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      PAGE  1
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008 D050002 UK
008 D060002 EC4M 7RQ
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010 B000001 8-47765
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010 C020001 IL
010 C030001 60606
      PAGE  2
010 C040001 5808
011 A000001 ZURICH KEMPER DISTRIBUTORS, INC.
011 B000001 8-47765
011 C010001 CHICAGO
011 C020001 IL
011 C030001 60606
011 C040001 5808
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012 B000001 84-1713
012 C010001 KANSAS CITY
012 C020001 MO
012 C030001 64105
013 A000001 ERNST & YOUNG LLP
013 B010001 CHICAGO
013 B020001 IL
013 B030001 60606
014 A000001 ZURICH KEMPER DISTRIBUTORS, INC.
014 B000001 8-47765
014 A000002 GRUNTAL SECURITIES, INC.
014 B000002 8-31022
014 A000003 THE GMS GROUP, INC.
014 B000003 8-23936
015 A000001 INVESTORS FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
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015 C020002 MA
015 C030002 02110
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015 C020003 NY
015 C030003 11245
015 E040003 X
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020 A000001 SALOMON BROTHERS INC.
020 B000001 13-3082694
020 C000001     81
020 C000002      0
020 C000003      0
020 C000004      0
020 C000005      0
      PAGE  3
020 C000006      0
020 C000007      0
020 C000008      0
020 C000009      0
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022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001    501279
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022 B000002 13-2518466
022 C000002    325896
022 D000002    126529
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000003 13-5674085
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022 B000004 13-3082694
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022 B000005 13-2655998
022 C000005    142081
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022 A000006 UBS SECURITIES INC.
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022 A000007 CS FIRST BOSTON CORPORATION
022 B000007 13-5659485
022 C000007     85149
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022 A000008 J.P. MORGAN SECURITIES INC
022 B000008 13-3224016
022 C000008     66870
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022 A000009 NATIONSBANC CAPITAL MARKETS
022 B000009 UNKNOWN
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      PAGE  4
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      PAGE  5
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      PAGE  6
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      PAGE  7
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      PAGE  8
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      PAGE  9
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SIGNATURE   JEROME L. DUFFY                              
TITLE       TREASURER           
 

EX-27.CLASSA

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000055185
<NAME> KEMPER INCOME AND CAPITAL PRESERVATION FUND

   <NUMBER> 001
   <NAME> CLASS A
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          OCT-31-1997
<PERIOD-START>                             NOV-01-1996
<PERIOD-END>                               OCT-31-1997
<INVESTMENTS-AT-COST>                          608,064
<INVESTMENTS-AT-VALUE>                         618,278
<RECEIVABLES>                                   33,228
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 651,506
<PAYABLE-FOR-SECURITIES>                        31,103
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        6,933
<TOTAL-LIABILITIES>                             38,036
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       608,390
<SHARES-COMMON-STOCK>                           60,272
<SHARES-COMMON-PRIOR>                           57,196
<ACCUMULATED-NII-CURRENT>                       11,019
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                       (16,153)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        10,214
<NET-ASSETS>                                   613,470
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               45,924
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (6,620)
<NET-INVESTMENT-INCOME>                         39,304
<REALIZED-GAINS-CURRENT>                         1,934
<APPREC-INCREASE-CURRENT>                        3,456
<NET-CHANGE-FROM-OPS>                           44,694
<EQUALIZATION>                                     371
<DISTRIBUTIONS-OF-INCOME>                     (33,682)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         22,450
<NUMBER-OF-SHARES-REDEEMED>                   (22,089)
<SHARES-REINVESTED>                              2,715
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<ACCUMULATED-NII-PRIOR>                         10,556
<ACCUMULATED-GAINS-PRIOR>                     (18,088)
<OVERDISTRIB-NII-PRIOR>                              0
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<PER-SHARE-NAV-BEGIN>                             8.46
<PER-SHARE-NII>                                    .57
<PER-SHARE-GAIN-APPREC>                            .08
<PER-SHARE-DIVIDEND>                             (.57)
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               8.54
<EXPENSE-RATIO>                                    .97
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

 

EX-27.CLASSB

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000055185
<NAME> KEMPER INCOME AND CAPITAL PRESERVATION FUND

   <NUMBER> 002
   <NAME> CLASS B
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          OCT-31-1997
<PERIOD-START>                             NOV-01-1996
<PERIOD-END>                               OCT-31-1997
<INVESTMENTS-AT-COST>                          608,064
<INVESTMENTS-AT-VALUE>                         618,278
<RECEIVABLES>                                   33,228
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 651,506
<PAYABLE-FOR-SECURITIES>                        31,103
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        6,933
<TOTAL-LIABILITIES>                             38,036
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       608,390
<SHARES-COMMON-STOCK>                            9,790
<SHARES-COMMON-PRIOR>                            9,064
<ACCUMULATED-NII-CURRENT>                       11,019
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                       (16,153)
<OVERDISTRIBUTION-GAINS>                             0
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<NET-ASSETS>                                   613,470
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                               45,924
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (6,620)
<NET-INVESTMENT-INCOME>                         39,304
<REALIZED-GAINS-CURRENT>                         1,934
<APPREC-INCREASE-CURRENT>                        3,456
<NET-CHANGE-FROM-OPS>                           44,694
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<DISTRIBUTIONS-OF-INCOME>                      (4,649)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          3,288
<NUMBER-OF-SHARES-REDEEMED>                    (2,982)
<SHARES-REINVESTED>                                420
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<ACCUMULATED-NII-PRIOR>                         10,556
<ACCUMULATED-GAINS-PRIOR>                     (18,088)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<AVERAGE-NET-ASSETS>                           593,550
<PER-SHARE-NAV-BEGIN>                             8.43
<PER-SHARE-NII>                                    .49
<PER-SHARE-GAIN-APPREC>                            .08
<PER-SHARE-DIVIDEND>                             (.49)
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
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<EXPENSE-RATIO>                                   1.90
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

 

EX-27.CLASSC

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000055185
<NAME> KEMPER INCOME AND CAPITAL PRESERVATION FUND

   <NUMBER> 003
   <NAME> CLASS C
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          OCT-31-1997
<PERIOD-START>                             NOV-01-1996
<PERIOD-END>                               OCT-31-1997
<INVESTMENTS-AT-COST>                          608,064
<INVESTMENTS-AT-VALUE>                         618,278
<RECEIVABLES>                                   33,228
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 651,506
<PAYABLE-FOR-SECURITIES>                        31,103
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                        6,933
<TOTAL-LIABILITIES>                             38,036
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       608,390
<SHARES-COMMON-STOCK>                            1,065
<SHARES-COMMON-PRIOR>                              664
<ACCUMULATED-NII-CURRENT>                       11,019
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                       (16,153)
<OVERDISTRIBUTION-GAINS>                             0
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<NET-ASSETS>                                   613,470
<DIVIDEND-INCOME>                                    0
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<OTHER-INCOME>                                       0
<EXPENSES-NET>                                 (6,620)
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<REALIZED-GAINS-CURRENT>                         1,934
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<DISTRIBUTIONS-OF-INCOME>                        (415)
<DISTRIBUTIONS-OF-GAINS>                             0
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<NUMBER-OF-SHARES-SOLD>                            655
<NUMBER-OF-SHARES-REDEEMED>                      (295)
<SHARES-REINVESTED>                                 41
<NET-CHANGE-IN-ASSETS>                          40,472
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<ACCUMULATED-GAINS-PRIOR>                     (18,088)
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<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               8.53
<EXPENSE-RATIO>                                   1.86 
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

 

EX-27.CLASSI

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1997 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000055185
<NAME> KEMPER INCOME AND CAPITAL PRESERVATION FUND

   <NUMBER> 004
   <NAME> CLASS I
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          OCT-31-1997
<PERIOD-START>                             NOV-01-1996
<PERIOD-END>                               OCT-31-1997
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<RECEIVABLES>                                   33,228
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<SHARES-COMMON-STOCK>                              766
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EX-99.ICLETTER

                   REPORT OF INDEPENDENT AUDITORS


Board of Trustees
Kemper Funds


In  planning and performing our audit of the financial statements  of
each  of  the  Kemper Funds listed in Exhibit A attached hereto  (the
"Funds")  for  the period ended as of the date listed  in  Exhibit  A
attached   hereto  ("Report  Date"),  we  considered  their  internal
control, including control activities 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.

The  management  of  the Funds is responsible  for  establishing  and
maintaining   internal  control.  In fulfilling this  responsibility,
estimates  and  judgments by management are required  to  assess  the
expected benefits and related costs of controls.  Generally, controls
that  are  relevant to an audit pertain to the entity's objective  of
preparing financial statements for external purposes that are  fairly
presented   in   conformity   with  generally   accepted   accounting
principles.   Those  controls  include  the  safeguarding  of  assets
against unauthorized acquisition, use or disposition.

Because  of  inherent  limitations in  internal  control,  errors  or
irregularities  may occur and not be detected.  Also,  projection  of
any  evaluation of internal control 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  would  not  necessarily
disclose  all matters in the internal control 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 one or more of the internal control
components  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 and its operation, including  controls
for   safeguarding  securities,  that  we  consider  to  be  material
weaknesses as defined above as of Report Date.

This  report  is  intended  solely for the  information  and  use  of
management and the Securities and Exchange Commission.


                                        ERNST & YOUNG LLP


Chicago, Illinois
December 16, 1997


Kemper Funds                                      Exhibit A

October 31, 1997


Kemper Total Return Fund
Kemper Diversified Income Fund
Kemper Technology Fund
Kemper U.S. Government Securities Fund
Kemper Income & Capital Preservation Fund
Kemper International Fund
Kemper Blue Chip Fund