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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

              CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
                              INVESTMENT COMPANIES

Investment Company Act file
number                              033-17093
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                                Elfun Diversified Fund
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               (Exact name of registrant as specified in charter)


                3003, SUMMER STREET,STAMFORD, CONNECTICUT, 06904 7900
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               (Address of principal executive offices) (Zip code)


GE ASSET MANAGEMENT,3003, SUMMER STREET,STAMFORD,CONNECTICUT,06904 7900
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                     (Name and address of agent for service)


Registrant's telephone number, including area code: 800-242-0134
                                                    ----------------------------

Date of fiscal year end: 12/31
                        ---------------------------

Date of reporting period: 6/30/03
                          -------------------------



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ITEM 1. REPORTS TO STOCKHOLDERS.

Elfun Diversified Fund  (the "Fund" or "registrant") is an employees'
securities company as defined in the Investment Company Act of 1940, as amended
("1940 Act").  The Fund has received an exemption from various provisions of
the 1940 Act, including Section 30 and the rules thereunder.   Pursuant to this
exemption, the Fund prepares and sends to shareholders only one financial
report per year, its audited annual report, which is sent to shareholders
within the required time following its fiscal year end.  The Fund understands
from consultations with the staff of the Securities and Exchange Commission
(the "staff of the SEC") that, because the Fund is not required under
Section 30 of the 1940 Act to prepare and file a semi-annual financial report
for the current period, it is also not required to prepare and file one for
the current period with respect to this report on Form N-CSR.

ITEM 2. CODE OF ETHICS.

                Applicable only to an annual filing.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

                Applicable only to an annual filing.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

                Applicable only to an annual filing.

ITEM 5. [RESERVED]

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
        MANAGEMENT INVESTMENT COMPANIES.

         Applicable only to Closed-End Management Investment Companies.

ITEM 8. [RESERVED]

ITEM 9. CONTROLS AND PROCEDURES.

The Fund understands from consultations with the staff of the SEC that, because
the Fund is not required under Section 30 of the 1940 Act to prepare and file
a semi-annual report for the current period, its certifying officers are not
required to (a) conduct an evaluation of the Fund's disclosure controls and
procedures for the current period and (b) disclose their conclusions regarding
such evaluation and the effectiveness of the Fund's disclosure controls
and procedures.

There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their last evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.


ITEM 10.  EXHIBITS.

Attached hereto as Exhibit 1 and Exhibit 2 are the Certifications of
John H. Myers and Robert Herlihy as principal executive officer and
principal financial officer, respectively.



                                  SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this Report to
be signed on its behalf by the undersigned, thereunto duly authorized.

Elfun Diversified Fund

By:   /S/JOHN H. MYERS
      John H. Myers
      TRUSTEE, PRESIDENT AND CHIEF EXECUTIVE OFFICER,
      GE ASSET MANAGEMENT INCORPORATED

Date:  August 28, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.


By:   /S/JOHN H. MYERS
      John H. Myers
      TRUSTEE, PRESIDENT AND CHIEF EXECUTIVE OFFICER,
      GE ASSET MANAGEMENT INCORPORATED



By:   /S/ROBERT HERLIHY
      Robert Herlihy
      TREASURER, ELFUN FUNDS

Date:  August 28, 2003