<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000811869
<NAME> THE AAL MUTUAL FUNDS
<SERIES>
   <NUMBER> 3
   <NAME> THE MUNICIPAL BOND FUND
<MULTIPLIER> 1
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          APR-30-1997
<PERIOD-START>                             MAY-01-1996
<PERIOD-END>                               OCT-31-1996
<INVESTMENTS-AT-COST>                      411,281,804
<INVESTMENTS-AT-VALUE>                     428,958,600
<RECEIVABLES>                               11,032,860
<ASSETS-OTHER>                               1,610,693
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             441,602,153
<PAYABLE-FOR-SECURITIES>                    13,173,297
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      898,924
<TOTAL-LIABILITIES>                         14,072,221
<SENIOR-EQUITY>                                      0
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<SHARES-COMMON-STOCK>                       38,174,022
<SHARES-COMMON-PRIOR>                       37,839,087
<ACCUMULATED-NII-CURRENT>                       41,917
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<ACCUMULATED-NET-GAINS>                      6,998,152
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                    17,676,796
<NET-ASSETS>                               427,529,932
<DIVIDEND-INCOME>                                    0
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<NET-INVESTMENT-INCOME>                      9,697,854
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<APPREC-INCREASE-CURRENT>                    8,901,079
<NET-CHANGE-FROM-OPS>                       20,773,063
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (9,697,854)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      1,968,052
<NUMBER-OF-SHARES-REDEEMED>                (2,358,049)
<SHARES-REINVESTED>                            724,932
<NET-CHANGE-IN-ASSETS>                      14,752,612 
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                        1,150,831
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                              1,942,697
<AVERAGE-NET-ASSETS>                       417,332,097
<PER-SHARE-NAV-BEGIN>                            10.91
<PER-SHARE-NII>                                   .258
<PER-SHARE-GAIN-APPREC>                            .29
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                       (.258)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              11.20
<EXPENSE-RATIO>                                    .89
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>