36-1239445
022 C000007 1730
022 D000007 0
022 A000008 8. PRUDENTIAL BACHE SECURITIES
022 B000008 22-2347336
022 C000008 1675
022 D000008 0
022 A000009 9. ALEX BROWN & SONS, INC.
022 B000009 52-1319768
022 C000009 0
022 D000009 1074
022 A000010 10.HERZOG HEINE GEDULD, INC.
022 B000010 13-1955436
022 C000010 125
022 D000010 0
023 C000000 80893
023 D000000 1074
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
<PAGE> PAGE 4
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 178
028 A020000 425
028 A030000 0
028 A040000 448
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 178
028 G020000 425
028 G030000 0
028 G040000 448
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 Y
<PAGE> PAGE 5
040 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.750
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
<PAGE> PAGE 6
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 2000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 Y
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
<PAGE> PAGE 7
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 7850
071 B000000 8068
071 C000000 38636
071 D000000 20
072 A000000 7
072 B000000 120
072 C000000 684
072 D000000 0
072 E000000 0
072 F000000 178
072 G000000 17
072 H000000 0
072 I000000 17
072 J000000 13
072 K000000 0
072 L000000 9
072 M000000 6
072 N000000 19
072 O000000 -6
072 P000000 0
<PAGE> PAGE 8
072 Q000000 12
072 R000000 17
072 S000000 4
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 4
072 X000000 290
072 Y000000 0
072 Z000000 514
072AA000000 750
072BB000000 0
072CC010000 1415
072CC020000 0
072DD010000 936
072DD020000 0
072EE000000 1910
073 A010000 0.5800
073 A020000 0.0000
073 B000000 1.2100
073 C000000 0.0000
074 A000000 62
074 B000000 0
074 C000000 3430
074 D000000 0
074 E000000 0
074 F000000 41292
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 67
074 M000000 9
074 N000000 44860
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 59
074 S000000 0
074 T000000 44801
074 U010000 1659
074 U020000 0
074 V010000 27.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 1239
074 Y000000 0
<PAGE> PAGE 9
075 A000000 0
075 B000000 42616
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 1175
081 A000000 Y
081 B000000 2
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 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
SIGNATURE MICHELLE A. WHALEN
TITLE COMPLIANCE ADMIN.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000094825
<NAME> STRATTON GROWTH FUND, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 30575
<INVESTMENTS-AT-VALUE> 44722
<RECEIVABLES> 67
<ASSETS-OTHER> 71
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 44860
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 59
<TOTAL-LIABILITIES> 59
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29901
<SHARES-COMMON-STOCK> 1659
<SHARES-COMMON-PRIOR> 1577
<ACCUMULATED-NII-CURRENT> 9
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 744
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14147
<NET-ASSETS> 44801
<DIVIDEND-INCOME> 684
<INTEREST-INCOME> 120
<OTHER-INCOME> 0
<EXPENSES-NET> 290
<NET-INVESTMENT-INCOME> 514
<REALIZED-GAINS-CURRENT> 750
<APPREC-INCREASE-CURRENT> 1415
<NET-CHANGE-FROM-OPS> 2679
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 936
<DISTRIBUTIONS-OF-GAINS> 1910
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 84
<NUMBER-OF-SHARES-REDEEMED> 98
<SHARES-REINVESTED> 96
<NET-CHANGE-IN-ASSETS> 1921
<ACCUMULATED-NII-PRIOR> 431
<ACCUMULATED-GAINS-PRIOR> 1904
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 178
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 290
<AVERAGE-NET-ASSETS> 42616
<PER-SHARE-NAV-BEGIN> 27.18
<PER-SHARE-NII> 0.312
<PER-SHARE-GAIN-APPREC> 1.298
<PER-SHARE-DIVIDEND> 0.580
<PER-SHARE-DISTRIBUTIONS> 1.210
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 27.0
<EXPENSE-RATIO> 1.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Tait, Weller & Baker
Certified Public Accountants
Report of Independent Certified Public Accountants
on Internal Control Structure
Shareholders and Board of Directors
Stratton Growth Fund, Inc.
Plymouth Meeting, Pennsylvania
In planning and performing our audit of the financial statements of Stratton
Growth Fund, Inc. for the period ended December 31, 1996, we considered its
internal control structure, including procedures for safeguarding securities,
in order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control structure.
The management of the Fund is responsibile for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. Two of
the objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against
loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit
preparation of financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses, as
defined above, as of December 31, 1996.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission, and should not be used for any other
purpose.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 13, 1997
