485B24E

                                   1933 Act File No. 33-3165
                                   1940 Act File No. 811-4579

                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                 Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933        x

   Pre-Effective Amendment No.          ..........

   Post-Effective Amendment No.  40 ..............        x

                                  and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

   Amendment No.       ...........................

                              Blanchard Funds
            (Exact Name of Registrant as Specified in Charter)

      Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
                 (Address of Principal Executive Offices)

                              (412) 288-1900
                      (Registrant's Telephone Number)

                        John W. McGonigle, Esquire,
                        Federated Investors Tower,
                    Pittsburgh, Pennsylvania 15222-3779
                  (Name and Address of Agent for Service)

It is proposed that this filing will become effective:

 x  immediately upon filing pursuant to paragraph (b)
    on                   pursuant to paragraph (b)
       -----------------
    60 days after filing pursuant to paragraph (a) (i)
    on                 pursuant to paragraph (a) (i).
    75 days after filing pursuant to paragraph (a)(ii)
    on                   pursuant to paragraph (a)(ii) of Rule 485.
       -----------------

If appropriate, check the following box:

    This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

Registrant has filed with the Securities and Exchange Commission a
declaration pursuant to Rule 24f-2 under the Investment Company Act of
1940, and:

    filed the Notice required by that Rule on                  ; or
                                              -----------------
    intends to file the Notice required by that Rule on or about
               ; or
   ------------
  X during the most recent fiscal year did not sell any securities pursuant
 to Rule 24f-2 under the Investment Company Act of 1940, and, pursuant to
 Rule 24f-2(b)(2), need not file the Notice.


                         Copies To:

Matthew G. Maloney, Esquire
Dickstein Shapiro Morin & Oshinsky LLP
2101 L Street, N.W.
Washington, D.C.  20037




CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933


                                      Proposed
Title of                 Proposed     Maximum
Securities   Amount      Maximum      Aggregate    Amount of
Being        Being       Offering Price            Offering Registration
Registered   Registered  Per Unit     Price*       Fee

Shares of
beneficial
interest
no par value   873,988   $10.05         $8,783,579          $0


*Registrant has elected to calculate its filing fee in the manner described
in Rule 24e-2 of the Investment Company Act of 1940.  The total amount of
securities redeemed during the previous fiscal year was 873,988. The total
amount of redeemed securities used for reductions pursuant to paragraph (a)
of Rule 24e-2 or paragraph (c) of Rule 24f-2 during the current year was 0.
The amount of redeemed securities being used for reduction of the
registration fee in this Amendment is 873,988.



                           CONTENTS OF AMENDMENT

  This Post-Effective Amendment No. 40 to the Registration Statement of
Blanchard Funds is comprised of the following papers and documents:

     1.The facing sheet to register a definite
       number of shares of beneficial interest, no par value, of
       Blanchard Funds.;

     2.The legal opinion of counsel for the Registrant, as
       to the legality of shares being offered; and as to
       the eligibility to become effective pursuant to
       Paragraph (b) of Rule 485; and

     3.Signature page.


                                SIGNATURES

  Pursuant to the requirements of the Securities Act of 1933, the
Registrant, Blanchard Funds certifies that it meets all of the requirements
for effectiveness of this Amendment to its Registration Statement pursuant
to Rule 485(b) under the Securities Act of 1933 and has duly caused this
Amendment to its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Pittsburgh and
Commonwealth of Pennsylvania on the 16th day of December, 1996.

                              Blanchard Funds

          BY:  /s/ C. Grant Anderson
              C. Grant Anderson, Assistant Secretary
             Attorney in Fact for John F. Donahue
             December 16, 1996
  Pursuant to the requirements of the Securities Act of 1933, this
Amendment to its Registration Statement has been signed below by the
following person in the capacity and on the date indicated:

   NAME                     TITLE              DATE

By:  /s/ C. Grant Anderson
   C. Grant Anderson       Attorney In Fact    December 16, 1996
   Assistant Secretary     For the Persons
                           Listed Below

   NAME                     TITLE

John F. Donahue*           Chairman and Trustee


Edward C. Gonzales*        President, Treasurer, and Trustee

Thomas G. Bigley *         Trustee

John T. Conroy, Jr.*       Trustee

William J. Copeland*       Trustee

James E. Dowd*             Trustee

Lawrence D. Ellis, M.D.*   Trustee

Edward L. Flaherty, Jr.*   Trustee

Peter E. Madden*           Trustee

Gregor F. Meyer*           Trustee

John E. Murray, Jr*          Trustee

Wesley W. Posvar*          Trustee

Marjorie P. Smuts*         Trustee

* By Power of Attorney

EX-99.OPINIONLETTER

   FEDERATED ADMINISTRATIVE
             SERVICES

                                          FEDERATED INVESTORS TOWER
                                          PITTSBURGH, PA 15222-3779
                                          412-288-1900

                                          December 16, 1996



Blanchard Funds
Federated Investors Tower
Pittsburgh, PA  15222-3779

Gentlemen:

     You have requested my opinion in connection with the registration by
Blanchard Funds (`Trust'') of an additional 873,988 Shares of Beneficial
Interest (`Shares'') pursuant to Post-effective Amendment No. 40 to the
Trust's registration statement filed with the Securities and Exchange
Commission under the Securities Act of 1933 (File No. 33-3165). The subject
Post-effective Amendment will be filed pursuant to Paragraph (b) of Rule
485 and become effective pursuant to said Rule immediately upon filing.

     As counsel I have participated in the preparation and filing of the
Trust's amended registration statement under the Securities Act of 1933
referred to above. Further, I have examined and am familiar with the
provisions of the Declaration of Trust dated January 24, 1986,
(`Declaration of Trust''), the Bylaws of the Trust and such other
documents and records deemed relevant. I have also reviewed questions of
law and consulted with counsel thereon as deemed necessary or appropriate
by me for the purposes of this opinion.

     On the basis of the foregoing, it is my opinion that:

     1.   The Trust is duly organized and validly existing under the laws
of the Commonwealth of Massachusetts.
     2.   The Shares which are currently being registered by the
Registration Statement referred to above may be legally and validly issued
from time to time in accordance with the Declaration of Trust upon receipt
of consideration sufficient to comply with the Declaration of Trust and
subject to compliance with the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, and applicable state laws
regulating the sale of securities. Such Shares, when so issued, will be
fully paid and non-assessable by the Trust.

     I hereby consent to the filing of this opinion as a part of the
Trust's registration statement referred to above and as a part of any
application or registration statement filed under the securities laws of
the States of the United States.

     The foregoing opinion is limited to the Federal laws of the United
States and the laws of the Commonwealth of Massachusetts, and I am
expressing no  opinion as to the effect of the laws of any other
jurisdiction.

                                   Very truly yours,

                                   /s/ C. Grant Anderson
                                   C. Grant Anderson
                                   Fund Attorney

EX-27.FDS

 

                                                                               
                                                                         
                                                                               
<ARTICLE>                       6                                              
                                                                       
     <NUMBER>                   10                                             
     <NAME>                     Blanchard Funds                                
                                Blanchard Capital Growth Fund                  
                                                                               
<PERIOD-TYPE>                   12-mos                                         
<FISCAL-YEAR-END>               Oct-31-1996                                    
<PERIOD-END>                    Oct-31-1996                                    
<INVESTMENTS-AT-COST>           1,203,028                                      
<INVESTMENTS-AT-VALUE>          1,531,400                                      
<RECEIVABLES>                   95,754                                         
<ASSETS-OTHER>                  106,806                                        
<OTHER-ITEMS-ASSETS>            0                                              
<TOTAL-ASSETS>                  1,733,960                                      
<PAYABLE-FOR-SECURITIES>        0                                              
<SENIOR-LONG-TERM-DEBT>         0                                              
<OTHER-ITEMS-LIABILITIES>       28,112                                         
<TOTAL-LIABILITIES>             28,112                                         
<SENIOR-EQUITY>                 0                                              
<PAID-IN-CAPITAL-COMMON>        1,243,554                                      
<SHARES-COMMON-STOCK>           194,365                                        
<SHARES-COMMON-PRIOR>           223,270                                        
<ACCUMULATED-NII-CURRENT>       0                                              
<OVERDISTRIBUTION-NII>          0                                              
<ACCUMULATED-NET-GAINS>         153,001                                        
<OVERDISTRIBUTION-GAINS>        0                                              
<ACCUM-APPREC-OR-DEPREC>        309,293                                        
<NET-ASSETS>                    1,705,848                                      
<DIVIDEND-INCOME>               17,746                                         
<INTEREST-INCOME>               9,899                                          
<OTHER-INCOME>                  0                                              
<EXPENSES-NET>                  112,537                                        
<NET-INVESTMENT-INCOME>         (84,892)                                       
<REALIZED-GAINS-CURRENT>        211,230                                        
<APPREC-INCREASE-CURRENT>       117,142                                        
<NET-CHANGE-FROM-OPS>           243,480                                        
<EQUALIZATION>                  0                                              
<DISTRIBUTIONS-OF-INCOME>       0                                              
<DISTRIBUTIONS-OF-GAINS>        0                                              
<DISTRIBUTIONS-OTHER>           0                                              
<NUMBER-OF-SHARES-SOLD>         277,867                                        
<NUMBER-OF-SHARES-REDEEMED>     306,772                                        
<SHARES-REINVESTED>             0                                              
<NET-CHANGE-IN-ASSETS>          (5,157)                                        
<ACCUMULATED-NII-PRIOR>         0                                              
<ACCUMULATED-GAINS-PRIOR>       0                                              
<OVERDISTRIB-NII-PRIOR>         0                                              
<OVERDIST-NET-GAINS-PRIOR>      0                                              
<GROSS-ADVISORY-FEES>           12,080                                         
<INTEREST-EXPENSE>              0                                              
<GROSS-EXPENSE>                 249,112                                        
<AVERAGE-NET-ASSETS>            1,726,890                                      
<PER-SHARE-NAV-BEGIN>           7.660                                          
<PER-SHARE-NII>                 (0.440)                                        
<PER-SHARE-GAIN-APPREC>         1.560                                          
<PER-SHARE-DIVIDEND>            0.000                                          
<PER-SHARE-DISTRIBUTIONS>       0.000                                          
<RETURNS-OF-CAPITAL>            0.000                                          
<PER-SHARE-NAV-END>             8.780                                          
<EXPENSE-RATIO>                 6.07                                           
<AVG-DEBT-OUTSTANDING>          0                                              
<AVG-DEBT-PER-SHARE>            0.000                                          
                                                                               

 

EX-27.FDS

 

                                                                               
                                                                         
                                                                               
<ARTICLE>                       6                                              
                                                                       
     <NUMBER>                   09                                             
     <NAME>                     Blanchard Funds                                
                                Blanchard Growth and Income Fund               
                                                                               
<PERIOD-TYPE>                   12-mos                                         
<FISCAL-YEAR-END>               Oct-31-1996                                    
<PERIOD-END>                    Oct-31-1996                                    
<INVESTMENTS-AT-COST>           14,728,020                                     
<INVESTMENTS-AT-VALUE>          15,578,013                                     
<RECEIVABLES>                   7,768                                          
<ASSETS-OTHER>                  55,386                                         
<OTHER-ITEMS-ASSETS>            0                                              
<TOTAL-ASSETS>                  15,641,167                                     
<PAYABLE-FOR-SECURITIES>        0                                              
<SENIOR-LONG-TERM-DEBT>         0                                              
<OTHER-ITEMS-LIABILITIES>       91,983                                         
<TOTAL-LIABILITIES>             91,983                                         
<SENIOR-EQUITY>                 0                                              
<PAID-IN-CAPITAL-COMMON>        13,168,507                                     
<SHARES-COMMON-STOCK>           1,645,267                                      
<SHARES-COMMON-PRIOR>           794,485                                        
<ACCUMULATED-NII-CURRENT>       100,911                                        
<OVERDISTRIBUTION-NII>          0                                              
<ACCUMULATED-NET-GAINS>         943,533                                        
<OVERDISTRIBUTION-GAINS>        0                                              
<ACCUM-APPREC-OR-DEPREC>        1,336,233                                      
<NET-ASSETS>                    15,549,184                                     
<DIVIDEND-INCOME>               240,132                                        
<INTEREST-INCOME>               90,687                                         
<OTHER-INCOME>                  0                                              
<EXPENSES-NET>                  229,908                                        
<NET-INVESTMENT-INCOME>         100,911                                        
<REALIZED-GAINS-CURRENT>        956,737                                        
<APPREC-INCREASE-CURRENT>       849,993                                        
<NET-CHANGE-FROM-OPS>           1,907,641                                      
<EQUALIZATION>                  0                                              
<DISTRIBUTIONS-OF-INCOME>       0                                              
<DISTRIBUTIONS-OF-GAINS>        153,889                                        
<DISTRIBUTIONS-OTHER>           0                                              
<NUMBER-OF-SHARES-SOLD>         1,400,562                                      
<NUMBER-OF-SHARES-REDEEMED>     567,216                                        
<SHARES-REINVESTED>             17,436                                         
<NET-CHANGE-IN-ASSETS>          9,105,899                                      
<ACCUMULATED-NII-PRIOR>         (23,610)                                       
<ACCUMULATED-GAINS-PRIOR>       140,685                                        
<OVERDISTRIB-NII-PRIOR>         (2,119)                                        
<OVERDIST-NET-GAINS-PRIOR>      0                                              
<GROSS-ADVISORY-FEES>           85,166                                         
<INTEREST-EXPENSE>              0                                              
<GROSS-EXPENSE>                 438,369                                        
<AVERAGE-NET-ASSETS>            12,051,948                                     
<PER-SHARE-NAV-BEGIN>           8.110                                          
<PER-SHARE-NII>                 0.060                                          
<PER-SHARE-GAIN-APPREC>         1.440                                          
<PER-SHARE-DIVIDEND>            0.000                                          
<PER-SHARE-DISTRIBUTIONS>       0.160                                          
<RETURNS-OF-CAPITAL>            0.000                                          
<PER-SHARE-NAV-END>             9.450                                          
<EXPENSE-RATIO>                 1.42                                           
<AVG-DEBT-OUTSTANDING>          0                                              
<AVG-DEBT-PER-SHARE>            0.000